One of the strongest cases for the energy transition is the opportunity to make energy much cheaper.
In a new enquiry into energy bills, the ESNZ committee will consider how bills can be reduced for consumers- both domestic and commercial.
In a cost-of-living crisis with many households in debt and financial distress, there are concerns that the current standing charge on bills is regressive. There are also significant concerns about the balance between electricity and gas prices in the UK and whether the levies included in bills can be reduced either by rebalancing with gas or through higher taxes. This is a big issue for commercial bills as international competitors have the advantage of lower electricity prices.
The Committee has also been presented with evidence of issues with regard to back-billing- where suppliers issue a bill for energy used more than 12 months ago, which is against clear Ofgem rules.
How are consumers protected from bad behaviour by energy retailers, and how should disputes between consumers and their energy suppliers be resolved?
Reducing energy bills was a key manifesto pledge of the incoming Government: how achievable is that goal and where is the balance to be struck on where system and decarbonisation costs are placed.
The Committee is also interested in the impact of the transition costs on business and commercial users, who do not benefit from the price cap introduced for domestic consumers.