Energy Security and Net Zero Committee launches new inquiry o the cost of energy

Tuesday, 18 February 2025 14:55

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...Request free trial

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.

This new inquiry aims to:

Determine whether the rules on billing are fair to all consumers
Understand where the costs of energy transition may fall within the sector in a more equitable fashion
Examine the protections for consumers against energy retailers
Hold the Government to account on its promise to reduce energy bills by £300

The Committee is now inviting evidence on any or all of the following questions by April 6:

Are the costs and benefits of the energy system properly reflected in consumer bills?
How should consumer bills be insulated from inflated prices due to shocks to the global supply of gas? What needs to change?
Where should the costs of decarbonising the grid lie?
Is it practical for consumer bills to be reduced by £300 before the end of the Parliament?
Does the Ombudsman service provide a responsive, accessible service for consumers in dispute with their energy providers? /ENDS

Notes:

Media enquiries to Jessica bridgespalmerj@parliament.uk / 07917 488489

What is the Energy Security & Net Zero Committee?       

The Energy Security & Net Zero Committee scrutinises the policy, spending and administration of the Department for Energy Security and Net Zero and its public bodies, including Ofgem and the Committee on Climate change.

Select Committees are not a part of the Government but a cross-party committee of backbench MPs that is appointed by the whole House of Commons. Our inquiries are correctly described as a “parliamentary inquiry” or an “inquiry by MPs”. 