- Government sets out vision for a future energy market, with
better consumer choice and protections at its core
- industry invited to shape future of the market, focussing on
innovation to unlock competition and usher in new low carbon
technologies
- collaboration with energy suppliers marks positive step
forward in building a more resilient and investable market
Households across Great Britain will have better access to energy
deals and more control over their energy use as part of
government plans to boost competition and innovation in the
energy market.
Energy Consumers and Affordability Minister today outlined plans to
ensure consumers have a much wider range of using energy –
whether that’s tariffs offering lower prices at certain times of
the day, smart chargers that automatically put users on the
lowest rate to charge electric vehicles or opportunities to buy
shares in renewable energy in return for electricity bill
discounts.
Already some retailers are offering these more flexible and
tailored ways of using energy, but today’s plans would ensure
even more households benefit from these opportunities.
Putin’s barbaric attack on Ukraine sent energy prices soaring,
with the government stepping in to cover half a typical
household’s energy bills this winter. However, despite prices
falling by two thirds since their peak, the majority of suppliers
are continuing to charge consumers the maximum amount allowed
under the default tariff price cap instead of offering more
innovative and flexible products.
As the government continues to work with stakeholders and
consumer groups on energy bill support for vulnerable households,
it wants to make sure the market is resilient, competitive, fit
for the future and delivers for consumers.
That is why energy suppliers are today being asked to put forward
ideas that will ensure consumers benefit from the cheaper cost of
powering their homes as more of their electricity comes from
renewables, and from using their energy when demand is lower.
, Minister for Energy
Consumers and Affordability said:
The global rises in energy prices caused by Putin’s barbaric
invasion of Ukraine shows why we need to bolster our energy
security and strengthen our energy market, so families and
businesses are protected, while getting a fair deal.
Over the winter, we provided unprecedented levels of support –
including paying nearly half a typical household’s energy bill –
and took decisive steps to stabilise the retail market.
We now want to put power back in the hands of consumers, giving
them greater options to cut their energy bills in a market fit
for the future. Today, I’m calling on industry to work with us,
and take up the opportunities of investing in low-carbon
technologies and providing a first-class customer service.
With energy from renewables now accounting for 40% of electricity
supply, today’s announcement signals a positive step forward in
future-proofing the market, as the UK transitions to a greener,
more secure energy system.
The government wants energy retailers to play a driving role in
unlocking barriers to innovation that will bring real benefits to
both consumers and suppliers alike.
To that end, government will now work with industry to gather
their views and evidence on ways to make low carbon technologies
more commonplace, bringing out this monumental sea-change in our
energy retail market.
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