Our response to the BEIS Committee’s energy pricing and the future of the energy market report

Today (26 July) the Department for Business, Energy and Industrial Strategy (BEIS) Committee has launched its final report, concluding its inquiry into energy pricing and the future of the energy market.

The report has made some key recommendations in light of Ofgem’s prediction that October’s energy price cap is likely to exceed previous forecasts. The report urges the UK Government to update its support package to help the most vulnerable households with soaring energy bills and roll out a long-term nationwide retrofit programme to bring down bills.

Jack Wilkinson-Dix, policy manager at Energy Saving Trust, said: “As today’s BEIS Committee report highlights, with Ofgem’s predictions of October’s energy price cap exceeding previous forecasts, the government must now review and update May’s package of support measures for those most in need.

“As well as providing upfront funding to help households cope with the immediate energy crisis, we support the report’s recommendation for a nationwide retrofit programme to enable households to install home energy efficiency improvements. This must be funded to run on a long-term basis to give industry the confidence and financial security to supply services and assist as many households as possible to insulate their homes. To support this, addressing the need for skilled installers, in the right numbers, must also be a priority.

“The opportunity to make significant headway on this in time for winter is slipping away. However, once deployed, such measures could support UK homes to improve their Energy Performance Certificate (EPC) rating to a ‘C’ or better, which could result in a considerable bill saving of £916 a year for the average household,[1] while also reducing carbon emissions.

“Regardless of who the next Prime Minister is, it is vital they set out detailed delivery plans for how the UK is going to get to a net zero future. This must go hand in hand with tackling the energy crisis. We need to see a renewed focus on balancing immediate support with reducing energy consumption through energy efficiency and securing our energy system for the long-term by investing in renewable energy sources.”

[1] https://www.e3g.org/publications/the-home-energy-security-strategy-permanently-lower-uk-bills/