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Written question asked by Baroness Altmann (Conservative) on Monday, 30 January 2023, in the House of Lords. It was due for an answer on Monday, 13 February 2023. It was answered by Lord Callanan (Conservative) on Wednesday, 8 February 2023 on behalf of the Department for Business, Energy and Industrial Strategy.

Energy: Prices

Question

To ask His Majesty's Government what instructions they have given to Ofgem on ensuring that the costs of failed energy firms do not fall more heavily on vulnerable customers and single person households.

Answer

The costs of failed energy firms have contributed to an increase in standing charges. The energy regulator, Ofgem, reviewed whether the existing fixed charge was appropriate or whether a usage-based (volumetric) alternative would be more suitable.

Ofgem concluded that while some low consuming users, some of whom may be vulnerable, might benefit from change, there are a number of higher consuming users including vulnerable users that would pay more.

Ofgem’s current methodology protects users with greater energy needs, such as disabled users and users with electric heating in areas off the gas grid.

Secondary information

Type
Written question
Reference
HL5173
Session
2022-23
Subjects
Consumers Companies Energy Ofgem Insolvency Prices
Link
View this Written question on www.parliament.uk