Energy prices have fallen significantly since winter 2022-23, and the Quarter 2 2024 price cap of £1,690 has fallen by nearly 60% since the Quarter 1 2023 price cap peak. Despite this, the Government has committed to supporting households in 2024-25, with a further cut to National Insurance contributions down to 8%, an increase to benefits of 6.7%, and the largest increase to the National Living Wage.

The Warm Home Discount continues to provide a £150 rebate off energy bills for eligible low-income households until 2025-26.

The setting of the default tariff (price) cap is a matter for Ofgem.

On 23 February Ofgem confirmed the price cap is to be £1,690 for the second quarter of this year, which is a reduction of 12% on the previous quarter and the lowest level for two years. The Government has a package of targeted cost of living support for households and is increasing pensions and the national living wage.

As stated in Powering Up Britain, published in 2023, the mission of the Department for Energy Security & Net Zero is to replace reliance on imported fossil fuels with cheaper, cleaner, domestic sources of energy. This set out our strategy to increase supply of low-carbon energy by enhancing our strengths on wind, solar and nuclear power electricity generation alongside hydrogen production and carbon capture, usage and storage. This includes the infrastructure to produce, store and transport low-carbon energy around the country and to capture, transport and store carbon dioxide.

Gas prices for UK industrial users are among the cheapest in Europe. However, the UK’s industrial electricity prices are higher than those of comparable countries because the UK has spread electricity infrastructure costs more evenly between industry and households compared to other European countries.

Some energy and trade intensive industries that are particularly exposed receive energy price support.

For household customers, the price cap ensures that default tariffs in GB reflect the reasonable costs of supply.

Government also provided unprecedented levels of support to households and businesses across the UK last winter in response to global energy price spikes.

The Government is continuing to support those most in need, with millions of vulnerable households receiving up to £900 in further Cost of Living Payments. This is in addition to support available to low-income and vulnerable households, including £250 - £600 through the Winter Fuel Payment and an annual rebate of £150 off their energy bills through the Warm Home Discount.

Energy prices have also significantly fallen in the past year alone and the Q1 2024 price cap of £1,928 has more than halved compared to Q1 2023 when the price cap peaked at £4,279.

The Government announced on 15 November that the Competition & Markets Authority (CMA) would undertake the ongoing road fuels price monitoring function. The Digital Markets, Competition & Consumers (DMCC) Bill was amended at Commons Report stage to give the CMA information-gathering powers for the monitoring function.

We will consult shortly on the statutory road fuel prices open data scheme and elements of the monitoring function not outlined in the DMCC Bill. Following conclusion of the consultation process and Royal Assent of the Data Protection & Digital Information Bill, secondary legislation will be laid using Smart Data powers to establish the open data scheme.

The publication on 16 November of core parameters, including Administrative Strike Prices (ASPs) for the next Contracts for Difference (CfD) round, does not determine impacts on consumer bills. The ASPs are the maximum prices available for renewable electricity, with the actual price being achieved through a competitive auction process. Renewable electricity procured through the CfD continues to provide value for money for consumers by capping the price paid to generators.

The Competition and Market Authority (CMA) found drivers without fuel cards pay more at motorway service stations due to limited competitive pressures. Differences in costs, including rent, staff wages and fuel volume sold also cause price variations.

This autumn, we will consult on CMA recommendations for a road fuel price open data scheme and elements of a monitoring function. The government has tabled amendments to the Digital Markets, Competition & Consumer Bill to give the CMA information gathering powers for the monitoring function. Upon Royal Assent of the Data Protection and Digital Information Bill, smart data powers will be used to enact regulations for the open data scheme.

The Government has committed to consult on the design of the statutory open data scheme for road fuel prices this autumn.

Part 3 of the Data Protection and Digital Information (No.2) Bill will extend the government’s ability to establish and mandate participation in smart data schemes via regulations.

The King’s Speech on 7 November confirmed that the Bill will carryover and resume passage this Parliamentary session. Following conclusion of the consultation process and Royal Assent of the Bill, the government will lay regulations using the smart data powers to set up the statutory open data scheme for road fuel prices.

The Government recognises the cost-of-living challenges families are facing and in response last winter we launched a package of support for households and businesses, spending £40 billion and paying around half a typical household’s energy bill.

In order to continue protecting the most vulnerable, in 2023-24 the Government is already providing additional cost of living payments of up to £900 to households on means-tested benefits, of £300 to pensioner households, and of £150 to those on eligible disability benefits. The vast majority of this support has been and will be made available automatically to households and without the need for an application process.

In the 2022 Growth Plan, the Government pledged to provide £150 to cover the costs ofgreen leviesincluded in energy bills for two years through the Energy Price Guarantee (EPG). By the end of June, this Guarantee will have saved a typical household in Great Britain around £1,100 in total, including the £150 we committed to.

From July 2023, the Ofgem price cap will be set at £2,074, below the EPG discount level of £3,000 for a typical household.

Powering Up Britain – Energy Security Plan sets out the steps the Government is taking to ensure the UK is more energy independent, secure and resilient as well as our goal for Britain to have among the cheapest wholesale electricity prices in Europe by 2035.

The Government has also announced new measures to support Britain’s Energy Intensive Industries (EIIs) faced with high electricity prices. The British Industry Supercharger will reduce policy costs by exempting eligible firms from the costs of renewable energy obligations and the GB Capacity Market. It will offer support with network charges and bring an increase in the capacity market exemption, for which we are currently carrying out a public consultation. This is in addition to other ongoing support providing compensation for the indirect costs of the UK Emissions Trading Scheme and the Carbon Price Support mechanism.

As announced in the Spring Budget, the Energy Price Guarantee has been extended at £2,500 for an additional three months from April to the end of June. Current projections expect Ofgem's Price Cap to fall below the Government's Energy Price Guarantee from 1st July, meaning that households will pay the lower rate set by the Price Cap.

We intend to consult in Summer 2023 on options for a new approach to consumer protection in the energy markets from April 2024 onwards.

The Renewable Heat Incentive Scheme pays for heat generated by participants. It does not pay for the supply of wood.

As announced in the Spring Budget, the Energy Price Guarantee has been extended at £2,500 to the end of June. By the end of June, the Energy Price Guarantee will have saved a typical household in Great Britain around £1,100 since the scheme began in October, compared to what they would have been paying under the price cap alone.

As set out in the Autumn Statement 2022, the Government is developing a new approach to consumer protection in energy markets, which will apply from April 2024 onwards.

The Government has committed to work with consumer groups and industry to consider the best approach.

The Alternative Fuel Payment (AFP) scheme provides a £200 grant payment to UK households that use alternative fuels for heating instead of mains gas. Most households received the payment automatically through their electricity supplier, who were obliged to pay customers during February. Traditional prepayment customers may receive a voucher which they can redeem within 3 months. For the small proportion of households who could not be paid automatically, the online portal to apply for the support is open on gov.uk now. A small proportion of households will need to apply for the AFP, for example because they do not have a relationship with an electricity supplier. Applications for this Alternative Fund opened on 6 March through a GOV.UK portal which includes an overview of eligibility and what steps households need to take to apply for support.

The Government has set up a number of Energy Affordability Schemes to support low-income customers with energy prices such as Energy Bills Support Scheme and the Energy Price Guarantee which all households will benefit from.

As announced in the Spring Budget, the Energy Price Guarantee has been extended at £2,500 for an additional three months to the end of June 2023 to further support households with energy bills.

The Autumn Statement set out a commitment to work with consumer groups and industry to consider the best approach to consumer protection from April 2024.

In addition, for 2023/24, households on eligible means-tested benefits will get up to £900 in Cost of Living payments. Pensioners will receive a £300 Pensioner Cost of Living Payment alongside their Winter Fuel Payment.  The Warm Home Discount will also provide £150 per eligible household for the financial year 2023/24.

The Energy Bill Relief Scheme (EBRS) provides a discount on the wholesale element of gas and electricity bills to ensure that all eligible businesses, including leisure sector and community facilities, are protected from high energy costs this winter period.

Following an HMT-led review, the new Energy Bill Discount Scheme will run from April until March 2024, and will continue to provide a discount to eligible non-domestic customers, including the leisure sector and community facilities.

The Government will also provide over £60 million of new funding for public swimming pools in England for 2023/24.