Fuel markets are governed by competition and consumer law, overseen by the Competition and Markets Authority (CMA). The Government and the CMA are closely monitoring petrol and diesel prices in light of instability in the Middle East, and the Chancellor and Secretary of State recently met with fuel retailers to set out a clear message: unfair practices will not be tolerated.

We are also engaging regularly with refiners, importers and distributors to ensure any emerging risks are identified and managed promptly. The government has also introduced the statutory Fuel Finder scheme, which will increase transparency for UK road fuel prices and the CMA have the power to take enforcement action for non-compliance.

Defra meets regularly with trade association groups such as the National Farmers Union. It is not for HM Government to comment on wages of private businesses nor to comment on day-to-day commercial decisions.

From 1 July, the Government will use the Energy Price Guarantee to eliminate the premium paid by households on prepayment meters (PPMs), which is worth around £45 per year. The Government has asked Ofgem to report by the autumn on options to permanently remove the PPM differential, for when the EPG ends on 31 March 2024.

This winter the Government have paid around half of a typical household’s energy bill, saving around £1,300 through the combination of the Energy Price Guarantee and the £400 payments towards bills. The calculation is based on Ofgem’s standard definition of an average GB household using electricity and gas, paying by direct debit and with “median” consumption which, for example, could be a 2–3-bedroom house, with 2-3 people. The Government has put in place a range of schemes to ensure that all households receive support no matter what type of house they live in or what type of energy they use.

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, including options such as social tariffs, as part of wider retail market reforms.

Officials are assessing evidence and options, including published reports, including ‘Fairer, Warmer, Cheaper’ and discussing these with stakeholders, including Citizens Advice, who commissioned this report. The Government will set out its position when this assessment is complete, in time to deliver a new approach from April 2024.

The Department has made no assessment of the impact of the Rosebank field on wholesale energy prices.

As announced in the 2022 Autumn Statement, from 1 April the Energy Price Guarantee (EPG) ‘target bill’ in GB will be £3000 per year, up from £2500. HM Treasury analysis that accompanied the Autumn Statement can be found here, with analysis on page 13 showing that, both as a percentage of net income and in cash terms, the EPG and Cost of Living payments provide greater support to those households at the bottom end of the distribution than at the top:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1118360/Impact_on_households_-_AS22.pdf.

A Public Sector Equality Duty analysis of the policy has been carried out in the usual way.

As announced in the 2022 Autumn Statement, from 1 April the Energy Price Guarantee (EPG) ‘target bill’ in GB will be £3000 per year, up from £2500. HM Treasury analysis that accompanied the Autumn Statement can be found here, with analysis on page 13 showing that, both as a percentage of net income and in cash terms, the EPG and Cost of Living payments provide greater support to those households at the bottom end of the distribution than at the top:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1118360/Impact_on_households_-_AS22.pdf.

A Public Sector Equality Duty analysis of the policy has been carried out in the usual way.

Energy distribution charges, which are incurred by suppliers and passed through to consumers, vary regionally to reflect the costs of maintaining and upgrading the distribution network in a specific area, and the number of consumers between whom those costs are spread.

The price cap ensures customers pay a fair price for their energy based on the underlying costs of supplying it. How suppliers set the standing charge and unit rate is a commercial decision.

To help UK consumers with rising energy costs, the Government launched various energy support schemes. These include the Energy Price Guarantee, Alternative Fuel Payment, and Energy Bills Support Scheme.

The Government will provide free energy efficiency upgrades to low-income and vulnerable households through local authorities and energy suppliers. Government-funded upgrades will be available for poorly insulated homes via the Energy Company Obligation from spring 2023. The most vulnerable households will receive a Cost-of-Living Payment of £900 for means-tested benefits, £300 for pensioners, and £150 for individuals on disability benefits. Furthermore, from April 2023, benefits, including working-age and State Pension, will increase by over 10%.

Assuming a typical dual fuel consumption based on Ofgem’s Typical Domestic Consumption Values, and that a typical person pays the average rate for each payment type, the average energy bill in Q1 2023 for customers paying by Direct Debit is £676 and by prepayment meter £735. These take into account the discounts provided by Energy Price Guarantee and Energy Bill Support Scheme and reflect normal seasonal patterns of higher demand in winter.

The Government does not routinely disclose details of discussions it has with stakeholders, but officials have already met with, or arranged to meet with, the Regulator, Ofgem, charities and consumer groups, energy suppliers, officials from other Government Departments, academics and representatives of local authorities.

Officials are proactively reaching out to, and inviting views from, stakeholders, on the best approach to consumer protection, including options such as social tariffs.

As set out in the Autumn Statement, the Government is developing a new approach to consumer protection in energy markets, which will apply from April 2024 onwards, after the closure of the Energy Price Guarantee.

The Government has committed to work with consumer groups and industry to consider the best approach, including options such as social tariffs, as part of wider retail market reforms.

Supply licence conditions, enforced by the independent regulator Ofgem, state that differences in price between payment methods for energy must reflect the cost to the supplier of that payment method. The costs of managing prepayment meters are higher than those for standard meters due to the different metering requirements and payment systems.

Customers on traditional prepayment meters should redeem their Energy Bill Support Scheme vouchers promptly each month to help with their household finances. The Government is working with suppliers to seek ways to increase redemption rates significantly. Suppliers are required to ensure all their traditional prepayment meter customers are aware of the vouchers and how they can redeem them.

Rising food prices are dependent on a combination of factors including agri-food import prices, domestic agricultural prices, domestic labour and manufacturing costs. Given sustained pressures, we anticipate food prices continuing to trend upwards in the short term. Defra is closely monitoring the situation and taking action to maintain an efficient food supply chain by mitigating against any potential burdens or friction which could otherwise drive-up consumer food prices. In addition, my Department continues to use regular engagement to work with retailers and producers to explore the range of measures they can take to ensure the availability of affordable food. However, it is not for HM Government to set retail food prices nor to comment on day-to-day commercial decisions by companies.

The energy regulator Ofgem has rules in place that restrict the force-fitting of a prepayment meter on customers who are in debt, except as a last resort. Forcible installations of prepayment meters (PPMs) for the most vulnerable customers have been banned by Ofgem since 2017.

Government support with energy bills is available to households, regardless of the type of meter they have.

The Government has already invested £6.6 billion on decarbonising heat and energy efficiency measures.

The additional £6 billion of new Government funding, announced in the Autumn Statement, will be made available from 2025 to 2028. This provides long-term funding certainty, supporting the growth of supply chains, and ensuring the Government can scale up its delivery over time. This investment is on top of the Government's plan to protect households from high energy bills through the Energy Price Guarantee, saving households £900.

Ofgem, as the independent energy regulator, uses the price control process to set the amount that Network Operators can spend and the returns they can make on investment, in a way that allows the funding needed for a more resilient, low-carbon network while protecting consumers from excessive costs.

The Government engages regularly with Ofgem and the network companies throughout the development of the price controls. The next electricity distribution network price control will commence in April 2023, with Final Determinations from Ofgem expected shortly.