Government fears supplier support will tarnish energy proposals

Government officials fear supplier endorsement of upcoming energy proposals will turn the public against the measures.

A leaked briefing note from a government official states that they “do not necessarily want [the] advocacy” of the big six energy retailers as “consumer trust is so low in suppliers that if a package of this kind is backed by them then consumers will instinctively regard it as not in their interests”.

Utility Week understands that the briefing note was drawn up by an official within the Department for Energy Security and Net Zero (DESNZ) and relates to announcements due to be unveiled by Ofgem on Friday.

The reforms are not revealed within the leaked briefing note shared on social media.

However, Utility Week has learned that proposals due to be announced include:

• A drop in the price cap from £1,690 to £1,574
• The reintroduction of the Warm Home Discount for the extra 750,000 people who were eligible for support last winter
• A commitment from suppliers to ensure customers have access to in home displays that work with their smart meters

The package of proposals could also include consultations on rebalancing policy costs and reforms to the standing charge.

An email sent from Energy UK deputy chief executive Dhara Vyas to the trade association’s board and Domestic Retail Leadership Forum – and seen by Utility Week – raises concerns about DESNZ’s view of retailers.

Vyas says that the briefing note “confirms a concerning sentiment within the department (DESNZ) about the complex relationship between suppliers and customers”.

“Our role as an industry goes beyond ensuring that we keep the lights on – the retail market is crucial to the success of the energy transition and is often overlooked by government in serious policy thinking,” the email adds.

“Whilst trust in the market can always be improved, and we should look collectively and individually at what we can do to achieve that, the issue is far more nuanced than officials seem to believe.

“Further, we will be clear with Government that policy is a major contributing factor here – from the smart meters targets to EBSS and WHD delivery, Government policy is often at least partly the cause of customer issues.”

The email concludes that Energy UK chief executive Emma Pinchbeck will be taking these concern up directly with energy secretary Claire Coutinho.

A DESNZ spokesperson said: “The energy secretary has made clear her priority to protect consumers and we are always looking for ways to do that.

“This includes working closely with our trusted stakeholders and energy suppliers, as part of our aim to keep energy costs down.”