Next government urged to fast track long-awaited bill support consultation

The next government must “urgently” publish a consultation on implementing targeted energy bill support for the most vulnerable, the industry’s trade body has warned.

Energy UK made the comments in a briefing document which outlines the disappointment felt by industry, consumer groups and charities that a consultation on targeted support promised in the 2022 Autumn statement is yet to materialise.

More than £33 billion was spent across the Energy Price Guarantee and the Energy Bills Support Scheme (EBSS) during the energy crisis, Energy UK said, but even with the “unprecedented level of support, millions of households still struggled to afford their energy bills” which it added are still a third higher than pre-crisis levels.

In order to address this, government “should consider an enduring, targeted support mechanism” to help those most in need.

Specifically, it said:

• Support needs to move away from unsustainable one-time universal interventions by establishing a targeted support mechanism whilst also addressing the underlying issues of energy affordability;
• The government should urgently follow through on a consultation addressing targeted, enduring bill support for vulnerable customers;
• This support needs to be funded progressively through general taxation, rather than the regressive current option of funding it through bills, and;
• It should be underpinned by improved data and data-sharing capable of targeting support based on household income data.

Ultimately while it should be energy suppliers which deliver this support, the government must determine eligibility.

“It also needs to be designed in a way that maintains the ability and incentive to engage the market, ensuring its long-term sustainability,” Energy UK added.

It comes as charity National Energy Action (NEA) estimated that as of 1 October 2023, 6.3 million UK households were living in fuel poverty.

As a result of the energy crisis, the sector is dealing with unprecedented levels of debt and Ofgem’s most recent data shows that customer debt and arrears in energy are now around £3.1 billion – double the level at the start of 2020.

Elsewhere, Energy UK has also called for the urgent acceleration of the buildout of electric vehicle (EV) charging infrastructure.

It argues that the 2030 phase-out date for petrol and diesel vehicle sales, which the government recently pushed to 2035, should be restored.

“A firm date, alongside public engagement, will provide the market signals to sell or buy more EVs and encourage the private sector to invest in charging infrastructure,” it said.

Other recommendations include accelerating the delivery of rapid charging, as well as calls for the next government to undertake a review of the National Planning Policy Framework to streamline planning processes.