Social energy tariff still ‘under serious consideration’

A social energy tariff is still “something under very serious consideration” by government, despite fears ministers had “lost appetite” for such a scheme, Utility Week understands.

With fears the most vulnerable consumers are facing still high energy bills this winter there are growing calls – including through Utility Week‘s Action on Bills campaign – for substantial targeted support such as a social tariff.

Yet one industry source recently told Utility Week that they believe ministers have made a “political decision” not to proceed with the plans.

Meanwhile another said that officials from both the Department for Energy Security and Net Zero and Treasury indicated they had not had a great deal of feedback from their respective ministerial teams on social tariff proposals and were therefore “to some extent, working relatively in the dark”.

A Westminster insider however, who did not wish to be named, has since said they believe the option is still on the table, with ministers giving a social tariff “very serious consideration”.

It comes as a recent report by Conservative-leaning thinktank, the Centre for Policy Studies, called on the government to scrap the energy price cap in its current form and look to introduce stronger protections for the most vulnerable consumers, such as a social tariff.

Conservative Peter Aldous, who sits on the All-Party Parliamentary Group on Fuel Poverty and Energy Efficiency, told Utility Week that there are still backers of a social tariff within his party.

He added: “I have always believed that there are clear merits in a social tariff.

“Over the past year the government has rightly focused on providing direct support for vulnerable households and whilst they will obviously look very closely at that over the coming winter there is a need to put in place long term support for the most vulnerable and in that context I still believe that a social tariff has a very important role to play and should be introduced.”

Meanwhile a Department for Energy Security and Net Zero spokesperson said: “We covered around half a typical household’s energy bill over winter. As costs start to fall with the new price cap kicking in, the Energy Price Guarantee will remain in place as a safety net through to April 2024 – with additional help targeted at the most vulnerable.

“The outlook for energy prices has improved significantly since the Autumn Statement, which is good news for households who have seen their energy bills come down. The government continues to monitor the situation and will keep options under review, including with respect to the most vulnerable households.”