Drew Hendry

There are a number of complex issues arising from the recommendations in the Compensation Framework Study. These issues are under active consideration across government, including consideration of Sir Robert’s evidence to the independent Inquiry on 11-12 July. I will update the House as this work progresses.

I refer the Hon. member to the answer given to PQ 16932 on 20 June.

I refer the Hon. member to the answer given to PQ 16932 on 20 June.

I refer the hon. Member to the Written Statement of 14th of September, which sets out the reasons for the change to the timetable for introducing border import controls on goods from the EU.

The Government is working closely with the Devolved Administrations on the delay to the introduction of controls, especially on controls and checks on Sanitary and Phytosanitary goods which are a devolved matter.

I refer the hon. Member to the Written Statement of 14th of September, which sets out the reasons for the change to the timetable for introducing border import controls on goods from the EU.

The Government is working closely with the Devolved Administrations on the delay to the introduction of controls, especially on controls and checks on Sanitary and Phytosanitary goods which are a devolved matter.

Following discussions with the BBC, they have confirmed they will provide a sign language service during official statements for the foreseeable future.

Government published its response to the 2021 ‘Reforming Competition and Consumer Policy’ consultation in Spring 2022. This set out Government’s intention to continue to consider ways in which consumers can be supported in finding routes to redress, working with Citizens Advice, enforcers and Alternative Dispute Resolution providers to achieve this.

Consumers should report problems to the Government funded Citizens Advice consumer service on 0808 223 1133, www.citizensadvice.org/. The helpline offers free advice to consumers on their rights and how to take their complaints forward. The service can also refer on complaints to Trading Standards for further appropriate enforcement action.

The setting of tariffs is a commercial matter for individual suppliers. Suppliers can decide how they structure their tariffs as long as they do not lead to households paying above the relevant maximums set by Ofgem under the price cap. There is no price cap for businesses.

To help protect North of Scotland consumers from high local electricity distribution costs, the Government’s Hydro Benefit Replacement Scheme provides an annual cross-subsidy of around £112m. It is funded via suppliers across GB, saving a typical North of Scotland household over £60 each year.

The UK has a secure and diverse energy system. Whilst energy policy is a matter reserved to the UK Government under the devolution settlement, planning, including energy infrastructure planning, is devolved to the Scottish Government. The Scottish Government published National Planning Framework 4 in February 2023 which has sections on energy and climate change. This is therefore a matter for the Scottish Government.

Ministers and officials regularly meet with Ofgem to discuss the energy retail market including for business customers.

The Energy Bills Discount Scheme (EBDS) provides all eligible businesses and other non-domestic energy users with a baseline discount on high energy bills for 12 months from April 2023 until 31 March 2024. The EBDS is helping businesses locked into contracts signed before substantial falls in wholesale prices manage their costs and provide others with reassurance against the risk of prices rising again.

Ofgem’s non-domestic review findings noted that more than half of suppliers are now offering contract renegotiation.

Ofgem’s recent Open Letter confirmed the numbers of households reliant on the Radio Teleswitching Service: https://www.ofgem.gov.uk/publications/open-letter-smart-meter-installations-prepayment-and-radio-teleswitch-customers

The Government expects energy suppliers to upgrade households with RTS to smart meters in good time in advance of the switch off. Households should contact their energy supplier to arrange their upgrades as soon as possible so they can continue to benefit from multi rate tariffs.

The Data Communications Company (DCC) provides Wide Area Network (WAN) coverage for smart meters to at least 99.25% of premises across Great Britain. The DCC is also obligated under its licence conditions to explore solutions to increase the overall level of coverage even further.

Ofgem is responsible for regulating the DCC against these obligations.

DESNZ ministers and officials meet regularly with Ofgem to discuss a range of issues relating to energy markets and consumers.

As the independent regulator, Ofgem is responsible for ensuring licensed energy suppliers are complying with their rules. Details of Ofgem’s ongoing supplier compliance and enforcement activity, including individual decisions, are at this link https://www.ofgem.gov.uk/energy-policy-and-regulation/compliance-and-enforcement/retail-compliance-and-enforcement.

The Energy Ombudsman is an independent, not for profit company appointed by Ofgem as the alternative dispute resolution (ADR) body for the energy sector under the Alternative Dispute Resolution for Consumer Disputes Regulations 2015. As the Competent Authority, it is the responsibility of Ofgem to carry out an assessment of the Energy Ombudsman’s performance. Ofgem does this every two years to ensure the company meets the approval criteria as an ADR body. A copy of the most recent assessment for the period of 2019-2021 is available on Ofgem’s website at: https://www.ofgem.gov.uk/publications/biennial-assessment-ombudsman-services-under-adr-regulations-2019-2021.

Direct Communications Company (DCC) Wide Area Network (WAN) coverage for smart meters has no impact on the ability of energy consumers to install electric vehicle charging points at their properties.

The Government’s domestic and international net zero targets are consistent with the Paris Agreement ambition to limit global warming to 1.5 degrees. The Government’s aim is to accelerate the reduction in oil and gas use and the Government has made progress in this area, including through the expansion of renewables which will reduce gas used for power generation. However, as the Climate Change Committee’s own analysis shows, the UK will still need oil and gas as it makes the transition to net zero by 2050.

No discussions have taken place. However, Ofgem Directors and Director Generals are employed as Civil Servants and, as such, are expected to abide by the Civil Service Code. It is expected that Ofgem staff will have declared any potential conflicts to the relevant senior manager in Ofgem, as set out under Ofgem’s Conflict of Interest Policy, which can be found here: https://www.ofgem.gov.uk/sites/default/files/docs/2013/03/conflicts-of-interest-at-ofgem.pdf

The Department regularly engages with the liquefied petroleum gas (LPG) supply industry through its trade association Liquid Gas UK. There are several suppliers and Liquid Gas UK provide a postcode search facility to help consumers identify those closest to them (https://www.liquidgasuk.org/domestic/supplier-search). The major suppliers have assured the Department that there will be a sufficient supply of 19kg cylinders across the UK, including Scotland. The industry will also have additional stocks arriving over the coming months to account for increased demand over the winter.

Data on cost estimates for electricity generation technologies and cost estimates for storage technologies along with their methodologies, data and assumptions are found in the Electricity Generation Costs and Storage Cost and Technical Assumptions reports respectively, published by the Department for Energy Security and Net Zero. These are not directly comparable for pumped hydro storage and nuclear generation given the different cost base and operating characteristics.

These reports can be found at: https://www.gov.uk/government/publications/electricity-generation-costs-2023 and https://www.gov.uk/government/publications/storage-cost-and-technical-assumptions-for-electricity-storage-technologies.

As set out in the autumn statement, the Government is exploring the best approach to consumer protection from April 2024, as part of wider retail market reforms. The Government has looked at a range of international comparators, including Italy, although as energy markets and consumer circumstances vary between countries, the specific situation in the UK will need to be assessed.

The Government will set out its proposals in due course.

Up to then, in response to higher prices, the Government has put in place the Energy Price Guarantee and provided significant additional support to help those who need it most through this winter and into 2023-24.

Today, the Data Communications Company (DCC) provides Wide Area Network (WAN) coverage for smart meters to at least 99.5% of premises across its ‘North’ region.

The DCC also has a license obligation to explore solutions for increasing WAN coverage even further. It is currently developing a business case exploring such solutions, including an option for using already available internet-connected Consumer Access Devices to provide smart services. The consumer would need to have their own broadband connection and be prepared to enable the Consumer Access Device to utilise it. The Department expects to receive initial proposals from DCC shortly for review.

The Government recognises that lengthy connection dates offered to renewable energy projects can create delays. Work is underway to release network capacity and improve the connection process, which should bring connection dates forward for renewable developers, amongst others. Government will publish a connections action plan jointly with Ofgem in the summer to build on this work and set out longer-term reforms to ensure that network connections support our net zero and energy security objectives.

The Government is working with Ofgem and network companies, including National Grid, to reduce connection timescales. This includes through the Electricity System Operator-led Connections Reform Project.

The Energy Bills Support Scheme provides one payment to each domestic electricity meter in 6 instalments. In instances where a single domestic meter supplies more than one household, one EBSS discount will have been paid and shared between the households. This approach was taken so that delivery via electricity suppliers could commence in time to support households over the winter.

The Government has provided further support to help with the energy bills including the Energy Price Guarantee which reduces the unit cost of electricity and gas so that a typical household in Great Britain will save around £700 this winter.

Liquid Gas UK is the trade association for suppliers of liquefied petroleum gas (LPG). Cold Weather Priority Delivery is one of the principles for the Customer Charter to which their members agree. Liquid Gas UK provides an ombudsman scheme as an alternative dispute resolution service for customer disputes.

Officials from the Department for Energy Security and Net Zero maintain regular contact with Liquid Gas UK to monitor threats to security of supply.

The Competition and Markets Authority administers the Liquefied Petroleum Gas market orders, which are intended to make it easier for customers to switch LPG suppliers.

In developing the scheme, the Government worked closely with stakeholders across the country including with the relevant trade bodies. Applicants will have to provide evidence to demonstrate use of alternative fuels as their main heating source in order to reduce the risk of fraud e.g. by receipt/delivery note. The Government was assured by the industry that most alternative fuel users are routinely provided with suitable documentation through their fuel provider.

The eligibility of applicants for the EBSS Alternative Funding is determined at the time of their application. Therefore, the estates of deceased people will not be able to apply on behalf of a deceased person as an application can only be made by or on behalf of someone who is living and occupying an address.

The Department regularly engages with Ofgem on these matters and will discuss any issues as they arise. There is no evidence energy suppliers are retaining Alternative Fuel Payment grants. Electricity suppliers are currently subject to compliance monitoring and the Department will properly assure and audit payments. Any unused funds will be fully reconciled and recovered.

Caravan tenants on domestic private land who pay their landlord directly for energy, and where the landlord holds a commercial electricity contract, are eligible to apply for support through the Energy Bills Support Scheme Alternative Funding (EBSS AF) which launched on 27 February, if they meet full eligibility requirements. A landlord with a domestic electricity contract will already have been receiving the Energy Bills Support Scheme (EBSS) automatically through their electricity supplier and must ensure this is passed through to the caravan resident in a just and reasonable manner.

The Government does not currently hold data for all business energy contracts. Of those subject to Energy Bill Relief Scheme support, it is currently estimated is that up to 400,000 electricity contracts and 100,000 gas contracts were fixed since September 2022. This would not capture any contracts that may be fixed on an annual, or less frequent basis, and were done so prior to this point. The Government does not have information on the number of businesses these contracts equate to, as a single business can have multiple contracts and would also expect some businesses to have fixed both electricity and gas contracts.