Energy Prices Act 2022: Energy Scheme Expenditure Debate
Full Debate: Read Full DebateDepartment: Department for Energy Security & Net Zero
Polly Billington
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Energy Prices Act 2022: Energy Scheme Expenditure
Polly Billington Excerpts(1 month ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Ms Polly Billington)
I am making this statement to update hon. Members, in line with the requirement for quarterly reporting to Parliament under the Energy Prices Act 2022, on expenditure incurred under section 13 of that Act. Expenditure incurred Expenditure incurred between 1 April to 30 June 2026 RO to Exchequer Scheme (GB) £520,709,288.19 Note: The expenditure figures above reflect spend in Great Britain only, given that the territorial extent of the RO to Exchequer scheme is England, Scotland and Wales. Energy Affordability Schemes Actual Cumulative Expenditure incurred up to and including 30th June 2026 (£m) Status Energy Bills Support Scheme GB & NI 11,874.00 Closed Energy Bills Support Scheme Alternative Funding 59.47 Closed Energy Price Guarantee GB & NI 24,075.00 Closed Domestic Alternative Fuel Payment 401.20 Closed Energy Bills Relief Scheme GB & NI 7,533.37 Closed Energy Bills Discount Scheme GB & NI 481.79 Closed Energy Bills Discount Scheme Heat Networks GB & NI 113.38 Closed Non-Domestic Alternative Fuel Payment 62.30 Closed RO to Exchequer (GB) 520.71 Open Total (£ billion) £45.1 billion 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 Exchequer Impact +0m -2,580m -2,100m -2,195m +0m +0m
This quarterly report on energy scheme expenditure is required under section 14 of the Act and covers the period from 1 April to 30 June 2026.
The renewables obligation to Exchequer measure was announced at autumn Budget 2025 as part of the Government’s package to reduce energy bills. The scheme came into effect on 1 April 2026 and will run for three years. It removes 75% of renewables obligation costs from domestic electricity bills, with these costs instead funded by the Exchequer.
The expenditure reported below relates to the operation of this existing scheme.
This statement also sets out the final cumulative expenditure incurred under former energy affordability schemes. These figures are reported alongside current expenditure to provide hon. Members with a complete picture of expenditure incurred by successive Governments using these powers.
All former energy affordability schemes have now closed, and their expenditure positions have been fully reconciled. The cumulative figure for the energy bills discount scheme includes a late claim, which has since been settled. Previous cumulative figures reflected the best information available while reconciliation and closure activity remained ongoing.
The figures in the table do not include administrative or running costs.
Future costs
The Budget 2025 costings confirm the expected future cost of the policy as: Exchequer impact (£m).
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