Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has made a recent assessment of the potential merits of revising the planned dates for ending energy support for (a) residential and (b) business customers.

On 9 January, the government announced that it would be launching a new energy support scheme for businesses, charities and the public sector. The new Energy Bills Discount Scheme will provide all eligible businesses and other non-domestic energy users across the UK with a discount on high energy bills until 31 March 2024, following the end of the current Energy Bill Relief Scheme. It will also provide businesses in sectors with particularly high levels of energy use and trade intensity with a higher level of support.

The new scheme strikes a balance between supporting businesses for a further 12 months, from April 2023 to March 2024, and limiting taxpayer’s exposure to volatile energy markets. This provides long term certainty for businesses and reflects how the scale of the challenge has changed since September last year. We will continue to monitor energy prices in the coming months.

For households, the Energy Price Guarantee scheme protects customers from increases in energy costs by limiting the amount suppliers can charge per unit of energy used. It currently brings a typical household energy bill in Great Britain down to £2,500 per year, with equivalent support provided in Northern Ireland. The Energy Price Guarantee will remain in place until 31 March 2024.

The government will also develop a new approach to consumer protection in domestic energy markets, which will apply from April 2024 onwards. It will work with consumer groups and industry to consider the best approach, including options such as social tariffs, as part of wider retail market reforms. The objectives of this new approach will be to deliver a fair deal for domestic consumers, ensure the energy market is resilient and investable over the long-term, and support an efficient and flexible energy system.