Overview

This bill aims to ensure fairer energy prices for households not connected to the mains gas supply. It requires the government and Ofgem to investigate and propose solutions to prevent these households from paying more for energy simply because of their location.

Description

The bill makes two key provisions:

• Amendment to the 2018 Energy Price Cap Act: This allows Ofgem (the energy regulator) to set different price caps for off-gas-grid households, aiming to protect them from excessive energy costs.
• Report on Energy Cost Measures: It mandates that the government and Ofgem produce a report outlining proposals to address energy cost disparities between off-gas-grid and mains-gas households. The report will also consider designating off-gas-grid areas as "vulnerable" for price cap purposes.

The bill applies to England, Wales, and Scotland. The amendment to the 2018 Act comes into force six months after the bill is passed; the reporting requirement is effective immediately.

Government Spending

The bill doesn't directly specify government spending. However, implementing the proposed measures from the report (e.g., subsidies or support schemes) could lead to increased government expenditure. The exact cost is yet to be determined.

Groups Affected

The bill primarily affects:

• Off-gas-grid households: They are the intended beneficiaries, potentially seeing lower energy bills.
• Energy suppliers: They will need to adapt to any new regulations set by Ofgem.
• Ofgem: The energy regulator will have additional responsibilities in implementing the bill's provisions.
• UK Government: Responsible for overseeing the bill's implementation and potentially funding any support schemes.

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