Overview

This bill aims to ensure fair energy pricing for households in England, Scotland, and Wales that don't have access to the main gas supply grid. It proposes amending the existing energy price cap to specifically address the higher energy costs faced by these households and requires a report detailing proposals to mitigate these costs.

Description

The bill makes two key changes. First, it amends the Domestic Gas and Electricity (Tariff Cap) Act 2018 to allow Ofgem (the energy regulator) to set different energy price cap levels for off-grid households. This will enable them to potentially reduce energy costs for homes not connected to the main gas grid. Second, it mandates that the Secretary of State and Ofgem create and publish a report by 2022 outlining further measures to ensure that off-grid households aren't disproportionately burdened by high energy costs. This report will consider designating off-grid areas as “vulnerable” for the purposes of energy price regulation.

Government Spending

The bill doesn't specify any direct government spending. However, implementing the changes could indirectly impact government spending through potential subsidies or support schemes for off-grid households, depending on the recommendations made in the report by the Secretary of State and Ofgem.

Groups Affected

• Off-grid households: This bill could significantly benefit these households by lowering their energy bills. The extent of the benefit will depend on the regulations set by Ofgem.
• Energy suppliers: Suppliers serving off-grid households may face adjustments to their pricing strategies, potentially affecting their profitability.
• Ofgem: The energy regulator will have to create and implement new regulations impacting their workload and potentially their budgets.
• Government: The government will be responsible for overseeing the process and may need to allocate resources for any support schemes arising from the report.

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