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Coalition submits joint written evidence to Energy Bill Public Bill Committee

The Warm This Winter coalition has told the Energy Bill Public Bill Committee that the Bill should be amended to cut bills and speed up net zero, in written evidence published on 24 May 2023.

A newspaper on a kitchen table beside a model of rules and regulation

The Warm This Winter coalition submitted joint written evidence to the Public Bill Committee for the Energy Bill on 24 May 2023, setting out five amendments it wants parliamentarians to support1. The submission describes the Bill as "one of the most significant opportunities in the near future for the government to contribute to alleviating the cost of living crisis"1.

The coalition's priorities are removing the hydrogen levy from consumer bills, giving Ofgem a net zero duty, banning the forced transfer of households onto prepayment meters, raising private rented sector minimum energy efficiency standards from EPC E to EPC C by 2028, and accelerating the transition away from oil and gas1. On the hydrogen levy, the submission states that blending hydrogen into the gas grid at 20 per cent by volume could cost the average household around £80 to £85 a year, and that heating UK homes with blue and grey hydrogen would require 45 per cent more fossil gas than today1. It cites 18 independent studies since 2019, including work by the IEA, IPCC and McKinsey, that have ruled out hydrogen playing a major role in heating buildings1.

"The priorities for this coalition of organisations representing leading charities across the environment and anti-poverty groups, to ensure that the Bill brings down the cost of energy for good whilst speeding up the transition to net zero"
Warm This Winter coalition, joint written submission to the Energy Bill Public Bill Committee1

On prepayment meters, the submission cites Citizens Advice analysis that 3.2 million people were cut off from electricity supply in 2022 because they could not afford to top up, and that nearly 18 per cent of households who ran out of credit spent two days or more without any energy supply1. Polling by YouGov Direct for the campaign, of 2,193 people between 4 and 5 May 2023, found 50 per cent supported a permanent ban on forced transfers and 23 per cent supported a ban while energy bills stay high1. On rented homes, the submission says there are approximately 4.6 million private rented households in the UK and at least a quarter are in fuel poverty, and that delay in confirming new standards could cost private renters an additional £1bn in energy bills1. It notes the government consulted on revised Minimum Energy Efficiency Standards in September 2020 and has yet to respond1.

Amendment soughtFigure given in the submission
Remove hydrogen levy from billsBlending at 20% by volume: £80 to £85 a year for the average household1
Ofgem net zero dutyOffshore wind grid connection can take 3 to 5 years longer than the project itself1
Ban forced prepayment transfers3.2 million people cut off in 2022 for inability to top up1
PRS MEES to EPC C by 2028Delay could cost private renters an additional £1bn1
End new oil and gas explorationRosebank alone could receive tax breaks of £3.75 billion1

Why it matters for households

Each amendment touches costs that appear on a household bill or in a home's condition. The hydrogen levy would sit on consumer bills to fund hydrogen development, which the coalition argues brings no direct household benefit1. A net zero duty for Ofgem concerns how quickly renewable generation and grid connections are built, which bears on how much of a home's supply comes from domestic sources rather than imports. The submission states that without scaling up net zero measures, UK households could be paying £500 per year for foreign gas1. For homes already in debt, the forced installation of a prepayment meter changes how energy is paid for and what happens when credit runs out. For renters, minimum energy efficiency standards determine whether a landlord must improve a cold, damp property, and the submission says 31 per cent of renters feel unable to heat their home to a comfortable temperature1.

What happens next

The submission is written evidence to the Public Bill Committee stage of the Energy Bill, published 24 May 20231. The coalition asks parliamentarians to vote against the Government amendment that would remove the House of Lords amendment on the hydrogen levy, and to retain the Lords amendment giving Ofgem a net zero duty1. It also calls for the Secretary of State to be given powers to introduce an all-out ban on forced prepayment transfers1. The submission notes the government has said the levy will not be introduced immediately and that a consultation on its nature will follow at a later date1. No date has been reported for that consultation, for a government response to the 2020 PRS MEES consultation, or for the Committee's decisions on the amendments.

Sources1 cited
  1. Joint written submission to the Public Bill Committee for the Energy Bill, bills-api.parliament.uk