💡 Delegated Legislation Committee

General Committees

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The parliamentary session focused on the Energy Bill Relief Scheme and Energy Bills Discount Scheme, discussing amendments to address issues with energy suppliers as the schemes wind down. The Minister highlighted the need to end the schemes timely while ensuring suppliers are not left out of pocket, and introduced measures to protect consumers from poor supplier practices. Opposition members supported the amendments but expressed concerns about the government’s decarbonization goals potentially increasing energy costs for families and businesses. The session concluded with consensus on the regulations, emphasizing continued efforts to manage high energy prices and support non-domestic consumers.

Summary

  • The Third Delegated Legislation Committee considered amendments to the Energy Bill Relief Scheme (EBRS) and Energy Bills Discount Scheme (EBDS) on February 11, 2025.

  • The regulations amend schemes initially set up by the previous government to help non-domestic energy users (businesses and heat networks) during the energy crisis. The EBRS ran from October 2022 to March 2023, and the EBDS from April 2023 to March 2024.

  • The amendments address a technical issue where energy suppliers were still required to pay out discounts on newly billed energy even after leaving the scheme. This could result in suppliers funding government support without being able to recover costs.

  • The new regulations remove this obligation on suppliers, except in cases where the supplier’s poor practices have caused the consumer to lose out. In such cases, consumers remain entitled to their discounts, and disputes can be resolved through industry mechanisms like the Energy Ombudsman, Ofgem, or the courts.

  • The regulations also allow the devolved administration in Northern Ireland to make their own amendments to address issues in their equivalent scheme.

  • Miatta Fahnbulleh, Parliamentary Under-Secretary of State for Energy Security and Net Zero, emphasized the government’s commitment to reducing energy bills through clean power and short-term actions to protect businesses and consumers.

  • Nick Timothy, a Conservative MP, supported the regulations as part of winding down the temporary schemes post-crisis but expressed concerns about the current government’s decarbonization policies potentially increasing costs for families and businesses.

  • The regulations were agreed upon by the Committee, recognizing the need to properly end the schemes while continuing efforts to address high energy prices through both short-term protections and long-term clean energy strategies.

Divisiveness

The disagreement level in the session is minimal, warranting a rating of 1. The session showed a standard level of political debate but did not escalate to significant disagreement. Here are the key points supporting this assessment:

  1. Consensus on the Regulations: Both the Minister, Miatta Fahnbulleh, and the Opposition representative, Nick Timothy, explicitly expressed support for the draft Energy Bill Relief Scheme and Energy Bills Discount Scheme (Amendment) Regulations 2024. The Minister noted, ‘I am glad that we have consensus across the Committee about the regulations,’ and Nick Timothy confirmed, ‘We support the regulations. We recognise their role in winding down the old schemes…’

  2. Limited Disagreement on Policy: The only notable disagreement occurred on the broader topic of energy policy, specifically regarding the government’s approach to decarbonisation. Nick Timothy expressed skepticism about the feasibility of the Government’s green energy plans: ‘As the current Government continue down the ideological decarbonisation route… we will watch carefully in order to protect the families and businesses who bear the cost of unrealistic clean energy targets.’ However, this critique was not strongly contested by the Minister; rather, she reaffirmed the Government’s stance without escalating the disagreement: ‘our drive for green power will deliver home-grown clean energy, which will give energy security to the country and financial security to families.’

  3. Tone of the Debate: The overall tone of the session was cooperative and focused. The statements were made in a manner that suggested an effort to maintain a productive parliamentary atmosphere rather than a contentious one. The use of phrases like ‘It is a pleasure to serve under you’ and ‘I thank the hon. Member for his response’ reinforce the constructive nature of the interaction.

  4. Duration and Engagement: The session was brief, lasting only about 9 minutes, with each speaker addressing the main points without prolonging or intensifying any disagreement. This brevity and focus on concluding the discussion promptly further indicate a low level of disagreement.

In summary, while there were political differences expressed regarding broader energy policy, the session did not exhibit significant contention or disagreement over the proposed regulations themselves, which were broadly supported by all present.