Government officials have been pressing major energy suppliers to ensure ministers receive public credit for a forthcoming reduction in household bills, according to reports.
Pressure on Suppliers for Positive Messaging
Staff from the Department for Energy Security and Net Zero (DESNZ), led by Secretary of State Ed Miliband, are said to have held calls with energy firms. They urged the companies to explicitly recognise the Government's role when communicating an expected drop in bills to customers this April.
The push is linked to Chancellor Rachel Reeves's Autumn Budget announcement, where she pledged to cut the average household energy bill by £150 from April. This will be achieved by shifting some green levies into general taxation and scaling back the Energy Company Obligation (ECO) scheme.
The Reality Behind the £150 Figure
While the Government is keen to publicise the saving, industry sources have expressed reservations. One source at a major energy company told The Times that DESNZ was imploring firms to help ministers "take the credit".
"They were asking us to email customers to tell them about the wonderful bill reduction that's all thanks to the Government," the source said. They added a note of caution, stating: "Yet we all know that bills are going to rise over the course of the parliament because of decisions that ministers have made."
Another industry figure described the promoted £150 figure as "mythical", arguing it is an average that won't apply to all bill payers. However, sources close to Mr Miliband dismissed this characterisation as "nonsense".
Future Bill Rises Loom Despite April Cut
The anticipated April reduction follows a forecast drop in the energy price cap, influenced by lower wholesale prices and the Chancellor's policy changes. Consumer champion Martin Lewis confirmed the cut was "mostly an actual reality", explaining the £150 is comprised of £90 from moving the renewable obligation and £60 from altering the ECO scheme.
However, this temporary relief may be short-lived. Ofgem, the energy regulator, stated in December that around £108 will be added to bills by 2031 to fund a £28bn upgrade to the UK's energy network. A separate analysis suggests households could face paying an extra £116 per year by the end of the decade due to new levies for grid upgrades and gas pipeline maintenance.
A DESNZ spokesperson defended the Government's position: "This is nonsense - families will see an average of £150 in costs off their bill this April thanks to Government action, which has been welcomed by Martin Lewis and Citizens Advice. We have made it clear to suppliers that every penny of those savings should be passed on to all households."
