Warm Home Discount Scheme

Department for Business, Energy and Industrial Strategy written question – answered on 28th January 2019.

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Photo of Anna McMorrin Anna McMorrin Labour, Cardiff North

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps the Government is taking to ensure that smaller companies in the energy supply market are eligible to participate in the Warm Home Discount scheme.

Photo of Claire Perry Claire Perry The Minister of State, Department for Business, Energy and Industrial Strategy, Minister of State (Business, Energy and Industrial Strategy) (Energy and Clean Growth)

No suppliers are unable to participate in the Warm Home Discount. Suppliers with fewer customers than the obligated threshold already have the option to approach Ofgem to participate in the scheme voluntarily. This year, there are 3 suppliers with less than 250,000 domestic customers, who have opted to participate in the scheme voluntarily.

For all suppliers, we took the decision following the Warm Home Discount consultation last year to reduce the threshold for participation over time. It will remain at 250,000 domestic accounts for participating suppliers in 2018/19, and then reduce to 200,000 in 2019/20 and 150,000 in 2020/21. We intend to reduce the threshold to zero or a small minimum, if the evidence on the impacts of reducing the threshold on the energy markets supports this approach. This gradual reduction will give smaller suppliers time to prepare for delivery, adjust their business models and help minimise the risk of non-compliance.

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