This policy briefing highlights the positive steps that can be taken now by the UK Government and energy regulator Ofgem to respond to the current energy crisis and support vulnerable energy customers this winter. It is hoped that this will prompt policy interventions in advance of Ofgem announcing in February the next revision to the energy price cap.

This year’s UKFPM identifies the opportunities associated with decarbonising heat for fuel poor households; the barriers they face in doing so; the likely risks of the decarbonisation agenda for them; and which policy developments and interventions are required to ensure that the decarbonisation of domestic heating can be fair and affordable.

District heating can contribute to fuel poverty reduction targets through its ability to provide stable and predictable prices for energy over an extended period of time; reduced worry for households about breakdowns or repairs; the creation of local employment opportunities and contribution to economic growth.

It is imperative that prepayment meter (PPM) customers continue to receive protection. The CMA stated in its initial ruling of the energy market investigation that PPM customers have higher actual and perceived barriers to switching that arise from both lack of internet connectivity and the need to physically change meter to switch to a wider range of tariffs.