Explanatory note

These Regulations provide for the further continuation in England and Wales of the scheme to reduce fuel poverty (“the Scheme”) established by the Warm Home Discount Regulations 2011 and continued in England and Wales by the Warm Home Discount (England and Wales) Regulations 2022 (“the 2022 Regulations”). These Regulations re-enact with amendments the provisions made by the 2022 Regulations to continue the Scheme in England and Wales until 31st March 2030. The Scheme will continue to be administered and enforced by the Gas and Electricity Markets Authority (“the Authority”).

The Scheme continues to place obligations on electricity suppliers (“compulsory scheme electricity suppliers”) who have, or are part of a group of electricity or gas supply companies which together has, at least 1,000 domestic customers to incur spending in each scheme year on the provision of benefits to customers in or at risk of fuel poverty. “Scheme year” is defined in regulation 3 of the Regulations.

Part 3 requires compulsory scheme electricity suppliers, and other electricity suppliers who opt into this Part, to provide rebates of £150 to customers specified by the Secretary of State (“core group customers”). A person can only be specified as a core group customer if the person appears to the Secretary of State to (i) be the owner or occupier of domestic premises in England or Wales at which the person is supplied with electricity or gas wholly or mainly for domestic purposes, (ii) occupy those premises as their sole or main residence, and (iii) meet, or, where the person lives with their partner, to be the partner of a person who meets, the eligibility criteria published by the Secretary of State in accordance with regulation 10.

Specific provision is made to enable persons who would ordinarily occupy premises as their sole or main residence but are in hospital, a care home or a hospice temporarily to be treated as continuing to occupy the relevant premises (see regulation 2 of the Regulations).

Part 4 requires compulsory scheme electricity suppliers to incur other spending for the purposes of reducing fuel poverty. Chapter 1 provides for the calculation, and adjustment, of the amount of spending that suppliers must incur under this Part. Chapter 2 provides for the types of spending which may be incurred (industry initiatives (Chapter 3) and specified activities (Chapter 4)) and the amounts which may be incurred on the various types of spending.

Part 5 contains supplementary provisions about procedure for matters required to be approved by the Authority, determination by the Authority of the amounts spent by suppliers, the provision of information to the Authority by suppliers and the provision of information by the Authority to the Secretary of State.

Part 6 makes provision for reviews of the Scheme by the Secretary of State.

Part 7 contains consequential provisions.

A full impact assessment of the effect that this instrument will have on the costs of business and the public sector has been produced and is available at www.legislation.gov.uk. Hard copies of the impact assessment can be obtained from the Warm Home Discount Team, Department for Energy Security and Net Zero, 55 Whitehall, London SW1A 2HP.