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Energy Prices Act 2022: Expenditure on Energy Schemes in Q4 2022

Volume 727: debated on Friday 3 February 2023

I am tabling this statement to update hon. Members under the Energy Prices Act 2022, in line with the requirement under the Act for quarterly reporting to Parliament on expenditure incurred under it.

This is the first quarterly report on energy scheme expenditure under section 14 of the Act and covers the period from 1 October to 31 December 2022.

Energy prices are extremely volatile, and changes will affect the outturn cost of the schemes.

Expenditure incurred

£ million

a) Expenditure incurred between Oct 22-31 Dec 22

b) Cumulative expenditure incurred to date

Energy Bills Support

Scheme GB & NI



Energy Prices Guarantee GB & NI



Energy Bills Relief

Scheme GB & NI



Energy price guarantee costs in the table above are on a cash basis and so do not account for all costs accrued in October to December 2022. We expect the majority of the financial year 22-23 costs for the energy price guarantee to accrue in January to March 2023 due to a higher subsidy rate and higher historical usage. Expenditure incurred on the energy bills relief scheme is lower than previous estimates, reflecting the fact that many businesses are paying less for their energy than previously forecast.

Forecasts of total expenditure for the largest energy schemes, in consequence of the exercise of powers conferred by section 13, were published by the Office for Budget Responsibility on 18 November 2022 as part of the autumn statement 2022. This was £37.5 billion for the energy price guarantee and £18.4 billion for the energy bill relief scheme. Autumn statement 2022 documents

For the energy bills support scheme, the total expected cost was published in October 2022 as £11.7 billion.

How Households and Businesses will be supported by the Energy Prices Bill

The total expected expenditure for alternative fuel payment (domestic) at the business case stage was £708 million. For alternative fuel payment (non-domestic) it was £112 million, for energy bills support scheme NI, £334 million, and for energy bills support scheme alternative funding, £362 million. These costs are in addition to the forecasts of total expenditure for the main schemes. These figures were not included in the autumn statement 2022 and publishing this information will be the first time they are in the public domain.

Forecasts will be updated in March 2023 as part of the spring Budget 2023, as part of a regular, formal fiscal reporting process.


Actual spending on some schemes will be dependent on levels of demand for gas and electricity and prices in relevant markets, the pricing and renewal profile of business contracts eligible for support, as well as decisions taken concerning the exercise of the section 13 powers.

The energy bills support scheme alternative funding, alternative fuel payment (domestic), alternative fuel payment (non-domestic), and heat networks alternative dispute bodies funding schemes utilise the power conferred by section 13 of the Energy Prices Act 2022, however these schemes have not incurred expenditure to report to 31 December 2022. This does not include administrative costs.

The energy bills support scheme in Great Britain was not made under the powers conferred by the Energy Prices Act 2022 but it is included for completeness. Some payments from BEIS to suppliers started September 2022, which is why the cumulative total is higher than spend between October 2022 to December 2022.

The table does not include administrative or running costs.