| Practice area: | Consumer markets and protection | Energy | Public Policy |
|---|---|
| Client: | Committee on Fuel Poverty |
| Published: | 7 November, 2025 |
| Keywords: | consumer behaviour energy Net Zero Public Policy |
London Economics, together with Basis Social and University College London (UCL), were commissioned by the Committee on Fuel Poverty (CFP) to examine energy bill inequity for fuel poor and vulnerable households in England.
The research explored the structural elements of energy bills that contribute to inequity, the effects of innovative tariffs on different household groups, and potential policy options to make energy bills fairer for vulnerable households and those in or at risk of fuel poverty. The study combined a rapid evidence assessment, analysis of household-level data from UCL’s Smart Energy Research Lab (SERL), and two rounds of stakeholder workshops with energy experts, regulators, and industry representatives.
Key findings include:
- Standing charges are regressive, placing a disproportionate burden on low-income, low-usage households, while benefitting high-use vulnerable households that depend on energy for health or heating needs.
- Energy debt is rising, with more households in arrears and facing additional costs within their energy bills due to debt repayments.
- Innovative tariffs, such as Time-of-Use pricing, have potential to support long-term affordability but may disadvantage households unable to shift their energy use or invest in enabling technologies.
- Policy options such as lump-sum payments, unit rate discounts, and standing charge reform each have trade-offs in fairness, complexity, and targeting effectiveness.
The study highlights the need for structural reforms to energy billing and improved targeting of support to ensure that fuel poor and vulnerable households are not left behind in the transition to net zero.
The full report is available here.