I am making 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 section 13 of that Act.

This quarterly report on energy scheme expenditure is required under section 14 of the Act and covers the period from 1 April to 30 June 2026.

The Renewables Obligation to Exchequer measure was announced at Autumn Budget 2025 as part of the Government’s package to reduce energy bills. The scheme came into effect on 1 April 2026 and will run for three years. It removes 75% of Renewables Obligation costs from domestic electricity bills, with these costs instead funded by the Exchequer.

The expenditure reported below relates to the operation of this existing scheme.

Expenditure incurred

a) Expenditure incurred between 1 April – 30 June 2026

RO to Exchequer Scheme (GB)

£520,709,288.19

Note: The expenditure figures above reflect spend in Great Britain only, given that the territorial extent of the RO to Exchequer scheme is England, Scotland and Wales.

This statement also sets out the final cumulative expenditure incurred under former energy affordability schemes. These figures are reported alongside current expenditure to provide hon. Members with a complete picture of expenditure incurred by successive governments using these powers.

All former energy affordability schemes have now closed, and their expenditure positions have been fully reconciled. The cumulative figure for the Energy Bills Discount Scheme includes a late claim which has since been settled. Previous cumulative figures reflected the best information available while reconciliation and closure activity remained ongoing.

The figures in the table do not include administrative or running costs.

Actual Spend

Energy Affordability Schemes

Actual Cumulative Expenditure incurred up to an including 30th June 2026 (£m)

Status

Energy Bills Support Scheme GB & NI

11,874.00

Closed

Energy Bills Support Scheme Alternative Funding

59.47

Closed

Energy Price Guarantee GB & NI

24,075.00

Closed

Domestic Alternative Fuel Payment

401.20

Closed

Energy Bills Relief Scheme GB & NI

7,533.37

Closed

Energy Bills Discount Scheme GB & NI

481.79

Closed

Energy Bills Discount Scheme Heat Networks GB & NI

113.38

Closed

Non-Domestic Alternative Fuel Payment

62.30

Closed

RO to Exchequer (GB)

520.71

Open

Total (£ billion)

£45.1 billion

Future costs

The Budget 2025 costings confirm the expected future cost of the policy as: Exchequer impact (£m)

2025-26

2026-27

2027-28

2028-29

2029-30

2030-31

Exchequer Impact

+0m

-2,580m

-2,100m

-2,195m

+0m

+0m

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