Up to 30% of households in the UK could potentially qualify for a social tariff, according to estimates provided by Jonathan Brearley, the Chief Executive of Ofgem, during a session of the Commons Energy Security and Net Zero Committee.
When questioned about the approximate number of individuals that a social tariff would encompass, Mr Brearley suggested that applying such a tariff, based on easily identifiable criteria like benefits, could potentially benefit “single-digit millions” of people.
The boss of Ofgem estimated that this group would represent around 20% to 30% of the energy market, although he emphasised that these figures were not an official stance from the energy regulator but rather his personal viewpoint.
Mr Brearley also mentioned that Ofgem had been collaborating with the government on various options to address fuel poverty, including the implementation of a social tariff.
Jonathan Brearley said: “We are a bit more than a consultee in this process. We sit around the table with them, we share our analysis, we attend their boards.
“They have boards on things like affordability; we are part of that process and we will give our views ongoing. It is not a case of gathering many, many people’s feedback and reading ours among others. I think we have a closer relationship than that.”