Warm Home Discount Cost Recovery
This consultation is open for responses
Respond to this consultationSummary
DESNZ proposes moving Warm Home Discount cost recovery from standing charges to unit rates (per-kWh charges) for electricity and gas. The consultation seeks views on impacts for consumers and suppliers, requiring changes to WHD reconciliation regulations. No financial figures or timeline details are provided in the summary.
Why it matters
This shifts how the £400+ million annual WHD cost is allocated across customers — from a flat per-connection charge to usage-based recovery. As such, it moves costs from low-usage households to high-usage ones, but remains redistributive policy treating symptoms of expensive energy rather than addressing supply or market structure.
Key facts
- •Cost recovery moves from standing charge to unit rate (per-kWh)
- •Applies to both electricity and gas
- •Requires changes to WHD reconciliation regulations
Areas affected
Related programmes
Memo
We are seeking views on the impacts of a proposal to move WHD cost recovery from the standing charge to the unit rate — the per-kWh charge for electricity and gas usage – for both consumers and suppliers (including the necessary changes to the WHD reconciliation regulations to account for this).