Warm Home Discount Cost Recovery

Overview

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). 

What happens next

Following this consultation, the Department for Energy Security and Net Zero will review the responses and publish a response in due course, taking account of the feedback received. Subject to the outcome of this consultation, and the outcome of the consultation on continuing the WHD from 2026-2031, the government would include the necessary regulations to facilitate the recovery of WHD costs through the unit rate within the reconciliation regulations for the new scheme period.  

Ofgem may also consult on changes to the price cap methodology to reflect any proposed changes to WHD cost recovery.