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Fuel and extreme fuel poverty across the highlands and islands is higher than anywhere else in the UK, yet families there are forced to pay the highest electricity standing charges in the UK—50% more than in London, for example. That is despite the region exporting in excess of six times the amount of renewable electricity that it uses. When will the Government introduce a highland energy rebate to ensure fairness for people across the highlands and islands?
Fuel and extreme fuel poverty across the highlands and islands is higher than anywhere else in the UK, yet families there are forced to pay the highest electricity standing charges in the UK—50% more than in London, for example. That is despite the region exporting in excess of six times the amount of renewable electricity that it uses. When will the Government introduce a highland energy rebate to ensure fairness for people across the highlands and islands?
The hon. Gentleman will know that we have had many conversations about this subject. One of the things that the Secretary of State and I have been doing is talking to Ofgem to make sure that it is looking at the standing charges. That has led to a call for input, which has recently had over 30,000 responses.
To ask the Secretary of State for Energy Security and Net Zero, what discussions her Department has had with Ofgem on (a) the best practice for the provision of details to clients of any electricity prices that will be charged on a caravan site, and (b) the level of enforcement...
To ask the Secretary of State for Energy Security and Net Zero, what discussions her Department has had with Ofgem on (a) the best practice for the provision of details to clients of any electricity prices that will be charged on a caravan site, and (b) the level of enforcement...
The Government regularly engages with Ofgem on consumer issues. Under Ofgem’s Maximum Resale Price Provisions caravan site owners must not resell energy to residents at a higher price than what they paid to their licensed energy supplier. Residents are also entitled to see documentation, including a breakdown of the rates included in a bill or a contract.
Motion that this House has considered the introduction of energy rebates for Highlands and Islands. Agreed to on question.
Motion that this House has considered the introduction of energy rebates for Highlands and Islands. Agreed to on question.
To ask the Secretary of State for Energy Security and Net Zero, whether her Department has made an assessment of the economic impact of Ofgem's current energy pricing structures on (a) businesses and (b) residents of the Scottish Highlands and Islands.
To ask the Secretary of State for Energy Security and Net Zero, whether her Department has made an assessment of the economic impact of Ofgem's current energy pricing structures on (a) businesses and (b) residents of the Scottish Highlands and Islands.
The setting of tariffs is a commercial matter for individual suppliers. Suppliers can decide how they structure their tariffs as long as they do not lead to households paying above the relevant maximums set by Ofgem under the price cap. There is no price cap for businesses.
To help protect North of Scotland consumers from high local electricity distribution costs, the Government’s Hydro Benefit Replacement Scheme provides an annual cross-subsidy of around £112m. It is funded via suppliers across GB, saving a typical North of Scotland household over £60 each year.
It is good to be addressing an elected Minister this morning. The consumer organisation Which? has described Tesco and Sainsbury’s as committing “dodgy” practices over food prices and loyalty schemes, and Marks & Spencer has just posted record profits on food sales, yet people up and down the nations of the UK are struggling to pay their food bills. Will the Chancellor tell us which supermarkets he has held to account over rising food prices?
It is good to be addressing an elected Minister this morning. The consumer organisation Which? has described Tesco and Sainsbury’s as committing “dodgy” practices over food prices and loyalty schemes, and Marks & Spencer has just posted record profits on food sales, yet people up and down the nations of the UK are struggling to pay their food bills. Will the Chancellor tell us which supermarkets he has held to account over rising food prices?
I can tell the hon. Gentleman that we had the supermarkets in over the summer to make sure that they were doing everything they could to bear down on food price inflation. However, the correct way for politicians to look at this is at arm’s length. We have the independent Competition and Markets Authority, which does a rigorous job and often does things that politicians disagree with, and it is looking at the issue right now.
In Canada, Ministers met the five largest grocery chains to get commitments on stabilising food prices. Other Governments are doing similar things. France’s Finance Minister held extensive talks with the food industry to get it to commit to freezing or cutting prices on 5,000 everyday products. Is it not the case that, for people facing crushing food bills in Scotland and across the nations of the UK, this Westminster Government are doing absolutely nothing?
In Canada, Ministers met the five largest grocery chains to get commitments on stabilising food prices. Other Governments are doing similar things. France’s Finance Minister held extensive talks with the food industry to get it to commit to freezing or cutting prices on 5,000 everyday products. Is it not the case that, for people facing crushing food bills in Scotland and across the nations of the UK, this Westminster Government are doing absolutely nothing?
I think £94 billion of support to help families up and down the country, including with food prices and energy prices, is a rather different answer from saying that we are doing nothing.
The cost of the most common family foods has risen by nearly 30% in the past year alone, according to new research by consumer group Which? The Governments of Ireland and France have worked with retailers to reduce costs for families, while the UK Government have sat on their hands. What discussions has the Secretary of State had with Cabinet colleagues about how to learn from our European neighbours and reduce the crisis in people’s homes now?
The cost of the most common family foods has risen by nearly 30% in the past year alone, according to new research by consumer group Which? The Governments of Ireland and France have worked with retailers to reduce costs for families, while the UK Government have sat on their hands. What discussions has the Secretary of State had with Cabinet colleagues about how to learn from our European neighbours and reduce the crisis in people’s homes now?
What we are learning from our European neighbours is that this is a common problem. In fact, food price inflation in Germany, Portugal and other
countries is higher than it is here. Rather than intervening in markets, as some are spuriously suggesting, and taking us back to the prices and incomes policies of the 1970s, we have entered discussions with the supermarkets, some of which have recently suggested that they will be able to lower prices, or lower the rate of increase in some prices, on the more essential items.
To ask the Secretary of State for Energy Security and Net Zero, if he will make an estimate of the number of businesses that have entered new fixed period energy price agreements in the last six months.
To ask the Secretary of State for Energy Security and Net Zero, if he will make an estimate of the number of businesses that have entered new fixed period energy price agreements in the last six months.
The Government does not currently hold data for all business energy contracts. Of those subject to Energy Bill Relief Scheme support, it is currently estimated is that up to 400,000 electricity contracts and 100,000 gas contracts were fixed since September 2022. This would not capture any contracts that may be fixed on an annual, or less frequent basis, and were done so prior to this point. The Government does not have information on the number of businesses these contracts equate to, as a single business can have multiple contracts and would also expect some businesses to have fixed both electricity and gas contracts.
Domestic energy companies are routinely raising people’s direct debits above the level of energy that they use and need to pay for. In the process, they are building up credit balances—sometimes of hundreds of pounds of people’s money—when those people cannot afford that. Will the Minister meet me to discuss how to hold the energy companies to account and ensure the automatic repayment of overcharging?
Domestic energy companies are routinely raising people’s direct debits above the level of energy that they use and need to pay for. In the process, they are building up credit balances—sometimes of hundreds of pounds of people’s money—when those people cannot afford that. Will the Minister meet me to discuss how to hold the energy companies to account and ensure the automatic repayment of overcharging?
I entirely agree with the hon. Gentleman. I have had the experience myself where the energy company arbitrarily decided to put an outrageous figure into the direct debit. Once someone challenges that figure, the company will fall back from that—but that is if they can get through on the helpline.
To ask the Chancellor of the Exchequer, what recent discussions his Department has had with the (a) Bank of England and the(b) wider banking sector on support for businesses experiencing temporary cash flow problems due to energy costs.
To ask the Chancellor of the Exchequer, what recent discussions his Department has had with the (a) Bank of England and the(b) wider banking sector on support for businesses experiencing temporary cash flow problems due to energy costs.
The Chancellor has met frequently with the Bank of England Governor, Andrew Bailey and continues to engage with the Bank and other commercial actors.
To address extraordinary liquidity requirements faced by energy firms from high and volatile energy prices, HM Treasury has announced the £40 billion Energy Markets Financing Scheme, delivered with the Bank of England,.
The scheme will improve resilience in energy and financial markets, and the economy. To deliver the scheme, there will be a 100% guarantee to commercial banks covering additional lending extended to firms. The scheme will be designed to be used as a last resort, with pricing and conditions reflecting this.
Last week, the Government also announced details of the Energy Bill Relief Scheme to protect businesses from the spiralling costs of energy by providing a discount on wholesale gas and electricity prices over the next six months.
A parallel scheme, based on the same criteria and providing comparable support, but recognising the different market fundamentals, will also be established in Northern Ireland.
To ask the Minister for the Cabinet Office, whether he has made an assessment of the potential impact of the Government's Cost of Living Business Tsar's recommendation on independent retailers that food businesses reduce the retail price of food.
To ask the Minister for the Cabinet Office, whether he has made an assessment of the potential impact of the Government's Cost of Living Business Tsar's recommendation on independent retailers that food businesses reduce the retail price of food.
The Cost of Living Business Tsar, David Buttress, has and will continue to engage business of all sizes as part of his work to help households cope with the cost of living crisis. He is working closely with business associations to ensure that SMEs - including independent retailers - are able to contribute to this work. The Cost of Living Business Tsar will also work with officials to ensure that deals developed as part of his initiative are ethical and help UK consumers.
Food prices are set by businesses and it is not for the UK Government to set retail food prices or comment on day-today commercial decisions by companies. We continue to monitor food prices using the ONS inflation figures.
To ask the Chancellor of the Exchequer, whether he has had discussions with Cabinet colleagues on taking steps to help ensure that long-term fuel prices do not contribute to inflation.
To ask the Chancellor of the Exchequer, whether he has had discussions with Cabinet colleagues on taking steps to help ensure that long-term fuel prices do not contribute to inflation.
To date, higher inflation has been pushed up by global pressures, such as the economic recovery from Covid-19 and Russia’s invasion of Ukraine. As a result, supply chain bottlenecks and restricted access to oil has increased the cost of fuel.
At Spring Statement 2022 in response to high fuel prices, the government announced a temporary 12-month cut to duty on petrol and diesel of 5p per litre. This is the largest cash-terms cut across all fuel duty rates at once, ever, and is only the second time in 20 years that main rates of petrol and diesel have been cut. This cut represents savings for households and businesses worth around £2.4 billion in 2022-23.
To ask the Chancellor of the Exchequer, what assessment his Department has made of the likelihood of VAT inflating petrol and diesel prices as retail prices increase.
To ask the Chancellor of the Exchequer, what assessment his Department has made of the likelihood of VAT inflating petrol and diesel prices as retail prices increase.
Unique circumstances globally, including the war in Ukraine, have pushed pump prices up to unprecedented levels. In response to fuel prices reaching their highest ever levels, the Government announced at Spring Statement 2022 a temporary 12-month cut to duty on petrol and diesel of 5p per litre across the UK. This cut represents savings for households and businesses worth around £2.4 billion in 2022-23.
VAT has been designed as a broad-based tax on consumption, and the twenty per cent standard rate applies to the vast majority of goods and services. While there are exceptions to the standard rate, these have always been strictly limited by both legal and fiscal considerations. VAT makes a significant contribution to the public finances and, according to OBR forecasts, will have raised approximately £135 billion in 2021/22. As you will know, any reduction in tax paid is a reduction in the money available to support important public services, including the NHS and policing.
Returning to off grid, Ofgem’s mission statement says that it aims
“to make a positive difference for all energy consumers, both now and in the future”,
yet off-gas grid consumers using electricity, oil and liquid gas face price rises in April four times that of Ofgem’s average consumer. Will the Secretary of State support my calls to regulate this for off-gas grid customers through Ofgem, and indeed support my Energy Pricing (Off Gas Grid Households) Bill?
Returning to off grid, Ofgem’s mission statement says that it aims
“to make a positive difference for all energy consumers, both now and in the future”,
yet off-gas grid consumers using electricity, oil and liquid gas face price rises in April four times that of Ofgem’s average consumer. Will the Secretary of State support my calls to regulate this for off-gas grid customers through Ofgem, and indeed support my Energy Pricing (Off Gas Grid Households) Bill?
Where I agree with the hon. Gentleman is that we need to have a more robust offer for people who are off grid. This issue has been raised continually in these exceptional times, and I look forward to speaking to Ofgem—and perhaps him—about these issues.
Ten minute rule motion for leave to bring in a Bill. Agreed to on question. Presentation and first reading (Bill 258). To be read a second time on 18 March.
Ten minute rule motion for leave to bring in a Bill. Agreed to on question. Presentation and first reading (Bill 258). To be read a second time on 18 March.
To ask the Secretary of State for Business, Energy and Industrial Strategy, what discussions his officials have had with Ofgem on the marketing of Green Energy tariffs by energy companies when those tariffs can be effected by wholesale changes to the market price of fossil fuels via alterations in the...
To ask the Secretary of State for Business, Energy and Industrial Strategy, what discussions his officials have had with Ofgem on the marketing of Green Energy tariffs by energy companies when those tariffs can be effected by wholesale changes to the market price of fossil fuels via alterations in the...
The default energy price cap and any associated derogations for renewable tariffs is a matter for the regulator Ofgem and is not subject to discussion with BEIS officials.
To ask the Secretary of State for Business, Energy and Industrial Strategy, what discussions his Department have had with the Competition and Markets Authority on price alterations across the academic ebook market during the covid-19 pandemic.
To ask the Secretary of State for Business, Energy and Industrial Strategy, what discussions his Department have had with the Competition and Markets Authority on price alterations across the academic ebook market during the covid-19 pandemic.
The Competition and Markets Authority (CMA) is responsible for investigating individual and market-wide competition issues in the UK. The Government has ensured that the CMA has significant powers to investigate and act if it finds that companies are behaving anti-competitively in a market.
To ask the Secretary of State for Business, Energy and Industrial Strategy, what discussions his Department has had with Ofgem on their progress in implementing the Consumer Vulnerability Strategy 2025.
To ask the Secretary of State for Business, Energy and Industrial Strategy, what discussions his Department has had with Ofgem on their progress in implementing the Consumer Vulnerability Strategy 2025.
BEIS regularly engage with Ofgem to discuss their progress in implementing the Consumer Vulnerability Strategy 2025. Since this was published, in October 2019, Ofgem has made progress on their first-year priorities, including:
- Creating an analytical framework to consistently assess the impact of regulatory policies on groups of consumers in vulnerable situations, published in May 2020;
- Strengthening protections for consumers who self-disconnect from prepayment meters or self-ration, and protections for consumers who struggle to pay their bills. Ofgem consulted on proposals in June 2020 and intend for protections to be in place by the end of 2020, and;
- Proposing a requirement on gas network companies to adhere to a vulnerability principle, making network companies more accountable for the service they provide consumers in vulnerable situations, through a licence obligation. Ofgem is planning to issue the statutory consultation in December and for the condition to come into effect on 1 April 2021.
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether it is the Government's policy to move away from using coal to generate electricity in the UK; and what assessment his Department has made of the effect of higher gas prices on the level of electricity generation...
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether it is the Government's policy to move away from using coal to generate electricity in the UK; and what assessment his Department has made of the effect of higher gas prices on the level of electricity generation...
The Government is committed to ending the use of unabated coal for electricity generation by 2025. Government measures and support for low carbon technologies mean that coal has gone from generating 39% of the UK’s electricity in 2012 to 7% in 2017[i]. Coal’s share of electricity generation was 1.6% for 2018 Q2. Gas’ share of electricity generation was 42% for the same period[ii].
The Department considers and analyses a range of future price scenarios and the effect on anticipated generation from coal and gas; a number of these scenarios are published as part of the BEIS Energy and Emissions Projections[iii]. Changes in gas prices are one of a number of factors that can affect the amount of coal and gas generation on the system at any particular time. Higher gas prices may incentivise some switching from gas to coal due to impacts on gas-fired power plants relative profitability in the short term. While there may be a small increase in the share of coal generation this winter, we do not expect these recent fluctuations to significantly affect the trajectory to the end of unabated coal by 2025.
[ii] https://www.gov.uk/government/statistics/electricity-section-5-energy-trends
[iii] https://www.gov.uk/government/collections/energy-and-emissions-projections
Winter is almost upon us, yet those suffering most from fuel poverty in the highlands are still paying higher electricity charges than those anywhere else in the UK, despite living in a centre of energy production. When will the Minister act to end this electricity unit price discrimination, which is estimated to add £400 a year to the already high cost of rural living?
Winter is almost upon us, yet those suffering most from fuel poverty in the highlands are still paying higher electricity charges than those anywhere else in the UK, despite living in a centre of energy production. When will the Minister act to end this electricity unit price discrimination, which is estimated to add £400 a year to the already high cost of rural living?
The hon. Gentleman raises a point that is also often raised by MPs who represent other areas, such as the peninsula of Cornwall and Devon. There has always been a convention that because it costs more
to deliver energy through conventional structures to those furthest parts of the UK, they bear a higher tariff. There is work ongoing, supported through BEIS innovation funding, to encourage self-generation and self-storage in many of the most remote communities—perhaps some of the things we have seen around the Orkneys with the hydrogen bus. The hon. Gentleman raises an important point. That is why the price cap Bill is so valuable and should be supported by all parties—because it caps energy prices for everyone in the UK.