Rural Communities

Debate between Albert Owen and Neil Parish

Thursday 9th January 2014 Commons Chamber

[Albert Owen]

Absolutely. It is good to have the hon. Gentleman back on-side. He and I debated this issue during the previous Parliament and my arguments were very consistent when I sat on the Government Benches. I am glad to see that, now he does not have ministerial responsibility, he is again championing those off-grid, which is the next topic I wish to address.

Energy Ministers are taking the off-grid issue seriously, but not enough practical steps have been taken. I am very pleased that my party is now calling for something for which I have been campaigning for some time: for the energy regulator to take responsibility for those not on the mains grid. This is an historic element of privatisation. When the energy markets for gas and electricity were set up, they encompassed the old generators that were on-grid and left an unregulated off-grid, which means that many people are paying a lot more in energy costs for their gas supplements.

When the Government, the energy companies and, indeed, the regulator talk about discounts and dual-fuel discounts—this issue affects every Member who represents a rural community—that does not apply to people who do not have mains gas. They are paying considerably more for their energy. The average price is a luxury for many people in rural areas. They pay considerably more, not only for the distribution and transmission cost, but for not benefiting from the energy companies.

I have been pressing for many years, with some albeit limited success, for the energy companies—the electricity companies, in this case—to give loyalty bonuses to people who stay with them. It is perverse that the energy market encourages switching and gives dual-fuel deals when it could and should give loyalty bonuses and help those in rural areas who do not have access to dual fuel.

[Neil Parish (Tiverton and Honiton) (Con)]

I very much agree with the hon. Gentleman about the off-grid situation in rural areas. There also does not seem to be enough competition between oil companies to deliver heating oil. Many constituents of ours will probably never get on to mains gas, but heating oil is an alternative. We have to get more competition and get the prices down for people in rural areas who use oil for their heating.

[Albert Owen]

The hon. Gentleman raises a very important point. Many Members, including those from the Cornwall and Devon area, have been campaigning on that issue for some time. The Office of Fair Trading called for a number of inquiries into it and made a recommendation to the Competition Commission. Unfortunately, it did not find that there is no competition, but I think that is blindingly obvious. That is why I welcome—I am not just making a party political point—the Labour party’s intention that Ofgem, the regulator, look at off-grid as well, because it could give the same protection to off-grid customers. It is there to champion consumers and businesses, and that would be a good, positive step forward.

Hon. Members from rural areas will know that many of their constituents try to buy their fuel before winter. In line with a cross-party campaign, I urge the Government to look at mechanisms to allow people in rural areas to get their winter fuel payments earlier, so that they can buy in advance and do not have to pay premium prices for coal, oil and other energy sources. I have pressed my party on that important point, and it has agreed, if it comes into government in 2015, to bring that measure in. I know there are IT issues, but I am sure that postcodes could be used to distribute payments earlier than happens now.

I raise the issue of winter fuel payments because there have been lots of delays and glitches, including in non-rural areas, with people receiving their payments. That is certainly the case in my constituency and those of colleagues I have spoken to about the issue. If the software was amended, people in rural areas would have the advantage of receiving payments earlier so that they can buy in bulk earlier, at prices that suit them.

I have covered the issues relating to off-grid customers and the distribution companies, but I welcome the important energy investment that will be made in my constituency in north-west Wales. I am not someone who stands here and picks winners. There is a nuclear power station in my constituency, and I support moves to low carbon as well as the new build there. However, we have to have the right balance of biomass and other forms of renewables—it is important to have gas and clean coal in that balance—and my constituency is certainly playing its part. I make no apology for repeating that it is unfair that people in our areas pay more for the end product.

Having highlighted energy issues, I want to move on to fuel—petrol and diesel—which was mentioned by the hon. Member for Thirsk and Malton. In previous decades in this House, many people were encouraged to buy diesel, because it was more energy efficient, with cars able to do a greater mileage on diesel than on petrol. The price of diesel has now of course gone up considerably, which is hampering businesses and individuals in rural areas. There is a massive difference in the price of petrol and diesel on some independent and supermarket forecourts.

I very much welcome the Government’s moving the fuel rebate forward, but it does not cover all rural areas. When they brought it in, there should have been a rule for the whole United Kingdom; it should not have been done piecemeal. I am sorry to make a slightly partisan point, but Scottish Liberal Democrat seats should not have been in the first wave, with other areas having to play catch-up and make applications. There should have been proper criteria covering the whole of rural Britain and Northern Ireland.