Energy

Debate between Dan Poulter and Amanda Solloway

Tuesday 7th March 2023 Commons Chamber

[Amanda Solloway]

With the leave of the House, I will respond to the debate.

I thank my hon. Friends and other Members for their valuable contributions tonight. I will send on some information about some of the figures that I am unable to give at the moment. The regulations are necessary to ensure that we implement the alternative fuel payment scheme, in Great Britain, and the non-domestic alternative fuel payment scheme by allowing support to reach those who need it, and I think we all agree with that. The schemes are already in place and are delivering support to organisations across the United Kingdom.

As we are all aware, the domestic alternative fuel payment scheme is delivering £200 to households that use alternative fuels such as heating oil, liquified petroleum gas, coal or biomass, helping some 2 million off-grid households to meet their energy costs this winter. The scheme particularly supports households in rural areas that are not connected to the gas grid. Support was doubled to £200 in the autumn statement to reflect the price rises facing people using alternative fuels in their houses. The vast majority of eligible households should have received the payment automatically via their electricity supplier in February.

The non-domestic alternative fuel payment is delivering £150 to non-domestic customers who use alternative fuels for heating, helping premises in Great Britain and Northern Ireland meet their energy costs this winter.

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

I want to pick up the point about park homes and site owners and ask the Minister to address that specific point in her closing remarks. There are concerns that site owners are not always passing on the benefit of this payment to the residents of park homes. I would like some reassurance that there are proper measures in place and penalties that will make a difference in ensuring that site owners pass the benefit of these payments on to residents.

[Amanda Solloway]

I will address that in a moment. As I was saying, the scheme supports a wide range of domestic and non-domestic customers, including businesses, schools, hospitals and churches that are not connected to the gas grid. It will also deliver a top-up payment to the highest users of kerosene heating oil. Most eligible non-domestic customers should receive their £150 payment automatically in March, and we continue to update and publicise our guidance on the gov.uk website to ensure that energy users and intermediaries understand their rights and obligations.

I turn now to a couple of other questions that have been raised—as I have said, if I do not address any of the questions that have been asked, I will write to hon. Members. One thing I can confirm is that the Government will not require customers to repay an alternative fuel payment that they have received, even if they use electricity to heat their house.

Thinking about how to ensure that energy users know how to make necessary claims, end users can recover claims to pass-through amounts as civil debts in the county courts, in the same way that other outstanding amounts owed to an individual can be claimed. However, for future pass-through requirements, we will be keeping ahead of that position and making sure that we review it on a constant basis. We have reflected on advice we have received regarding previous pass-through regulations and meaningfully engaged with stakeholders across the United Kingdom to promote and disseminate requirements for all the schemes. That includes working side by side with delivery partners such as utility regulators and energy suppliers, and key stakeholders including consumer ombudsman services.

We considered introducing sanctions on intermediaries if they failed to notify the end user of their rights. However, we decided that the incentive for end users to make an application for sanctions to be applied would be insufficient, given the time and the administrative burden involved in doing so. None the less, notification requirements were included in the statutory instruments, on the basis that many intermediaries are likely to comply with the requirements set out and that the published guidance clarifies the contents of this obligation. Furthermore, it was considered important to ensure consistency in approach across the pass-through regulations of all energy support schemes.

We will continue to seek views and feedback from those impacted by all these regulations, as well as from key delivery partners. I commend the regulations to the House.

Question put and agreed to.

Resolved,

That the Alternative Fuel Payment Pass-through Requirement (England and Wales and Scotland) Regulations 2023, dated 19 February 2023, a copy of which was laid before this House on 21 February, be approved.

Energy

Resolved,

That the Non-Domestic Alternative Fuel Payment Pass-through Requirement and Amendment Regulations 2023, dated 22 February 2023, a copy of which was laid before this House on 23 February, be approved.—(Amanda Solloway.)