Oral Answers to Questions

Dave Doogan Excerpts

Tuesday 27th February 2024 Commons Chamber

[Mr Speaker]

I call the SNP spokesperson.

[Dave Doogan (Angus) (SNP)]

In the UK, electricity standing charges will balloon by 12%, meaning that people in Scotland who were paying £90 a year in 2021-22 will soon need to find £216 a year—a 138% increase under this Tory Government. That removes the incentive to curb excessive use, and presents a disincentive to economise on energy usage. If costs and charges were redistributed to the unit price, consumers would be empowered to pursue reduced usage, knowing that that would translate into lower bills. What assessment has the Minister made of the savings that would be made, in terms of both carbon emissions and the need for vast pieces of new energy infrastructure, if the standing charges were rolled into unit prices?

[Amanda Solloway]

Standing charges, as I mentioned, are a matter for Ofgem. However, Ofgem has listened to public sentiment, and it has recently launched a call for input on standing charges. My understanding is that to date, it has had over 40,000 responses. The call for input closed on 19 January, and Ofgem’s paper aims to ensure a greater understanding of how standing charges are applied to energy bills and what alternatives should be considered.

--- Later in debate ---

[Mr Speaker]

I call the SNP spokesperson.

[Dave Doogan (Angus) (SNP)]

Some 23% of households in Scotland are living in extreme fuel poverty. Energy debt across the United Kingdom has reached £3.1 billion. Age UK estimates that, had the UK Government implemented a social tariff this winter, 2.2 million households would have been lifted out of poverty. The latest costs of unpayable energy debt have once again been heaped on to ordinary taxpayers by Ofgem through the unit rate. What assessment has the Secretary of State made of how much energy debt could be reduced by through the introduction of a social tariff to mitigate totally unaffordable energy bills?

[Claire Coutinho]

The fact that energy prices are at the lowest level in two years is good news for families up and down the country. We have put in place support, including a package of more than £104 billion to support families—that is £3,700 per household on average. As part of that, we have made £900 cost of living payments to help people in the last year.