Fuel Poverty

Guy Opperman Excerpts

Wednesday 19th January 2011 Westminster Hall

[Guy Opperman (Hexham) (Con)]

I am grateful for the opportunity to speak in this debate, which is timely and well-intentioned.

Given the harsh weather conditions leading up to Christmas last year, fuel poverty has never been of such concern to the people of Hexham. I represent well over 1,000 square miles of rural Northumberland, and the subject is most important to my constituents. It is no exaggeration to say that many people have to make a straight choice between heating and eating. They are in a difficult situation. If that does not sound primitive enough, NFU Mutual, the rural insurer in my part of the world, found in its annual rural crime survey last year that domestic fuel was sixth on the list of the top 10 items most commonly stolen from homes. The “Crimewatch” scene in Northumberland is astonishing for the number of people who are suffering rural crime with the loss of their fuel.

Although there are ongoing recommendations on how to discourage thieves, this crime wave is something that the country cannot tolerate. Is it something that we can deal with or, in reality, do we need assistance in the March Budget? I certainly hope that we shall get such assistance; I believe that it would be right, because the problem is putting an unacceptable strain on people’s incomes.

I have extensively gone through the approximately 20-plus providers of heating oil in rural Northumberland. In excess of a dozen of them are owned by one company. Hon. Members will be amazed to hear that they are all using their old names, and that they are all operating and selling as if they were perfectly independent. Some people have been buying from these companies for 30 or more years. It is only when one starts digging that one realises that there is a significant problem, which affects well over half the population. It is well known that the company behind this is DCC Energy, a Dublin-based provider. The company’s fuel oil customers are less able to negotiate a good price, as the cost of oil continues to rocket.

[Sir Robert Smith]

A more serious problem in the working of the market is that, at times of stress, quite a few of these supply companies say when asked for a price, “We can’t give you a price now; it’ll be the price on the day that we make the delivery.” How can the market work efficiently if people cannot shop around when placing an order? Would the hon. Gentleman like to comment on that aspect?

[Guy Opperman]

I would: the simple truth is that customers, wherever they are and whatever problems they face, need to shop around. If they do not, they will face the problem that the hon. Gentleman describes, which I and others in Hexham have come across. They will be deprived of the ability to buy fuel on an ongoing basis.

[Roger Williams (Brecon and Radnorshire) (LD)]

The hon. Gentleman raises an important point that affects rural users of heating oil. He will not be surprised to hear that all the companies on a price comparator website were owned by one company—DCC. It is hardly surprising that there is no differential in the prices that they offer, and that customers are unable to make an informed decision.

[Guy Opperman]

A number of independent organisations in Hexham provide fuel—WCF, Wallace, Par Petroleum and Johnson Oil. Those four are the last independents that supply the area. It is amazing to chart how such companies have been bought up over the years.

What worries me most is that, without a strong local and competitive market, it is a lot easier for companies to hike up prices, delay things and move people on, explaining that they will produce a fair price at some stage or the right price only when they turn up. I am in negotiations with the Office of Fair Trading to ensure that it does investigate these matters. However, the reality is that it needs information from those whom we represent. I therefore urge individual constituents to write to the OFT, bringing such information to its attention, and I am doing so for people in my area that have complained.

[Dr William McCrea (South Antrim) (DUP)]

Many families in Northern Ireland are trapped, as they have no alternative to oil for heating their homes, as gas is not available in many areas.

[Guy Opperman]

I accept that. Like the hon. Member for Westmorland and Lonsdale (Tim Farron), roughly 10% of my population is being provided by particular companies, with the market narrowing whether or not they like it. We need to help them in whatever way is possible. I hope that the Minister will address that point.

Costs are clearly getting out of control for the residents of Hexham. Fuel is a necessity in a constituency of 1,000 square miles, not a luxury. People do not spend their money on it because they think it would be jolly to go for a drive. Last week, when I filled my petrol tank, I was stopped by the garage owner, who unluckily recognised me and said, “What are you going to do about this?” [Interruption.] Yes, I did pay him—a lot of money. I pointed out that we are trying to address the problem. There is much that I hope that the Minister will do.

The trade body has made a statement justifying the price increase. It is long on generalities and short on specifics. I would have liked it long on specifics and short on generalities. I accept that DCC and other companies are perfectly entitled to a fair return, but the market has gone up and people—it matters not where—are at their mercy. That is not right.

Although wholesale costs have increased, the situation has been made worse by the extremely cold weather. Temperatures have been as low as minus 19° in my area. I am worried about the market in my constituency, which gives residents too little choice when trying to find the best price. The price hike is unacceptable, and the Government can do more about that. I hope that the status quo does not continue.