Cost of Energy

Jim Shannon Excerpts

Tuesday 11th February 2025 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a real pleasure to serve under your chairship, Mr Western. I thank the hon. Member for Bath (Wera Hobhouse) for leading the debate. She has been assiduous, enthusiastic and committed on this issue, and we all owe her a debt for setting the scene so very well.

It is a real pleasure to see the Minister in his place. Mr Western, I will tell you what: as Ministers go, this is a hard-working one. He has done the lot—urgent questions yesterday, a statement yesterday, this debate today—all in a matter of hours. We look forward to his contribution to today’s debate. It is also a pleasure to see the hon. Member for Beaconsfield (Joy Morrissey) in her place as shadow Minister. In the last couple of years we have seen massive fluctuations in terms of energy prices, with thousands of households carrying the burden of that for many months. Energy prices have fallen since summer 2023, but there is little prospect of cuts soon. For that reason, it is good to be here to discuss the issue.

I will, of course, give a Northern Ireland perspective, and I have one big ask of the Minister. He probably knows what it is, and knew before we started, but I would be very keen to hear about his discussions with his equivalent in the Northern Ireland Assembly to see how we can work better here together to help our constituents back home. Global prices for gas, electricity and oil have been on the increase from summer 2021 after the pandemic. Furthermore, we witnessed a massive hike in prices after the Russian invasion of Ukraine in February 2022. There are things that the former Government and this Government have had no control over, but there are also things that we can do.

For Northern Ireland customers it has been slightly different, because we are not controlled by the energy price cap in England. However, although Government support was provided, it was withdrawn in July 2023, leading to a very large hike that families are still struggling with. The Minister knows, having responded to my urgent question yesterday, the point that I am going to make about oil: 68% of households in Northern Ireland have oil as their main and primary heating and cooking sources. Since October 2023, the cheapest prices for Northern Ireland’s largest supplier have been higher than prices under the cap in the rest of the United Kingdom.

The cost of energy can be monumental for local businesses, not just for the large chain businesses. The local, family-run small business is the one that will probably suffer the most. After the pandemic, I was approached by countless local businesses in my constituency that were simply unsure how they would survive. After so many years, many were facing the climax of their business. A local coffee shop I frequently used in the town where my office is had to close down as it was no longer sustainable. Energy suppliers back home, such as Power NI, can provide tailored plans for businesses, but the price is no different and businesses can often be forgotten.

It would be remiss of me to participate in this debate without mentioning the impact of the Government’s decision to withdraw the winter fuel payment from pensioners. Many such pensioners in my constituency who have contacted me relied on that payment to get them through the winter. There are concerns not only that this may plunge thousands of pensioners into fuel poverty, but about the massive potential health risks. Older individuals’ struggling to afford adequate heating could increase the risk of respiratory illnesses, strokes and hypothermia. It is not an exaggeration to say that many of the elderly people that I know do not have and cannot afford to heat, so they do not turn it on, but they do put on extra clothes. It is distressing to visit elderly people and see them wrapped up like a polar bear—

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

I thank the hon. Member for giving way; he is making an excellent contribution. The radio frequency network that, as the Minister is aware, controls what many people in remote areas pay for heating will be switched off in June. At present, the replacement infrastructure is not there, so many people could inadvertently end up paying through the nose. I find that very worrying, so will the hon. Member, and perhaps later the Minister, tell us whether they agree that the data communication company needs to speed up its roll-out of cellular coverage as quickly as possible? We are only four months away from June, and it is a deeply worrying situation for pensioners in my constituency and many other remote areas.

[Jim Shannon]

I thank the hon. Member for that intervention. The Minister has been listening, and I know that he does listen. The hon. Member has outlined a specific issue that is incredibly worrying. The older we get, the faster time goes; I am not sure whether that is right, but it seems to go faster. June will be here tomorrow—it will be that quick—so the crisis must be addressed today. I thank him for raising that and look forward to the Minister’s response.

I will always ensure that the Minister and his Department are aware of the impact that this issue could have—and has had this winter—on health. We look to him for direction and, most importantly, reconsideration for the coming years. Schemes were available under this Government that were available under the previous Government and were set up to support families and households who were struggling, but they have now closed. Similarly, back home, the Assembly has previously taken steps to support people.

It is no secret that people are still struggling. On occasions when the price of energy is out of our hands, there are measures we can take to ease the burden. Despite the general fall in prices since early 2023, typical bills under the January to March 2025 price cap will still be 43% higher than in the winter of 2021 to 2022. The perspective of prices and costs today is really bleak, so I look to the Minister for direction and plans for the rest of the coming year to support our constituents.

Steps can be taken to reduce pressure: perhaps there could be a closer look at the impact of renewable solar energy or better dedication to financially supporting our constituents. Regardless, I look forward to hearing what the Minister has to say, and to hearing about the planned integration between himself and his counterparts back home in the Northern Ireland Assembly, because we need to see the benefits of being a part of this great United Kingdom of Great Britain and Northern Ireland. We are very proud to be part of it, but we also look to Government here centrally to help us in the Northern Ireland Assembly and to help our constituents. I honestly believe that the Minister has a heart for that, and I very much look forward to his response and to seeing how he can help us.