(1 week, 1 day ago)
Commons Chamber
Miatta Fahnbulleh
The right hon. Member raises an important point. We know that families in off-grid households are under huge pressure, and we are taking action to support them. We have put aside £50 million to support, for example, families who use heating oil. We are encouraging households to do that because the uptake has been lower than we want, but we are also introducing regulation of heating oil so that we can protect households. We know that there is more we can do, and we are absolutely committed to getting it done.
Mr Joshua Reynolds (Maidenhead) (LD)
Cornwall Insight forecasts that the energy price cap will increase by a further 16% in January. The Secretary of State has spoken about taking VAT off electricity bills, but that amounts to £45 for an average household. In reality, that is like trying to fill a swimming pool with a thimble—it is not going to work. How will she help to protect families who are already struggling, and will she consider an essential energy guarantee so that all the energy that we need can be affordable for every household?
Miatta Fahnbulleh
We are very clear about where the end destination is. We need to get to an energy system that is affordable for everyone, and we absolutely recognise that the present system is not. We are taking short-term action to give people breathing space, but ultimately I come back to the question of why families are under so much pressure. It is, in fact, because we are acutely exposed to global fossil fuel markets that we do not control. When we talk about clean energy, it is because that is the route by which we get bills down. We have to take the long-term action. We also have to ensure sure that we are reforming the market so that it works in the interests of consumers. We are providing breathing space and standing by people because we need to, but absolutely taking the hard long-term action so that we can fix this problem for good.
(1 year, 5 months ago)
Commons Chamber
Mr Joshua Reynolds (Maidenhead) (LD)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
We know that consumers are frustrated by standing charges, which is why we are committed to lowering them. Ofgem has been consulting on introducing a zero standing charge tariff that would shift the costs on to unit rates. The consultation has now closed, and we will be working with Ofgem to take this forward.
Mr Reynolds
Has the Department assessed whether the rising standing charges are discouraging residents in our constituencies from switching to heat pumps and electric vehicles because they are concerned about the fixed costs that will come with them?
Miatta Fahnbulleh
There are fixed costs within standing charges relating to, for instance, the cost of maintaining and upgrading networks, which we have to cover, but we recognise the imbalance between the price that people are paying for electricity and the price that they are paying for gas. We are committed to dealing with that imbalance, because we think it right that consumers can transition to clean heat. That is the way in which we reduce the amount of energy we use and, critically, that is the way in which we reduce bills.
(1 year, 7 months ago)
Commons Chamber
Mr Joshua Reynolds (Maidenhead) (LD)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
I thank the hon. Gentleman for his question. We are very aware of the issues with park homes, and industry support is provided to residents. As we think about expanding the warm home discount and the support we provide for households that cannot afford their energy, we will, of course, have park homes in our mind.