Domestic Heat Pumps: Budget Underspend

Lord Foulkes of Cumnock Excerpts

Tuesday 28th February 2023 Lords Chamber

[Lord Callanan (Con)]

The noble Lord makes a very good point. Performance will vary depending on the temperature outside. It is also worth saying that heat pumps have been installed extensively across Europe, including in countries which typically have much lower ambient air temperatures than the UK does, such as Norway. But his point is valid: we need to make sure that people are given accurate information.

[Lord Foulkes of Cumnock (Lab Co-op)]

Would the noble Lord, Lord Callanan, be a little less pedantic than his noble friend Lord Murray? Since the noble Lord, Lord Callanan, mentioned Ofgem in his initial reply, could he explain why Ofgem wants us to pay more for all our heating, despite the wholesale cost of gas reducing? What are the Government going to do about this?

[Lord Callanan (Con)]

I thank the noble Lord for a question not at all related to heat pumps. He makes a valid point: the price cap has been reduced in line with the reduction of wholesale prices. At the same time, there is a gap in funding because of government support. We have—the taxpayer has—been paying about one-third of people’s energy bills through the winter. That support is unsustainable in the longer term and is starting to be withdrawn, but I am sure the Chancellor is looking at this very closely.