Fuel Poverty

Lord Fox Excerpts

Monday 13th June 2022 Lords Chamber

[Lord Callanan (Con)]

The noble Baroness makes a very good point. Heat networks are another of the difficult areas we need to address as part of the consultation we are doing. I also point out that we are, of course, taking powers to regulate heat networks, which are currently unregulated, in the forthcoming energy Bill, because it is an area that we need to expand in this country and there is no protection for those residents currently on heat networks, either in housing associations or in the private sector.

[Lord Fox (LD)]

My Lords, the Minister knows that, in fact, as he stated, very little of our gas, for example, comes from the world market, yet it is the world market price for gas that is driving up the cost of fuel and energy, in terms of electricity, for our citizens. Is there not a case for reviewing how the basket of electricity is costed, so that it actually reflects the cost of generation more effectively in this country, rather than it being driven by the highest marginal cost of gas?

[Lord Callanan (Con)]

The noble Lord is partially right. Of course, 40% of our gas supplies come from our own domestic production. We get quite a bit from the world market through Norway and quite a bit from LNG as well, so we are, of course, subject to world market fluctuations. But there is a lot of validity in the points that he has made.