Energy Prices Bill

Lord Rogan Excerpts

2nd reading
Wednesday 19th October 2022 Lords Chamber

[Lord Rogan (UUP)]

My Lords, I welcome the opportunity to add a Northern Ireland perspective to our proceedings on this critically important legislation.

The cost of living crisis continues to bite, with it being confirmed this morning that inflation has returned to a 40-year high. It is set to be a worryingly difficult winter with individuals and families having to choose whether to skip meals or heat their homes. This is a tragic state of affairs in the year 2022. I therefore support the Bill, but I have a number of concerns that I hope the Minister will endeavour to address in his wind-up remarks.

As the noble Lord, Lord Callanan, indicated, there can be no doubt that much of the blame for the current crisis is in the bloody hands of Vladimir Putin, which are choking off energy supplies across Europe and beyond. As the noble Baroness, Lady Bennett of Manor Castle, mentioned, noble Lords will be aware that the situation has become even more grave in recent hours after Mr Putin imposed martial law in the four annexed regions of Ukraine. This is an attempt to turn Ukrainians against each other on the battlefield and place even greater strain on global energy supplies. The sooner he is removed, the better for all of us —including the Russian population.

However, we are where we are, and the UK Government are correct to step forward—as other Governments are doing across Europe—to take the action they are proposing through the legislation before us. However, not for the first time, Northern Ireland finds itself in a peculiar position in comparison with the rest of the United Kingdom. As not all your Lordships may be aware, 68% of Northern Ireland households use home heating oil. That amounts to half a million homes, mostly in rural areas. This compares with around 3% of households in England.

The price of oil in Northern Ireland has rocketed. Figures released by the Consumer Council last week show that the average cost of 900 litres of home heating oil in Northern Ireland has risen to £923.34, up by more than 51% from £472.27 12 months ago. Further, the price has gone up by £50, from £873.31, in just seven days. The noble Baroness, Lady Young of Old Scone, alluded to the £100 support for heating oil. This is particularly relevant to the debate we are having today because, as it stands, the Government are promising to support home heating oil customers in Northern Ireland with a mere £100 payment in the form of a credit to electricity bills—half of this has now been wiped out in the space of a week. This is simply untenable.

At current prices, £100 would pay for a meagre 80 litres of oil, which will not last long and is too small an amount for many suppliers to agree to deliver in the first place. Further, no mechanism is yet in place to even get this money to Northern Ireland consumers, given the absence of an Executive at Stormont. I appeal to the Minister, who we all know is a fair and decent man, to use his good offices to make the case for a rapid rethink on this aspect of the Government’s plans, because the people of Northern Ireland are struggling more now than at any point over the past 25 years.

I am also concerned that the support the Government is offering, both to households and to businesses, will last for only six months. I am well aware that a review with new arrangements is due to be in place by April, but I fear these will be even less generous than those intended to carry the country through the winter, and as I have sought to make clear, in relation to Northern Ireland, they are not generous at all. This is causing great concern for many of my fellow citizens in Ulster. I appreciate that the new review will, of necessity, take a certain period of time, but I appeal to the Minister to urge his colleagues to come to some sort of decision, which must be subject to proper scrutiny by your Lordships and the other place, as a matter of utmost urgency.

This is not the time to dwell upon the arguments for why the ill-advised Northern Ireland protocol is doing so much damage to everyday life in the Province, with businesses facing increased costs and consumers having to cope with a reduced choice of goods and higher prices due to fewer suppliers. However, we do need the sea border to be removed and Northern Ireland’s position as an equal part of the United Kingdom to be fully restored. Yesterday, the Secretary of State for Northern Ireland, Chris Heaton-Harris, made clear that he intends to trigger a new set of elections to Stormont to try to break the logjam if the DUP continues to refuse to take its seats in the Executive. I see little good or little change coming from this proposed election, although my party, the Ulster Unionist Party, will, as always, fight these elections vigorously should they be called.

I urge the Government and the European Union to work together to properly address the problems the protocol is causing. Equally, I ask the Minister and his colleagues, including the Prime Minister herself, to take a more active, personal interest in Northern Ireland and its people. There is a lack of political direction in the United Kingdom at the moment, we all know that, and nowhere more so than in Northern Ireland, which has been without a functioning Government for most of the year. This would not be accepted elsewhere in these islands, and leadership is urgently required in the Province as the cost of living crisis tightens its vicious grip.

After all that, I support the Bill and look forward to the Minister’s thoughts.