Asked by: Markus Campbell-Savours (Labour - Penrith and Solway)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, when he plans to bring forward legislation to regulate third‑party intermediaries in the business energy market.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government intends to protect business and household consumers by appointing Ofgem to regulate third‑party intermediaries as part of the Energy Independence Bill. The Energy Independence Bill has now been announced in the King’s Speech and will be introduced as soon as Parliamentary time allows.
Asked by: Markus Campbell-Savours (Labour - Penrith and Solway)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the impact of recent increases in electricity standing charges for business customers in Cumbria on businesses; and what steps he is taking to ensure charges are proportionate.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Levels of standing charges in the non-domestic market are a commercial decision for suppliers, who typically set their prices based on network charge differences, leading to regional variations in electricity standing charges.
Nonetheless, the Government understands that for too many consumers, too much of the burden of the bill is placed on standing charges and is committed to lowering the cost of standing charges. Ofgem have recently launched a Cost Allocation Recovery Review to review how ‘fixed’ costs should be recovered in the future energy system. This includes whether costs could be recovered from consumers, including businesses in more progressive and fairer ways.
Asked by: Markus Campbell-Savours (Labour - Penrith and Solway)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what progress his Department has made in reducing the influence of gas prices on wholesale electricity prices.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Government is accelerating the deployment of low-cost renewable electricity technologies to reduce our reliance on international fossil fuel markets.
The existing Contracts for Difference (CfD) scheme has been successful in bringing forth new renewable assets at fixed, competitive prices. These CfDs are already beginning to decouple electricity and gas markets, protecting consumers from higher electricity bills when gas prices increase.
In April, Government announced plans to offer legacy low-carbon generators – which provide around 30% of our power today – the option of a fixed price CfD. These contracts will build on the success of existing CfDs, further delinking electricity generation from volatile gas prices.
Asked by: Markus Campbell-Savours (Labour - Penrith and Solway)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he has considered supporting businesses with the cost of energy following recent increases in its cost.
Answered by Martin McCluskey - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Through our Clean Power 2030 mission we are accelerating the transition to clean, homegrown electricity to shield end-users from the volatility of fossil fuel prices and to deliver reliable, affordable energy to every part of the UK economy.
We are already taking action to expand the British industry supercharger from April to reduce costs for the most energy-intensive businesses, and a significant proportion of businesses are on fixed-term contracts that shield them from market volatility for the contract duration. However, we recognise that at the point of contracting, businesses are exposed to international fossil fuel markets, and clearly, for both businesses and consumers, much will depend on the length of this crisis.
Just as we are looking across Government at the situation that households face, the Government is absolutely focused on the impact of the crisis on business and industry, and we will not hesitate to act.