Oral Answers to Questions

Miatta Fahnbulleh Excerpts

Tuesday 29th April 2025 Commons Chamber

[Mr Joshua Reynolds (Maidenhead) (LD)]

1. What assessment he has made of the potential implications for his Department’s policies of recent trends in levels of standing charges for electricity bills.

[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.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

2. What steps he is taking to support job creation in the renewable energy sector.

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[Dr Luke Evans (Hinckley and Bosworth) (Con)]

5. What assessment he has made of the adequacy of the transparency of domestic energy bill costings.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)]

Under Ofgem’s current rules, suppliers must provide complete and accurate billing information. Critically, bills are required to be displayed in plain and accessible language. We will work with the regulator to ensure that suppliers abide by that. However, it is worth saying that we recognise that many consumers feel let down by a broken energy system that is not working on their behalf. That is why we are reviewing the role of Ofgem, to ensure that it has the powers necessary to be an effective consumer champion.

[Dr Evans]

When it comes to bills, the public understand what unit costs are, but not what standing charges are. When I raised this with the previous Government and Ofcom, they said that it was a complex matter, but what I am asking for is transparency, so that people understand how the charge is made up, and can then make a judgment on what it looks like. Will the Government commit to asking Ofgem to ensure that that information is included in the billing, so that we can see the breakdown of costs—how much is going on human resources and how much is going on the actual infrastructure and wires—so we know exactly what is going on in the energy market?

[Miatta Fahnbulleh]

We support transparency. Ofgem publishes the breakdown of all costs within bills, but there is more that we need to do to ensure that consumers understand what is going on. Critically for us, we know that consumers are very frustrated about the standing charges, which is why we are committed to lowering them. As I have said, a consultation is under way around what we do with standing charges, which includes introducing a zero-standing-charge tariff. Within that, we will be considering options to increase transparency.

[Anna Gelderd (South East Cornwall) (Lab)]

Many households in rural and coastal areas, including in South East Cornwall, are not connected to the gas grid and rely on alternative fuels, which often cost them more. What steps is the Minister taking to ensure that, unlike under the previous Government, these residents are not left behind in future support schemes?

[Miatta Fahnbulleh]

We are very clear that every part of the country must benefit from this transition, so whether it is through our warm home scheme or the work that we are doing locally through Great British Energy, we are making sure that there is a solution for every single part of the country. In my Department, I am doing a lot of work to make sure that we have a set of propositions for households in rural areas, so that they can upgrade their homes and have bills that are cheaper and homes that are warmer, which is the central plank of our warm home scheme.

[Mr Speaker]

I call the shadow Minister.

[Nick Timothy (West Suffolk) (Con)]

Several times now, I have asked Ministers to rule out aligning the British carbon price with the European one and each time they have refused to do so. They have already abandoned their promise to cut energy bills by £300 a year, but alignment would increase wholesale costs and therefore increase bills for every family in the country. Can the Minister, at last, be straight with the public and tell us whether the Government plan to match the European carbon price—yes, or no?

[Miatta Fahnbulleh]

We are engaging with industry on this matter. The Confederation of British Industry and Energy UK are clear that they should support alignment, but we are looking at that. Ultimately, we are doing everything that we can to bear down on energy costs in this country. That is why we are sprinting to clean power. We inherited an absolutely atrocious legacy from the Conservative party, which allowed businesses and consumers to bear the price of a broken system. We will not make the same mistakes, which is why we are cracking on with the job.

[Nick Timothy]

I think we are getting closer to the Government admitting their secret plan. As soon as the local elections are done, Labour is going to sell out to Europe, and the result will be higher bills for British families. But there is more: the EU is expanding carbon pricing to include transport and heating emissions, so alignment with the expanded scheme would mean extra taxes on every British family for driving their cars and heating their homes. Will the Minister rule out aligning at least with the expanded scheme and say no to new taxes on everyday life—yes or no?

[Miatta Fahnbulleh]

I am absolutely disappointed by the Conservatives. I should expect more, but maybe I need to get used to being disappointed. We saw the press release a week ago, and it has had no publicity because it is a Conservative party scare story. It is absolute nonsense. The Government are serious about bearing down on the cost of energy for businesses, and we are getting on with the serious work of doing that. I suggest that the Conservatives get a grip and join us in that task.

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[Tulip Siddiq (Hampstead and Highgate) (Lab)]

15. What steps he is taking to ensure that local authorities have adequate resources for energy efficiency upgrades for council leaseholders and social homes.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)]

At the 2024 autumn Budget, £1.8 billion was allocated to local authorities and social housing providers, supporting them to deliver warmer and more energy-efficient homes across the country, targeting low-income households in particular. This goes alongside our plans to raise standards in rented properties to ensure that no social or private renter has to live in a cold, draughty home.

[Tulip Siddiq]

I am pleased to see the Government’s commitment to provide thousands of low-income households with energy-efficient upgrades. This could not have come too soon for my vulnerable constituents who are living on housing estates with outdated energy systems that sometimes leave them without hot water and heating for months on end. Camden Council, which I know the Minister knows well, has plans to upgrade the energy efficiency of those estates, but in many cases it just does not have the resources to replace the heating systems with heat pumps, which would lower bills and carbon emissions even further. What assurances can the Minister give me that local authorities will be given the support necessary to deliver the energy upgrades to the highest possible level?

[Miatta Fahnbulleh]

My hon. Friend makes an important point. Local authorities will have a critical role to play in our warm homes plan. Under our warm homes schemes, we are offering substantial support to enable low-income households to transition to clean heat. For example, our warm homes social housing fund allows grant recipients to receive an additional £7,500 clean heat upgrade, and under our warm homes local grant, £15,000 is being provided on top of the baseline to enable all households, particularly low-income households, to benefit from clean heat.

[Graham Stuart (Beverley and Holderness) (Con)]

I know how on top of her brief the Minister is, so will she confirm that fewer than a third of council homes had an energy performance certificate C rating in 2010 compared with over 70% by last year? Less than 12% of homes in the UK had decent insulation in 2010 when Labour last left office and when the right hon. Member for Doncaster North (Ed Miliband), who is chuntering from a sedentary position, was in power, and more than 50% did by the time we left office. Will she commit to a faster rate of improvement under this Government than we ever saw under the previous Labour Government?

[Miatta Fahnbulleh]

I welcome the right hon. Member’s commitment to our plans to upgrade homes. However, he is trying to rewrite history, because when we look at the record of the previous Government, we see many failures, but the most abject and egregious was the failure to insulate enough homes to ensure that households were protected from price rises. That is the Conservatives’ legacy, and it is one we are determined to turn around. That is why we are committed to upgrading millions of homes across the country.

[Rachel Hopkins (Luton South and South Bedfordshire) (Lab)]

16. What discussions he has had with Cabinet colleagues on the opportunities for industry through the National Wealth Fund.

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[Susan Murray (Mid Dunbartonshire) (LD)]

In my constituency, many elderly and disabled people face very high energy bills due to essential medical equipment and heating needs. What support are the Government providing to ensure that these households are protected from the high cost of electricity?

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)]

We know that consumers are under pressure with energy bills. That is why last winter, £1 billion of support was provided to help vulnerable customers through our warm home discount and through industry. That is why we are extending the warm home discount from 3 million households to 6 million households and doing ongoing work to ensure we are supporting the most vulnerable households with bills.

[Lauren Edwards (Rochester and Strood) (Lab)]

T9.   Next week I will be visiting the site of a proposed project in my constituency that will create the only new interconnector between Great Britain and France, which can be built and operational by 2030, to help deliver the Government’s clean power mission. Ahead of the proposed UK-France summit this summer, will the Secretary of State meet me to discuss how to expedite conversations with our French counterparts, so that we can move forward with this important project?

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[Rachel Blake (Cities of London and Westminster) (Lab/Co-op)]

T10.   The Pimlico district heating undertaking was built in 1950, the first ever district heating network in the UK. It used to be cutting edge, but it is in desperate need of replacement, so that my constituents can have heating and hot water. Will the Government work with local authorities such as Labour Westminster city council to make sure that all the costs of replacement do not necessarily fall just on residents?

[Miatta Fahnbulleh]

Westminster city council owns the network, and we know that it is considering options for refurbishing and potentially decarbonising it. In the round, we are committed to working with district networks to do two things: to increase technical standards, so that they are more efficient; and, critically, to properly regulate them, so that we protect consumers from unfair prices.

[Dr Andrew Murrison (South West Wiltshire) (Con)]

When will the Government decide whether to support the UK-Morocco power project?

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[Wendy Chamberlain (North East Fife) (LD)]

I have been contacted by several constituents who have experienced failed ECO4 scheme installations. What support is there for constituents when installations go wrong? Are rogue installers getting paid for work that is not completed properly? What steps are being taken to address such failures?

[Miatta Fahnbulleh]

We are aware of issues that we have had with ECO4 and the Great British insulation scheme. If constituents have been affected, they should have received a letter from Ofgem. They should be able to contact their installer, who is obliged to fix the work, and there is a clear redress mechanism. There is a wider point: we know that the system for quality assurance and consumer redress is not fit for purpose and we are determined to overhaul it.

[Sammy Wilson (East Antrim) (DUP)]

In the 1970s, global warmists wanted to put black dust on the Arctic to block the sun. Now the Minister wants to put black dust on clouds to block the sun again. Is his plan not bonkers? £50 million of taxpayer’s money has been spent, which will only put up energy prices even further.