Battery Energy Storage Sites: Safety Regulations
Miatta Fahnbulleh Excerpts(2 days, 19 hours ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
I congratulate the hon. Member for Horsham (John Milne) on securing this debate and on his thoughtful and informed speech. I thank all Members for raising this incredibly important issue. Let me reassure them and this House that the Government appreciate all the concerns that have been raised. There is no complacency, and we are taking a responsible approach to the deployment of grid-scale batteries, which are an essential part of delivering clean energy.
We are very clear that increasing the amount of clean, renewable electricity generated, stored and used in the UK will improve our energy security. It will bring down bills for consumers in the long term by reducing our reliance on fossil fuel markets, which are volatile. It will create jobs, and it will tackle the climate and nature crisis, which we must do for future generations. We are committed to delivering clean power by 2030, and it was reassuring to hear support for that ambition from Members across the House, with the disappointing exception of the hon. Member for West Suffolk (Nick Timothy), who has adopted a pretty impressive skill of rewriting history and forgetting his own Government’s shoddy legacy on this.
In the clean power action plan, the Government outlined that 23 GW to 27 GW of grid-scale battery storage could be required by 2030. I understand that many Members here today are concerned that this comes at the expense of health and safety, but let me reassure them that that is absolutely not the case. I acknowledge that there have been a number of incidents at battery sites, in 2025 in particular, and this has raised legitimate concerns. We hear those concerns and understand them, and Members are right to raise them with Government. However, it is incredibly important for me to stress—and reiterate a point that has been made by other Members—that the risks associated with grid-scale batteries are relatively small and well understood, that there are robust measures in place for managing those risks, and that Government are already taking further steps to address some of the issues that have been raised.
James Naish
The Minister knows that I am as passionate about clean, green energy as she is and that flexibility will be key to ensuring cheaper bills for customers, but that is why it is vital that we give the public confidence in systems like BESS. Will she reassure me that the Government recognise that we must give the public confidence, so that we can ramp up the energy infrastructure needed to achieve the targets she has outlined?
Miatta Fahnbulleh
I will absolutely reassure my hon. Friend. We understand that we must maintain public confidence and that we need a robust framework in place.
Jamie Stone
Fire services are devolved to the Scottish Government. I do not think that the hon. Member for Aberdeen North (Kirsty Blackman) would disagree that co-ordination on this matter between the devolved Administrations and the UK Government, so that we are singing off the same hymn sheet, is crucial.
Miatta Fahnbulleh
We recognise that there needs to be co-ordination, but first, let me take the framework that is in place. It is often claimed that there is no regulation in this sector because there is no specific law addressing battery safety. That is simply untrue. The safety and standards of batteries are assured throughout their life cycle. The Government are therefore confident that the safety risks posed by grid-scale batteries are relatively small and well managed.
I will take each aspect of this matter in turn, beginning with the planning regime. Planning practice guidance encourages battery storage developers to engage with local fire and rescue services before submitting a planning application, so that the issues relating to siting and location that hon. Members have raised are dealt with before an application is made. I think there is scope to strengthen the process and build on it in order to address some of the issues that have been raised.
Let me come to the crux of the regulatory regime for grid-scale batteries: the health and safety laws, overseen by the Health and Safety Executive. The fundamental principle of health and safety law is that those who create risk are best placed to control it. Operators of grid-scale battery sites are expected to assess the specific situation and implement the necessary control measures. Of particular relevance are the Health and Safety at Work etc. Act 1974, the Dangerous Substances and Explosive Atmospheres Regulations 2002, the Electricity at Work Regulations 1989 and the Management of Health and Safety at Work Regulations 1999. Together, that framework puts in place protections against some of the issues that have been raised, but I take the point that the hon. Member for Aberdeen North (Kirsty Blackman) raised—that there is scope to think about how we bring this together in a way that is accessible and enforceable, and ensures that the underlying provision and protections that are baked into legislation are well understood by the sector.
To complement the existing health and safety framework, the Government will consult later this month, to answer the question on the timescale, on whether to include batteries in the environmental permitting regulations, to provide further safeguards and assurances. Environmental permitting will provide for the ongoing inspection of battery sites, giving additional assurance that appropriate mitigations are maintained throughout the project’s life cycle. Critically, the environmental permitting regulations make it an offence to operate a regulated facility without a permit, or in breach of the conditions of that permit. We will consult on the principle and then work with industry, local government and key stakeholders in order to develop the detail. If we get it right, that should go a long way to addressing many of the concerns that have been raised.
Sir Alec Shelbrooke
When the Government do the research on mitigation that the Minister talks about, I gently suggest that they lay down in statute the minimum mitigation facilities that will be expected to be satisfied in planning applications. At the moment, there is no statutory outline for what mitigation must be put in place. Inspections are great, but we are not actually inspecting anything from a statutory point of view. I encourage her to ensure that the result of the research is that applicants have it laid out for them what mitigation needs to be in place.
Miatta Fahnbulleh
We will consult, and work with a host of parties to ensure that we get this right. As my hon. Friend the Member for Rushcliffe (James Naish) said, we have an interest in ensuring that the public feel complete confidence as we put forward this technology, and as we agree sites across the country.
Let me respond to the specific point that was raised by a number of hon. Members on the proximity to residential areas. It is true that there is no mandated minimum distance between BESS sites and occupied buildings, but the National Fire Chiefs Council guidance recommends a distance of at least 25 metres. We can look at how we can build on that going forward.
The one thing that I hope everyone takes away is that the Government understand the concerns that have been raised, and that Members’ constituents are raising. We believe that there is a clear health and safety framework in place that we can build on, and we are intent on building on it. We will continue to work to strengthen the guidance and processes that are in place so that we can ensure that we have the confidence of the public. We believe that this is a crucial part of how we get to net zero, but as hon. Members have said, we must do it in a way that ensures the safety of the public. That is a priority for us, as it is for all Members of this House.
Oral Answers to Questions
Miatta Fahnbulleh Excerpts(1 month, 1 week ago)
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Mr Joshua Reynolds (Maidenhead) (LD)
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)
Dr Luke Evans (Hinckley and Bosworth) (Con)
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.
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.
Tulip Siddiq (Hampstead and Highgate) (Lab)
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)
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)
Rachel Blake (Cities of London and Westminster) (Lab/Co-op)
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?
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.
Radio Teleswitch Service Switch-off: Scotland
Miatta Fahnbulleh Excerpts(1 month, 4 weeks ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
I thank the right hon. Member for Orkney and Shetland (Mr Carmichael) for raising this important debate on the radio teleswitch service. I also thank him for meeting me on Thursday to discuss the concerns of his constituents, and for all the work that he and other Members are putting in to ensure that the switchover is as smooth as we can get it for constituents across the country.
We all know that the deadline for the switch-off is fast approaching. The reason for that hard deadline is that the technology behind the RTS system is at the end of its life and will soon be obsolete. When the service ends, meters still reliant on the signal will no longer be able to switch between rates. In some cases, consumers may lose control of their heating or hot water. That is incredibly concerning for constituents who might be impacted. Let me reassure the House that while the RTS switch-off has been and is industry-led and industry-run, the Government are doing everything we can to ensure the transition is delivered properly in the interests of consumers.
The progress made so far on RTS replacements has simply not been fast enough or good enough. As of 7 March there were 521,892 meters in Great Britain, with 139,000 in Scotland and 47,277 in the highlands and islands. That is not acceptable so close to the deadline. The Government are meeting regularly with Energy UK and Ofgem, as well as the suppliers, to address that, with particular focus on Scotland and remote rural areas. In those meetings, I continue to emphasise the need for urgency to ensure that RTS households across Great Britain receive a suitable replacement as soon as possible.
Turning to the focus of this debate, although there are RTS meters across Great Britain that require urgent replacement, and we are working on that, the Government are very aware of the significant number in Scotland, many of which are in remote rural and island areas. Some of those areas have had challenges with sufficient installer capacity and resource to do the job at hand. To address that, the RTS taskforce—convened by Ofgem, led by Energy UK and attended by Government—agreed that resources should be targeted towards regional hotspots with a high number of RTS meters. As part of that, a number of suppliers are planning a series of spring sprints over April and May, as part of a targeted effort to replace RTS meters in the highlands and islands.
OVO, as the key supplier, is taking a lead, but other suppliers will also be playing their part. These sprints aim to provide dedicated resources to hard-to-reach areas, ensuring that engineers are in the right areas at the right times to provide the RTS replacements to communities when they need them. To support this, Ofgem is working with suppliers to ensure that consumers are sufficiently engaged and ready to let suppliers into their properties for their meter replacements during these periods.
We will be working with Members, local government, charities and local partners to spread the word and ensure there is sufficient demand when we provide surge capacity and installers to do the job. This is part of the work that Ofgem and Smart Energy GB are doing on the RTS national consumer engagement campaign; since it began in January, it has been encouraging consumers with an RTS meter to contact their supplier to book an appointment. We are seeing an uptick in engagement—the campaign is having an impact.
On the important question of replacement meters working, technological solutions do exist and are available to replace RTS meters in every single household. The Department, alongside Ofgem, expects suppliers to replace RTS meters with smart meters where appropriate, so that consumers can access smart meter benefits in good time, including across a range of tariffs.
However, I acknowledge that some rural areas with relatively large numbers of RTS consumers, such as the highlands and islands, may have lower levels of network connectivity—we saw that in the casework that the right hon. Gentleman pointed out. In these circumstances, we believe that pre-configured smart meters can be installed in households with RTS meters. A pre-configured smart meter operates in a similar way to an analogue meter, recording energy usage accurately. These meters can provide a similar service to that provided by RTS, including electricity tariffs Economy 7 and Economy 10.
I completely agree with the right hon. Gentleman on the legitimate concerns about consumers being no worse off. We cannot have a situation in which consumers do the switch over and are worse off. That is why Ofgem has been consulting on proposals, including one that would put a condition on suppliers to take all reasonable steps to provide a tariff that leaves their customers no worse off than they were under the RTS meter. When Ofgem publishes the final proposal, which will be very soon, I hope that it will go a long way towards addressing some of the concerns that I know people have about that. I would expect all suppliers to comply with these rules, which will be baked into licensing conditions. We will be doing our part to make sure that they comply.
Let me conclude by saying that this Government understand the urgency of the situation. As the right hon. Gentleman said, we should not have been in this position. We now are, and we have to collectively work to get a grip of it and to make sure that there is no detriment to constituents across the country. I again thank him for bringing this debate to the House. I thank all Members who have been working with us, including at the roundtables, to make sure that we do this well in the final stages. I will be reconvening the roundtable after recess. I look forward to many Members attending and to collectively working to ensure that we deliver the transition in an incredibly short space of time and, critically, that no consumer is put in detriment.
Question put and agreed to.
Rebel Energy: Supplier of Last Resort
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
On 1 April, Rebel Energy announced that it planned to cease trading. Following this announcement, Ofgem confirmed that it would seek to appoint a supplier of last resort to protect Rebel Energy’s customers, ensuring no disruption and continuity of service for all customers.
Following a competitive process to get the best deal possible for consumers, Ofgem has appointed British Gas as the SOLR for Rebel Energy customers. British Gas will take on supplying Rebel Energy’s 84,000 domestic customers and 6,000 non-domestic customers.
Customers of Rebel Energy do not need to take any action for now. There will be no disruption in energy supply, which will continue as normal following the switch over to British Gas on 6 April 2025. Funds that current and former domestic customers of the supplier have paid into their accounts will be protected and transferred, where they are in credit. Domestic customers will also be protected by the energy price cap with their new supplier.
Customers of Rebel Energy will be contacted over the coming days about the changes. Once the SOLR process is complete, customers will be able to switch providers or sign up for a new fixed tariff in the usual way, although Ofgem advises them to wait until the SOLR process has been completed. Customers will not be charged exit fees if they decide to switch to another supplier.
Since its introduction, Ofgem’s SOLR process has ensured supplier exits are orderly, costs are minimised and customers experience no disruption to their energy supply as they are transferred to a new supplier. Most recently, it was successfully used to protect approximately 1.8 million customers of the 28 domestic suppliers which exited the market between August 2021 and July 2022.
[HCWS581]
Draft Ecodesign for Energy-Related Products and Energy Information (Amendment) (Northern Ireland) Regulations 2025
Miatta Fahnbulleh Excerpts(2 months, 1 week ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
I beg to move,
That the Committee has considered the draft Ecodesign for Energy-Related Products and Energy Information (Amendment) (Northern Ireland) Regulations 2025.
This instrument forms an important part of the Government’s commitment to ensuring energy-related products are sustainable and efficient, by enabling new regulations to be enforced as they apply to Northern Ireland. Ecodesign policies aim to reduce environmental impacts of products by reducing their energy consumption, reducing carbon emissions and saving businesses and consumers money on their energy bills. As hon. Members will already understand, following our exit from the European Union, Great Britain assimilated its regulatory regime for energy-related product standards into domestic law, which we may in future amend. Hon. Members will also be aware of the agreement reached by the UK and the EU regarding the Windsor framework, which was passed overwhelmingly by a large majority in this place. The Windsor framework helps to ensure the flow of trade within the UK internal market by removing trade barriers and safeguarding Northern Ireland’s place in the Union. It allows Northern Ireland to maintain dual market access by continuing to apply EU rules with respect to the regulation of energy-related products. Therefore, it is vital that we keep the enforcement legislation for Northern Ireland up to date.
The instrument will update both the Ecodesign for Energy-Related Products Regulations 2010 and the Energy Information Regulations 2011 with respect to Northern Ireland. These updates will ensure that the specific Northern Ireland tables in the 2010 and 2011 regulations accurately reflect the latest product-specific ecodesign and energy labelling measures, and enable these measures to be enforced by the relevant market surveillance authority. There are seven new product regulations that will apply in Northern Ireland, which range from smartphones through to tumble dryers and heaters. The ecodesign regulations seek to improve the energy efficiency of all products, while the new energy labelling regulations reflect new labelling standards. Repairability and recyclability of products have been included for the first time under EU ecodesign and certain energy labelling regulations to ensure further sustainability and to benefit consumers.
The statutory instrument will ensure that these schedules continue to reflect the most up-to-date versions of these EU ecodesign and energy labelling measures in force, whether amended or replaced, while minimising the need for further updates to the enforcement regulations. The requirements updated by this instrument will not restrict manufacturers’ ability to sell into the EU or Northern Ireland, unless they are not willing to meet the EU regulations. The EU’s higher standards are likely to become the industry default and we can assume that manufacturers are likely to choose to meet those standards. If that is the case, these measures will have no impact on traders who abide by the relevant standards.
Since Great Britain is looking to achieve higher product efficiency, it is very likely that Great Britain will seek to meet similar standards. As such, we will be consulting as soon as possible on the merits of mirroring the new EU regulations, with the first consultation, on tumble dryers, expected to be launched shortly. Our intention is to apply the measures on a UK-wide basis and maintain the UK’s internal market. Our consultation will be on the appropriate means to achieve that aim. I commend the regulations to the Committee.
Miatta Fahnbulleh
I thank hon. Members for their valuable contributions to the debate. I start by saying that we have our obligations under the Windsor framework, which was passed in this House with an overwhelming majority. We are not here to litigate the rights and wrongs of that process; that has already been done. We are here to discuss the specific regulations that are being put in place. Critically, the regulations are about improving the efficiency of products that we believe will be good for consumers and good for businesses, and will create opportunities.
Jim Allister
Surely the truth is that we are here to impose regulations that the EU thinks will be better for consumers, because it treats Northern Ireland as EU territory. These are not the regulations of the United Kingdom Government.
Miatta Fahnbulleh
Let me say to the hon. Member that we have absolutely looked at the regulations. As the UK Government, we believe that they are good for consumers. In fact, the ambition that has been set by the regulations is one that we wish to mirror ourselves. We will consult on these standards, not because the EU is telling us to but because we think that it is the right thing for UK businesses and consumers.
The vast majority of manufacturers who sell not only in the GB market but in the EU market are already making the transition, because that market is much bigger. They are already driving up product standards. That is good for businesses, and we want to support and encourage that.
I hear the arguments and the caution about not being dictated to by the EU, but please hear me when I say that we think it is right that we drive up standards for our consumers. We would want to do this. The EU has done it, but we would want to do it in our own right. That is why we have tabled this SI and it is why we are also planning to consult on improved standards.
Robin Swann
I thank the Minister for giving way. My opening comment was not about being opposed to the cost or energy savings that the regulations will bring about, but why is it right for them to be enforced in Northern Ireland now? Setting aside the Windsor framework and its implications, as a UK Minister, why does she feel it is right and proper that the rest of the UK is consulted and gets to engage, and that people get to have their say? Or is the Minister really saying to this House, “When the time comes, we will tell you that because it is the right thing to do, we are doing it?” The consultation that she is talking about, mentioned in paragraph 7.2, as well as her explanation of it, are actually fictitious, too, because it sounds to me as though this Government are going to do it anyway, while the Opposition sit on their hands.
Miatta Fahnbulleh
We are trying to work within the Windsor framework. We are not here to litigate that. It sets out a set of protocols and procedures that we are working under. EU rules have come forward, and it is right that we make sure that we create the legal framework so that these measures apply in Northern Ireland. Critically, irrespective of all that, the basics of what is proposed are good for consumers. They are about improving the efficiency and design of products. In the case of smartphones, it is about improving some of the protections that are available to consumers. The hon. Gentleman and other Members should want that, and we as a Government do want that, irrespective of whether or not we want to litigate the Windsor framework.
We are introducing the SI because we believe it is the right thing to do. We believe it is important that we improve and drive up standards. We will consult on the proposition because we think it is good. Based on the engagement we have had, manufacturers are supportive of the direction of travel. As they want to sell in the EU single market, that sets the default for industry. In that spirit, we propose the SI today and I commend the regulations to the House.
Question put and agreed to.
Oral Answers to Questions
Miatta Fahnbulleh Excerpts(2 months, 2 weeks ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
We know that people are worried about their energy bills, and that too many are struggling to afford them. We agreed £500 million of industry support, alongside our warm home discount, to ensure that £1 billion of support was available for households struggling with their energy bills this winter. We will continue to take action to support consumers in the short term, as we sprint towards clean power in order to bear down on energy bills for good.
Sarah Edwards
In my constituency, a local hospitality business’s energy provider, E.ON, has behaved appallingly by back-billing and incorrectly billing, leaving that business nearly bankrupt. While I welcome the new expanded remit of the Energy Ombudsman, we need to ensure that it has the capacity and powers that it needs to protect businesses. Would the Minister meet me to discuss this case, and what are the Government doing to ensure that our local businesses are not driven to bankruptcy by the outrageous behaviour of energy suppliers?
Miatta Fahnbulleh
I am happy to meet my hon. Friend to discuss this case. However, there are clear rules in place to protect consumers from unfair back-billing, and energy companies must comply with those rules. I have met Energy UK, the industry body, and Ofgem to reinforce our expectation that if rules are not complied with, Ofgem will take enforcement action. The broader point is that we have to ensure that the energy market is working for consumers and is fair. We are reviewing Ofgem to ensure that it has the mandate, the duties and the powers—including the Energy Ombudsman—that it needs to be an effective and strong consumer champion.
George Freeman (Mid Norfolk) (Con)
For the record, I and my constituents are proud of the southern North sea development—the largest wind farm in the world, begun under the last Government. However, we are not happy about this Government’s rush to force our consumers to pay higher bills; to see, as a result of vast subsidies, farmers in a very important agricultural area of Norfolk farming solar panels, rather than the food that we need to ensure affordability and our security; and to abandon agricultural leadership on net zero. Can the Minister reassure my consumers that £250 is adequate compensation for higher bills and the defoliation of a large part of Norfolk? That is what has happened in the rush towards ill-thought-out net zero targets, set in London, without any consideration of local people.
Miatta Fahnbulleh
The past few years have shown us why we must break our reliance on global fossil fuel markets. Under the hon. Gentleman’s Government’s watch, energy prices spiralled, and consumers across the country paid the price. That is a reality that Opposition Members were happy with, but it is not a reality that we think is tenable, so we will sprint to clean power, because that is the route by which we achieve energy security for the country, and financial security for families. We are on the right side of history, and on the side of consumers. Opposition Members are deluded.
Chris Webb (Blackpool South) (Lab)
In Blackpool, we have more than 250 charities that are doing incredible work supporting people with their mental health, in getting back to work, and also with the cost of living, but too many people tell me, week in, week out, that they cannot afford to pay the bills. What conversations has the Minister had with energy companies about supporting these charities? Will she agree to meet me to discuss this important issue?
Miatta Fahnbulleh
My hon. Friend is absolutely right: charities and third-sector organisations play a vital role in getting support to households, which we know are struggling with bills. Part of the reason we thought it was so important to agree £500 million of industry support was to make sure that we got additional support to households. We are also consulting on extending our warm home discount to 2.7 million more households, so that more than 6 million people get help. We will work with the energy sector to make sure that we use the vital network of charities to get that support to the households that need it.
Richard Tice (Boston and Skegness) (Reform)
The price of gas is some 20% lower than it was at the beginning of this year, and the Secretary of State promised that bills would come down. Can the Government say when bills will come down for consumers, given that they are going up by 6% on 1 April?
Miatta Fahnbulleh
I encourage the hon. Gentleman to check his facts. The price cap went up, which was disappointing for families, because of the spike in wholesale prices. That is because of our reliance on global fossil fuel markets. [Interruption.] I will say it incredibly slowly for him, so he can understand: it is because of our reliance on global fossil fuel markets. We must break that reliance. We have to wean ourselves off this rollercoaster of price spikes and price falls, which is harming consumers across the country. The sprint to clean power will achieve that. It is a shame that he cannot see that.
Joy Morrissey (Beaconsfield) (Con)
Consumers are concerned about the rising energy price cap. What will the Secretary of State do to strengthen existing energy schemes and initiate new schemes? Will it include delivering the £300 reduction in energy bills that Labour promised during the general election?
Miatta Fahnbulleh
We know that households are struggling with bills and are worried about them. That is why we are doing everything we can to bear down on bills. We are doing that not just because it is a manifesto commitment, but because it matters to households across the country. While we sprint to clean power—we are clear that that is the route to bearing down on bills—we will support households. Whether it is the £500 million agreement we made with energy suppliers, the extension of the warm home discount to more than 6 million households, or the debt support we are providing to consumers with energy debt, we are taking short-term action. Let me be clear that the way we get ourselves out of this bind is by delivering clean power for consumers across the country.
Harpreet Uppal (Huddersfield) (Lab)
Mr Joshua Reynolds (Maidenhead) (LD)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
I thank the hon. Gentleman for his question. We are very aware of the issues with park homes, and industry support is provided to residents. As we think about expanding the warm home discount and the support we provide for households that cannot afford their energy, we will, of course, have park homes in our mind.
Chris Murray (Edinburgh East and Musselburgh) (Lab)
Geothermal Energy
Miatta Fahnbulleh Excerpts(3 months ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
I thank the hon. Member for Bexhill and Battle (Dr Mullan) for bringing this important issue to the attention of the House. I also thank my hon. Friends for their contributions and for the valuable way in which they have engaged in this debate. The hon. Member for Bexhill and Battle has been a great champion of deep geothermal energy in recent years, and the role he has played in the formation of the all-party parliamentary group on deep geothermal is commendable. I was very pleased to attend its meeting in December, and I am grateful for the engaged and constructive discussion that we had.
I agree with the hon. Member that there is a huge opportunity here, and I echo his desire for action and pace; I will briefly say why I share that desire. He will know, as I do, that we are coming out of the worst cost of living crisis that we have seen in a generation, and energy has been at the very heart of that crisis. The reality is that energy is unaffordable for too many people and increasingly out of reach for people who absolutely rely on it as an essential good, and we as a Government are determined to fix that. That means that we need to take action to lower energy bills by breaking our reliance on international fossil fuel markets and sprinting towards clean, home-grown power. That is why the Government are so committed and why we are running at our clean power by 2030 mission, but it is also why our warm home plan is absolutely critical. I reassure the hon. Member that we see that geothermal power has a critical role to play in our energy mix, following its success in the fifth auction round of contracts for difference.
I agree that geothermal energy represents an important opportunity�if the hon. Member hears nothing else I say today, I ask him to hear that. It has the potential to deliver clean and secure energy and heat, reducing our reliance on fossil fuel markets. As he mentioned, we are acutely aware that geothermal energy could also support a just transition by creating thousands of jobs that use skills from our oil, gas and coalmining sectors. The Government provide financial support for geothermal projects today, and we will continue to do so. The critical thing is ensuring that this is done at an acceptable cost to consumers and in an environmentally friendly way.
As the hon. Member mentioned, the most widespread potential for deep geothermal in the UK is as a low-carbon heat source for heat networks. I am convinced that heat networks have a really important role to play as we roll out clean heat and upgrade millions of homes across the country. We have the opportunity to grow their market share from 3% today to 20% by 2050. One of my first visits as the Minister for energy consumers was to the Mersey heat network, where heat from the Leeds and Liverpool canal is being used to provide hot water and low-carbon power for thousands of people, thanks to a water source heat pump. That is a great example of how communities can benefit from local energy sources, which is what the hon. Member and my hon. Friends are advocating for in this debate. I completely commend that and support it.
There are significant geothermal success stories, such as in Gateshead, where the first mine water heat network to become operational in the UK received �5.9 million from our heat networks investment project. That money enabled the council and Gateshead Energy Company to install 5 km of new heat network pipes and a 6 MW water source heat pump. Today, that network heats 350 council homes and the Baltic arts centre, with 270 more homes to be added.
The hon. Member for Bexhill and Battle referred to the public sector scheme. Geothermal heat projects supplying public sector sites are eligible to apply for support provided that they meet that scheme�s eligibility criteria, and again, I agree with him that there is a big opportunity here. I would add, however, that any changes to the scheme would need to be considered once the current spending round is completed. That is what he would expect me to say, but I reassure him that I am very happy to meet him and members of the APPG to discuss their proposals.
Dr Mullan
The point to emphasise is that the current scheme is based on going project by project, which undermines our ability to bundle up the risk, which is so vital to deep geothermal. That is the key change we are looking for: the opportunity for a number of sites to be pulled together, which is what will be most attractive to investors.
Miatta Fahnbulleh
We want to think about creative ways in which we can unlock the potential for investment, so I am very keen to meet the hon. Member and members of the APPG so we can hear those proposals. I give him that reassurance.
Not just today but over recent years, the hon. Member has made a convincing case for the merits of pursuing deep geothermal. The Government remain committed to exploring the renewable energy opportunities afforded by our geography and geology. However, I hope the hon. Member will understand that the priority now�and the thing my boss has tasked me with�is developing the warm homes plan. It would be premature for the Government to set a geothermal strategy with detailed targets in advance of that plan. For us, it is a question of sequencing; for instance, if we are to make the most of geothermal�s potential, we need to start by creating an environment that enables the growth of heat networks and, crucially, protects consumers along the way.
To that end, the Department will bring forward a market regulatory framework in January 2026 to improve consumer protection. We are also consulting on heat network zoning, which is an essential part of our plan to establish and accelerate heat networks. We think that will significantly increase private sector investment and remove some of the barriers. We are committed to taking a long-term, strategic view, and we are trying to sequence this work so that we develop the warm homes plan and build the enabling environment. However, I absolutely recognise the need for us to set a policy framework in which geothermal energy can thrive.
James Naish
The Minister knows that I really admire the work she is doing in this space, and my intervention is more of a query than anything else. She has mentioned the warm homes plan; is a sense emerging of how many of the 5 million properties we are targeting through that plan might be fed by district heating and associated technologies? Is there a crystallisation of what that construct might be, to get us to the 5 million homes that we are targeting?
Miatta Fahnbulleh
We know that there is a big opportunity for district heating, particularly in some of our urban centres. In the work that we are trying to do through the warm homes plan, we are thinking about where those opportunities are and making sure that we work with regional and local government to do some of the planning and the identification of those opportunities. That means that we can take a strategic approach, area by area and place by place.
Rachael Maskell
I am really grateful for all that the Minister is doing in this area. However, some of this work is quite time-sensitive; for instance, we have a major development in York, the first phase of which goes into planning in September. We very much want to work with Government to see what we can deliver in York Central. Would the Minister be prepared to work with us to see whether we can get this model working on some of those micro sites?
Miatta Fahnbulleh
We are keen to work with Members across the House, and with local and regional government. We have set ourselves a challenging set of ambitions, so we are clear that we need to work with anyone that can unlock and bring forward investment opportunities, so as to realise those over the course of the Parliament.
It would be remiss of me if I did not say that we recognise that for all the opportunities, there are still challenges faced by industry to secure the necessary investment. As a result, as the hon. Member said, few deep geothermal projects in the UK are financially viable without Government support, unlike what we see on the continent and in other countries.
The hon. Member mentioned the role of Great British Energy. We are clear that it will provide further opportunities for investment in clean energy. The Great British Energy Bill sets out that
��clean energy� means energy produced from sources other than fossil fuels�,
including geothermal, so let me reassure him that it is within scope. Great British Energy is an independent organisation, but we will give it clear direction that it should be looking at all the opportunities that could be exploited across the country and at different technologies, such as geothermal.
Deployment at scale is also unlikely unless there is a demonstrable pathway to bringing down the cost of geothermal heat to make it comparable to other renewable technologies. We know that. It is why we have been working with stakeholders to improve our knowledge and understanding in this area. In 2024, we commissioned a costs research project, to which the hon. Member referred. We intend to publish that this year. I am asking my officials to work at pace to do that, but I reassure him that we will be engaging with industry prior to publication, and he has my assurance that I will facilitate that to ensure that it happens.
My hon. Friend the Member for Rushcliffe (James Naish) commended the British Geological Survey, and I share his enthusiasm for it. We have commissioned work from it on open access tools that show the technically viable opportunities for geothermal projects in the UK, and we will continue to work with it. The UK is also an active member of the International Energy Agency technology collaboration programme on geothermal energy�that was a mouthful�which has enabled us to gather further learning and to learn from other international examples.
All that is to say that we see the opportunity and we are trying to build the evidence base. We want to work with industry to think about how we unlock geothermal, because we see it as a viable route to the expansion of heat networks and to delivering the objective of warmer homes and cheaper bills.
In conclusion, we are absolutely committed to the project and to delivering warm homes. We know that we need a range of technologies to do that. We cannot do this sprint on our own, so we will always want to work with industry to enable us to get there. I thank the hon. Member for Bexhill and Battle again for securing this debate, and I thank my hon. Friends who are here for being such avid champions of geothermal. My Department is keen to work with them, and I look forward to meeting in due course.
Question put and agreed to.
Warm Home Discount
Miatta Fahnbulleh Excerpts(3 months, 1 week ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
With your permission, Madam Deputy Speaker, I would like to make a statement about the action we are taking to protect families in the face of the global spike in gas prices. In recent months, wholesale gas prices have risen to their highest level in two years. They are up nearly 15% compared with the previous price cap period. As a result, this morning Ofgem announced the energy price cap will rise by around £9 a month between April and June. We know this will be unwelcome news for families across the country that are already worried about their bills, but as Ofgem’s chief executive officer, Jonathan Brearley, said today,
“our reliance on international gas markets leads to volatile wholesale prices, and continues to drive up bills”.
This week marks three years since Russia’s invasion of Ukraine, and once again the British people are paying the price of our country being exposed to fossil fuel markets controlled by petrostates and dictators. The truth is that every day we remain stuck on gas is another day families, businesses and, indeed, the public finances are at risk from these kinds of price spikes. That is why sprinting to home-grown, clean energy is the only way to end our exposure and our vulnerability as a country. In the meantime, we are determined to do all that we can to protect people, and today I want to set out the measures we are taking.
First, we want to provide greater help to the most vulnerable in time for next winter. The warm home discount currently gives around 3 million families a £150 rebate on their energy bills. The current system provides help to those on means-tested benefits, but excludes millions of people in homes not classified as hard to heat, as a result of criteria introduced by the last Government in 2022. These criteria are seen by many as arbitrary and unreliable, and they mean there are families in almost exactly the same circumstances with some receiving help and others not.
Today, we have announced that we will consult on proposals to abolish this restriction, meaning all households receiving means-tested benefits would be eligible for bills support next winter—from 3 million families in the current system to more than 6 million with our proposals—so that one in five families in Britain would get help with their bills through this scheme, including an additional 900,000 families with children and a total of 1.8 million households in fuel poverty. This Government are determined to do everything in our power to help people struggling to pay their energy bills and support the most vulnerable in our society.
Secondly, because of our exposure to fossil fuels, the cost of living crisis saw bills rocket to £2,500 and families plunged into unstable debt—debt that continues to accumulate today. In the system we have inherited, every bill payer pays for managing this debt burden. We are determined to act on behalf of those in debt and all the bill payers who are paying the costs of it. So we are working closely with Ofgem to accelerate proposals on a debt relief scheme that will support households that have built up unsustainable energy debt through the crisis and have no way of paying it. This will be an important first step to cut the costs of servicing bad energy debt, and under these plans the target would be to reduce the debt allowance paid by all bill payers to pre-crisis levels.
Thirdly, we know that one of the best answers to high bills is upgrading homes so that they are cheaper to run, so we will shortly announce the details of around £0.5 billion pounds of funding under the warm homes local grant and £1.3 billion under the warm homes social housing fund to invest in home upgrades over the coming years and cut fuel poverty. In all, up to 300,000 households will benefit from upgrades in the next financial year through our warm homes plan—whether it is new insulation, double glazing, a heat pump or rooftop solar panels—which is more than double the number supported in the last financial year. We will also ensure that landlords invest in energy efficiency upgrades that will make homes warmer and bring down costs for tenants, lifting up to 1 million people out of fuel poverty, so that we are doing everything we can to ensure people have the security of a home they can afford to heat.
Fourthly, we are clear that we need a regulator that fights for consumers. That is why we have called on Ofgem to use its powers to the maximum to protect consumers by challenging unlawful back billing, taking action on inaccurate bills, driving the smart meter roll-out, giving every family the option of a zero standing charge tariff so they have more choice in how they pay for their energy, and ensuring that compensation is given for wrongful installation of prepayment meters. We are moving forward on our review of Ofgem to ensure it has the powers it needs to stand up for consumers and clamp down on poor behaviour by energy companies.
This set of measures shows a Government willing to use all the powers at our disposal to help protect consumers. However, important as these measures are, I must stress to the House that there is no proper solution to rising energy bills while this country remains exposed to the rollercoaster of fossil fuel markets. That is why this Government are moving at speed to deliver clean power by lifting the onshore wind ban in England, consenting nearly 3 GW of solar, setting up Great British Energy, delivering a record-breaking renewables auction, making it easier to build the next generation of new nuclear power stations, and getting on with the job of implementing the reforms to the planning system, the grid and renewables auctions set out in our clean power action plan.
I have to report to the House, however, that despite the importance of this mission and the fact that we are running it, we continue to receive representations from Opposition parties not to speed up, but to slow down and to reject solar power, reject onshore wind, reject offshore wind and reject new transmission infrastructure—representations that, if accepted, would leave us more vulnerable and more insecure, with the British people paying the price. Let me tell the House that we will reject those representations. We know that every solar panel we put up, every wind turbine we build and every piece of transmission infrastructure we construct makes us more secure, and every time the Conservatives oppose those measures, they double down on their legacy of leaving this country exposed and the British people deeply vulnerable.
This Government will do whatever it takes to stand up for working people now and in the future—protecting families and businesses from the consequences of global events, driving forward our plans to bring down bills for good and doing everything in our power to support those most in need. I commend this statement to the House.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
I thank the Minister for advance sight of her statement. Today, the Government have announced an expansion of the warm home discount, with a change to the criteria that will see more low-income households receive a £150 payment to heat their homes, but for many this payment will be immediately eaten up by the increase in the energy price cap. We must be clear that the best protection for vulnerable households is to prioritise cheap energy. The announcement today is, frankly, a sticking-plaster approach to rising energy bills.
This Government fail to grasp the core issue: energy costs in this country are far too high for businesses, industry and, of course, bill payers. When the energy price cap rose in 2022, the now Secretary of State called it a “national emergency”. He called for an urgent freeze on energy bills and cited a lack of leadership. Now that he is in government, the only thing he is able to freeze is vulnerable pensioners by taking away their winter fuel allowance with no notice. Does the Minister think that shows leadership? I know that my constituents, and presumably hers too, will be concerned about their bills rising, concerned about inflation creeping back up—hitting 3% in January, despite the hard work done last year to bring it under control—and angry that Labour’s promise to cut bills by £300 is being broken.
The worst part of all of this is that this Government, led by ideological zealotry from the Secretary of State, are doubling down. Their obsession with going further and faster than any country in the world to meet their own self-imposed 2030 target is going to increase people’s bills even further. The renewables industry has warned that their rush to build record renewables in the next five years will push up prices and “consumers will lose out”. The Government’s rush to build twice as much grid in the next five years as was built in the last decade will increase the network costs on people’s bills. The Office for Budget Responsibility has said that the environmental levies will increase to £14 billion in 2030, largely driven by the hidden cost of renewables, all of which will end up on people’s energy bills.
The Labour party was not honest about its promise during the election to cut bills by £300, it was not honest about its plan to take the winter fuel payment away from millions of pensioners living in poverty, and now it is not being honest with the British people about what its plans will do to our energy bills. If we have learned anything over the past few years, it is that the cost of energy is absolutely critical to any modern economy. We cannot go on following ideology over evidence and putting political targets ahead of what will cut the cost of energy in this country. However, this Government are in denial, which is why they scrapped the full system cost analysis commissioned when the Conservatives were in office.
Will the Minister say when proposals for a debt relief scheme will be published? Will she confirm by how much she expects levies to increase over the next five years? Will she commission a full system cost analysis of what the 2030 target will do to people’s energy bills? Will she confirm by how much bills will rise before we see the £300 off, which we were all promised?
Miatta Fahnbulleh
The hon. Gentleman is right that energy prices are too high—on that, we agree. We also agree that that is worrying for families and businesses across the country. However, I would point out that 80% of this rise has been driven by wholesale prices. I would also gently remind him that the reason we are in this position—the reason we are so exposed to global fossil fuel prices over which we have no control—is because the Conservatives spent 14 years in government squandering the opportunity to accelerate the transition to clean power and reduce our dependence on global fossil fuel prices, leaving families across the country exposed.
The status quo is not tenable. We are at a point where energy prices are at an historic high, and we got here under his Government. That is a status quo that we are not willing to contend with. That is the reason—not because of ideology, but because we see the obvious: as long as we are dependent on global fossil fuel prices, we will be on this rollercoaster. That is what is driving the push to clean power. While the Conservatives have no alternatives, we have a clear alternative: we run to clean power; and while we do that, we support the most vulnerable households in the short term.
To answer the shadow Minister’s question, Ofgem is in the process of consulting on the debt support scheme as we speak, and we will support it to put that in place. We know that the debt burden has increased by £3.8 billion, and more than 1.8 million households in need of help will be supported by that scheme. We are absolutely committed to cutting bills—everything we are doing as a Government is driven by that desire and clear commitment. We will do that both through short-term measures and, critically, by running at clean power by 2030.
We have a plan to deal with energy bills. The Opposition have a plan to slow down and do nothing, and it will be the British public who pay the price.
Jon Trickett (Normanton and Hemsworth) (Lab)
It is clear that the Conservative party left this country dependent on global fossil fuel supplies, which both burn the planet and are damaging in terms of price controls. However, the Tories left something else as well: a rigged energy market, which gave £480 billion to the energy industry yet left 8 million households—probably 17 million people—in fuel poverty, spending more than 10% of their income on energy.
It is therefore welcome that the Minister has today announced an additional £150 for the warm home discount, but that, as I understand it, is a one-off payment for next winter. A £150 one-off payment will not resolve the underlying problem—today, the regulator has increased the cap by £111 or £108, depending on how it is calculated, per year on an ongoing basis. I welcome the Government’s announcement and recognise the Minister’s commitment to changing the way that things work. However, will my hon. Friend confirm to the House that the Government intend to end this rigged market, which works in favour of the profiteers, and tackle the scourge of fuel poverty, while at the same time securing a just transition to clean energy?
Miatta Fahnbulleh
My hon. Friend is absolutely right. We have an energy market that does not work sufficiently in the interest of consumers, and we are committed to turning that around. That is why we are reforming the electricity market, why we are trying to drive forward a shift from fossil fuels to clean power, and why we are putting in place the review of Ofgem, to ensure that customers and consumers are at the very heart of everything we do in the energy market. This is an important step to supporting households in the short term. We took action this winter, with up to £1 billion of support through Government and industry to help the most vulnerable customers, and the measures announced today will ensure that we will provide support next winter. However, it is not the end of our ambition; it is the start of our ambition to reform the energy market.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Liberal Democrat spokesperson.
Madam Deputy Speaker
When will you set those out, Minister, since I will not be responding at the Dispatch Box?
Miatta Fahnbulleh
The hon. Lady is right that insulating and upgrading people’s homes is the route by which we will reduce bills and deliver homes that are warmer and cheaper to run. That is why we are absolutely committed to the warm homes plan. Rather than there being a pause, we are running at this.
Next financial year, 300,000 homes will be upgraded, which is double the number in the previous financial year, and that is just the start for our warm homes plan. We are working with colleagues in the Ministry of Housing, Communities and Local Government to bring forward the future homes and buildings standards. Critically, we have spoken to industry, installers and local government, and we are acutely aware that there should and cannot be a hiatus. We are moving forward with the local grant and the warm homes social housing scheme to ensure that there is not one. I ask the hon. Lady to write with the specifics of that scheme, because we are trying to design it to stop that.
Critically, on the social tariff, we are clear that clean power is the route by which we will bear down on energy costs in the long term, but that we will need to support the most vulnerable customers as we get there. There are different ways to design a social tariff, and we are looking at options for how to support the most vulnerable at the moment, and the warm home discount is a key part of delivering that.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call Luke Murphy, a member of the Energy Security and Net Zero Committee.
Miatta Fahnbulleh
I thank my hon. Friend—that was well said.
The Conservative party left us with the highest energy prices that we have seen in a generation. That is a legacy that, quite frankly, should see them hang their heads in shame. Rather than criticising us for trying to unpick and deal with their legacies, I would strongly caution them to support our action. [Interruption.] It is their legacy!
My hon. Friend is right: the way that we get out of this bind, left by and inherited from the Conservative party, is through clean power, delivering renewables that we know are cheaper and clean power by 2030. My hon. Friend is right; the Conservative party continues to be misguided. Thankfully, we are in the driving seat.
Madam Deputy Speaker
I call a member of the Energy Security and Net Zero Committee, Bradley Thomas.
Bradley Thomas (Bromsgrove) (Con)
Rising energy costs affect not just households but industry. Sir Jim Ratcliffe has said that deindustrialising Britain is a false economy because it “shifts production and emissions elsewhere”. Can the Minister tell the House what is more important: chasing an arbitrary target or protecting industry and jobs?
Miatta Fahnbulleh
Businesses are under pressure from high energy prices. We know that. Again, I remind Conservative party Members that given their legacy, they should perhaps be a bit more humble about that. We are working with industry and it recognises that the way to drive down energy bills is through clean power. The Confederation of British Industry came out this week saying that our energy revolution is good for business. It is the route to lower energy costs for business and to creating jobs across the country. We have a plan, not just for energy bills but for jobs and the economy, which is rooted in clean energy, and that is much better than the legacy that we have inherited.
Nesil Caliskan (Barking) (Lab)
Thousands of my constituents are still dealing with the cost of living crisis, finding themselves in debt because energy prices hit record levels under the previous Government. Energy prices continuing to go up makes those constituents’ lives more difficult, so I welcome the Minister’s statement. Will she, however, provide further reassurance about the immediate action the Government can take to regulate energy companies who are taking their customers for a ride, such as the thousands of my constituents who still do not have meters in their homes and who are being billed unlawfully for backdated energy and, in some cases, energy that they have not used? Will the Minister give the House further reassurance that there needs to be immediate action, as well as a long-term plan from the Government to see the transition to clean energy?
Miatta Fahnbulleh
My hon. Friend is absolutely right to point out the cost of living crisis that blights constituencies across the country, with many people facing energy debt totalling £3.8 billion. She is also right, however, to point out that there are things that must be done to ensure that customers are served by the energy market. That is why we are ensuring that the regulator has the power—we are also instructing it to use the ones it has—to ensure that things such as back billing, which we know is an issue, do not happen. The rules are very clear and we need them to be enforced to ensure that when customers do not receive the best customer service from their suppliers, there are consequences. Our review of Ofgem is to ensure that it has the powers it needs to be that champion for consumers. In the end, the energy market must work in the interest of people. We agree that that is not happening at the moment and it must happen after we reform it.
Wera Hobhouse (Bath) (LD)
In the UK, electricity prices are linked to the global fossil fuel market, which is at the bottom of UK households’ paying the highest energy costs in Europe. To fix that, the use of a single levy-controlled system has been suggested, with two simple rates—one for electricity and one for gas—set by Ministers. That would allow the Government to manage the cost for households and lower prices, especially for clean energy. Will the Minister look into that suggestion? I am happy to meet her to go through those details further.
Miatta Fahnbulleh
Our reform of the energy market arrangements looks at all the aspects of our electricity market that are not working. The Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Rutherglen (Michael Shanks) is looking at that question and the Department is willing to work across the House to ensure we get to the right arrangements. As long as gas continues to drive the cost of energy, that will create a problem and have an impact on consumers. We are alive to that question and will report on that in due course.
Amanda Martin (Portsmouth North) (Lab)
I thank the Minister for her statement. I hear from many constituents who suffer with energy debt as a result of the previous Government’s failure to protect billpayers during the energy crisis. Many of them are petrified, unable to move or change providers. I welcome the proposed acceleration of a debt relief scheme, but can the Minister provide more details on how that will help families in my constituency of Portsmouth North?
Miatta Fahnbulleh
We know that energy debt is a big problem. I have spoken to people across the country who are suffering with accumulated debt that they have no way of paying, with many having to forfeit energy as a consequence. Ofgem is consulting on a range of options, but at the heart of that is the principle that there needs to be a debt relief scheme. Whether we write off some of the energy debt that cannot be paid, or put in place payment plans, we want to ensure that those 1.8 million households have the opportunity to drive that debt in a way that means their energy will be sustainable. That is absolutely critical. It deals with the legacy of the energy crisis and the fact that many households have had to accumulate debt because they just could not pay £2,500. It is an important step and one that we are keen to support the regulator to deliver.
Sir Julian Lewis (New Forest East) (Con)
I entirely agree with the Government that, as the Minister said in her statement, we should not be “paying the price of our country being exposed to fossil fuel markets controlled by petrostates and dictators.” Given that we cannot move completely to clean energy tomorrow, why do the Government insist on closing down and, indeed, concreting over our potential fossil fuel gas reserves until such time as we can move completely to clean energy? Why should we import it from other states while piously saying that we will not extract it from beneath our own country?
Miatta Fahnbulleh
There will be a role for gas in our energy mix, but we are very clear that the route and the quickest way to getting ourselves off that dependence is through clean power. We have made a decision that we will put our energy into driving clean power by 2030. In the end, that is the quickest and best route to delivering for consumers and businesses and ensuring that we can deliver energy security, which we all, across the House, agree will deliver financial security for families across the country.
Perran Moon (Camborne and Redruth) (Lab)
I thoroughly welcome the statement, particularly on the reform of Ofgem and back billing. It is a key plank in the just transition as we move away from a rigged energy market that is totally reliant on imports of gas from dictators such as Putin. It is not, however, just about the transition to renewables. Does the Minister agree that in that transition we will also create hundreds of thousands of new green jobs right across the UK, including in Camborne, Redruth and Hayle, covering onshore wind, offshore wind, geothermal, tidal and solar?
Miatta Fahnbulleh
My hon. Friend is absolutely right. At the heart of this is the opportunity to create jobs and boost local economies across the country. That is good not just for our energy independence and family finances, but for every single part of our economy. That is why, rather than slowing down, we are committed to accelerating to deliver clean power by 2030.
John Glen (Salisbury) (Con)
Families and businesses obviously operate in an environment with lots of different costs. When they see increases in their tax bills, the burdens of potential new regulation and additional energy costs, they are bound to challenge themselves on what they can afford to invest. The Minister is clear on the Government’s strategic direction, but does she not accept that in the short and medium term the burdens during the journey to change are enormous for business and will have a massive effect on the level of investment in this country? Does that not concern her?
Miatta Fahnbulleh
I challenge the right hon. Member on this matter. Businesses are completely behind us because they can see that clean power is the route by which we reduce energy costs and, critically, create jobs and invest in our industry. That is good not just for people’s pockets, and for dealing with the energy problem, which we know we have to deal with, and the affordability problem, but, ultimately, for the economy. It is good for business. This is a win-win situation. It is a shame that the Conservative party cannot see it, because it is obvious to us, obvious to industry, and obvious to businesses across the country. That is why we will continue to power forward with our plans.
Deirdre Costigan (Ealing Southall) (Lab)
The previous Conservative Government abjectly failed to insulate our leaky homes and get our home heating systems ready to take advantage of the cheaper, clean energy that Labour is now creating. In addition to the very welcome discount that the Minister has announced today, does she agree that Labour’s plan to upgrade hundreds of thousands of homes with heat pumps and better insulation next year is a vital part of this Government’s commitment to lowering household bills?
Miatta Fahnbulleh
My hon. Friend is completely right: the previous Government failed to insulate and upgrade enough homes to protect people from energy price hikes. Conservative Members are hanging their heads in shame and rightly so. She is also right that we are committed to upgrading hundreds of thousands of homes. That is critical. The way that we ensure that households are insulated from price rises and the way that we drive down prices is to upgrade those homes. That is a central part of our plan. We are already running at it with 300,000 homes in the coming year, but we will build on that, because we want to ensure that homes across the country benefit.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call a member of the Energy Security and Net Zero Committee.
Claire Young (Thornbury and Yate) (LD)
Chopping and changing home upgrade schemes, as we saw under the previous Conservative Government, causes uncertainty and confusion, which is damaging for both consumers and installers alike. Will this Government avoid that mistake by setting out long-term plans for energy efficiency schemes that go beyond 2026?
Miatta Fahnbulleh
One hundred per cent. We need a long-term plan, so that every part of the system can respond to that. Our warm homes plan will try to set a long-term trajectory, so that we can marshal every part of the system necessary to deliver hundreds of thousands of upgrades, year in, year out.
Dr Jeevun Sandher (Loughborough) (Lab)
May I welcome the Minister’s announcement around the expansion of the warm home discount scheme? About 160,000 homes in my region will get £150 more help with their energy bills, but, clearly, the root cause of higher prices is higher natural gas prices, which have doubled since the election in July 2024. We know that natural gas is 50% to 75% more expensive than wind and solar, because the sun and the wind are free, and natural gas is not. Can the Minister assure me that we will get into clean energy by 2030, so that we can get our energy bills down for good?
Miatta Fahnbulleh
I thank my hon. Friend for making the point so well. He is absolutely right that this is the route by which we can deliver cheaper energy. I can assure him that we are committed to driving this for the reasons that he said. This is the way that we break the stranglehold that we are in. This is the way that we get off this rollercoaster of price rises and price falls that is impacting households across the country. The commitment is there, and we are running with that commitment.
Dave Doogan (Angus and Perthshire Glens) (SNP)
Yet again, an Energy Minister comes to the House to tell us that they are moving at pace. The only thing moving at pace is the last shred of credibility from that Department as it talks about protecting consumers from higher energy prices. Let us not forget that this is the Labour party that stripped 900,000 Scottish pensioners of their winter fuel payment, and that told us that fuel prices would go down £300, when they are now £600 higher than the level it promised they would be ahead of the election. Can the Minister explain three things to me? Did the Labour party profoundly misunderstand how energy in the United Kingdom works, or was it misleading the electorate? Why is it that the Minister is making such a big deal about Ofgem doing its actual job of getting after back billing? Should it not be doing that anyway? Why is that an announcement? Thirdly, when will consumers in GB finally see some response from this Government about higher energy bills?
Miatta Fahnbulleh
I remind the hon. Member that the Scottish Government have jurisdiction in this area. We are working in collaboration with them to deliver this, but the Scottish Government do have responsibility in this area and he knows it. We are committed to bearing down on energy bills—of course we are. It is the central driving mission of everything that we are doing as a Government. It has been eight months. I hope that everyone can see from what we have done—whether it is removing the ban on onshore wind, whether it is a record-breaking auction, or whether it is the plans that we have to support the most vulnerable households—that we are running at this. We take our commitment seriously, and we are doing everything in our power to drive it. I suggest that the hon. Gentleman reminds his colleagues in Scotland that they should be using the power that they have, including with the warm home discount, to protect their consumers.
Chris Vince (Harlow) (Lab/Co-op)
I welcome the Minister’s statement. This extra support will make a huge difference to residents in my constituency of Harlow. One of the issues with living in a post-war new town is that all the houses were built at roughly the same time, so the issues of insulation all appear at roughly the same time. At this morning’s crisis summit, which I and the hon. Member for Mid Dorset and North Poole (Vikki Slade) attended, there was a strong feeling that cross-departmental communication is key to ensuring that funding gets to the people who need it the most. Does the Minister agree?
Miatta Fahnbulleh
I completely agree with my hon. Friend. That is why we are working with the Department for Work and Pensions and the Ministry of Housing, Communities and Local Government, and across Government, to target this support at households, so that we are helping people who we know are struggling.
Mr Richard Holden (Basildon and Billericay) (Con)
It was interesting to hear the Minister say how humble we on the Conservative Benches should be. Clearly, the Secretary of State for Energy, Security and Net Zero is so humble that he has not even bothered to turn up for this supposedly important statement. It is no more than a smokescreen, as we are seeing energy bills go up yet again. When will my constituents see the £300 energy cut that was promised by the Government? The Minister talked about international markets. Why on earth are this Government not looking again at drilling in the North sea? It is vital that we do so today; then, rather than just helping out a little bit with means-tested benefits, they could perhaps afford to do more for my constituents who are on £12,000 or £13,000 a year, and for pensioners who are losing their winter fuel payments this very year. Why will they not take a look at that?
Miatta Fahnbulleh
Given the legacy of the right hon. Gentleman’s party, a bit more humility is warranted. We are committed to driving down energy bills. Everything that the Department is doing hinges on the central task of getting clean power. Everyone, including the regulator and industry, recognises that prices are going up because of our reliance on global fossil fuels. We are committed to dealing with that, and to providing support to the most vulnerable. We are taking action. The Conservatives were in power for 14 years and did absolutely nothing. Absolute shame on them.
John Slinger (Rugby) (Lab)
I welcome the Minister’s statement. Will my hon. Friend join me in praising the work of Citizens Advice teams, such as those that I have seen in my constituency of Rugby, who provide really useful support? They help people to navigate the numerous support schemes that the Government have put in place. They also deal with debt management and income maximisation. They are helping our constituents at a difficult time with the cost of living crisis that we inherited. Does she agree that this is valuable work that deserves our continuing support?
Miatta Fahnbulleh
My hon. Friend is completely right. Citizens Advice teams, and the network of third-party organisations and charities that they work with, are providing some of the most vital support to our constituents at a really difficult time. Citizens Advice is a key partner. We work with it and engage with it. I am going across the country meeting its teams, because we absolutely need their help to target support at the most vulnerable.
Lee Anderson (Ashfield) (Reform)
I thank the Minister for her statement, but not for the madness contained within it. Recently, we have discovered a new gas field in Lincolnshire. We could frack the gas, yet we are still importing fracked gas from the United States, which is creating all sorts of mayhem in the atmosphere. Does the Minister agree that it would be better for the environment if we fracked our own gas, rather than importing it from America?
Miatta Fahnbulleh
I am disappointed that the hon. Member did not listen to my statement. If he had listened to it properly, he would not have come up with that statement. Once again, there will be a mix, but we are clear that the quickest route to driving down energy bills is through clean power by 2030. That is sprinting at it. There is no other route to delivering energy security and financial security for our country. The industry is behind us on this, and we are working to deliver it.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
I welcome the support in this statement, and the fact that 300,000 houses will be insulated in the next year. Does the Minister agree that the only long-term solution that will lead to energy security is our clean power plan? It will be good for areas like mine. The Confederation of British Industry pointed out yesterday that the green economy is growing three times quicker than the wider economy in this country. People want us to speed up, not slow down.
Miatta Fahnbulleh
My hon. Friend is 100% right. This is the route by which we will deliver for people’s pockets and, critically, deliver the jobs that we need across the country and boost our economy. We are clear-sighted about what needs to be done. It is a shame that the Conservative party is so blinkered.
Lewis Cocking (Broxbourne) (Con)
We need to produce more energy at home from renewables and oil and gas, as we need a diverse energy mix in the UK. That will help us to deal with the volatile global energy markets. When will the Government change course and support the UK’s oil and gas industry, including the cluster based in north-east Scotland, and issue new oil and gas licences to help bring down bills for residents across the country and in my constituency?
Miatta Fahnbulleh
I direct the hon. Member to the clean power plan, and the analysis done on the way to deliver energy security. We are clear that this is the quickest and best route by which to do that. In the end, one thing guides what we do: the need to get lower bills for the long term. We believe that this is the way to do it. The rest of the system agrees with us, from the regulator through to NESO. Our job is to crack on and deliver that.
Tom Collins (Worcester) (Lab)
I welcome the Minister’s statement, which has practical steps to support people with their bills, and a long-term plan, delivered at speed, to transition to a resilient, sustainable, clean energy system that takes advantage of the incredible advances in renewables in recent years. Offshore wind is providing really low-cost power, underpinned by UK-led innovation in technologies such as hydrogen. The Minister has laid out ambitious plans for supporting households in upgrading their homes, and has made excellent early progress on those upgrades. Will she continue working in partnership with UK innovators and manufacturers to make it not just possible but easy for homeowners to keep their homes warm with dependable, clean and affordable energy?
Miatta Fahnbulleh
My hon. Friend is completely right. We are committed to working with industry on upgrading our homes. We believe that that is the way to drive down bills, but we need to make this as easy as possible for consumers across the country. We are working with industry and across the piece to deliver at pace.
Luke Taylor (Sutton and Cheam) (LD)
I welcome many of the measures in the statement, although I echo the request from my hon. Friend the Member for Bath (Wera Hobhouse) that we consider decoupling electricity and gas prices; that would make such a difference. In 2023, Sutton council was blocked by the opposition Conservative group from partaking of an EU grant to help upgrade some of our council houses to energy performance certificate rating C. I welcome the warm homes social housing fund, but I encourage the Minister and the rest of the Government to increase the amounts available in these funds, so that we reward as often as possible councils that are ambitious to provide better, warmer homes for their residents.
Miatta Fahnbulleh
We are committed to working with local and regional government. We are increasing the support provided and are ensuring that it is long-term support, because we agree that the route to insulating lots of homes is through partnerships with local and regional governments, to deliver homes that are warmer and cheaper to run.
Carla Lockhart (Upper Bann) (DUP)
Northern Ireland is the only region of this United Kingdom where the warm home discount scheme is not available. Since 2011, the UK Government have failed to grasp this issue. The reason given is that fuel poverty is a devolved issue, but the same can be said of Scotland and Wales. When the price increase in Northern Ireland is announced next week, the assistance will not be available. Will the Minister meet me to discuss this matter? Furthermore, will she open conversations with the Northern Ireland Executive about righting this wrong?
Miatta Fahnbulleh
We are reaching out to and working with the Northern Ireland Executive. I would be happy to meet on this issue.
Ann Davies (Caerfyrddin) (PC)
Extending the warm home discount to all households that receive means-tested benefits could make a difference to many, especially those who have not received their winter fuel payment this winter. However, £150 off will not go far enough to help the 56% of adults in Wales likely to ration their energy over the next three months, according to National Energy Action Cymru. With the energy price cap rising again in April, will the Minister admit that we need long-term solutions that ensure energy affordability, such as the social energy tariff, which I have asked for since I came to this House last July, in order to support—
Miatta Fahnbulleh
I agree that we need long-term solutions. That is why we have talked constantly about the clean power mission, and why we are clear that while we make the transition to clean power, we will support the most vulnerable households. As an important first step, we are extending support next winter to over 6 million people who we know are struggling. We will continue to build on that in the weeks and months ahead.
Fuel Poverty: England
Miatta Fahnbulleh Excerpts(3 months, 3 weeks ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
I thank my hon. Friend the Member for Normanton and Hemsworth (Jon Trickett) for securing this really important debate. He has a great record of speaking up for low-income and vulnerable families in his constituency and across the country. I share his desire to tackle fuel poverty and his anger that energy is simply unaffordable for too many people in this country. The Government are determined to take the action necessary to lower bills and support the most vulnerable in our society.
I thank all Members for their contributions, and for highlighting the heartbreaking stories of families across the country that are struggling.
John McDonnell (Hayes and Harlington) (Ind)
The Minister talks about heartbreaking stories. My hon. Friend the Member for Liverpool West Derby (Ian Byrne) and I have just come off a Public and Commercial Services Union picket line outside a Department, and one of the issues that was raised with us was the cost of living, particularly fuel poverty, because those workers are on low wages and are experiencing poverty. One of the things that Ministers could do now is go back to their Departments, review all their contracts, end the outsourcing and bring those workers back into an insourced service.
Miatta Fahnbulleh
We know there is a challenge with the cost of living. We are coming out of the worst cost of living crisis that we have faced in a generation, and tackling it is central to what we are trying to do in my Department and across Government.
It is important that we situate this debate in the context in which we find ourselves. We published a review of our fuel poverty strategy last week, and the headline was staggering: fuel poverty stagnated in this country under the previous Government. In 2023, an estimated 13% of households in England—3.17 million people—were in fuel poverty according to the low income low energy efficiency metric, which is a narrow statutory definition. We know that out there in the country a lot more people are feeling the pressure of energy bills and have the sense that they cannot cope and cannot afford to heat their homes.
In 2023, about 46% of all low-income households in England lived in properties with an energy efficiency rating of band D or lower. That creates a cycle that is difficult to escape: the poorest in our country live in cold homes. Behind those statistics are lives, and I have heard the stories directly. People are scared to turn on the heat because they fear the bill at the end of the month. Parents are having to make the impossible choice between feeding their kids and heating their homes.
We know that the reality is intolerable for too many people. That is the legacy of the previous Government that we inherited, but we are determined to turn it around. Every family and business in the country has paid the price of our dependence on global fossil fuel markets that we do not control. We inherited sky-high energy bills. Yes, they are down from the crisis peak, but they are still at record highs.
Our clean power mission is not ideological; it is a primary solution to this problem. We are running to deliver clean power at this pace because we see that as our route to delivering home-grown energy that we have more control over, that will deliver energy security for the country and, critically, that will take us off this rollercoaster of price hikes, which are impacting families, and deliver the financial security that families across the country are desperate for. But we recognise that, while we do that, we also need to reform the electricity market. The review of electricity market arrangements, which we are working on at the moment, is looking at the very question of how we decouple gas from clean power prices. Our judgment is that, as we increase the amount of clean power in the system, we will do the job of decoupling, alongside market reforms, so that people can benefit from the big changes we are trying to make.
We recognise that we also have to support struggling families while we make that transition.
Robbie Moore
I thank the Minister for allowing an intervention. I raised concerns in my speech about the fact that 64,000 pensioners are struggling now to make that difficult choice between putting food on the table and heating their homes, and she has rightly acknowledged that. Does she recognise that the choice she and the Government made to remove the winter fuel allowance was wrong, when so many pensioners are in a dire state as a result of that choice?
Miatta Fahnbulleh
The hon. Member raises winter fuel payments, as hon. Members across the House have done. The Chancellor had an impossible job to do and made a tough call, but we have been clear that we will do whatever is needed to support the most vulnerable. Everything I am charged with doing, everything that my Department is trying to do, is to ensure that households struggling with bills can be protected and insulated.
The Government reviewed the fuel poverty strategy, “Sustainable warmth: protecting vulnerable households”, because we recognised that the trajectory we were on was not the right one. The review showed that progress on meeting the statutory target has stalled. Alongside that review, we are consulting on how to up our strategy to respond to that problem.
Jim Shannon
In questions, urgent questions and statements in the Chamber, I have been keen to ensure that every part of this United Kingdom of Great Britain and Northern Ireland can benefit from strategies in this House and that the ripples go out to everywhere. In my contribution, I asked the Minister again whether there would be an opportunity to discuss the matter with the relevant Minister back home. I know the Minister is committed to that. Will she please update me on where those talks and discussions have gone, so that we can all benefit?
Miatta Fahnbulleh
Let me reassure the hon. Member that we are talking to all devolved Administrations. There are common challenges that we all face and common solutions. We are working in collaboration; we have an interministerial working group, and I am having direct conversations with all devolved Administrations as we take forward our plans.
We are also trying to work with everyone. The challenge we face to turn around the trajectory on fuel poverty is huge and the inheritance is tough, so we want to draw on the expertise of consumer groups, industry and academia as we develop our plan on fuel poverty.
Nick Timothy
The Minister talks about the tough job the Chancellor faces. Does she acknowledge that the job is tough because of the Chancellor’s own choices? The Minister talks about the inheritance but, as I said in my speech, the Labour manifesto said that Labour would increase spending by £9.5 billion a year, while the Budget increased it by £76 billion a year. That is why the Chancellor faces tough decisions—they originate with her own political choices. Does the Minister acknowledge that?
Miatta Fahnbulleh
That is pretty audacious of the hon. Member, given the record of the previous Government, their financial position and the wrecking ball they took to the economy. We have to clean up the mess of the previous Government, so yes, we have had to make tough choices before that. Candidly, if I were in the hon. Member’s position, I would be hanging my head in shame, rather than lecturing this Government on how we clean up the mess they created. What I will say is that, whether on the economy or fuel poverty, we understand that we have been given an atrocious inheritance. We are not complacent about that. Things that the Conservatives were willing to accept, we are not willing to accept.
Miatta Fahnbulleh
I will make progress. On the critical issue of fuel poverty, we are consulting in order to improve our strategy, looking at how to make progress on our statutory target for 2030 and asking questions about wide affordability. As we take action, we must ensure that we are dealing with our statutory obligation and the more fundamental problem of affordability across the country.
Alongside our consultation on the fuel poverty strategy, we have also taken steps to try to lift half a million people out of fuel poverty by improving standards in the private rented sector. Last week we published a consultation on increasing minimum energy efficiency standards in the domestic private rented sector by 2030. Our proposals would require landlords to upgrade their homes so that tenants can benefit from warmer homes through insulation, cavity wall insulation and double glazing first, and then through other measures such as solar, batteries and smart meters.
My hon. Friend the Member for Normanton and Hemsworth asked about the impact on renters. I would say two things. Our analysis suggested that if we get this right, it could save renters about £240. We know that there is a risk of landlords potentially hiking bills, but when we have upgraded homes in the past, we have found that landlords have not increased bills, so we do not expect them to do so this time. Critically, we have also been surveying landlords, and the feedback is that the majority would cover the cost of the upgrades, which they know is the right thing to do. I should add that 50% of landlords have already upgraded their homes up to EPC C, so they will pay for this through those savings. We are therefore confident that renters will not be penalised, and we believe that the measures in the Renters’ Rights Bill will provide enough safeguards to ensure that renters can benefit from £240 off their energy bills and the security of knowing that their rents will not be increased.
Robbie Moore
Does the Minister recognise that many landlords are not in a sound financial position themselves, and that the challenge of getting the energy performance rating of their rental properties up to C can therefore be incredibly costly and sometimes unachievable, given the old housing stock? Will she outline what support will be available to achieve the Government’s ambition of upgrading to an energy performance rating of C?
Miatta Fahnbulleh
We have estimated that the average cost of upgrading homes to C is about £6,000. To protect landlords, we have put in place a cap of £15,000 and created mechanisms to provide exemptions for those landlords who we know will genuinely struggle. Alongside that, we are already providing support through our boiler upgrade scheme and warm homes local grant, which landlords can access, and we will be setting out more measures in the warm homes plan to support landlords on this journey. I should say that the vast majority of landlords want to do this—50% have already done so. We need to level the playing field for renters, so that all landlords are delivering homes to a standard that will ensure that they are warmer and cheaper to run for tenants.
A big plank of what we know we need to do to tackle fuel poverty—alongside what we are trying to do on minimum energy efficiency standards in the rental sector—will be our warm homes plan, which will transform homes across the country to make them cheaper and warmer. The idea behind it is simple and will mean upgrading homes with insulation, solar and heat pumps. In response to the points made about delays in rolling out the warm home plan, I would say that we are running at this. This year alone, we have massively increased the number of upgrades that we are expecting to 300,000, backed by £3.2 billion-worth of investment, and we will come forward in the spring with our plans to ramp that up.
The key thing that we are trying to achieve is moving from the hundreds of thousands of upgrades that we have seen—the inheritance of the last Government, who frankly slashed home upgrades, despite knowing their huge impact on bills and the comfort of consumers —to upgrading millions of homes. That will mean taking a comprehensive look at how we increase demand for home upgrades and deliver at scale in different places, working with regional government and suppliers, and, critically, how we ensure that when people go on this journey of upgrading their homes, they have the confidence to know—to the point made earlier—that the work will be done to a quality standard, and that if things go wrong there will be redress and protection. The current system that we inherited was far too fragmented and ad hoc. Consumers are not at its heart, and we absolutely must turn that around.
Ellie Chowns
I thank the Minister for giving way and for her comments so far. On the point about tackling the fragmentation and ad hoc nature of the previous system, does the Minister agree with me that home insulation upgrades are a win-win-win policy. They are good for people’s warmth and health, they are really good for jobs and they help to save the climate as well. One key barrier in recent years has been the stop-start, year-on-year type of policy that means that nobody in the supply chain is able to plan and have the strategic direction that they need to make the investments, build the labour force and so forth. Will the Government provide the long-term certainty about the policy direction and level of investment required so that everybody can pull together in the same direction?
Miatta Fahnbulleh
I absolutely agree that home insulation is a key part of how we tackle the problem of fuel poverty. Unless we have homes that are insulated, whatever energy we put into people’s homes, at whatever price, is going out of their windows. That is why it is so important to what we are trying to do through the warm homes plan. We seek through the plan to provide long-term certainty: for consumers, so that they know there is a programme that will support them through a journey, and, critically, for the supply chain.
I have spoken to many installers who tell me they are living hand to mouth. The ability to build, to plan, to recruit apprenticeships and to build up capacity is constrained by a stop-start approach. We are clear that the plan needs to be long term. We are working to make sure we can underpin that with long-term certainty on funding, so that we can see the level of ramp-up and scale-up that we need to insulate and upgrade millions of homes, rather than hundreds of thousands of homes.
Clive Efford (in the Chair)
Order. Can I just say that I need to bring in the mover of the motion for a couple of minutes at the end? Thank you, Minister.
Miatta Fahnbulleh
Let me address the points made by Members from rural constituencies. This plan has to work for every part of the country and we have to have solutions for every house. Rather than the Government dictating solutions from on high in Whitehall, we need to empower the system to figure out the best way to deliver warm homes for people across the country. That means thinking about the range and mix of solutions that go into people’s homes, so that they can have low-carbon options, but also options that work for their pockets.
Alongside what we need to do through our warm homes plan, it is important to say that we must also deal with the question of supporting households on bills. That is why going into this winter, wanting to do everything we can to support the most vulnerable, I worked with energy suppliers to get them to commit to £500 million of industry support for people this winter so that we can get help to households that we know are struggling. The Government have also extended the household support fund until 31 March 2026 with an extra £752 million. We are providing the cold weather payment and our Department is providing the warm home discount to more than 3 million households. The Warm Home Discount (England and Wales) Regulations 2022 expire in 2026, so we want to consider options for the future.
Members talked about a social tariff. The challenge with the social tariff, which we are hearing about across the piece, is that it means different things to different people. However, we are looking at all the options to make sure we can provide the support that people need.
In conclusion, I understand Members’ passion; I share their passion and their commitment. Energy is not a luxury good. It is not a “nice to have”. It is foundational for people, but it is out of reach for some. That is a shame and a stain on us, and we are determined to turn things around.
Draft Energy Bill Relief Scheme and Energy Bills Discount Scheme (Amendment) Regulations 2024
Miatta Fahnbulleh Excerpts(3 months, 3 weeks ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
I beg to move,
That the Committee has considered the draft Energy Bill Relief Scheme and Energy Bills Discount Scheme (Amendment) Regulations 2024.
The regulations were laid before the House on 16 December 2024. They amend two schemes that were created by the previous Government in response to the energy crisis. The amendments address an issue that was not considered in the rush to create the schemes, but has now come to the fore as we bring the schemes to an end. The issue is somewhat technical, so I ask hon. Members bear with me.
Both the energy bill relief scheme and the energy bills discount scheme, which I shall refer to as the EBRS and the EBDS, supported non-domestic energy users, including businesses and heat networks. The EBRS supported energy bills from October 2022 to March 2023 and the EBDS supported bills from April 2023 to March 2024.
The schemes have processes in place to ensure that, as bills are revised with accurate meter readings, the difference between the discount applied to the estimated bill and that applied to the final bill is reconciled. Suppliers then come back to Government to recover additional discounts they have paid out, or to pay back any excess discounts stemming from an over-estimation of the energy used in the first instance. That is right—the intention behind the schemes has always been for the Government, not the energy suppliers, to meet the cost to the consumer.
The regulations allow for the Secretary of State to determine when a supplier should leave the scheme on the basis of an assessment that there will be no further material amount owed by the Department to that supplier. Once a supplier has left the scheme, they are unable to claim back any further moneys from the Department for discounts they paid out on behalf of the schemes.
However, as the regulations currently stand, suppliers are still required to pay out discounts on any newly billed energy supplied during the periods of either scheme, even when that situation arises through no fault of their own. This could result in suppliers funding Government support without the ability to recoup those costs from the Department. That is contrary to the intention of the schemes. Consequently, suppliers have been reluctant to leave the schemes, which must come to an end in a timely manner.
The amendments in the statutory instrument remove the obligation on suppliers to provide the discounts to customers, except in instances when the consumer has lost out due to poor practices by their energy supplier. In those instances, we have provided carve-outs to balance the interests of suppliers with support and protection for consumers. Carve-outs are in place when a supplier has failed to provide their customers with a bill for energy supplied during the scheme period, when unreasonable delays or another failure has led to the energy not being billed accurately, or when the supplier has unreasonably failed in the duty to provide the discount. The customer should not and will not lose their entitlement to the discount in those circumstances.
If any dispute arises between the supplier and the customer in relation to the carve-outs, the resolution mechanisms will be those normally used in the industry, via a complaint to the Energy Ombudsman, investigation and potential sanction by the regulator, Ofgem, or court action. The amendments apply to energy suppliers in Great Britain.
Separately, the regulations amend the Energy Prices Act 2022 to allow the devolved Administration in Northern Ireland to make amendments to address issues in the Northern Ireland scheme. That is because their power to amend their equivalent legislation has expired.
Let me end by saying a few words about the challenges that non-domestic consumers face because of high prices. I know that Members across the Committee are concerned about that. Energy prices for non-domestic customers have dropped below the record peaks during the crisis, but the Government recognise that they remain high and pose issues for some businesses. The Government believe that our mission to deliver clean power by 2030 is the best way to break our dependence on global fossil fuel markets and to protect bill payers, including non-domestic consumers, permanently.
In the short term, the Government are taking action to better protect businesses from being locked into unfair and expensive energy contracts. Last year, the Government launched a consultation on introducing regulation of third party intermediaries, such as energy brokers. That is aimed at enhancing consumer protections, particularly for non-domestic consumers. The consultation has now closed and the Government will respond in due course.
The Government are also empowering businesses to challenge unfair and poor practices by suppliers. Since December 2024, small and medium-sized enterprises with fewer than 50 employees can have access to free support to resolve issues with their energy supplier through the Energy Ombudsman. That expands the service to 99% of British businesses, allowing them to access up to £20,000 in financial awards. Those are important steps, on which we will continue to build.
I hope that hon. Members will support the important regulations, which I commend to the Committee.
Miatta Fahnbulleh
I thank the hon. Member for his response. I am glad that we have consensus across the Committee about the regulations.
The hon. Member is right to point out that energy bills are high. All hon. Members know that, and it is a central focus of the Government’s. I come back to the fact that we inherited a position whereby bills were at record heights. That is a result of our dependence on global fossil fuel markets over which we have no control. I have said this before and I will say it again: the Opposition were happy with that status quo, but we are not willing to put up with it. We believe that it must be changed. Our drive for green power will deliver home-grown clean energy, which will give energy security to the country and financial security to families.
While we do that, our manifesto commitment to reduce bills remains central to what we are trying to achieve. It is the core of everything that the Department is trying to do. We will bear down on bills through clean power and we will ensure that we take short-term action to protect bill payers who are struggling. Critically, we will upgrade millions of homes so that we can deliver lower bills and warmer homes. We are committed to that because we understand that, throughout the country, people face a cost of living crisis, which we inherited from the Conservative Government, who did not do enough to insulate and protect people. We will not make that mistake. We are determined to do this. Again, I commend the regulations to the Committee.
Question put and agreed to.