Energy Price Cap: Residential Buildings with Communal Heating Systems

Debate between Nickie Aiken and Mark Pritchard

Wednesday 20th April 2022 Westminster Hall

[Nickie Aiken]

I hope that the Minister might address that very well made point. We can live in hope.

Through all the good and necessary steps that the Government are taking to protect consumers through the energy cap, the timescales are quite difficult for our residents who are facing the cost here and now. It will be interesting to hear what the Minister has to say about what help, if any, can be given to those on heat networks now. I hope that if there is a consultation and it is a quick one, it will also throw up lots of secondary concerns. For example, how can we address the detail of meters? Can any price cap in this area take into account different monitoring systems as technology evolves? Can we have a cap on the wholesale price for consumers as well as domestic users with a single supply? It is not an easy task to resolve this.

Right now, we in Parliament need to ensure that there is interim support that takes into account the nuances of those locked into heat networks—they are literally locked into this. Indeed, I was concerned to hear reports from some of my constituents who are currently excluded from the otherwise comprehensive package of support being offered by the Treasury, precisely because they are on a heat network.

I am sure that the Minister will be relieved to hear that I do not think that a solution will necessarily require more money. We just need to ensure that Government support is allocated fairly and takes into account the complexities of people locked into heat networks with no price caps.

I hear time and again that transparency is key to resolving this matter, and right now I am concerned that Ofgem does not quite have the capacity to target the support that is needed to residents who are affected. In fact, that was brought up in the responses to the Government’s “Heat Networks: Building a Market Framework” consultation. It seems that some of those previous concerns are now transpiring, and I suspect that we are seeing the additional complexity of a top-down approach when the market really requires a bottom-up approach.

To conclude, I hope that the Minister can address a few of the concerns that I have mentioned. I know that the Government are committed to making heat networks a key part of their energy policy. After all, heat networks have the potential to offer low-cost, low-carbon heat. But without intervention now, hundreds of thousands of families are facing horrendous and unaffordable heating bills. What is important here and now is that we must not leave families living on these schemes behind.

[Mark Pritchard (in the Chair)]

I do not wish to impose a hard time limit, but quite a few Back Benchers would like to contribute and we would like to hear everyone if possible, so I would be grateful if Members could practise self-regulation and stick to about four minutes if possible. I call Rushanara Ali—[Interruption.] You are on the list. Okay, you have withdrawn. I call Sharon Hodgson—[Interruption.] Well, you are on the list. We are going to go home earlier; that is fine by everybody, I am sure. I call Janet Daby—[Interruption.] You are on the list as well, but that is fine. Siobhain McDonagh, I know you will want to speak.