Warm Home Discount

Wera Hobhouse Excerpts

Tuesday 25th February 2025 Commons Chamber

[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.