Energy Consumer Support

6. What discussions he has had with energy suppliers on support for consumers.

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.

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?

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.

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.

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.

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?

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.

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?

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.

I call the shadow Minister.

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?

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.