Since conflict broke out in the middle east, we have acted to prevent price-gouging, help those who rely on heating oil, and ensure that businesses get a fair deal on their bills. The energy price cap will fall by £117 next week, with savings locked in until the end of June. We have also sped up work to take control of Britain’s energy, accelerating our next renewables auction and our warm homes plan. We will do whatever it takes to fight people’s corner and learn the right lessons from the crisis.
To go back to heating oil, 20% of households in my South Cotswolds constituency rely on heating oil—that figure is four times the national average—and many of them face high up-front costs. Will the Secretary of State consider supporting more flexible payment or credit schemes, and pooled purchasing models, which would enable villages to combine orders, secure bulk discounts and spread costs over time?
The hon. Lady raises an important issue, and I am sure that many Members will empathise as our constituents face difficult times. The Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Inverclyde and Renfrewshire West (Martin McCluskey), tells me that the Competition and Markets Authority is considering all those issues. If Members encounter practices relating to heating and other things, they should bring them to the attention of my hon. Friend, because we want to work as speedily as possible with the CMA to stamp them out.
T2. Manufacturers have been grappling with energy costs long before the current Iran conflict, hitting Calder Valley firms. Siddall & Hilton, which makes fences, is seeing costs four times higher than European competitors, and finishing company H&C Whitehead has seen its energy bills double to £22,000 a month. Will the Minister meet me to discuss how we can support smaller firms and ensure that Government support schemes help energy-intensive firms?
My hon. Friend is right to point out the importance of finishing companies. I know that some spinning and weaving businesses are included in the supercharger, but finishing is often not, even though it is done in the same factory. Clearly, whether they are waterproofing sou’westers or fireproofing mattresses, these businesses are important. I would be happy to meet my hon. Friend to discuss the upcoming supercharger review and what options there may be for those businesses.
Will the Secretary of State be honest and tell the country why he is ideologically obsessed with shutting down the North sea? Is it because he does not think we need the £25 billion of tax revenue it would generate? Is it because he prefers to import gas with higher emissions, or is it because he has never bothered to speak to the thousands of workers who are losing their jobs right now because of his policies?
I am not. As I said earlier, we are using existing oil and gas fields in the North sea for their lifetime, and we have introduced tiebacks for existing fields. While the right. hon Lady comes here month after month with proposals that will do nothing to cut energy bills for people, this Government are actually taking action: reducing the energy price cap next week; making plug-in solar available to all families; the warm homes plan to drive down bills; and crucially, a renewable power auction, which she said that we should cancel, to help 12 million homes.
RenewableUK, the unions, Tony Blair and the Secretary of State’s own handpicked chair of Great British Energy—the biggest advocates for an energy transition—have said that he has got this wrong. Is his ideology so rigid that he is incapable of admitting when he has got things wrong and that he will put us on a pathway to higher emissions and fewer British jobs?
Let us try again. Can the Secretary of State be clear with the House? He knows that we will need gas for decades to come, so why does he prefer to import dirtier gas from abroad than to use the gas that we have in the North sea?
I do not. We continue to use the North sea, and ours is a pragmatic position. But there is a wider lesson that the House has to focus on. Is the lesson of this crisis—a fossil fuels crisis—to double down on fossil fuels, or is it to drive forward with clean energy? We believe clean, home-grown power that we control is the answer.
T3. I welcome the upcoming drop next week in the energy price cap, which I know will help my constituents. With the Government’s focus on the cost of living, we are all concerned that events in the middle east will trigger a price shock in the market, making that work more difficult. Can the Minister outline what further steps the Government are taking to reduce my constituents’ energy bills?
I thank my hon. Friend for his important question. We are taking three additional measures. We are expanding and extending the warm home discount to 2031. We have supported heating oil customers with the £53 million-worth of support that was announced last week, and our £15 billion warm homes plan is the biggest home upgrade plan in British history. All of that is wrapped up in our clean energy mission—clean power 2030—which will ultimately give us control of our energy.
T4. Over half of South Shropshire residents rely on heating oil or other solutions, such as liquified petroleum gas, to heat their homes. The recent Government support does very little for the majority of my constituents, and the best price today for heating oil is more than double what it was five weeks ago. There is blatant profiteering. What are the Government going to do to seriously address the issue?
We moved swiftly to introduce funding to support people. The £53 million-worth of support, which is being disbursed through the crisis and resilience fund in England and Wales, will provide support for people through this immediate period. We will keep other measures under review, but if hon. Members have examples of unfair pricing practices, it is important that they report them to the CMA so that it can consider them as part of its review.
T7. I recently visited the Gawcott Fields Community Solar project, which is a local solar farm that uses the income from the clean energy it produces to invest in energy saving and environmental projects, and it is anticipated that it will invest £2.8 million over 25 years. Can the Minister update the House on how the Government will use the local power plan to ensure that even more of my communities—particularly rural and low-income ones—can take control of their own energy?
I congratulate all those in my hon. Friend’s constituency on what sounds like a fantastic project, and it is an example of what we want to see all across the country. The local power plan unlocks £1 billion of investment, with the ambition that communities right across the UK should be able to own and operate their own energy infrastructure, and the profits from that should flow into local communities.
T5. Mr Speaker, the energy bills crisis is happening right now, but you might not know that from Ministers’ responses today. The Scottish Government’s actions have helped to deliver clean, green, renewable energy as a net exporter, bailing out the UK Government in terms of heating oil as well. Will they work together, and will they respond positively to the First Minister’s call for a four nations summit?
We do work very well together, actually, contrary to what it might appear from the hon. Member’s contribution. He suggests, quite wrongly—twice now—that Scotland is generating all this electricity by itself. Of course, those projects are funded by bill payers across the UK investing in that infrastructure. His plan seems to be to take a third off energy bills with independence, with absolutely no credibility whatsoever.