PARLIAMENTARY DEBATE
Household Energy Bills - 17 January 2023 (Commons/Commons Chamber)

The Government are supporting households with their energy bills through the energy price guarantee, the energy bills support scheme, and alternative fuel payments for households that use alternative fuels such as heating oil to heat their homes.

Will the Government take action to decouple the cost of gas supplies from renewables, because that is a way to get the cost of renewable energy down, helping households and also helping the taxpayer fund the important package of support that the Government have introduced for energy bills?

My right hon. Friend makes an excellent point, and it is noticeable that gas prices are high, but the price of renewables is typically much lower. Indeed, for a whole load of days in a row more than half our electricity has been provided through renewables, in particular offshore wind. That decoupling is important, but it is also not straightforward, as my right hon. Friend will know. It is something that the Minister for Energy and Climate and I are actively working on.

Eastleigh has a diverse housing mix that includes pensioners, those living in park homes and lower-income families, who are all struggling to pay their energy bills. What steps is the Secretary of State taking to pass on any falls in wholesale energy prices to consumers, so that they pay less as prices come down?

My hon. Friend raises a good point. What concerns me is the idea that when wholesale prices go up we get a rocketing in domestic prices, but as wholesale prices fall again, as they have done, we get a sort of feathering down, very slowly. I am concerned about that and I have written to Ofgem asking it to look at the market. Energy companies are forward buying their energy by several months, but we need those changes to come through in reductions to households, and we will be pressing to make sure that happens.

Will my right hon. Friend confirm that the support the Government have provided to households to help with their energy bills will continue once current arrangements come to an end later this spring, and until international energy markets have fully stabilised?

I am pleased to confirm that the energy price guarantee has been extended to April 2024, so that support will continue. As I mentioned earlier, we are seeing some of the prices moderate, but the problem is that that combination of higher prices could still continue to lead through, which is why we will keep the energy price guarantee in place.

May I ask the Secretary of State about two groups who have not had much support so far? One group is households on a communal heating scheme who get their heating bills from their landlord. The Government have announced measures to rectify that situation, but could registered housing providers such as housing associations and local authorities be allowed to apply jointly for their tenants, to ease them into the scheme? Secondly, people on housing benefit do not get the additional help for being on a low income that those on universal credit receive, because housing benefit is not a Department for Work and Pensions benefit. Why is there discrimination against housing benefit recipients? It really is unfair, is it not?

I know that the hon. Gentleman and the whole House recognise how complex it has been to put in place the schemes to pay money to people in a system that is usually meant only for people to pay money to energy companies. That has been easy to resolve through the simple direct debit billing method but much more complicated in edge cases including combined energy and heat power and other off-grid measures. It is probably best if I ask my right hon. Friend the Energy and Climate Minister to speak to him specifically about the cases that he raised, because they are so complex that that probably requires a meeting and a further clarification letter.

Domestic energy companies are routinely raising people’s direct debits above the level of energy that they use and need to pay for. In the process, they are building up credit balances—sometimes of hundreds of pounds of people’s money—when those people cannot afford that. Will the Minister meet me to discuss how to hold the energy companies to account and ensure the automatic repayment of overcharging?

I entirely agree with the hon. Gentleman. I have had the experience myself where the energy company arbitrarily decided to put an outrageous figure into the direct debit. Once someone challenges that figure, the company will fall back from that—but that is if they can get through on the helpline.

I absolutely share the hon. Gentleman’s concern and will offer him a meeting with the Energy and Climate Minister specifically on this matter.

I wonder what discussions the Secretary of State has had with the energy companies following the report last week from Citizens Advice showing that hundreds of thousands of customers are being forcibly moved on to prepayment meters. Has he had discussions with his colleagues in the Ministry of Justice? Forcible entry to make hundreds of these changes is being approved on an industrial scale in minutes flat in magistrates courts. It is a real scandal. What is he doing about it?

The hon. Gentleman is right on that point. My right hon. Friend the Energy and Climate Minister and I have instructed our officials to draw up measures that could be helpful. We also have a letter to go to Ofgem once we have that advice. I am very concerned about this happening through an enforced process. We are on the public’s side and trying to fix it.

The alternative fuel payment scheme is being applied to people’s electricity bills where they have their own direct supply, but, for people in park homes or on houseboats without their own electricity, such support is difficult to access, and they are often the types of people who struggle to get online. Will the Secretary of State consider a better public information campaign for those households and support with access to applying for the scheme for those who struggle to get online?

The hon. Lady points out another one of the edge cases in park homes. Many hon. Members have park homes in their constituencies, including me, and it has been more complex to get the money to them. She will be pleased to hear that the pilot scheme to get that money out to them launched yesterday. It will be a process through the local authority, and we are making sure that it is expedited as much as possible.

I call the shadow Minister.

It is a matter of considerable concern that anybody should be removed from their power or heating. We have specifically asked the energy authorities not to go down that line and asked Ofgem to do the same. As I mentioned just moments ago, officials are actively working on this issue, with a letter ready to go to Ofgem as well. She is right to highlight this issue. We do not want to see people cut off during this cold weather. We will return to the House with more detail.