Energy Price Guarantee Extension 2023-04-18
2023-04-18
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Response quality
Questions & Answers
Q1
Direct Answer
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Context
The MP inquired about the impact of extending the energy price guarantee on household bills.
What assessment has been made of the potential impact of the extension of the energy price guarantee on household energy bills?
The energy price guarantee has been extended at the same level for a further three months until the end of June. By then, the Government will have covered nearly half of a typical household's energy bills during this winter, and a third to a half of business bills as well.
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Assessment & feedback
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Q2
Direct Answer
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The MP welcomed the new department and inquired about developing sovereign energy supplies to ensure long-term price stability.
Does he agree that the best way to ensure the stability of energy prices long term is to develop our own sovereign supply, with technology such as small modular reactors, hydrogen and nuclear?
My hon. Friend is absolutely right. That is why we put £200 million into funding new hydrogen in the “Powering up Britain” document just a few weeks ago. He will know about Great British Nuclear. I intend that we launch a competition, pick a winner for that by the autumn and get on with it.
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Q3
Partial Answer
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The MP inquired about the end of the energy price guarantee and proposed a social tariff to support vulnerable households.
If the energy price guarantee is to come to an end in June, surely the logical next step is a social tariff. People have become used to social tariffs from their mobile phone providers and broadband. What is the Secretary of State doing to make sure energy companies introduce a social tariff to target support at the most vulnerable in society?
Just to correct the record, it comes to an end in April 2024, so that guarantee remains in place. Wholesale prices in the meantime, fortunately, have been falling—I noticed that they are £98 per therm this morning. We do think that things like a social tariff could be very helpful and the Chancellor has undertaken to look at that as well.
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Assessment & feedback
Specific commitment to introduce a social tariff not provided, only stated it is being looked into by the Chancellor.
Response accuracy
Q4
Partial Answer
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Context
The MP inquired about measures to ensure sustainable energy prices and reduce inflation.
It has made a huge difference to millions of families that the Government have been paying over a third of people's energy bills, as part of a bigger package that is one of the most generous in Europe, but can the Minister assure us that the Government are doing everything possible to get inflation down and ensure that we have more sustainably priced energy in future?
My right hon. Friend is absolutely right. She mentions a third; in fact, we have been paying around a half of the typical household energy bill this winter, at huge cost. Fortunately, we have seen the wholesale prices fall, and we will start to see that reflected in the energy prices, although we have extended the guarantee—the £2,500. But she is absolutely right in her wider point: it is essential that we get to the cheapest, most plentiful electricity in Europe, and the “Powering up Britain” document aims to do precisely that.
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Assessment & feedback
Specific measures to reduce inflation not provided, only mentioned wholesale prices falling and future plans in "Powering up Britain".
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Q5
Partial Answer
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Context
The MP questioned the delays in legislating for minimum energy efficiency standards and proposed a comprehensive home insulation programme to reduce energy bills.
One of the most effective and long-term ways of getting people's energy bills down would be to invest in a comprehensive, street-by-street home insulation programme, which this Government are still failing to do. Research by the Energy and Climate Intelligence Unit shows that delays to legislating for minimum energy efficiency standards for the private rented sector could cost renters in the leakiest homes an additional £1 billion in higher bills, so with the Energy Bill making its way through the Commons later this year, will the Minister finally end the delay and ensure that those proposals, which the Government first started consulting about three years ago, are legislated for in that Bill?
Sometimes, we speak in this House as if we have not actually greened up any of our Victorian housing stock. In fact, back in 2010, only about 14% of houses in this country had A to C on their energy performance certificate; today, that figure is 47%. This year, we will have over half of our homes greened up. We are putting £12.5 billion-plus into it. So we are making rapid progress, which is sometimes not entirely reflected by Opposition parties.
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Assessment & feedback
Specific commitment to legislate for minimum energy efficiency standards in the Energy Bill not provided; instead highlighted progress made since 2010.
Response accuracy