Commons Sense

House of Commons · Ministers' Questions

Energy Costs

Tuesday 27 February 2024 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • Ofgem's new price cap means the average energy bill is set to drop by 238 from April.
  • Standing charges for electricity have increased by 138% from 90.84 in 2021-22 to 216.23 in 2023-24.
  • The UK government delivered about 7.4 billion last winter to support businesses with their energy bills.

Topics (select to filter)

Questions & Answers

Q1 Elliot Colburn
Energy
Context

The MP raises concerns about the financial strain on constituents due to high energy bills.

Question

What steps she is taking to provide support with energy bills. Carshalton and Wallington residents are struggling with high energy costs, and many small and medium-sized businesses in my constituency are also facing difficulties.

Answer from Claire Coutinho

Ofgem's new price cap means that from April, the average bill is set to drop by £238. We have taken the number of homes well insulated up from 14% in 2010 to 50% now. We recently set out plans to help more customers access smarter energy tariffs which could save them up to £900 a year. Last winter alone, we delivered about £7.4 billion to support businesses, covering nearly half of many businesses' wholesale energy costs. We are continuing the energy bills discount scheme to support eligible businesses with high energy costs until they can take advantage of lower wholesale prices.

Partly answered

Not addressed: Specific steps for supporting small and medium-sized businesses were not detailed beyond referencing existing schemes.

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Q2 Alyn Smith
Taxation Energy
Context

The MP highlights the significant increase in electricity standing charges for constituents in Stirling, citing Ofgem figures.

Question

I am grateful for the answer, but one thing my constituents do not understand is electricity standing charges. According to Ofgem's figures, they have rocketed by 138% from £90.84 in 2021-22 to £216.23 in 2023-24. Does the Secretary of State agree that it is high time the UK Government stepped in?

Answer from Claire Coutinho

Ofgem regulates standing charges and has issued a call for evidence. About 40,000 people have given input, and we look forward to seeing the results. However, if he was really worried about the cost of living for families in the country, the SNP would not have taken taxes in Scotland to the highest level in the UK.

Not addressed: The question on standing charges regulation was deflected by criticising the SNP's tax policy.

How: Criticising Opposition Party

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Q3 Elliot Colburn
Energy Business & Trade
Context

The MP notes that while the reduction in the energy price cap is welcomed, small and medium-sized businesses in Carshalton and Wallington are still struggling.

Question

The fall in the energy price cap is certainly welcomed by Carshalton and Wallington residents, as is the support for households, but many small and medium-sized businesses in my constituency are still struggling to absorb higher costs. Will the Secretary of State outline in a bit more detail the support that those businesses can access to help with energy bills?

Answer from Claire Coutinho

I thank my hon. Friend for recently welcoming me to Carshalton and Wallington. Wholesale energy prices have fallen significantly since last winter, but we are committed to supporting businesses with their energy bills. Last winter alone, we delivered about £7.4 billion to support businesses, covering nearly half of many businesses' wholesale energy costs. We are continuing the energy bills discount scheme to support eligible businesses with high energy costs until they can take advantage of lower wholesale prices.

Partly answered

Not addressed: Details on specific steps for supporting SMEs were not fully addressed beyond referencing existing schemes and commitments.

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