Commons Sense

House of Commons · Westminster Hall

Energy Costs in Wales — [Mr Clive Betts in the Chair]

11 October 2022 · 7 other contributors · 11,845 words

Opened by Anna McMorrin Lab Cardiff North

Responding minister: Graham Stuart

WalesEnergy

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

Read the full transcript on Parliament.uk

At a glance

Anna McMorrin raised concerns about energy costs in wales — [mr clive betts in the chair] in Westminster Hall. A government minister responded.

Key points

  • Concerns raised about soaring energy costs causing financial hardship for millions in Wales.
  • The hon. Member cited specific cases, including a jewellery business owner and a family relying on life-saving equipment.
  • Requests were made for emergency assistance payments and uprating of benefits to match inflation rates.

Key requests to Government

The hon. Member asks for emergency assistance payments for families and when specialist support will be given to hospices on which they rely. She also requests an uprating of benefits in line with current inflation rates, as well as confirmation that the Minister is not ideologically opposed to urging people to save energy over winter.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Anna McMorrin Lab Cardiff North

The hon. Member is concerned about the national emergency caused by soaring energy costs, which have plunged millions into hardship and misery. People are facing the choice between heating and eating, with some going to bed cold and hungry or giving their child their last tin of food. She cited a sixfold increase in energy bills affecting businesses such as a pub and small artisans like Rebecca who runs a jewellery business alongside other jobs. The hon. Member also mentioned the impact on families relying on life-saving equipment due to illnesses, highlighting that Emma's family faces nearly £600 more per month in bills.

Other contributors (7)
  • Alan Whitehead Lab Southwarke

    Addressed the impact of energy cost rises on Wales, noting one in five households are off-grid and have suffered significant price increases. Praised Welsh Government's additional £200 funding but criticised UK Government for not introducing a windfall levy to cover costs. Highlighted that UK prices are far higher than most of Europe and called for rapid changes to the energy market to move towards renewables.

  • Alun Cairns Con Fife North East

    He congratulates the hon. Lady for securing an important debate and notes that the energy price guarantee is generous compared to other developed nations in Europe. Mr Cairns criticised the party political tone of the debate, highlighting the impact of the war in Ukraine on energy prices. He acknowledged the government's support measures such as grants and rebates but called for further clarity on park homes and off-grid properties' benefits under the new scheme. Asked the hon. Member for Rhondda what intervention she is seeking from the Government regarding energy prices and expressed uncertainty about her proposal. Asked the Minister if they would give way for a question.

  • Ben Lake PC Ceredigion Preseli

    Concerned about off-grid homes in Wales, where 19% of domestic households are not connected to the mains gas grid. Highlighted increasing heating oil prices from £351 per 1000 litres in August 2020 to £896 by August 2022, impacting constituents and rural businesses heavily. Suggested a voucher scheme for 1,000 litres of heating oil or equivalent LPG as support. Asked the Minister if they would give way for a question.

  • Beth Winter Lab Rhondda

    Highlighted the increase in energy bills due to the price cap rise, affecting up to 45% of Welsh households and causing extreme hardship. She noted that small businesses are also struggling with exorbitant bills. Proposed public ownership of energy as a solution.

  • Jessica Morden Lab Newport East

    She agrees with her hon. Friend about prepayment meters and points out that £3.50 of every £10 topped up goes towards charges, which is particularly high in South Wales.

  • Jonathan Edwards PC Carmarthen East and Dinefwr

    He thanks the hon. Lady for bringing up this crucial issue, highlights the UK's dependency on electricity imports despite Wales being a net exporter of electricity, and questions how Wales can utilise its power surplus to mitigate fuel poverty. I am grateful that the right hon. Gentleman raised this point because I asked a written question on this issue and was referred to an answer to another Member. That answer was not particularly clear to me, so when my constituents ask me how they will receive the support I am unable to provide that answer. The hon. Member for Montgomeryshire argued that a windfall tax could make a significant contribution to public intervention, and even oil executives are mildly in favour of it as BP announced that such a tax would not affect their investment plans. Inquired how Ynni Cymru, a Welsh public energy company, would interact with the proposed GB Energy model under a potential future Labour Government. Mentioned that UK electricity prices are second highest in Europe, and particularly high in south Wales and north Wales compared to the national average. The Minister mentioned the IMF report, which stated that UK inflation will be among the highest in Europe, second only to Slovakia. This means people will face severe economic impacts.

  • Ruth Jones Lab Newport West

    The hon. Member for Newport West highlighted the impact of rising energy costs on her constituents and criticised the Government's commitment to protecting oil companies' excess profits, urging them to support those in need through proper action.

Government Response

Graham Stuart

It is a great pleasure to serve under your chairmanship, Mr Betts. I congratulate the hon. Member for Cardiff North on securing the debate. The Government understand the scale of the challenge and are taking action to help support households and businesses facing record energy prices, including those in Wales. Households will be protected from significant rises in energy bills thanks to the new Government support that took effect from October 1st, limiting the price they pay per unit of gas and electricity to an average of £2,500 a year. Without this intervention, household energy bills were predicted to rise to around £3,500 in October, with potential increases to as high as £6,500 next year. The Government's package includes a £400 energy bill support scheme and an automatic discount for the 8 million most vulnerable households across the country, forming part of a £1,200 package of targeted support. In addition, £100 payments are provided to those using alternative fuels such as heating oil, and park home residents will receive equivalent support. The Government's measures also extend to non-domestic energy users, providing them with discounts on unit prices of gas and electricity, enabling them to plan ahead despite significant increases in costs. A review is planned in three months' time to consider where further targeted support should be provided. Over £2 billion has been provided since 2013 for energy-intensive industries, including the extension of the Energy Intensive Industries Compensation Scheme and consultations on increasing aid intensity for these sectors. The Government are working to boost British energy supply through initiatives such as the new oil and gas licensing round, lifting the moratorium on UK shale gas production, and driving forward progress on nuclear and renewables. Over 40% of our electricity supply now comes from renewables, compared with just 7% in 2010, showcasing significant progress towards net zero emissions. The Government are reforming outdated market structures to ensure an enduring framework that works for businesses, industries, and households.

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