House of Commons · Westminster Hall
11 February 2025 · 12 other contributors · 13,646 words
Opened by Wera Hobhouse Lib Dem Bath
Responding minister: Michael Shanks
Summarised by AI from the official record, so it can contain mistakes.
Wera Hobhouse raised concerns about cost of energy in Westminster Hall. A government minister responded.
Key points
Key requests to Government
The Government should reform policy costs currently placed on electricity bills to make clean technology more affordable for everyone, aiming at rebalancing levies or implementing a single levy control system based on energy efficiency.
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
High energy bills are an immediate daily concern for many households. A recent poll showed that 90% of adults remained concerned about the increase in energy prices, impacting both financial stability and efforts to decarbonise the economy. The disparity between gas and electricity costs is deterring consumers from switching to cleaner heating systems like heat pumps.
Stressed the importance of addressing fuel poverty by delinking fossil fuels and renewable energy pricing to reduce consumer costs, suggesting a review of electricity market arrangements. Advocated for a minimum export value for rooftop and carport solar to unlock investment and support net zero goals. Disputed the argument that renewable energy is not cost-effective and highlighted the lower strike price for offshore wind compared to fossil fuels. Agreed with upgrading the grid regardless of technology used, highlighting that 10% of energy is lost in transmission.
Asked the Minister a question, though the specific query was not detailed in the provided text.
Called for urgent reform in clean energy investment, incentives for heat pumps and rooftop solar panels, a national strategy for retrofitting old homes, and protection of vulnerable households through restored winter fuel payments and a social tariff.
Highlights the Northern Ireland perspective on energy prices, noting that 68% of households use oil as their primary heating source and discusses the withdrawal of winter fuel payments affecting pensioners. Emphasised the urgent need to address the issue of high energy costs due to the impending switch-off date in June, highlighting its impact on health and older residents. Called for reconsideration of closed schemes supporting struggling families.
Challenged the hon. Member's stance, questioning if she is against renewables and climate action.
Discussed building more network infrastructure for renewable energy and supporting small modular reactors across the country near centres of demand. Acknowledged the concerns raised about highland pricing formula and committed to considering mitigations for radar issues.
The hon. Member highlighted the need for renewable energy expansion to protect UK consumers from volatile foreign markets. He also criticised previous Conservative policies, such as cuts to energy efficiency programmes and over-reliance on international gas markets.
Households on renewable electricity pay four times as much as those who get fossil fuel gas. The level of fuel poverty is 13% in England but 47% in the highlands. The Member calls for decoupling of renewable energy and gas, and removal of environmental charges to balance things out with people relying on gas.
Asked the Minister to discuss community benefits.
Asked about support for the most vulnerable in society during winter, highlighting that 17.6% of Keighley's population is in fuel poverty and raising concerns over Bradford council’s proposed 10% increase in council tax.
Argued that there needs to be a mix of energy sources, with renewables tested on cost-effectiveness. Asked the Minister to focus on transmission and distribution costs, which make up 15% of energy bills.
Asked for clarification on whether renewable energy is a solution to lower energy bills but deemed too expensive by the hon. Member. Emphasised the challenge of a decentralised energy system and criticised mischaracterisation of grid upgrades as renewable costs.
Government Response
Michael ShanksThe Parliamentary Under-Secretary of State for Energy Security and Net Zero
Shanks acknowledged the contributions made by MPs during the debate. He stated that the Government was elected on a manifesto containing pledges on energy, reflecting their mission to fix the energy system in the country. The Minister highlighted that the cost of energy continues to have a devastating impact on constituents and communities due to volatile fossil fuel markets. Shanks also noted the importance of tackling issues related to the cost of living crisis. Discussed the need to build more network infrastructure, support small modular reactors near centres of demand, upgrade an old grid regardless of technology used, and acknowledged a decentralised energy system challenge. Emphasised that renewables are cheaper to run than building new gas or nuclear power stations. Acknowledged the need for short-term support while transitioning to a clean power system. Mentioned ongoing initiatives such as the warm home discount, industry support commitment of £500 million, and extended household support fund with an additional £742 million. Discussed challenges in defining a social tariff and data sharing for targeted assistance. Addressed concerns about levies and rebalancing electricity costs on gas. Emphasised efforts to reduce wholesale costs and reform standing charges. Highlighted commitment to community benefits including expanding community benefits for technologies like solar and network infrastructure.