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Energy Price Support: Northern Ireland
16 November 2022
Lead MP
Stephen Farry
Responding Minister
Kevin Hollinrake
Tags
UkraineEconomyTaxationNorthern IrelandEnergyBenefits & Welfare
Word Count: 4382
Other Contributors: 3
At a Glance
Stephen Farry raised concerns about energy price support: northern ireland in Westminster Hall. A government minister responded.
Key Requests to Government:
I urge the Government to provide assistance and greater clarity on how households will receive the £400 energy support and when it will be delivered. I also ask for a review of their calculation and the level of home heating oil support, and details on how this support is to be delivered.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
I am extremely concerned about the impact of delays in support for Northern Ireland households, with a lack of clarity around when that support will arise. The UK Government has yet to clarify whether the £400 energy support scheme and the £100 home heating oil support will be made available to Northern Ireland. Northern Ireland is facing unprecedented risks with its collapsed political institutions, high economic inactivity, and reliance on benefits. Disposable incomes are being eroded by rising energy costs, leading to dangerous coping mechanisms such as rationing of central heating and skipping meals. Fuel poverty organisations are overwhelmed, and there is a risk of £300 million in consumer spending power being lost.
Claire Hanna
SDLP
Belfast South and Mid Down
She thanked the hon. Member for securing the debate, highlighting the issue of minimum heating oil delivery volumes and the inadequacy of £100 support in covering these costs. She expressed concern about potential piecemeal or staggered support.
Jim Shannon
DUP
Strangford
He congratulated the hon. Member for North Down on securing this debate, expressing concern about the impact of rising energy costs on local businesses in Northern Ireland. He cited an example of a Japanese restaurant in his constituency experiencing a £900 to £3,000 monthly increase in electricity bills and warned that such increases could lead to job losses and business closures. Jim Shannon thanked the Minister for his response and highlighted that between 65% and 68% of households in Northern Ireland depend on oil, stressing the urgency for energy payments to be made available immediately.
Paul Girvan
DUP
North Down
He pointed out that kerosene is around 7p per litre more expensive in Northern Ireland compared to other regions of the UK, citing supply and storage issues as contributing factors. While sitting in the debate, Paul Girvan checked today's oil price and found that a litre of 28 kerosene costs £1.0835 in Northern Ireland compared to 85.9986 pence in England, resulting in a difference of 22 pence. He questioned how to address the imbalance in transporting oil from Great Britain to Northern Ireland given the lack of refinery facilities there.
Government Response
Kevin Hollinrake
Government Response
It is a pleasure to speak with you in the Chair, Sir Gary. I congratulate the hon. Member for North Down on securing this very important debate, and I thank the hon. Members for Strangford, for Belfast South and for South Antrim for their interventions. The Government understand the pressures being faced by households and businesses in Northern Ireland due to record energy prices caused by Mr Putin's illegal invasion of Ukraine, which has led to a surge in the global price of wholesale gas. This crisis is compounded by high prices in economies recovering from the covid-19 pandemic.
The announcements made by the Government in September demonstrated our commitment to protecting UK households and businesses through the Energy Price Guarantee (EPG), the energy bill relief scheme, and the energy bills support scheme. The EPG launched on 1 November, offering equivalent support for Northern Ireland as provided in Great Britain, reducing the price that energy suppliers charge customers for units of gas and electricity. A typical household will save around £700 this winter based on current prices.
Government support is also provided through the alternative fuel payment scheme to households using heating oil or liquified petroleum gas instead of mains gas, offering a one-off payment of £100 calculated with reference to increases in the cost of heating oil. The Government are working with electricity suppliers to explore how this payment could be delivered via electricity bills under a similar delivery model.
For non-domestic consumers using alternative fuels, further information will be provided shortly. Low-income households received a cost of living payment in July and will receive another payment by 23 November. Energy policy is devolved to Northern Ireland but the UK Government are now responsible for addressing this issue. The taskforce met twice to determine that the UK Government should handle it.
Detailed work is under way to establish how suppliers can use their systems to pass funds on to consumers while ensuring public money is protected. We have already acted by taking new powers in the Energy Prices Act 2022, and we are working with the Utility Regulator in Northern Ireland to deliver the scheme. Some households who do not have a direct contract with an electricity supplier or a meter of their own will be supported under a separate arrangement called the energy bills support scheme alternative funding.
We recognise the need for further clarity on when these measures will be delivered and are working at significant pace to expedite payments by every possible means. The Government have listened to concerns about off-grid homes, an issue not just in Northern Ireland but across the country, and we are committed to making sure that payments are at the right level.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.