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Factored Energy Arrangements: Pricing
14 January 2026
Lead MP
Graham Leadbitter
Moray West, Nairn and Strathspey
SNP
Responding Minister
Martin McCluskey
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Word Count: 3339
Other Contributors: 3
At a Glance
Graham Leadbitter raised concerns about factored energy arrangements: pricing in Westminster Hall. A government minister responded.
Key Requests to Government:
Residents are trapped in contracts with no meaningful reform despite the 2023 call for evidence and multiple parliamentary questions. The Government should move forward on regulatory oversight and enforcement to ensure consistent standards and domestic protections for consumers.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The issue is that in many residential developments, services such as stairwell lighting, fire alarms, lifts and door entry systems are powered via shared electricity meters charged at inflated business energy rates. A typical communal supply using around 1,000 kWh per year would cost roughly £380 on a fixed domestic tariff but can rise to around £1,465 under standard variable business tariffs, an excess of approximately £1,100 per meter every year.
Adam Dance
Con
Yeovil
Business owners are often pushed into rip-off contracts through incorrect advice by brokers. There needs to be a route for people to challenge the advice they receive and take brokers to task for incorrect guidance. Touched on the issue of third-party intermediaries and raised a case regarding his constituent's energy costs.
Jim Shannon
DUP
Strangford
Northern Ireland moved to correct the vulnerability of high, unregulated prices in communal schemes. Consumers UK-wide must have protection from gouging and access better priced energy.
Tracy Gilbert
Lab
Edinburgh North and Leith
Welcomed the debate, acknowledged the minister's visit to her constituency where he met residents facing issues with their factors. Emphasized the need for action from the Scottish Government to rebalance power between factors, companies, and residents.
Government Response
Martin McCluskey
The Parliamentary Under-Secretary of State for Energy Security and Net Zero
Government Response
Acknowledged the complexity faced by households in factored buildings compared to typical households. Stated that Ofgem regulation will kick in on January 27th, focusing on delivering the best outcomes as the energy system evolves. Highlighted ongoing work with Elexon and Ofgem for further clarification on profile classes, encouraging MPs to write directly to them. Discussed Ofgem’s review of maximum resale price rules to ensure fair pricing and consumer protection. Announced regulation of third-party intermediaries through upcoming legislation. Emphasised the Government's mission to deliver a clean power system by 2030, highlighting initiatives such as GB Energy creation, contracts for difference, capacity market improvements, and network upgrades. Mentioned autumn Budget measures reducing energy bills by £150 on average and committed £15 billion for home upgrades through the warm homes plan.
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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.