Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what recent discussions she has had with fuel retailers on ensuring that consumer fuel costs reflect falls in wholesale prices.
Answered by Amanda Solloway - Government Whip, Lord Commissioner of HM Treasury
The former Secretary of State for Energy Security and Net Zero met with fuel retailers in July 2023 to discuss the findings from the Competition and Market Authority’s (CMA) market study and to strongly encourage their participation in the voluntary scheme the CMA has implemented.
The voluntary scheme enables retailers share their up-to-date fuel prices daily until the government puts the CMA recommended road fuel prices open data scheme and monitoring function on statutory footings. We will consult on these changes this autumn. My officials continue to meet with fuel retailers in developing the consultation and I encourage their full engagement in the process.
Asked by: Stephanie Peacock (Labour - Barnsley East)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether his Department has made an assessment of potential regional disparities in fuel prices; and if he will make a statement.
Answered by Amanda Solloway - Government Whip, Lord Commissioner of HM Treasury
The Competition and Markets Authority’s road fuel market study found that with the exception of Northern Ireland, differences in average prices between the regions of the UK are relatively small but there was much wider variation within the rural and urban categories than between them.
These differences can be driven by lower competition at a local level, as well as differences in rent and staff costs. In addition, forecourts selling smaller volumes may require a higher price per litre to cover their costs.
The Government will consult on a statutory open data scheme and an ongoing road fuels monitoring function which should help to reduce regional price disparities.
Asked by: Julian Sturdy (Conservative - York Outer)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether she is taking steps to ensure (a) fair pricing and (b) continuity across regions for petrol.
Answered by Amanda Solloway - Government Whip, Lord Commissioner of HM Treasury
The Government will consult on the design of the Competition and Markets Authority’s (CMA) recommendations to create a statutory open data scheme for road fuel prices and an ongoing road fuels monitoring function this autumn. These two recommendations will help to facilitate competition and fair pricing, nationally and locally, as well as helping tackle regional price disparities.
Until we can put these changes on a statutory footing, the government has supported the CMA to establish an interim voluntary fuel price data sharing scheme, encouraging retailers to share prices daily. The CMA will also continue to monitor fuel prices using its existing powers.
Asked by: Holly Mumby-Croft (Conservative - Scunthorpe)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether his Department plans to take steps to ensure that supermarkets reflect falls in wholesale prices in consumer fuel costs.
Answered by Amanda Solloway - Government Whip, Lord Commissioner of HM Treasury
The Government expects retailers to pass on savings to consumers and strongly believes rigorous competition is the best way of delivering low fuel prices for consumers. The Government has therefore accepted the Competition and Markets Authority’s (CMA) recommendations to create a statutory open data scheme for road fuel prices and an ongoing monitoring function for the UK market, and will consult on this in the autumn.
In the interim, the CMA will create a voluntary scheme, by end of August, encouraging fuel retailers to share accurate, up-to-date fuel prices for publication, and continue to monitor prices using its existing powers.
Asked by: Beth Winter (Labour - Cynon Valley)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, with reference to his oral contribution of 3 July 2023 on Road Fuel Prices, Official Report, col 559, what steps the Government plans to take to (a) monitor and (b) assess the effectiveness of the proposed (i) statutory open data scheme for retail fuel prices and (ii) road fuel prices monitoring function.
Answered by Amanda Solloway - Government Whip, Lord Commissioner of HM Treasury
The Government has committed to consult on the design of the statutory open data scheme and monitoring function for road fuel prices this autumn.
The consultation will consider how to monitor and assess the effectiveness of the open data scheme and monitoring function ensuring consumers have the information they need to shop around and get the best prices.
Asked by: Ian Lavery (Labour - Wansbeck)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what estimate his Department has made of potential trends in the cost of (a) petrol and (b) diesel in the next 12 months.
Answered by Graham Stuart
The Department for Energy Security and Net Zero does not forecast petrol and diesel prices. The Department does monitor trends in the global crude oil and related product markets.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps he is taking to help (a) decouple the cost of gas and electricity, (b) encourage consumers to choose renewable alternatives to fossil fuels and (c) consumers who choose renewable energy sources to benefit from lower energy prices.
Answered by Graham Stuart
As part of the Review of Electricity Market Arrangements (REMA) programme, the Government is considering a range of potential options to shield consumers from the impacts of potential future commodity price spikes and to ensure they benefit from lower cost renewables.
The CfD scheme already insulates consumers against electricity price spikes. Over time this scheme will significantly reduce dependence on fossil fuelled power generation, lowering consumer exposure to gas prices.
Asked by: Angela Crawley (Scottish National Party - Lanark and Hamilton East)
Question to the Department for Education:
To ask the Secretary of State for Education, pursuant to the Answer of 28 February 2023 to Question 148721 on Students: Fuels, what recent discussions she has had with relevant stakeholders on the impact of the cost-of-living crisis on students.
Answered by Robert Halfon
Education is a devolved matter, and the response outlines the information for England only.
The department discusses the additional cost of living pressures that are impacting students this year in our regular meetings with stakeholders, including the Office for Students (OfS), Universities UK and the higher education (HE) Mission Groups. The department has also consulted with the National Association of Student Money Advisers to understand the ongoing situation in relation to increased requests from students for hardship awards from their universities.
The Office for National Statistics has twice surveyed students directly on the impact of cost of living pressures. The most recent report, published on 24 February 2023, is available to view here: https://www.ons.gov.uk/peoplepopulationandcommunity/educationandchildcare/bulletins/costoflivingandhighereducationstudentsengland/30januaryto13february2023.
On 17 March 2023, the OfS published an insight brief to better understand the impact increasing living costs are having on students. The brief discusses data and research from OfS roundtable events, a poll commissioned by the OfS, and other student surveys to explore how the cost of living is affecting students and how universities and colleges are mitigating its impact.
All households will save on their energy bills through the Energy Price Guarantee and the £400 Energy Bills Support Scheme discount. Students who buy their energy from a domestic supplier are eligible for the energy bills discount.
The Energy Bills Support Scheme Alternative Funding (EBSS AF) will provide £400 support to those households without a direct relationship to a domestic electricity supplier in England, Scotland, and Wales, who have faced increased energy bill costs since 1 October 2022. This will include students in privately rented accommodation, where they receive their energy from an intermediary (such as a landlord or letting agency) who holds a commercial electricity contract.
The Energy Prices Act passed on 25 October 2022 includes the provision which requires landlords to pass any benefits they receive from energy price support onto end users, as appropriate.
Tenants should not need to take action to receive this benefit as the obligation is on intermediaries, such as landlords, to pass through the benefit and provide the information necessary to do so. If a student believes this obligation has not been met, they are advised to contact their landlord, or, intermediary to resolve this in the first instance. Within the regulations, there is also scope to pursue enforcement through civil proceedings. Further guidance on the pass-through requirement can be found here: https://www.gov.uk/government/publications/pass-through-requirements-for-energy-price-support-provided-to-intermediaries/guidance-on-the-pass-through-requirements-for-energy-price-support-in-great-britain-provided-to-intermediaries.
Students in purpose-built student accommodation are not eligible to receive support under the scheme, as with fixed rental fees set ahead of the academic year, they have not been exposed to unexpectedly higher energy bill costs this Winter.
For students living in university, or private halls, businesses, including those that provide student accommodation, are covered by the Energy Bill Relief Scheme which provides energy bill relief for non-domestic customers in Great Britain.
The department welcomes the continued efforts of the OfS and the HE sector to look at what more can be done to support students in need of financial help.
Asked by: Lord Teverson (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they have plans to amend the terms of the Electricity Generator Levy to make it comparable with the equivalent regime relating to fossil fuels, including in the area of investment relief; and if so, when.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The Electricity Generator Levy (EGL) and the Energy Profits Levy (EPL) have different tax bases and combined rates. The EPL applies to oil and gas producers, and is charged at 35% on total profits, whereas the EGL is charged only on the portion of returns that are extraordinary. Also, the EPL applies on top of the default 40% headline tax rate applied to this sector and is expected to raise considerably more in revenues than the EGL.
The EGL applies above a benchmark price which is set at a level approximately 50% more than the average electricity price over the last decade and will be indexed to inflation. There is a £10 million allowance, below which the levy will not be charged. Electricity generators will continue to be able to claim relief for their investments from the corporation tax they pay.
The EGL is not intended to penalise electricity generators; it is a response to some electricity generators realising extraordinary returns from higher electricity prices because of unforeseen geopolitical events. This levy leaves them with a share of the upside they receive at times of high wholesale prices which they can use to invest in the clean energy generation.
Asked by: Angela Crawley (Scottish National Party - Lanark and Hamilton East)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps his Department is taking to alleviate the impacts of the rising cost of fuel on low income households.
Answered by Graham Stuart
The Government has set up a number of Energy Affordability schemes to support vulnerable people with the cost of their energy bills during the cold weather. The Energy Price Guarantee will save a typical household in Great Britain £900 this Winter. The Energy Bills Support Scheme provided households with £400 non-repayable Government discount paid in instalments to UK households from October 2022 to March 2023. Households using alternative fuels will be also entitled to a £200 Alternative Fuel Payment.
This is in addition to the cost-of-living support package announced in May 2022 of