Carmichael leads parliamentary debate on fuel poverty

Orkney and Shetland MP, Alistair Carmichael, has called on the government to give updates on its actions over fuel poverty, including on the planned shutdown of radio teleswitch services, renewal of the Warm Homes Discount, and consideration of a geographic tariff for the Highlands and Islands. Leading a debate in Parliament on Wednesday on government policies to tackle fuel poverty, Mr Carmichael warned that “the situation among the fuel-poor is only likely to get worse” without further action, despite government measures on pension credit and funding for insulation programmes.

Speaking in the debate, Mr Carmichael said:

“The energy price cap has now been put up to £1,717, which is an increase of £150, and it seems likely that there will be a further increase come January. The situation among the fuel-poor is only likely to get worse.

“The Minister has already heard me raise the question of an isles tariff; in fact, we met earlier this week to discuss it. Shetland now has one of the biggest onshore wind farm developments anywhere in the country, but in the shadow of the turbines are some of the greatest and most acute problems with fuel poverty. As we play host to major energy developments—latterly renewables—there is very little or no community benefit for those who host them.

“Serious attention now needs to be given to the question of an isles tariff. It does not need to be an isles tariff; it could be something that applies across the Highlands and Islands and in other areas that are particularly badly affected. I am pretty sure that Ofgem will not be keen, but if it can accept the principle of differential treatment through a social tariff, which is now the subject of a consultation, a geographical tariff should also be given serious consideration.

“There is then the question of the radio teleswitch. It is due to be switched off in 2025, as the last of the BBC analogue signal is decommissioned. Will the Minister give me an update? Before the election, his predecessor agreed to hold a roundtable. It appears to have made some progress, but my constituents would be keen to hear the details.

“The two existing vehicles for alleviating fuel poverty—the warm home discount, which reduces bills by £150 a year for those who qualify, and the energy company obligation are both means-tested, which takes us back to the question of cliff edges. Those measures are due to end in 2026 unless they are renewed by the Government. The Minister will have an easier conversation with the Treasury if he bears it in mind that the funding for the schemes comes not from the Treasury but from the energy companies.”

Responding for the government, the Parliamentary Under-Secretary of State for Energy Security and Net Zero, Michael Shanks MP said:

“I particularly thank the right hon. Member for Orkney and Shetland for securing the debate and for his commitment on this issue in debates over many years.

“He rightly notes that the radio teleswitch service situation will be a worry to many people, particularly in rural communities. As he said, a roundtable was held, which was important and brought together the key stakeholders. Ofgem has updated its action plan to make sure that we are pushing forward and in particular that we are putting pressure on the energy companies responsible for delivery, to make sure that the upgrades are made and that targets are in place, including some key milestones that they must meet early next year.

“There is no doubt—Ofgem shares this view—that suppliers could do much more to protect customers and provide them with a better quality of service. We are therefore looking at how we strengthen the regulator—a consultation is under way—so that it can hold companies to account for wrongdoing, require higher performance standards and ensure that there are much better levels of compensation when providers fail.

“Last year, Ofgem introduced much more stringent rules around the involuntary installation of prepayment meters, an issue that I raised in one of my first questions after I was elected to Parliament. That was a shocking situation, but much more stringent requirements are now in place. We continue to monitor the situation to see whether much more is required.”