Carmichael – Ofgem must catch up as energy bosses back principle of social tariff for energy
Orkney and Shetland MP, Alistair Carmichael, has today called for the government and Ofgem to “catch up” on the development of a social tariff for energy, after the bosses of two of the UK’s biggest energy companies backed the proposal to help low-income households. Mr Carmichael reiterated his belief that the principle of a social tariff should also allow for a “geographic tariff” to support areas with higher energy consumption due to geography, such as the Northern Isles.
Chris O’Shea, chief executive of British Gas owner Centrica, and E.On UK boss Chris Norbury both gave their backing to the proposal while speaking to members of parliament on Wednesday [8th May]. Appearing in front of Westminster’s Energy and Net Zero Committee, O’Shea said he was in favour of a “progressive social tariff”, while Norbury pointed out that existing support for those struggling with the cost of their bills “does not go far enough”.
Reacting to the news, Mr Carmichael said:
“When it comes to the question of energy costs, I have long taken the view that every little helps. It does not really matter whether it is a silver bullet. If there is some benefit to be had, we should take it.
“Now is the time to bring back social tariffs for energy, particular for the most vulnerable people such as pensioners. That surely also opens the door to a geographical tariff, which would take into account not just income but the reality of our climate. This is particularly important for us in the isles.
“Fuel poverty is not simply a matter of income. Once you accept the case for a social tariff, it is difficult to deny Shetland’s case for a geographic tariff. It has to bring in other factors as well, such as the fact that we live in places that have longer, darker and colder winters.
“The idea of a social tariff is clearly an idea whose time has come. If even the energy companies can see this and advocate for it then ministers and the regulator have got to catch up.”