Isles MP slams “unfair sky-
21 March 2024
Isles MP Angus MacNeil has called on energy regulator Ofgem to take urgent action to scrap “unfair and regressive” standing charges which threaten a further fuel crisis this winter.
Mr MacNeil raised the issue with energy regulator Ofgem recently.
He also quizzed Lord Callanan, Parliamentary Under Secretary of State for Energy Efficiency and Green Finance at a recent committee meeting in the UK Parliament in which he agreed with Mr MacNeil that the current situation was unfair on island residents.
Mr MacNeil said: “Standing charges are unfair and regressive and penalise those on lower incomes or those who are actively reducing their energy use.
“A standing charge is a fixed daily amount that you pay on energy bills regardless of how much energy you use.
"You don't pay a standing charge to buy petrol, you just pay for what you use as should also be the case for energy bills.
“The UK Government should engage with Ofgem to revise the standing charge model and replace it with a system which would correlate costs to ensure households only pay for energy they use.”
Angus MacNeil added: “The worst fuel poverty stats in the UK are in the island areas of Scotland. Many people do not have the alternative of gas and are paying for these unfair legacy structures. Why do the government continue to place environmental and social levies on electricity bills despite the negative impact this has on encouraging the switch to low-carbon heating also the inequity, I might say, for people in rural and island areas who are not on mains gas?”
In response to Mr MacNeil’s questioning, Lord Callanan said he absolutely accepted that it was unfair on island residents and said: “I absolutely accept the point from your constituents who are not on mains gas that this is potentially unfair.
“Of course, if we are to electrify heat further and move forward with our heat pump target, it is something that we will need to make progress on, politically difficult though I think you will accept that it is.”
