Energy: Prices

Department for Business, Energy and Industrial Strategy written question – answered on 7 June 2022.

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Photo of Richard Holden Richard Holden Conservative, North West Durham

To ask the Secretary of State for Business, Energy and Industrial Strategy, whether his Department has made an assessment of the potential merits of introducing an energy price cap for (a) oil, (b) liquefied petroleum gas and (c) solid fuel used by off-grid homes, similar to the energy price cap for on-grid homes; and whether his Department has taken steps to help support off-grid homes in the context of increases in energy costs resulting from Russia's invasion of Ukraine.

Photo of Greg Hands Greg Hands The Minister of State, Department for Business, Energy and Industrial Strategy

The Government recognises that, as a result of volatile international crude oil prices as well as the conflict in Ukraine, heating oil and liquefied petroleum gas prices have risen steeply over the past year.

The Government has carefully considered calls to introduce a price-cap for these fuels. The heating oil, liquefied petroleum gas and solid fuel markets are not natural monopolies with high fixed and start-up costs and are not difficult for customer switching. The Government does therefore not deem it appropriate to introduce a price cap at this point in time. Nevertheless, the Government recognises the pressures people are facing with the cost of living and has set out a generous £22 billion package of support.

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