Major replace on gas responsibility hike as contemporary vitality payments package deal unveiled
Energy Secretary Ed Miliband was asked if plans to end the 16-year fuel duty freeze in September would be reversed because of spiking oil prices due to war in the Middle East
Labour MPs in rural areas have warned that their constituents living in fuel poverty are unable to heat their homes(Image: Getty Images)
Ministers may consider scrapping a planned fuel duty hike in response to the rising energy prices caused by the war in the Middle East, Ed Miliband has hinted.
The Energy Secretary was asked if plans to end the 16-year fuel duty freeze in September would be reversed because of spiking oil prices.
Mr Miliband told the BBC: “Let me answer that by saying this, which is, I’ll be candid with you, we don’t know how long this conflict is going to go on and therefore, with five months to go until September, we will have to see where we are, obviously.”
He then spoke of the Chancellor’s actions to reduce energy bills, before adding: “We will stand by the British people in this in this crisis, and we’ll do what it takes to do that.”
Pressed again whether this meant keeping the fuel duty freeze in place, Mr Miliband said: “You’re asking me to sort of speculate on what the Chancellor is going to do on fuel duty… but look, I am sending a clear message, which is we are going to stand by people in this crisis.”
READ MORE: Ed Miliband vows to ‘fight’ to keep energy bills down
Mr Miliband also today set out an accelerated package of energy help in response to the Middle East crisis. As part of the measures, low cost solar panels that families can buy at supermarkets and put on balconies or other outdoor spaces will be made available in the UK for the first time. Ministers will work with the industry to get these onto the market as soon as possible.
The package will also see the next annual renewables auction be brought forward to July. The Government’s most recent auction round delivered the single biggest procurement of offshore wind that Europe has seen.
Elsewhere, targeted support for the poorest households who rely on heating oil is expected to be unveiled on Monday under a plan worth tens of millions of pounds. Labour MPs in rural areas have warned that their constituents living in fuel poverty are unable to heat their homes.
In an interview over the weekend, Chancellor Rachel Reeves told the Times: “I have found the money and we’ve worked through with MPs and others a response for people who are not protected by the energy price cap. We’re giving greater support to those who really need it.”
Gas and electricity bills are covered by regulator Ofgem’s price cap which is fixed until June. But if the conflict continues and Iran maintains its stranglehold on shipping in the Strait of Hormuz, then households could face dramatic hikes.
On Saturday, the US also bombed Kharg Island off the Iranian coast – home to a major oil terminal which 90% of Iran’s crude oil goes through.
Analysts at Cornwall Insight have forecast that household energy bills could rise by 10% from July after sharp rises in wholesale gas prices. This would mean Ofgem’s price cap for July to September surges to £1,801 a year for a typical dual fuel household – up £160 on April’s cap.
Mr Miliband told British families that more help will come on energy bills if necessary. He told Sky News: People should be in no doubt this government’s number one priority is the British people’s wishes to tackle the cost of living crisis. And we will do whatever is necessary to do that… If it is necessary to provide further help, we will do so.”
In an interview with the Sunday Mirror, Mr Miliband vowed to clamp down on price gouging, as he backed regulator Ofgem to issue fines. “What’s important in this situation is that your readers know that we are going to fight that corner, and that’s what we’re going to do,” he said. “Making clear whether it’s the heating oil companies or the petrol retailers that we’re not going to tolerate unfair practices or price gouging is an essential part of that.”
