My hon. Friend makes an important point. We would want to get more consumers on to the grid, but where they are not on it we have to consider what other things can be done. Perhaps the Minister heard about the power of collective switching this morning on the “Today” programme, in respect of a group of councils. A number of groups of councils, and the Labour party and others, have engaged in collective switching programmes, which can have some impact in helping people to reduce their bills. My hon. Friend is right that the long-term issue is about trying to get more communities—some in her constituency are similar to some in mine, in Lanarkshire—on to the grid.
Hon. Members mentioned the House of Commons Library figure on the typical cost for households using oil for heating and hot water in a typical three-bedroom house, which at the beginning of the year was just under £1,700, compared to about £1,250 for gas. The difference of £450 a year would be difficult to deal with at any time and is particularly difficult given the economic situation that the country and many of our constituents find themselves in.
The volatility of the price of heating oil in particular causes off-grid households huge problems. Hon. Members mentioned the winter of 2010-11, when the price of heating oil increased by 55%. High prices coupled with extreme volatility have resulted in many off-grid households being pushed into fuel poverty. According to Consumer Focus, in Scotland, 59% of those using solid fuel and 56% of those using LPG and bottled gas live in fuel poverty, compared with 24% of those using mains gas. The 24% figure is far too high while 59% is very high and should be a matter of concern.
Measures that the Government could take have been highlighted both in the all-party group’s report and by hon. Members. We have touched on the winter fuel allowance, including the timing of the payments. The hon. Member for Angus commented on that. I hope that, by the time we consider the Energy Bill on Report, the Minister will have looked at the new clause, because it is worthy of more consideration and of action now, given the response that his ministerial colleague gave in Committee. I encourage the Minister to look at that to see whether there is work to be done.
I urge the Minister further to consider regulation of the off-grid sector. As the hon. Member for Truro and Falmouth remarked, there is not a specific regulator for off-grid operations and Ofgem’s remit essentially extends only to the on-grid market. The role of the OFT and the Competition Commission is not comprehensive enough to deal with the off-grid market. The Government should give serious consideration to bringing those issues under the umbrella of Ofgem or any successor regulator.
The Minister is aware that his predecessor committed to a cross-party round table on this issue—I think that it will be held next month—and I invite him to confirm that that will still go ahead and that he will be involved. Will he also outline what progress we can expect on that initiative? In addition, will he, on the basis of the discussions he has had, tell us whether suppliers have made any progress on the recommendations outlined in the Consumer Focus report on off-grid gas?
We have heard from the all-party group and Consumer Focus, and we have heard about the OFT report, although it is deficient in some ways, as was highlighted by the hon. Member for Argyll and Bute (Mr Reid). We have also heard concerns expressed by Members from all parts of the United Kingdom and almost all the parties represented in the House. The Minister, who is in his early days in the job and his new responsibilities, will therefore be particularly aware of the fact that this is a considerable issue. We should not pretend that it was created overnight—I do not think anyone is pretending that—but that does not mean there should not be some impetus behind seeking to address it.
If we can have a better regulated system and consider a range of issues, including winter fuel payments and how consumers with gas connections close to them can be connected to the grid, we can provide some comfort to our constituents and ensure that they get a better deal on their energy costs—I say “our constituents” because the Minister and I will both have constituents who are affected by the issue, as will all Members who have spoken this morning. I hope the Minister will take that thought away with him as he starts his new role.
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