North Wales MS and Chair of the Cross-Party Group on Fuel Poverty and Energy Efficiency in the Senedd, Mark Isherwood, has warned that people in Wales will be particularly hard hit if the Energy Price Guarantee is increased and has urged the Social Justice Minister to work with the UK Government to ensure they are protected.
The Energy Price Guarantee protects customers from increases in energy costs by limiting the amount suppliers can charge per unit of energy used.
During a question on the impact of Ofgem's new price cap on residents in Wales in yesterday’s meeting of the Welsh Parliament, Mr Isherwood, highlighted efforts by UK Government Ministers to keep the Energy Price Guarantee in place and asked the Minister what engagement she is having with the UK Government on the matter.
He said:
“The question tabled is about Ofgem's price cap, and although it's good news that the Energy Regulator, Ofgem, announced that its price cap will fall by almost £1,000 from April due to a fall in wholesale prices, the UK Government Energy Price Guarantee is set to increase from £2,500 to £3,000 a year from the same month.
“National Energy Action estimates that 1.5 million UK households would fall into fuel poverty as a result. Households in Wales would be particularly hard hit, given that Wales has the lowest prosperity per head, lowest wages, lowest employment and highest child poverty in the UK, dare I say, after 24 years of Labour Welsh Government. However, UK Energy Minister Grant Shapps said yesterday: 'I completely recognise the argument over keeping that Energy Price Guarantee in place, and the Chancellor and I are working very hard on it. I’m very sympathetic to making sure that we protect people. We’re looking at this very, very carefully’.
“In that context, what constructive engagement are you therefore having with the UK Government accordingly?”
In her response the Minister, Jane Hutt MS said:
“Today myself and my colleagues Julie James and Vaughan Gething have written to Grant Shapps on a range of issues, including, I have to say, non-domestic provision, as well as domestic provision, funding needs, longer term transition relating to all our portfolio responsibilities.”