MPs on the energy and climate change committee today questioned domestic heating oil and gas suppliers, the office of fair trading (OFT), Consumer Focus and National Energy Action.
The OFT reiterated in the first evidence session of the inquiry into fuel poverty in the private rented and off-grid sectors that its market study had not found problems with competition in the heating oil market. The watchdog and fuel suppliers told the committee that international oil prices rather than lack of competition most affected prices. Director of infrastructure Mary Starks said the OFT had seen “no evidence” that Ofgem’s duties should be broadened to police the sector.
The oil and gas suppliers agreed with Labour MP for Brent North Barry Gardiner that their customers deserved the same treatment and protections as mains connected customers but said that self-regulation was more appropriate than intervention. Mark Askew, CEO of the Federation of Petroleum Suppliers said companies would accept mandatory requirements if imposed but asked whether all customers would benefit given that they would have to absorb the cost.
Ron Campbell, head of policy and information at National Energy Action said more self-regulation and “some form of intervention or oversight” from Ofgem would be welcomed by the fuel poverty charity “but not necessarily regulatory per se”.
Heating fuel suppliers were even defended for a “culture of looking after customers” compared to energy companies by Consumer Focus. There were some “positive comparisons”, said William Baker, the watchdog’s head of fuel poverty. He pointed out that on-grid customers “almost pay a penalty for loyalty” by not switching, and faced price differentials depending on payment method.
Paul Blacklock, head of strategy and corporate affairs at Calor Gas implied that government could help address the situation by better designing policies to help rural fuel poor.
Programmes such as Cert and Cesp “bypass rural areas completely”, he said, because economies are of scale do not exist for Cert providers. He added that the rules of the Cesp scheme “make it almost impossible for projects to qualify in rural areas”. It was “critical” that the Green Deal and ECO are “designed more intelligently so they don’t exclude unwittingly rural areas”, he said.