Heating Oil and LPG

2. Questions to the First Minister – in the Senedd on 29 March 2022.

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Photo of Jane Dodds Jane Dodds Liberal Democrat

(Translated)

6. What discussions has the Welsh Government had with the UK Government regarding putting in place protections against price rises for people across rural Wales who are reliant on heating oil and LPG? OQ57879

Photo of Mark Drakeford Mark Drakeford Labour 2:52, 29 March 2022

Well, Llywydd, good afternoon to Jane Dodds. The Welsh Government continues to press the UK Government to support households who, through no fault of their own, are facing an energy and cost-of-living crisis. The cost of heating oil was last discussed with UK Government officials last week, on 23 March.

Photo of Jane Dodds Jane Dodds Liberal Democrat

(Translated)

Thank you, First Minister, for your response. 

Photo of Jane Dodds Jane Dodds Liberal Democrat 2:53, 29 March 2022

This is an issue that I know many have had raised with them across the Siambr. Many have seen a doubling in the price of heating oil in less than six months. Earlier this month, the UK Conservative Minister of State for Energy, Clean Growth and Climate Change, Greg Hands, said that the UK Government believes that the open market for the supply of heating oil in the UK provides the best long-term guarantee of competitive prices. He went on to say that a price cap is not necessary. First Minister, would you agree with me that, aside from being negligent, this response shows just how out of touch the Conservatives are with the crisis people are facing? Diolch yn fawr iawn. 

Photo of Mark Drakeford Mark Drakeford Labour

Well, Dirprwy Lywydd, they are certainly out of touch with those people, particularly in rural areas. We know that 28 per cent of households in rural areas in parts of Wales are reliant on heating oil to heat their homes and to have access to hot water. The idea that the market is serving them well flies in the face of everything we are hearing about the way the market is currently operating. We are hearing far too many instances of people telling us that they cannot get a single response out of any company prepared to provide fuel to them, and that there are companies refusing to declare a price for that heating oil until the heating oil is actually delivered to the house itself. That is certainly not a market operating as a market ought to. Of course, I would take a different view in general as to the efficacy of markets as a way of providing lifeline services of any sort, but the Competition and Markets Authority is responsible for ensuring that commercial markets operate effectively and that customers are treated fairly.

Our fuel poverty advisory panel met on Friday of last week, and we have asked members of the panel and their stakeholder contacts to provide us with any evidence of unfair trading practices, so that we can continue to take that up then with the UK Government but also, if necessary, to press the Competition and Markets Authority to exercise the responsibilities it has to make sure that markets operate as they should. And a naive belief that, left to itself, an open market will serve people well in the current circumstances does indeed, as Jane Dodds has said, Dirprwy Lywydd, just illustrate once again how out of touch Conservative Ministers, who never have to face these dilemmas in their own lives, are with the way that people in rural Wales and elsewhere have to make the choices that they are now faced with.