Fuel Poverty

1. Questions to the Minister for Social Justice – in the Senedd on 7 December 2022.

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Photo of Mabon ap Gwynfor Mabon ap Gwynfor Plaid Cymru

(Translated)

6. What steps is the Welsh Government taking to tackle fuel poverty in Dwyfor Meirionnydd? OQ58835

Photo of Jane Hutt Jane Hutt Labour 2:00, 7 December 2022

(Translated)

Our Warm Homes programme for lower income households saves an average of £300 a year by improving energy efficiency. Eligible low-income households are also benefiting from our £200 fuel support scheme. Our 'Claim what’s yours' campaign helps people to claim the benefits they are entitled to.

Photo of Mabon ap Gwynfor Mabon ap Gwynfor Plaid Cymru 2:01, 7 December 2022

(Translated)

Thank you very much, Minister, for that response. 

Photo of Mabon ap Gwynfor Mabon ap Gwynfor Plaid Cymru

With a hard winter now starting to bite, energy companies must prioritise the needs of vulnerable customers struggling to pay their bills, and so, I must admit to feeling very angry when I read the research by the Office of Gas and Electricity Markets that found that three energy suppliers—TruEnergy, Utilita Energy and Scottish Power—were found to demonstrate severe weaknesses in the way that they deal with customers having payment difficulties, with Utilita and Scottish Power being issued with enforcement notices. Scottish Power has historically been the major provider for my constituents in Dwyfor Meirionnydd, and, indeed, across most of north Wales. So, what action is the Welsh Government taking to ensure that the energy providers ensure that their customers, especially the most vulnerable, get the required help they need from these highly profitable companies to pay their bills? 

Photo of Jane Hutt Jane Hutt Labour

Thank you very much for that really important question, because, like you, I am horrified by what I have read and the poor practice of energy suppliers. I met Ofgem last week and we talked about the identification, as they have, of those companies, Mabon, that are delivering this poor practice. We heard more of that in the press this week. I've held several discussions, actually, with energy suppliers. I held one on 21 November and on 28 November, and, in fact, I met with EDF Energy today.

We've been focusing on and asking them three questions. I just want to repeat those quickly. We've requested data on the number of households supported with their energy bills, how are they supporting them if they're vulnerable, and why—we don't want them to do this, but if they're being transferred onto pre-payment meters, the reason for doing so. We've asked that they do not move people onto pre-payment meters when they're in arrears, and there are concerns that people with smart meters are being moved onto pre-payment meters without their knowledge. And we're requesting them to remove standing charges for pre-payment customers. I'm just about to do a written statement on this to give some feedback. Some of them have agreed to share data with us, and we want to link them up to Advicelink Cymru so that all Citizens Advice and everyone else are aware of where there is vulnerability. We want to really press upon them that they should not be moving people onto pre-payment meters, which are more expensive, and then the standing charges apply even when they haven't got an energy supply. And when they start feeding the meter, they're paying for standing charges. I don't know if everyone knows this, but this should be a united call for the UK Government to stop standing charges for pre-payment customers. Approximately 200,000 households in Wales rely on pre-payment meters. 

Just finally, Llywydd, to say that we have our Fuel Bank Foundation partnership; we've already got 6,000 vouchers that have gone out via partners working across Wales to help people with their pre-payment meters. 

Photo of Mark Isherwood Mark Isherwood Conservative 2:04, 7 December 2022

Thank you again, Minister, for attending last week's meeting of the cross-party group on fuel poverty and energy efficiency, at which you, amongst other things, stated that the Welsh Government's focus is on improving the energy efficiency of Welsh homes, noting, amongst other things, improvements to the Nest scheme, and that the Welsh Government will seek to maximise opportunities presented by ECO4. What engagement have you or your colleagues therefore had, or will you be having with the UK Government regarding the new ECO Plus scheme, known as ECO4, which aims to see hundreds of thousands of homes receive new home insulation, saving consumers around £310 a year, extending support to those in the least energy-efficient homes in the lower council tax bands, as well as targeting the most vulnerable, and extending support to those who do not currently benefit from any other Government support, to upgrade their homes?

Photo of Jane Hutt Jane Hutt Labour 2:05, 7 December 2022

Clearly, my colleague the Minister for Climate Change is very engaged in this and engaged with the UK Government in terms of seeing what benefit this ECO4 is going to have in terms of our situation. Because, obviously, energy efficiency and energy efficiency in terms of our Warm Homes programme, is crucial to actually addressing fuel poverty. But I think this is something that, again, it's for the Minister for Climate Change to report back on current discussions, but also to recognise what we are doing with the Warm Homes programme, the demand-led Nest scheme, which actually doesn't end till next September, and you know that she's now come forward, in her oral statement on 8 November, about a new approach, which is a fabric-first, worst-first and low-carbon approach.

Photo of Jenny Rathbone Jenny Rathbone Labour 2:06, 7 December 2022

I just wanted to follow up Mark Isherwood's question, because I think it's about empowering local authorities and ensuring that they've got the resources to apply for this ECO4 Flex system, because it's similar to 'Claim what's yours'. We need to ensure that Wales is claiming what it's entitled to, to retrofit some of our many homes that are really far too cold and people are living in fuel poverty. So, I wondered if you could have a conversation with your colleague the Minister for local government as to how we can ensure that local authorities have the resources to ensure that they have the capacity to apply for this funding.

Photo of Jane Hutt Jane Hutt Labour 2:07, 7 December 2022

Well, I think I've already mentioned this afternoon that I meet regularly with the leaders of local government. We have cost of living on the agenda, and I will be raising this with them. But, clearly, also my colleagues the Minister for Finance and Local Government and Climate Change also engage with local authorities to ensure that they take up any opportunity.

Photo of Elin Jones Elin Jones Plaid Cymru

(Translated)

Question 7 to be answered by the Deputy Minister. Sarah Murphy.