Government ignores rural fuel problem

Following the Governments response to the Business & Enterprise Select Committees Energy Inquiry published today Mark Oaten has criticised the lack of action to help people in rural areas get better fuel deals.

The Committee recommended that Ofgem and the new Consumer Focus group should have their remit extended to regulate the fuels used by households without access to mains gas but the Government have refused to do so maintaining that there is sufficient competition in the markets.

Of particular concern are the markets for LPG and heating oil which many people in rural areas rely solely on with little or no choice to switch elsewhere. This has raised concerns that energy companies treat these customers as a ‘cash cow’.

As a member of the Select Committee Mark has consistently pressed the case for better regulation of markets as a first step to preventing any such exploitation. He has also tabled EDM 1625 entitled ‘Oil and Gas regulation’ on the issue.

Mark Oaten stated:

“I really thought with a new consumer focus group, with energy markets the way they are and with an in depth committee report calling for it that the Government would see sense and make this small change to bring these types of fuels into a regulatory framework that would make a huge difference.

“I have had so many constituents get in touch desperately concerned with their energy bills and the fact that they have no choice but to stick with their current energy provider no matter how high they raise their prices. In a rural constituency like mine this is a huge problem.

“For the Government to just turn around and say ‘the market works’ in the hope it will bring prices down naturally is a disgrace. I think in the last few weeks we have learnt a tough lesson about trusting the markets with that.