The Lord Bishop of St Albans – 2014 Parliamentary Question to the Department for Energy and Climate Change

The below Parliamentary question was asked by The Lord Bishop of St Albans on 2014-05-06.

To ask Her Majesty’s Government how they intend to ensure the continuing affordability of liquid petroleum gas and oil for those households which are not on mains gas supply.

Baroness Verma

Her Majesty’s Government is acutely aware of the difficulties people have experienced with the price of liquid petroleum gas and heating oil. The price of LPG and oil is influenced by a range of factors, including crude oil prices (the major factor), refinery capacity, stock levels, distribution costs and retail margins.

We believe that the consumer is best served by open competition between companies. The Office of Fair Trading studied the heating oil market in 2011 and found few competition concerns. Most areas of the UK are supplied by a variety of heating oil suppliers and there are low barriers to entry for new businesses who may want to compete. The OFT study also commented on the generally positive initial impact of the Competition Commission Orders from 2009 to make it easier for domestic bulk LPG consumers to switch supplier, and there is a statutory duty to keep under review the effectiveness of and compliance with these Orders.

My Rt. Hon. Friend the Minister of State for Energy will chair a third Ministerial Roundtable meeting on heating oil and LPG supply on 21 May. The Roundtable brings together a wide range of interests including Government, regulators, advisory and charitable bodies, the fuel supply industry and others to work together to improve the security and affordability of off-grid fuel supply.