MP shocked to learn some tenants not protected by energy price cap
Some people may face rises of up to 700% Picture: NEA
Brentford & Isleworth MP Ruth Cadbury MP is urging the government to fix loophole to protect leaseholders and tenants from energy bill spike.
She was shocked to learn that some of her constituents lived in housing where there was no fuel bill price cap and therefore were seeing price increases well in excess of most households.
Ms Cadbury has written to the Energy Minister Greg Hands MP to ask him take urgent action to rectify the situation.
Most people living in residential properties are protected by the ‘Energy price gap’ but over 500,000 leaseholders and tenants living in some blocks of flats across the country are not covered as they are deemed as living in a ‘commercial building’ with a communal energy supply according to The Guardian newspaper. This means that many residents, including those living in the borough of Hounslow, have faced soaring energy bills without any cap.
Because the tariffs are negotiated for all residents collectively by freeholders and managing agents the regulator Ofgem classes them differently and it is estimated that, as a result, some people could face energy bills increasing by up to 700%
Ms Cadbury said, ‘‘The soaring price of energy bills is having a huge impact on so many residents. I was shocked to hear from leaseholders and tenants locally who are now facing an even greater rise in their bill due to a loophole in the Governments energy price cap.
“I’ve written directly to the Government to urge them to fix this loophole and ensure that people locally are protected from skyrocketing prices.
“However, I still believe the Government need to go further to tackle the high cost of energy bills. I’ve called on the Government to introduce a windfall tax on oil and gas producers, who’ve made a record profit over the last year. Higher energy bills, rising food costs and stagnant wages mean that so many families locally are struggling to make ends meet. We need to see urgent action from the Government to address this.’’
A government spokesperson said this February, “We recognise that leaseholders and heat network customers are currently only protected by the energy price cap for the gas and electricity they buy directly from an energy supplier, which is why we are giving Ofgem new powers to regulate prices in this sector in the future.”
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April 14, 2022