The UK Government is under renewed pressure to help households hit with the extra costs for living in areas without mains gas.
SNP MP Drew Hendry set out a proposal at Westminster, calling for the Secretary of State and regulator Ofgem to end geographical energy price discrimination.
The current price cap is based on the assumption that household energy consumption is split 80% gas and 20% electricity – however 17% of households across the UK currently live in an off-gas area.
As a result, off-grid homes are forced to pay three to four times more on their energy bills than the average household as they are not protected by the price cap.
Off grid homes ‘penalised’
Mr Hendry, the MP for Nairn, Badenoch and Strathspey, wants to see the UK Government deliver a “clear timetable to stop this form of discrimination once and for all”.
Almost two thirds (65%) of homes in rural areas are not within coverage of the gas grid so the situation has a sigificant impact in the north of the country.
Households across the rural north and islands of Scotland are also hit hardest by the energy price cap and suffer disproportionate levels of fuel poverty.
The SNP MP said: “The UK government is failing thousands of families across all four nations of the UK, all because of the area they live in.
“Alongside Ofgem, this UK Tory government have failed to consider the additional cost for households who do not have a main gas supply, despite 17% of households currently living in an off-gas area.”
📖 Earlier, I gave first reading to a Bill urging the UK Government to end unfair charges to households not on the mains gas grid.
🛢️ Those that can't access the gas grid will pay 4x the amount as those who can.
🎥 Watch the full video here: https://t.co/yhEGWEsyVB pic.twitter.com/LaS5Yqqrof
— Drew Hendry MP #ScotlandsChoice (@drewhendrySNP) February 23, 2022
His proposals were included in an Energy Pricing (Off Gas Grid Households) Bill which he successfully tabled in the Commons on Wednesday.
It will now get its second reading on March 18.
Mr Hendry: continued: “As a result, through no fault of their own, off-grid homes are set to pay energy bills three to four times higher than the average household despite using the same amount of energy. This is simply unacceptable.
“That is why I am bringing forward this Energy Pricing Bill before parliament.
“If introduced, it will force the UK government to work alongside Ofgem to address the issue head on, and set out a clear timetable to stop this form of discrimination once and for all
“Households should not be punished for living in an off-grid area. It is time for the UK government to act.”
Discount on bills
A UK Government spokesman said: “All domestic electricity customers, including in Scotland, are entitled to receive a £200 discount on their bills whether they are on or off grid through the Energy Bills Rebate.
“Likewise, off-gas grid homes are also protected by the price cap for the electricity they buy from a licenced energy supplier.
“In the longer term improving the energy efficiency of our homes and buildings is vital to keeping household energy costs down and reducing carbon emissions, which is why are driving £6bn into making homes more energy efficient over the next ten years.”