Ruth Cadbury MP calls on Government to close loophole causing ‘soaring energy bills’

Image above: Ruth Cadbury MP

The MP for Brentford and Isleworth, Ruth Cadbury has written to the Government’s Energy Minister Greg Hands to take urgent action to fix a loophole, which means that some leaseholders in residential flats could face soaring energy bills.

While people living in residential houses are protected by the ‘Energy price gap’, experts warn 500,000 leaseholders and tenants living in some blocks of flats are not covered as they are deemed as living in a ‘commercial building’ with a communal energy supply. This means that many residents, including those living in Hounslow, have faced soaring energy bills without any cap.

While wholesale prices continue to climb steeply, the UK’s price cap on energy bills stops companies from immediately passing those costs on to their domestic customers, but there is no such protection for commercial rates.

Campaigners around the UK have been calling on Ofgem to urgently review the situation and revisit the definition of ‘Domestic Customer’ since January 2022. A campaign by Birmingham based Ginger Energy, which operates across the UK, started a petition in the hopes of forcing Ofgem to rethink the definition. As of yet no decision has been announced.

You can view the petition here:

Image above: Energy crisis artwork used by Ginger Energy

Leaseholders and tenants face “an even greater rise” in their energy bills

Speaking after sending her letter to Greg Hands, Ruth 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.’’

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