Ed Miliband's green energy drive is cold comfort to homes reliant on heating oil: Jayne Dowle

Rachel Reeves has promised a £53 million support package for households reliant on heating oil, including the many in our region facing panic as prices spiral and orders are cancelled due to the Iran war.

Whilst thousands of miles away oil tankers are stuck under fire in the Strait of Hormuz, people are seeing bills for oil double, even triple, amid claims that some oil suppliers are profiteering.

But does this government pledge go far enough? It certainly does not tackle the burning issue of the UK’s long-term fuel security.

Campaigners such as the Countryside Alliance are calling on the government to provide further clarity on when the funds will be made available and who will actually be eligible to receive financial help.

Energy Security and Net Zero Secretary Ed Miliband appearing on the BBC 1 current affairs programme, Sunday With Laura Kuenssberg. Picture: Jeff Overs/BBC/PA Wireplaceholder image
Energy Security and Net Zero Secretary Ed Miliband appearing on the BBC 1 current affairs programme, Sunday With Laura Kuenssberg. Picture: Jeff Overs/BBC/PA Wire

It’s reported that support will be “targeted” to help low-income households in rural communities, although local councils will decide who qualifies and how the money is distributed. Whilst it is only right that the elderly and vulnerable and households on low incomes are prioritised, the qualification process will require careful handling; there are many of Sir Keir Starmer’s ‘hard-working families’ who will be struggling to afford to pay these inflated prices. If the government is not careful, the handling of this financial support could blow right back in their faces.

“£53 million in support is welcome, but ministers will need to ensure that help arrives quickly for the households that need it most,” says Tim Bonner, chief executive of the Countryside Alliance. “Rural poverty often goes unseen, but it is driven by exactly this sort of inequality.”

Across the UK around 1.5 million homes use oil for heating, hot water and cooking facilities – although an unknown proportion may have electric ovens too – because they are not connected to the mains gas grid.

It’s a small proportion nationally, but in some areas, especially rural locations, there are significant pockets of oil reliance. Unless you’re on oil, you won’t know how it works. Whilst some customers pay by direct debit, typically they pay for oil deliveries in one lump sum several times a year. The total cost is determined by the size of the oil tank, which differs depending on the size of the property. VAT is payable on top and there is no energy price cap on oil, as there is for households on dual fuel – gas and electricity – tariffs.

When the price they pay suddenly rockets before their eyes, obviously oil householders have to find the money from somewhere or face cold homes, no hot water and even the ability to cook a meal.

Whilst any government financial help will be welcomed, handing over cash does not address the key challenge the Iran war has thrown up. Yet again, the UK finds itself compromised by a situation far beyond its own shores.

In 2022, fuel prices shot up when Russia invaded Ukraine. And now our energy security is at the mercy of geopolitics once more; we’re certainly not the aggressors in Iran, but the British public are shouldering the burden.

Trump has said rising fuel prices – including diesel and petrol – are “a small price to pay” if the fundamentalist regime in Iran is to be quashed. However, he’s not sitting in a freezing house in the Yorkshire Dales, having to borrow money to meet a fuel bill that was never expected or imagined.

So far, the government’s own response to long term planning has been limited to say the list. Energy Secretary Ed Miliband has rejected suggestions that this latest energy crisis should demand a pivot back to using our own fossil fuels, freely available under the North Sea.

“We’re not going to learn the wrong lessons of this crisis…” he said. “There is one lesson from the crisis, and only one in my view in the long term for energy policy. We need homegrown, clean power that we control.”

This is cold comfort for those worrying themselves sick over their oil delivery. The argument often made is that such households should invest in green technology such as air source heat pumps and solar panels, so they can rely entirely on electricity for all their energy needs.

But even with the government subsidises available the cost of installing such measures, in the thousands, is beyond the reach of many households. And here’s a scenario for the green energy lobby to contemplate; say someone on oil was actually considering to switching to green energy - by the time the war in Iran is over, any money being put aside to fund the work will have been eaten up on paying for over-priced oil.

And now we hear Treasury minister Dan Tomlinson is warning that fuel rationing could be on the cards. If this came to pass, the knock-on effects on the economy would be catastrophic.

Miliband – and his government colleagues - should take off the blinkers and accept that there is more than one lesson to learn from this crisis.

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