Government not doing enough for “failed” heating oil market

Orkney and Shetland MP Alistair Carmichael. 

Alistair Carmichael MP has said the government is not working fast enough to help islanders heat their homes in a “failed” heating oil market.

The Shetland and Orkney MP today (Thursday) challenged the Business Secretary to act to bring heating oil within the energy price cap mechanism to protect off-grid households.

Mr Carmichael highlighted recent quotes for heating oil in the Northern Isles at over £1.22 per litre including VAT.

Speaking in the House, Mr Carmichael said: “Orkney and Shetland already have the highest levels of fuel poverty in the country.

“We have no access at all to mains gas grids so many more of my constituents rely on heating oil.

““My constituents are being quoted this morning £1.22 per litre for heating oil. It is pretty clear that the market for heating oil has failed.

“Why is the government not acting now to bring heating oil within the price cap mechanism?”

Business secretary Jacob Rees-Mogg MP replied: “The Rt Hon Gentleman says that the government isn’t acting now which isn’t entirely accurate.

“The government is acting now to include heating oil. As I said heating oil hasn’t risen as much as gas. We are working on the basis of the evidence that is available and we are looking at the heating oil price.”