Carmichael calls for price cap on heating oil

Orkney and Shetland MP, Alistair Carmichael, has today backed Liberal Democrat proposals for a price cap for those who rely on heating oil, as rural households face a sudden and severe rise in energy bills following the war in Iran.

A price cap on heating oil would protect residents in the isles who rely on oil fired heating from the significant price rises as a result of the ongoing conflict in the Middle East. The Liberal Democrats said ministers should urgently draw up a system to shield off-grid households, given the current lack of protection for rural communities, who rely on heating oil and are vulnerable to huge spikes in the global energy market.

Unlike many areas of the UK, the Northern Isles are entirely off the gas grid, and therefore excluded from much of the protection that the Ofgem energy price cap affords households connected to the grid.

The party has put forward several other measures to help rural households with rising bills, including introducing a three-month zero-rating of VAT on heating oil, and upgrading homes for the long-term to make them cheaper to heat with free insulation for those on low incomes.

Mr Carmichael has also backed a parliamentary motion from Tim Farron MP, calling for a package of help to support those living in the isles who are struggling with the rising bills.

Mr Carmichael said:

“In the last week I have heard from dozens of constituents in who are facing skyrocketing fuel bills, in some cases tripling just in the past week. The Government must urgently put in place a price cap on heating oil to shield them from these unaffordable price spikes – or set out their own alternative plan in Parliament.

“Years after this unacceptable situation was laid bare by the Russian invasion of Ukraine, it is incomprehensible that those who rely on heating oil in rural areas remain without any protection from spiralling energy prices.

“The government has given us plenty of warm words about how it is watching the situation and aware of the problems people are facing, but warm words do not heat homes. Ministers must get a grip of the situation and set out a concrete plan of action.”