Energy cost increases: Letter to the UK Government

To: Rt Hon Ed Miliband MP, Secretary of State, Department of Energy Security and Net Zero

From: Cabinet Secretary for Housing, Màiri McAllan  

10 March 2026

Dear Secretary of State,

Global conflict and resultant energy cost increases in Scotland and the United Kingdom

I write in my capacity as Cabinet Secretary for Housing with responsibility for fuel poverty policy. I refer to the above, to your recent correspondence with my colleague Gillian Martin MSP, and to your letter to the UK and Ireland Fuel Distribution Association (UKIFDA) reminding industry of its obligations to consumers on a backdrop of global conflict and rising fuel prices. I extend my support for action by the Competition and Markets Authority (CMA) if the alternative fuel industry is found to be breaking consumer and competition law. 

While those on gas and electricity contracts are afforded the partial protection of the Ofgem price cap until the end of June, this does not extend to the many rural and island households in Scotland who are wholly dependent on alternative fuels to heat their homes and for whom there is no protective cap. I declare an interest as one such rural dweller. While recent statistics show that 29% of households in Scotland are currently in fuel poverty, driven by the perpetually rising energy costs of recent years, some 6% of households in Scotland have the added vulnerability of being reliant on alternative fuels, with rural and island areas disproportionately affected.

Off-gas grid consumers are already reporting exorbitant rises in their quoted fuel prices and the sense of strain and worry is palpable. I ask that the UK Government urgently provide public reassurance to all bill payers – and in particular, to alternative fuel users – that the UK Government will be ready to provide financial support to consumers if prices do not stabilise in the coming days. I should be grateful if you would also be actively preparing to stand up the Alternative Fuel Payment infrastructure so that any such payments can be delivered as quickly as possible if needed.

I am also seeking your confirmation that supplies of heating oil will be monitored closely to ensure resilience and availability. This follows word that some suppliers in Scotland are currently refusing online orders due to very high demand and raising concerns about supply levels.

Finally, I understand that the Chancellor has committed to meeting rural and, I understand, Northern Irish, MPs tomorrow to discuss what more can be done. Given our devolved responsibilities and the implications of increased energy costs for public services and our social security systems, I believe that all four nations of the United Kingdom should be involved in those discussions. I therefore ask that the invite be extended to me and my Welsh and Northern Irish counterparts so that we are fully involved in discussions.

I should be grateful for a prompt response given the urgency of the developing situation.

I copy this note to Gillian Martin MSP, Cabinet Secretary for Climate Action and Energy.

Yours sincerely,

MÀIRI MCALLAN