Oral Answers to Questions
Debate between Lord Sharma and Robert Halfon(2 years, 6 months ago)
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Alok Sharma
As the hon. Lady knows, a lot of work is going on with hydrogen, and we published our hydrogen strategy last year. We have announced plans to double our available capacity to 10 GW of hydrogen production by 2030. We already have 14 GW of onshore wind deployed to date, and we have made it clear that we will be consulting this year on developing local partnerships for a number of other supportive communities that wish to host new onshore wind infrastructure. That will, of course, be in return for benefits, including lower energy bills.
Robert Halfon (Harlow) (Con)
With the international energy price so high, will my right hon. Friend help to cut the cost of living by either scrapping the green levies to help people pay their bills, or at least by introducing a downward green escalator, so that when the international energy price is high, the green levies reduce?
Alok Sharma
Taxation is obviously an issue for the Chancellor, but the Government are providing £37 billion-worth of support right now to help people with the cost of living, including energy bills. On green levies, I think they represent 8% of a dual fuel bill, a significant amount of which is going to vulnerable households through the warm home discount and other mechanisms. The reason energy prices are high right now and wholesale prices have risen by 300% to 400% is in large part due to what is happening with the illegal war in Ukraine.
Oral Answers to Questions
Debate between Lord Sharma and Robert Halfon(3 years, 6 months ago)
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Alok Sharma
I actually commissioned that report and I am very pleased that it is so substantive. The hon. Gentleman is right: we need to make sure that we help all countries with a clean energy transition, and that is what we are doing through the work of the COP26 Energy Transition Council.
Robert Halfon (Harlow) (Con)
The COP26 President (Alok Sharma)
Two weeks ago, I chaired the G7 Climate and Environment Ministers track with my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs. At that meeting, the G7 nations agreed overwhelmingly to decarbonise their power systems in the 2030s, consistent with their 2030 nationally determined contributions and net zero commitments. In addition, they committed to take concrete steps to end support for international coal power generation by the end of 2021. This is a critical step in consigning coal power to history and accelerating the international transition to clean energy.
Robert Halfon
Of course we welcome plans for a cleaner, greener Britain, but can my right hon. Friend reassure my hard-working Harlow residents that the Government’s environmental measures will not mean a more expensive Britain, hitting the low-paid with extra costs and increasing the cost of living for ordinary folk?
Alok Sharma
The Government are committed to getting the transition to net zero right for all consumers. We are committed to driving savings and making our homes better insulated with more energy-efficient measures. My right hon. Friend will know that through the energy company obligation and the expanded warm home discount, we will provide at least £4.7 billion of extra support to low-income and vulnerable households between 2022 and 2026.
Oral Answers to Questions
Debate between Lord Sharma and Robert Halfon(5 years, 9 months ago)
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Alok Sharma
The hon. Gentleman will know that, across Government, we have a strategy to tackle homelessness. He will also know that we have introduced measures such as the landlord portal, so that payments for rent can be paid directly to social landlords, and that, just a few weeks ago in January, the Secretary of State announced a further change that will allow rents to be paid to private landlords much more easily. We are keen to make sure that this works for everyone.
Robert Halfon (Harlow) (Con)
I thank my hon. Friend and the Secretary of State for both coming to my Harlow jobcentre to see how universal credit works in practice. May I ask the Minister specifically what he is doing to help single parents who are moving on to universal credit?
Oral Answers to Questions
Debate between Lord Sharma and Robert Halfon(6 years, 7 months ago)
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Robert Halfon (Harlow) (Con)
Alok Sharma
I of course congratulate Harlow College, but I also thank my right hon. Friend for the enormous amount of work that he does to promote employment both here and in his constituency.
Oral Answers to Questions
Debate between Lord Sharma and Robert Halfon
Alok Sharma
Of course all of us in the House support the ambition to build more homes, but my hon. Friend should wait for the Budget announcement in relation to any specifics.
Robert Halfon (Harlow) (Con)
Has my hon. Friend made an assessment of the need for social housing, particularly in new towns such as Harlow, and will he consider tax incentives to ensure that housing associations can build more social housing?
Energy Company Charges
Debate between Lord Sharma and Robert Halfon(10 years, 10 months ago)
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Robert Halfon
I am proud to call my hon. Friend a friend and I appreciate his remarks.
It is no secret that consumers are feeling hard pressed. The cost of utility bills has gone up exponentially in the past three years. Since 2007, the average electricity bill has gone up by 20% in real terms and gas bills have gone up by a shocking 43%, proving that they are a major burden on the cost of living. Citizens Advice has warned that energy bills are rising at up to eight times the rate of earnings. It is no surprise that polling shows that the rising cost of energy bills is a top concern for the British public.
I welcome the efforts that the Minister and the Government have made to help, including by forcing companies to put consumers on the lowest possible tariff, providing a rebate to every domestic electricity customer, reducing bills by £130 for 2 million of the poorest households and protecting pensioners’ cold weather payments. However, with price increases, companies making large profits and general dissatisfaction with energy companies across the United Kingdom, it is clear that the energy market is not working at its prime.
The payment of energy bills by direct debit is often associated with companies overestimating a household’s energy usage, resulting in overcharging and a large amount of credit being built up. Understandably, that upsets many customers and it has rightly received a lot of attention from the media.
Alok Sharma (Reading West) (Con)
My hon. Friend is a huge consumer champion, not just on this issue, but on many others. More power to his elbow. He makes a good point about the way in which direct debits work. They are not a panacea. Last week, I received an e-mail from my constituent, Mr Balfour, who told me that his 87-year-old father had built up a £1,400 credit because he was paying by direct debit. According to Ofgem, direct debits are meant to be set on a fair and reasonable basis. Does my hon. Friend share my view that we should define in more detail what “fair and reasonable” means?
Robert Halfon
My hon. Friend makes a hugely important point, and I suspect that the Minister will have more to say about it. I welcome the fact that the Government are forcing companies to compensate customers, such as his constituent, who have been mis-sold or overcharged. I know that the Department of Energy and Climate Change has asked Energy UK to set up direct debit best practice guidelines.
The problems associated with customers not paying their gas and electricity bills by direct debit have largely been ignored, even though it can end up costing consumers significantly more. Unlike the hon. Member for Ynys Môn, who has known about the problem for some time, I first became aware of it only a few weeks ago. A pensioner in my constituency told me that she had received a letter from Co-operative Energy saying that because she was not paying her bills by direct debit, she would be charged £63 a year extra. I could not believe it—I wondered how on earth such a thing could happen, given that she had gone to the post office religiously to pay on time. I thought, “That is a lot of money”, so on the Monday, I rang up Co-operative Energy and spoke to the general manager, who was very pleasant. He said, “Actually, ours is one of the lowest”. There I was thinking that £63 was a lot of money.
I decided to investigate every single energy company, and the results were shocking. Of the 26 companies that responded, five only allowed their customers to pay by direct debit and 17 charged their customers different rates depending on the method that they used to pay. Only four companies charged their consumers the same whether or not they paid by direct debit. In a euphemism extraordinaire, many of the companies that charged extra said not that they were adding a surcharge but that they were discounting the bills of people who used direct debit, because there were lower costs.