Oral Answers to Questions

Debate between David Amess and Andrea Leadsom

Thursday 14th July 2016 Commons Chamber

[Andrea Leadsom]

My hon. Friend is right to say that we need to make sure that people are aware not just of the benefits of switching, but of how easy it is to do. We are taking steps to raise awareness through the big energy saving network, Big Energy Saving Week and the Power to Switch campaign. We are also working to improve the switching process for customers. We launched the energy switch guarantee last month to give consumers confidence to switch, and we are working with Ofgem to deliver next-day switching.

[Sir David Amess (Southend West) (Con)]

17. What steps her Department is taking to ensure security of electricity supply in winter 2016-17 and in future years.

[Richard Graham (Gloucester) (Con)]

19. What steps her Department is taking to ensure security of electricity supply in winter 2016-17 and in future years.

[The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)]

Our top priority is to make sure that families and businesses have secure energy supplies, and therefore to ensure that National Grid has the right tools in place to manage the system. Our energy security has been strengthened by reforms of the capacity market, including holding an auction this coming winter for delivery in 2017-18.

[Sir David Amess]

As the promoter of the Warm Homes and Energy Conservation Act 2000, I am very interested in energy supplies in winter. Will my hon. Friend do all she can to encourage investment in new gas generation?

[Andrea Leadsom]

The capacity market is the most cost-effective way to make sure we have the infrastructure to cope with unexpected demand peaks. In May, we committed to buying more capacity and buying it sooner. New build capacity is eligible for 15-year agreements, providing a secure revenue stream and thereby encouraging new gas infrastructure.

--- Later in debate ---

[Andrea Leadsom]

I absolutely do not agree with the hon. Gentleman. The assumption that we have to have a Department for something in order to meet objectives on it is not one I agree with at all.

[Sir David Amess (Southend West) (Con)]

T5. I have just been sent a report from Southend-on-Sea citizens advice bureau calling for a fair deal for prepayment meter users, who seem to be getting a second-class service. Given that they are the most vulnerable people, will my hon. Friend see to it that her Department looks again at the system?

[Andrea Leadsom]

I completely agree that prepayment meter customers get a rough deal, with a far smaller choice of tariffs and suppliers than customers who pay by other methods. That is why we are supporting recommendations by the Competition and Markets Authority to make it easier for prepayment meter customers to switch supplier, and to introduce a safeguard tariff cap for those customers until competition in that segment of the market significantly improves.

Oral Answers to Questions

Debate between David Amess and Andrea Leadsom

Thursday 17th September 2015 Commons Chamber

[Andrea Leadsom]

As the hon. Gentleman will know, the Chancellor introduced some strong fiscal measures in the March Budget to maintain and build investment, including a reduction in the supplementary charge, introducing a new investment allowance and a reduction in the petroleum revenue tax from January 2016, and we will continue to look closely at what else we can do to provide that fiscal support for further exploration and to keep the oil and gas sector thriving in the North sea basin.

[Sir David Amess (Southend West) (Con)]

9. What areas of co-operation on green growth the UK is exploring with China.

Scotland Bill

Debate between David Amess and Andrea Leadsom

Monday 6th July 2015 Commons Chamber

[The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)]

Thank you, Sir David. It is a great pleasure to be introducing these clauses. Clauses 46 and 47 deliver the Smith commission agreement and provide Scottish Ministers with greater influence over the strategic direction—[Interruption.]

[The Temporary Chairman]

Order. Members owe the Minister the courtesy of leaving the Chamber quietly.

[Andrea Leadsom]

Thank you, Sir David.

Clauses 46 and 47 deliver the Smith commission agreement and provide Scottish Ministers with greater influence over the strategic direction of the Commissioners of Northern Lighthouses and of MG Alba. They achieve that by enabling Scottish Ministers to appoint a member of the Northern Lighthouse Board and by giving Scottish Ministers the power to approve Ofcom appointments to MG Alba.

Clause 48 provides that the Secretary of State will be required to consult Scottish Ministers when setting the strategic priorities in relation to the exercise of functions in Scotland regarding the activities of Her Majesty’s Coastguard and the safety standards of ships. These functions are exercisable by the Secretary of State for Transport, but are in practice carried out in the UK by the Maritime and Coastguard Agency, an Executive agency of the Department for Transport.

The Smith commission agreement was explicit in the devolution of the power to allow public sector operators to bid for rail franchises funded and specified by Scottish Ministers, and clause 49 achieves that.

Clauses 50, 51 and 52 implement the Smith commission agreement and devolve design and implementation powers relating to energy efficiency and fuel poverty to Scottish Ministers, while reserving responsibility for the overarching aspects that affect all consumers in Great Britain, such as scale, costs and apportionment of obligations, as well as the obligated parties. The clauses contain safeguards to give effect to the Smith commission agreement that the devolution of these powers

“be implemented in a way that is not to the detriment of the rest of the UK or to the UK’s international obligations and commitments on energy efficiency and climate change.”

It is the Government’s position that such provisions are necessary. Specifically, we believe that it would be in the interests of UK and Scottish Ministers that the benefits provided to consumers in one part of Great Britain should be proportionate to the costs on consumers in that part of Great Britain.

Scottish Ministers should be able to design supplier obligations for Scotland, but costs should be proportionate across regions, removing the possibility of competitive distortions and cross-subsidy by consumers across Great Britain. We will look at ways of making the costs of obligations clear and equitable between Scotland and the rest of Great Britain.

Clause 53 creates a formal consultative role for Scottish Ministers in the design of renewable electricity incentive schemes that will apply in Scotland. Clause 54 will enable Scottish Ministers to take decisions on safety zones for renewable energy installations in Scottish waters by making Scottish Ministers the appropriate Ministers, and it will enable them to take responsibility for ensuring that offshore renewable energy installations are removed or decommissioned at the end of their useful life. It ensures that consent to and decommissioning of offshore renewable energy installations and the management of Crown Estate assets in relation to such installations are the responsibility of Scottish Ministers, rather than being divided between Scottish Ministers and the Secretary of State.

Clause 55 delivers the Smith commission agreement by devolving to Scottish Ministers, when acting jointly with the Secretary of State, the power to require the Competition and Markets Authority to carry out a market investigation reference when they suspect that features of a market are preventing, restricting or distorting competition. Clause 56 requires Scottish Ministers to lay Ofgem’s annual report and accounts before the Scottish Parliament. To enable that, it ensures that copies will be provided to Scottish Ministers.

Clause 57 gives effect to two key elements of paragraph 38 of the Smith commission agreement relating to Ofcom. It gives Scottish Ministers the power to appoint one member to the Ofcom board to represent the interests of Scotland, and it requires Ofcom’s annual report and accounts to be laid before the Scottish Parliament. Clause 58 gives effect to paragraphs 39, 40 and 41 of the Smith commission agreement relating to the appearance of the Northern Lighthouse Board, Ofcom and Ofgem before the Scottish Parliament on matters relating to Scotland.

Finally, part 7 contains standard technical clauses, including general provisions associated with the Bill, such as transitional provisions, commencement arrangements and the short title.