Infrastructure Bill [Lords]
Debate between Lord Barker of Battle and Amber Rudd(9 years, 9 months ago)
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Amber Rudd
That is why, as the hon. Gentleman is aware, the Government have been so keen to get targets into Europe that apply across the whole of Europe. He will be aware that we are leading on those, and we will continue to do so. It is very important to lead by example, and he is right to raise the issue relating to Germany, which is why we are pleased to have a cross-European agreement. However, that does not detract from the importance of making sure that we do the right thing in this country.
Gregory Barker (Bexhill and Battle) (Con)
On that point about displaced coal, is it not a fact that it is displaced coal from north America that is contributing to a rise in the burning of coal in Europe? If we take matters into our own hands and develop more gas, we can reduce the amount of coal that is burned. It is coal that is the enemy of climate change and that is enemy No. 1. Gas is our ally in a green future.
Amber Rudd
My hon. Friend makes an excellent point based on his clear expertise in this area. The Committee on Climate Change has said that for flexible power supply, the UK will
“continue to use considerable, albeit declining, amounts of gas well into the 2030s”
which will leave
“a considerable gap between production of North Sea gas and our total demand.”
It argues that that demand
“can either be met through imports or UK production of shale gas.”
It concludes that
“if anything, using well regulated UK shale gas to fill this gap could lead to lower overall lifecycle greenhouse gas emissions than continuing to import LNG. It would also increase the proportion of energy produced within the UK, improving our energy sovereignty.”
Oral Answers to Questions
Debate between Lord Barker of Battle and Amber Rudd(9 years, 11 months ago)
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Amber Rudd
We recognise the importance of keeping bills down for consumers, particularly when times are difficult, but this Government’s initiatives are to help reduce bills and our support for renewables is unquestionable. We feel it is essential to have some subsidy to get renewables going. I note that the hon. Gentleman is a big supporter of solar. Those costs have come down and our support has consequently come down. We expect it to reach grid parity by 2020. We are optimistic that wind farms are also beginning to come down in cost, and we have seen a 10% reduction in the support for them very recently.
Gregory Barker (Bexhill and Battle) (Con)
Does my hon. Friend agree that linking oil prices to energy, and particularly heating bills, is nonsense given that we do not have any oil generation to speak of that generates electricity here in the UK—there is only maybe a tenuous link with heating oil? We should be focusing on driving down the cost of home-grown energy, particularly clean energy.
Amber Rudd
As always, my right hon. Friend makes an important point. Renewable electricity is essential, and I hope his Christmas tree lights burn even brighter this year, because 15% of that will indeed be from renewable energy, which is twice as much as under the last Government.
Energy Company Licence Revocation
Debate between Lord Barker of Battle and Amber Rudd(10 years, 2 months ago)
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Amber Rudd
It is always partly carrot and stick, is it not? We have to make clear to consumers what the opportunity is; otherwise, they are going to be reluctant to change. However, I am sure that we can, and I hope to win over my hon. Friend’s support in due course.
The hon. Member for Llanelli (Nia Griffith) spoke about her concerns for consumers, and she has done so on many occasions. I am just concerned that she feels so strongly about this one motion and feels that the proposal would be a silver bullet to sort out the problems for consumers. I cannot share her view.
It was a pleasure to hear from my hon. Friend the Member for Warrington South (David Mowat), who is very experienced in the market in general. He made the point that the Opposition’s proposal, although worthy of consideration, completely fails to convince because it has no example and therefore no factual base. In his focus on lower prices for consumers, he pointed out we have the lowest gas costs in Europe. He demolished Labour’s energy policy with particular focus on how it lets consumers down.
The hon. Member for Bolton West (Julie Hilling) again focused her rationale on the Labour proposal as though it were some sort of silver bullet to rectify the entire market. We are taking action to rectify that market and we are making progress. She insists that this power is needed while failing—as did her fellow Labour Members—to give an example of which company would be liable to this nuclear option and why.
I was delighted to hear from my hon. Friend the Member for South Derbyshire (Heather Wheeler) who made a powerful speech, as always, about the importance of investment in energy in her constituency, and expressed her concern that this Opposition proposal is gesture politics and would undermine crucial investment that we are securing from international investors.
The hon. Member for Middlesbrough South and East Cleveland (Tom Blenkinsop) chose to comment on the difference between our parties regarding regulation. I cannot let that pass. He had the temerity to refer to the regulation of the banks in 2007. The banks were regulated by the Bank of England for decades until Labour’s tripartite arrangement, which was an unmitigated disaster. If the House needs evidence of the results of Labour’s regulation, it need look no further than the banking crisis. The hon. Gentleman was also wrong on fuel poverty, which is falling, and wrong on the support that we are rightly giving to consumers.
Gregory Barker
First, may I congratulate my hon. Friend on a fantastic debut at the Dispatch Box? She is going to make a great Minister. She is also absolutely right to draw the House’s attention to Labour’s knee-jerk reaching for regulation. We on this side of the House are committed to helping the consumer by creating dynamic competition and crowding in disruptive new entrants, whereas Labour will always reach for the red tape and regulation that are anathema to the real interests of the consumer.
Amber Rudd
I thank my right hon. Friend for his remarks. I am delighted to be following on from the good work that he has done.
It is good news that our work to break down barriers to entry in the retail energy market in order to create greater competition has resulted in an unprecedented number of suppliers operating in that market. Since May 2010, 12 new companies have entered the market, challenging the status quo, competing hard with the large established players and offering choice to consumers. During this period, more than 2 million electricity customers have switched to independent suppliers. The big six bequeathed by Labour are being replaced by the new challenger companies. We are driving competition in the market, and delivering more choice and a better deal for consumers. In 2010, there were just seven independent suppliers, all of which had fewer than 50,000 customers. Now, there are four independent suppliers with more than 250,000 customer accounts each, compared with zero in 2010. In that year, the share of the market held by the independents was around 1%, but it now approaching more than 7%.
We know that competition is not working as effectively as it should be, which is why we commissioned the first ever assessment of competition in energy markets from the competition authorities. It is also why we support the subsequent decision of Ofgem, based on a thorough, evidence-based assessment, to refer the energy markets to the Competition and Markets Authority. Tackling concerns about competition through a formal reference process undertaken by the expert authority will provide consumers, companies and investors with confidence that the process will be evidence-based, fair, transparent and free from political interference.
This Government are taking real action to make a real difference to hard-working households and businesses. We will continue our work to identify and address barriers to entry and growth, and to provide the right environment for the investment needed for the future. We will continue to build on the reforms that are already giving people a better deal on their energy bills. These include taking about £50 off average household bills, and introducing faster, easier switching and simpler tariffs and bills. We will allow the expert competition authorities to undertake their forensic examination of the energy markets. We must insist that reform of the market is driven by facts. We will not resort to the knee-jerk responses that we so often see from an Opposition seeking a headline. This motion epitomises such a response, but it would fail consumers, fail the market and fail in what it sets out to do. The Opposition have failed to make any sort of case in support of the motion, and I urge the House to resist it.
Question put.
The House proceeded to a Division.
Oral Answers to Questions
Debate between Lord Barker of Battle and Amber Rudd
Amber Rudd (Hastings and Rye) (Con)
T2. The residents of Hastings and Rye are looking forward to cheaper energy bills following the implementation of the green deal. What plans does the Minister have to make sure that residents of social housing also get the benefit of that? May I also invite him, as Minister and constituency neighbour, to come to Rye to share that information with AmicusHorizon?
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
I congratulate my hon. Friend, who has taken a very close interest in this issue of how we are going to help the poorest people in our society access the green deal and to improve the housing stock for everyone. I can assure her that we are working very closely with both the Local Government Association, the National Housing Federation, and with individual local authorities and community groups. I would also be delighted to come across the border and have a round table meeting to see how we can drive forward the agenda in Hastings and Rye.
Oral Answers to Questions
Debate between Lord Barker of Battle and Amber Rudd
Amber Rudd (Hastings and Rye) (Con)
18. What progress his Department has made on the introduction of the green deal.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
The green deal is a flagship policy for the coalition. We are making good progress towards the introduction of the green deal this autumn. We are determined to have a solid framework in place for this transformational scheme, which will enable the green deal market to grow right through to the next decade and beyond.
Amber Rudd
My hon. Friend has been kind enough to visit Hastings on several occasions, as he is a neighbouring MP, and will be aware that many of my constituents live in housing association property. How will the green deal benefit residents in housing associations?
Gregory Barker
Absolutely. I know that my hon. Friend is a terrific advocate for Hastings, and I can assure her that social housing will be among the first to benefit from the green deal revolution. Dedicated funding within the £1.3 billion of energy company obligation subsidy will be focused on the most deprived areas of the country, so I would expect areas such as Hastings to be among the first to see the benefits. With her as its MP, I am sure it will.
Oral Answers to Questions
Debate between Lord Barker of Battle and Amber Rudd
Amber Rudd (Hastings and Rye) (Con)
Is the Secretary of State aware that some extraordinary technological advances are being made by British private companies? One in particular—Marshall-Tufflex in my constituency—would like to come and see Ministers to show them the advances that it has made that could help with general carbon reduction.
Gregory Barker
As my hon. Friend knows, I have visited Marshall-Tufflex, which has some interesting and exciting products that could be a great help across the Government estate; indeed, I would be delighted to see the company while in office and in government.