Oral Answers to Questions

Lord Harrington of Watford Excerpts

Tuesday 13th March 2018 Commons Chamber

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

20. What assessment his Department has made of the effect of smart meters on consumer energy behaviour.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)]

Government research on consumer satisfaction published in August last year shows that satisfaction with smart meters is high. Eighty per cent. of consumers are satisfied with their smart meters and 80% would recommend them to friends and family. Smart Energy GB found that nearly 90% of people with a smart meter made energy savings and changed their behavioural patterns.

[Lee Rowley]

I thank the Minister for his response. It is good to hear that so many people are reaping the benefits from smart meters. No system is ever perfect, however, and that is the case for a small number of customers such as a club in my constituency, Killamarsh juniors athletics club, which is now on its third smart meter and is getting really unhelpful responses from its electricity provider. Can he provide any advice to the club in my constituency?

[Richard Harrington]

My hon. Friend has made a point about the Killamarsh juniors club in his constituency. I would be very happy to meet him on that specifically. However, I have not found this generally to be the case. The roll-out of smart meters is a very important national modernisation programme that brings major benefits to consumers generally and to his constituents specifically.

[Bill Grant]

Smart meters are good for consumers and suppliers alike, but the roll-out relies on there being a good mobile phone signal for them to be effective, and in many parts of rural Scotland that is simply not the case. Can the Minister reassure me that he is working across the Government and with relevant stakeholders to ensure that residents in rural areas benefit from smart meters?

[Richard Harrington]

I agree entirely with my hon. Friend. We are working on that, and the Arqiva radio solution provides communications services for the north region. That covers Scotland, and it is contracted to cover nearly 100% of premises by the end of 2020.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

Does the Minister accept that his statistics are based on surveys that are carried out about 10 weeks after installation? My own survey found that 54% of constituents would currently refuse a smart meter, 97% want to see the costs of the programme shown on their bills, and 74% said that receiving one had not yet made any difference to the size of their bills. Will he also take those findings into account?

[Richard Harrington]

The hon. Gentleman knows me well enough to know that I am very interested in anything he has to say. He contributed a lot to the passage of the Smart Meters Bill in the House of Commons. I would be very interested to receive those statistics, but we do receive them from quite a few different places, and I do not just quote one sample.

[John Cryer (Leyton and Wanstead) (Lab)]

I am sure the Minister is speaking in good faith, but I have come across constituents who find that bills are not reducing, but increasing. Has he had discussions with the utility companies about keeping an eye on this and making sure that the effect of smart meters is to reduce costs for constituents, many of whom are poor, not raise them?

[Richard Harrington]

I am very surprised to hear what the hon. Gentleman says. As he said—I am grateful for it—I am talking in good faith; I know he is too. I would be pleased to hear of those examples, but I cannot quite understand why bills would go up, because nearly 90% of people with smart meters say that it is changing their energy patterns and that bills are going down.

[Stephen Kerr (Stirling) (Con)]

Can the Minister update us on where we are with the roll-out of SMETS 2 smart meters?

[Richard Harrington]

As my hon. Friend, who also contributed a lot to the passage of the Bill, knows, SMETS 2 is the newer type of meter which at the moment is in its trial phase. As the months go on, SMETS 1 meters will be converted through software that is being developed by the Data Communications Company, and all new meters will be SMETS 2.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

How satisfied are consumers when they realise that a smart meter becomes a dumb meter when they switch suppliers? Can he put an accurate timeline on the roll-out of SMETS 2 meters?

[Richard Harrington]

As I explained, the software that is being developed now and will be in place shortly after the summer will ensure that that does not happen. The comparatively small number of SMETS 1 meters that do not operate as smart meters when suppliers change will suddenly become compliant, and they will all be able to speak to one another electronically, which is what we all want.

[Anna McMorrin (Cardiff North) (Lab)]

3. What assessment he has made of the UK’s ability to meet its carbon reduction targets.

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[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

5. What progress has been made on a sector deal for the oil and gas industry.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)]

The Government remain committed to supporting the industry and building on the £2.3 billion package announced in recent Budgets. My right hon. Friend the Minister for Energy and Clean Growth greatly enjoyed her recent visit to Aberdeen—as did I, when I visited—when the industry presented its initial proposals for a deal. My right hon. Friend is meeting the sector deal champion, Trevor Garlick, tomorrow.

[Andrew Bowie]

I thank my hon. Friend for that answer. The oil and gas industry based in the north-east of Scotland has contributed over £330 billion to the economy, supports over 330,000 jobs across the United Kingdom and has a supply chain worth nearly £30 billion. With an estimated 20 million barrels of oil still to get out of the North sea, the industry has huge potential to drive this country’s growth, but of course there is still uncertainty, so I know that the Minister will welcome the response—

[Andrew Bowie]

Will the Minister pledge to work continually with the industry to develop and deliver the sector deal?

[Richard Harrington]

Yes.

[Mr Speaker]

Thank you.

[Jim Shannon (Strangford) (DUP)]

What discussions has the Minister had with the Treasury about the impact of Her Majesty’s Revenue and Customs’ new end-use procedure changes on the gas and oil industry?

[Richard Harrington]

I will give a very succinct answer, as you have requested, Mr Speaker. I do not know, but I will happily meet the hon. Gentleman to discuss it.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

What consideration is my hon. Friend giving to the downstream sector? Our remaining oil refineries are important national assets and major centres of employment, and they could benefit from clear, long-term thinking.

[Richard Harrington]

As my right hon. Friend will be aware, the whole sector is important to us, and specifically the supply chain. I have met various players involved, and it is of critical importance to us.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

The UK Government have so far failed to announce a sector deal for oil and gas, and there was no mention of one in their industrial strategy. There is a need for a sector deal approach to the industry. The Scottish Government have been calling for such action. Will the Minister finally rectify this glaring omission and commit that vital support for the industry and the jobs and investment it relies on?

[Richard Harrington]

The hon. Gentleman should be aware that this is a priority for us. We are working very hard with the sector to come up with a sector deal, and I expect those talks to come to fruition very soon.

[Mr Ranil Jayawardena (North East Hampshire) (Con)]

6. What steps he is taking to support the development of electric and autonomous vehicles.

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[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)]

I know that the hon. Lady has a keen interest in this subject, and we have met to discuss the impact on many of her constituents working at the Culham Centre for Fusion Energy. As she knows, our assessment was detailed in the “Nuclear Sector Report” at the end of December last year, and in an impact assessment for the Nuclear Safeguards Bill, which was first published on 18 December. We continue to engage with stakeholders, and the hon. Lady knows that my door is always open if she wishes to discuss this matter further.

[Layla Moran]

I thank the Minister for his response. We know that the Government are seeking a close association with Euratom, but with just 109 days until Austria takes up the presidency, Oxfordshire needs clarity now to plan for the future. Can the Government categorically say they are seeking an associate agreement, and can they guarantee that they will kick-start the process before 1 July?

[Richard Harrington]

I can confirm that, as the hon. Lady knows, we are seeking the closest possible association with Euratom. We are working very hard to achieve that objective.

[John Howell (Henley) (Con)]

Does the Minister agree that at the recent meeting of the all-party group on nuclear fusion, which I chair, the Government’s attitude to expanding their collaboration in nuclear activity was greatly evident?

[Richard Harrington]

I thank my hon. Friend for that question. He also has a keen constituency interest in this, and I am very keen to represent the interests of his constituents.

[Mark Menzies (Fylde) (Con)]

T1. If he will make a statement on his departmental responsibilities.

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[Douglas Ross (Moray) (Con)]

T3. Late and non-payment of retention payments in the construction industry is affecting small firms in Moray and across the UK. When will Ministers deal with that issue?

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)]

The Government are determined to improve payment practices, and we understand that retentions have caused problems for contractors in the supply chain. We consulted on the contractual practice of cash retention and we are now considering the responses to assess the extent of the issues and to determine what further intervention is required.

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

T9. Does the Minister agree that there is overwhelming evidence that migrant workers, including EU nationals, make a hugely positive contribution to business, the economy and our public finances, and that they do not undermine wages?

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[Paul Masterton (East Renfrewshire) (Con)]

T8. Last October’s “Made Smarter” review set out how manufacturing businesses in East Renfrewshire and across the UK can be transformed through the adoption of industrial digital technology. How will the Government support “Made Smarter” now that it has been announced as a deal in development in the industrial strategy?

[Richard Harrington]

I have met Juergen Maier, the chief executive of Siemens UK, to discuss that. At a recent dinner, my right hon. Friend the Secretary of State announced a “Made Smarter” commission and asked Sir Mark Walport to work with Juergen on the development of an industrial strategy challenge for the digitisation of our manufacturing industry.

[Mr Gregory Campbell (East Londonderry) (DUP)]

The number of electric vehicles on our roads is likely to increase significantly over the next few years. What work is being done to ensure that charging points are more frequently powered by renewable sources over that period?

[Mr Philip Dunne (Ludlow) (Con)]

T10. Given our close defence and trading relationship with the United States, will the Minister reassure the House that he is making efforts to secure an exemption for UK-produced steel and aluminium products from next week’s imposition of tariffs?

[Richard Harrington]

I was in Brussels yesterday to meet other European Union Ministers, trade union leaders and representatives of employers to ensure that we do exactly that.

[Rachel Reeves (Leeds West) (Lab)]

The Business, Energy and Industrial Strategy Committee has heard powerful evidence on why the Government should call in the Melrose bid for GKN on national security grounds, and the Secretary of State for Defence has written to the Business Secretary about the matter. Will the Business Secretary use his powers, before it is too late, to protect this great British engineering giant?