Energy Prices
Debate between Alex Cunningham and Chris Huhne(13 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text
Chris Huhne
The hon. Gentleman needs to examine the situation for households. It is clearly the case that Sweden has a lot of hydroelectricity and a lot of industries are very dependent on it. My point was about households and the household use of heating, which is key.
Millions of households could save just by switching tariffs or payment method. From now on, suppliers will write to customers to tell them about these savings—that is another outcome from Monday’s energy summit.
Fourth Carbon Budget
Debate between Alex Cunningham and Chris Huhne
Alex Cunningham (Stockton North) (Lab)
I, too, am pleased that we got a statement on this today, but I am anxious about the future and viability of energy-intensive industries, such as those in my constituency which have been the backbone of the north-east England economy. They have done much to reduce emissions already, but what will the Government do to help with transition funding, possibly through the growth fund or other mechanisms, to ensure that such industries can make further change and develop in the future?
Chris Huhne
The hon. Gentleman is right to mention the growth fund, which is having a tremendous impact in bringing in a vast amount of private investment where it would not otherwise have been occurring; that is definitely a tremendous innovation. In addition, we are and will be developing the package for the energy-intensive industries, which I mentioned earlier. That is being done with our colleagues in the Department for Business, Innovation and Skills, and it will be coming forward by the end of the year. We want balanced growth so that all parts of the economy can benefit from a robust economy.
Oral Answers to Questions
Debate between Alex Cunningham and Chris Huhne
Alex Cunningham (Stockton North) (Lab)
11. What recent discussions he has had with gas and electricity suppliers on trends in energy supply costs to domestic consumers; and if he will make a statement.
The Secretary of State for Energy and Climate Change (Chris Huhne)
With permission, Mr Speaker, I shall answer Questions 11 and 12 with Question 3.
Department of Energy and Climate Change Ministers and officials meet both Ofgem representatives and suppliers regularly to discuss market issues. Ofgem monitors the market closely, and reports quarterly on retail prices. Its latest report shows large increases in estimated supplier margins—that is, profits—for the year ahead, which are mainly due to recent price increases. I am disappointed by that development, and I welcome the announcement of Ofgem’s review of the retail market. We are also taking other measures to encourage new market entrants to provide new competition.
Alex Cunningham
According to the House of Commons Library, between 1996 and 2004 the number of households in fuel poverty fell from 6.5 million to less than 2 million, but now, in the face of massive increases in energy prices, it has nearly doubled again to more than 4 million. Does the Secretary of State agree that energy companies must cut prices now and reflect the reality when wholesale prices go down, and does he also agree that those companies should play a greater part in tackling fuel poverty?
Chris Huhne
This is a real problem, in part because fuel poverty reduction is an objective for which the Government are not solely in control. Clearly, as energy prices bounce around, people get brought into or leave fuel poverty. As part of the fuel poverty review, I want us to set clearly obtainable objectives to deal with the root causes of fuel poverty. One key issue is that those on the lowest incomes often have enormously variable energy bills—varying, in fact, by a factor of six. If they are in modern social housing they can have low energy bills, but they can have very high bills if they are in private rentals. We must deal with energy efficiency issues.
Oral Answers to Questions
Debate between Alex Cunningham and Chris Huhne
Chris Huhne
I am very grateful for that highly intelligent question which, given his interest in this area, is what I would expect from the right hon. Gentleman. The National Security Council is explicitly charged with the co-ordination of energy security. That will go across Government: it will not be confined to my Department, but will include the Foreign Office and other interested Departments.
The right hon. Gentleman is absolutely right, in that the figures show that, on the worst possible projections, our energy import dependence may well rise from 27% to over half in the space of just 10 years. This is a really key issue, which we need to address.
Alex Cunningham (Stockton North) (Lab)
5. What discussions he has had with ministerial colleagues on increasing the number of green jobs in the economy.
The Secretary of State for Energy and Climate Change (Chris Huhne)
The move to a low-carbon and eco-friendly economy is a key priority for the coalition Government. Issues relating to increasing the number of green jobs in the economy were discussed when I met my right hon. Friend the Secretary of State for Business, Innovation and Skills in June, recently in the context of low-emission vehicles when I met the Secretary of State for Transport, and at the regional Cabinet on Tuesday.
Alex Cunningham
I am grateful for the answer. North-east England and in particular the Tees valley have major opportunities to develop green jobs and approaches to energy generation that could make a significant contribution to the national economy. That would be further boosted if the Government stood by the Lib-Dem election promise of £400 million-worth of investment in former shipyards to create those green jobs. Can he please tell me what commitment there is to support the development of demonstration activities such as carbon capture and storage, and to the investment promised by the Lib-Dems but omitted from the coalition’s programme for government?
Chris Huhne
Let me make it clear that we continue to be committed to carbon capture and storage, and the four demonstration projects are going ahead. It is a key part of our energy strategy for the future, because it is the swing form of electricity generation. If we have intermittent wind and nuclear comes on stream if investors make those decisions, which because of the economics will be running at full tilt, gas and coal carbon capture and storage will be the key elements. That is a clear commitment—I hope—across the House.
We are also looking at the provision through the ports competition scheme of facilities for offshore wind. I was particularly impressed when I recently visited the All Energy conference in Aberdeen and talked, for example, to Burntisland Fabrications about the way in which it has converted from oil and gas to offshore wind.