Oral Answers to Questions

Debate between Andrea Leadsom and Mark Williams

Thursday 24th November 2016 Commons Chamber

[Mr Speaker]

I have always thought of the right hon. Gentleman sitting and reading Proust, rather than having a knees-up, so one’s imagination is challenged a bit—but there you go, it is probably good for us.

[Mr Mark Williams (Ceredigion) (LD)]

T6. Further to the question from the hon. Member for Ochil and South Perthshire (Ms Ahmed-Sheikh), may I argue the case for Wales and ask the Secretary of State what discussions she has had with Assembly Ministers on the case for post-2020 funding that both respects devolution and gives us a fair funding settlement for Welsh farmers?

[Andrea Leadsom]

I am meeting a Welsh Minister just today to discuss that very subject, and my colleagues have met a number of Welsh Ministers in recent weeks. At official level there are constant discussions, we have had informal stakeholder meetings and, as we have pointed out, formal consultations will be taking place, starting in the near future.

Domestic Oil Purchasing Syndicates

Debate between Andrea Leadsom and Mark Williams

Monday 7th December 2015 Commons Chamber

[Mr Mark Williams (Ceredigion) (LD)]

I am grateful for this opportunity to raise the issue of domestic oil purchasing syndicates in my own constituency and in many rural communities throughout the United Kingdom. This is apparently not the most scintillating of titles for a debate, but I believe that the subject is of significance, certainly for my constituents.

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

indicated assent.

[Mr Williams]

I am pleased to see that the Minister acknowledges that.

The development of domestic oil purchasing syndicates is an important and growing trend in many areas of the UK. [Interruption.] I welcome the hon. Member for Strangford (Jim Shannon) to his place; I was wondering where he was. Those syndicates are helping many communities to save substantial amounts of money by buying their off-grid fuel collectively. This is also helping to tackle the serious issue of fuel poverty in many parts of the country. That issue is not unique to rural areas, but I want to concentrate on those areas this evening.

When communities organise to combine their orders, whether they are communities of single numbers or hundreds, they can negotiate discounts with suppliers by decreasing the number of vehicles that the supplier needs to send to an area, and guarantee the purchase of all the fuel delivered. So there is a gain not only for our constituents but for the suppliers. These arrangements can help substantially to decrease the cost to each member of the syndicate or club, and help to tackle some of the most pressing problems associated with the cost of fuel. Fuel prices represent a serious problem for many rural communities, including not only the scattered hamlets but the bigger towns of my constituency.

In Wales as a whole, 20% of all households still have no access to gas from the grid and are reliant on more expensive forms of fuel, such as oil and coal, as their main source of heating. I have the privilege of representing Ceredigion, a vast tract of rural west Wales with 700 farms and 147 communities. That gives hon. Members an idea of the kind of rurality I am talking about. In my constituency, a majority of households—69%—do not have access to mains gas, and many people are therefore reliant on the more expensive means of heating their homes. This issue is not limited to Wales. Sizeable areas of the United Kingdom, from the west country to the highlands of Scotland—and, I dare say, Northern Ireland as well—have a substantial number of households that cannot access mains gas. The choices available to those households are therefore limited.

The higher cost of off-grid fuel is compounded by other factors such as the age of the housing stock and poor energy efficiency—something that is especially problematic in rural communities with large numbers of solid-wall detached houses. Beyond the image of the beautiful countryside with its thatched cottages and clotted cream, there lies a deeper problem relating to heating houses and keeping our residents warm. There is an attractiveness to many of those isolated rural homes during the summer months, but it belies the reality of living in such old housing stock during the winter. Finding ways to ensure that families and vulnerable people living in rural areas are able to keep warm during the winter months is a major challenge that we must tackle on a cross-party basis.

The huge potential of oil syndicates in tackling fuel poverty was first brought to my attention by the late Jane Wakeham, a constituent of mine from the famous, or infamous, village of Llanddewi Brefi. I should declare an interest, as my home on the clifftops of west Wales is oil supplied and my wife, who manages these things on behalf of our household, actively seeks out syndicates wherever they are.

--- Later in debate ---

[Andrea Leadsom]

The hon. Gentleman has raised that issue in a number of debates, and I agree that fuel poverty is a key issue for our energy support. Everything that we do to support fuel, energy efficiency and warm homes will be directed at fuel poverty.

We are keen for people to join an oil-buying group because they can benefit from reduced prices and the ability to negotiate for large volumes, meaning cheaper oil for all those in the group. Action with Communities in Rural England, Citizens Advice, and the Federation of Petroleum Suppliers have produced guidance on best practice for forming and operating oil buying clubs. ACRE is made up of 38 rural community councils across England. Those are charitable local development agencies—generally based at county level—which have a strong history of leading, supporting, and enabling community initiatives to help communities to help themselves. That includes running oil buying clubs.

Citizens Advice has produced guidance for consumers who experience difficulties with their heating oil suppliers, and set out what to do if people are struggling with their bills. It also has a website search function to find oil clubs, although that is not necessarily a comprehensive list. The sector trade association, the Federation of Petroleum Suppliers, has produced separate guidance on oil-buying groups and published a mandatory code of practice for its members, as well as a customer charter to engage with consumers on a fair and consistent basis and implement best practice to raise standards. The hon. Member for Ceredigion mentioned work by the previous coalition Government, and the Cheaper Energy Together scheme through which the Government funded three oil buying clubs. A decent amount of lessons were learned, and informed guidance allowed new clubs to form and meet to the benefit of consumers.

Some suppliers offer a means of spreading the cost, such as the option of paying by monthly direct debit with a fixed-rate payment scheme. That allows customers to know how much they will be paying for oil over the coming year, and to budget accordingly. Some suppliers offer a top-up scheme where, either through telemetry or distributor knowledge, customers’ tanks are filled as required. Through the telemetry system, suppliers are automatically informed when a tank requires filling. As well as reducing the risk of customers running out of oil, that has the advantage of providing alerts for rapid drops in level, such as those that, sadly, are occasionally caused by theft or leakage. Most companies will inform customers of the price prior to filling their tank.

Although in their infancy, pay-as-you-go schemes linked with credit unions seem to have real potential for supporting vulnerable consumers. Such schemes provide flexibility of purchase, and ensure that when customers need fuel they are able to purchase it. As the Federation of Petroleum Suppliers advises, it is always wise for people to check their fuel price against other retailers on a regular basis, and to ask their suppliers to confirm the price prior to delivery.

The Government are fully committed to reducing energy bills, and energy efficiency is a key part of that. The spending review announced our intentions for a long-term, better focused successor to the energy company obligation from 2017-18 which will run until 2021-22, with a maximum envelope of £640 million per annum, rising with inflation. That will support the insulation of 1 million homes over the course of this Parliament. Officials have engaged with stakeholders to design a successor to ECO, and we will consult on our proposals next year.

We are also committed to helping people move away from dependence on fossil fuels. The renewable heat incentive is the world’s first long-term financial support programme for renewable heat. It provides financial incentives to instal renewable heating in place of fossil fuels. The scheme is designed to bridge the gap between the cost of fossil fuel heat sources and of renewable heat alternatives, with financial support for owners of participating installations. As of 31 October 2015, over 43,000 installations have been accredited on the scheme and over 481 GWh of heat has been generated and paid for.

I want to assure the hon. Member for Strangford (Jim Shannon), who made a point about fuel poverty, and the hon. Member for Ceredigion that my priority is keeping bills low for families and businesses while meeting our climate and fuel poverty goals and continuing to keep the lights on. I should like to draw attention to the work of my hon. Friend the Member for Suffolk Coastal (Dr Coffey), who used to chair the all-party group on off-gas grid, and continues to raise the issue in government. I urge Members who are interested in the subject to join that all-party group. I am always keen to hear new ideas on how we can better support those who are off-gas grid.

One way in which individuals can keep their energy bills low is by joining domestic oil syndicates and, as I have said, I have personal experience of how successful such initiatives can be. I urge consumers who belong to those initiatives to buy early, particularly as winter is approaching.

[Mr Mark Williams]

I am grateful to the Minister for her response and the enthusiasm that she is sharing with us, because this is an important issue. She alluded to something that happened under the coalition Administration. Without wanting to be too nostalgic for those days, may I ask her to reflect on that scheme and the funding for those syndicates? A lot of work to publicise syndicates relies on the third sector. It is something that could captivate people. A lead from Government, with a little money, would go a long way.

[Andrea Leadsom]

I will certainly take that away and look seriously at what the hon. Gentleman says. Only recently, we conducted a small campaign in social media and in the general media to try to encourage people who are part of oil buying syndicates, and people who are not, to buy early in preparation for the winter and to try to grab prices while they are relatively low.

I hope that this debate has been helpful to the hon. Gentleman—and to the hon. Member for Strangford—and I sincerely congratulate him on raising it.

Question put and agreed to.

Draft Onshore Hydraulic Fracturing (Protected Areas) Regulations 2015

Debate between Andrea Leadsom and Mark Williams

Tuesday 27th October 2015 General Committees

[Andrea Leadsom]

I am grateful to the hon. Gentleman because he gives me the chance to repeat what I said, which is that the Infrastructure Act required the Government to lay regulations to deal with the hydraulic fracturing process, which happens far below the ground. We will, as soon as possible, make a statement regarding the areas on ground level—the surface drill level—in which activity will be banned. We are looking very carefully at how to define and protect our most valuable areas. We will be making announcements shortly, but that is not for today. These regulations are the consequence of a requirement in the Infrastructure Act to deal with the subsurface implications, so I will move on.

The draft regulations set out definitions for the protected groundwater source areas and other protected areas in which hydraulic fracturing will be prohibited, and will afford greater protection to some of our most precious areas in a manner that still meets the Government’s broader policy objective of supporting the long-term development of the UK’s shale gas industry.

Regulation 2 defines protected groundwater source areas. The definition is equivalent to the existing definition of source protection zones 1, which applies to those areas close to drinking water sources where there is the greatest risk associated with groundwater contamination. The draft regulations ensure that the process of hydraulic fracturing cannot take place in such areas at depths above 1,200 metres. The vast majority of drinking water supplies are located at depths above 400 metres. The limit therefore provides at least 800 metres between the depth of most drinking water sources and the highest possible level at which hydraulic fracturing can take place.

As required by the Infrastructure Act, we consulted the Environment Agency and Natural Resources Wales on the definition of protected groundwater source areas. They confirmed that they are content with the definition being aligned with source protection zones 1, as that reinforces their approach to controlling risks from other groundwater activities. Indeed, it is already the case that neither agency permits onshore drilling for oil or gas, which does currently happen in the UK—to be clear, hydraulic fracturing does not—in source protection zones 1. They have successfully influenced operators not to apply for sites in those zones and have ensured that pipelines do not run through such areas. Furthermore, if either agency assesses that more stringent controls are needed to protect groundwater, those will be applied as conditions in the environmental permits required for all developers. The proposed definition would not affect the environmental regulator’s current powers to refuse permit applications within source protection zones 1, 2, 3 or wider on a case-by-case basis, if it considers that an activity poses an unacceptable risk to the environment.

Regulation 3 defines “other protected areas” as national parks, the broads, areas of outstanding natural beauty and world heritage sites. The draft regulations ensure that the process of hydraulic fracturing cannot take place above 1,200 metres below ground in such areas. In defining protected areas there is a need to strike the right balance, affording them additional protection without stifling the nascent shale industry. The Government firmly believe that the depth limit chosen—1,200 metres—strikes that balance.

In addition, national parks, the broads and areas of outstanding natural beauty are our finest landscapes and are afforded the highest status of landscape and scenic beauty protection within the planning system. Similarly, world heritage site status is the highest international heritage designation. Our world heritage sites are simply irreplaceable, and the Government take their responsibility to conserve and protect them very seriously.

[Mr Mark Williams (Ceredigion) (LD)]

Will the Minister explain the omission from that list of SSSIs, which the hon. Member for Ogmore mentioned, not least in the light of comments made by her ministerial colleague during debate on the then Infrastructure Bill that SSSIs would be protected and part of the list?

[Andrea Leadsom]

The regulation deals with activity underground—1,200 metres below ground. The Infrastructure Act 2015 already deals with the level below ground at which hydraulic fracturing may take place normally. The important balance to strike is between those areas that are protected absolutely and those where the depth of drilling underground can be set safely by the Environment Agency. The key point regarding SSSIs in the planning process is that the Environment Agency may determine the depth, so additional protections were not deemed necessary, because they would transcend the balance between enabling the industry to succeed and protecting our most valuable areas.

[Mr Williams]

rose—

[Andrea Leadsom]

I cannot give way again, because many Members wish to speak.

Turning briefly to surface level protections, our existing regulatory and planning regimes already offer strong protections to sensitive areas. In addition, the Government have separately committed to ensure that hydraulic fracturing cannot be conducted from wells that are drilled at the surface of national parks and other protected areas. Members can be reassured that that remains the Government’s position. We are considering how best to implement that surface restriction, but the draft regulations before us today are not a suitable vehicle, because they flows from the Infrastructure Act’s requirement to specify the protected areas within which subsurface hydraulic fracturing cannot take place. Consideration of surface activity therefore is not within the scope of the regulations.