Energy Market Reform

Andrew George Excerpts

Wednesday 24th October 2012 Commons Chamber

[Mr Davey]

We put quite a lot of social obligations on them now. As the hon. Gentleman knows, the carbon emissions reduction target scheme is being replaced by the energy company obligation, which will include the affordable warmth target to help people in fuel poverty, and the carbon saving community obligation to help areas in fuel poverty. There will also be measures promoting solid wall insulation and other things needed to take energy efficiency policies forward.

[Andrew George (St Ives) (LD)]

I strongly support all the initiatives that my right hon. Friend is describing, but the energy companies are not addressing all the issues of fuel poverty. Those on the margins of credit still cannot take advantage of direct debit deals, while the falling block tariff also works against their interests, and there are a number of other measures where those companies are not addressing fuel poverty. Does he agree that they could do much more to help those in fuel poverty?

[Mr Davey]

That is one reason why I welcome the retail market review, and we will be consulting on measures and introducing them in the Energy Bill to address those and other matters.

I want to talk briefly about energy efficiency, although I am conscious of the time. On the social tariffs that the hon. Member for Luton South (Gavin Shuker) talked about, and on energy policy across the board, it is important to see both sides of the equation and understand what we are trying to do with clean energy. By 2020, all the energy and renewable subsidies combined will add £95 to bills, yet those same bills will fall by about £220, thanks to the energy efficiency improvements that our policies are bringing forward. Our green policies are about lower bills, not higher, and we are delivering on that.

As part of our policy, energy efficiency is a top priority for me, because reducing demand saves consumers money now and reduces future pressure on supply. I will give just two examples, although I am sure that Members across the House could give many more. Installing solid wall insulation saves about £270 a year on the average energy bill, while upgrading an old, G-rated boiler to a modern, A-rated one can save £200 a year. Our flagship green deal scheme will make it easier for home owners and tenants to improve the energy efficiency of their homes, paying for those improvements through savings on their fuel bills. I hope that we will continue to have the Opposition’s support, but I am not always clear where they stand on the green deal.