Energy and Climate Change

Andrew Selous Excerpts

Tuesday 20th December 2011 Commons Chamber

[Andrew Selous (South West Bedfordshire) (Con)]

It is always a pleasure to follow the hon. Member for Brighton, Pavilion (Caroline Lucas).

I represent a constituency that has a large number of park homes, which I visit regularly. I am particularly grateful in this regard to a constituent, Mrs Lorraine Bond, who has a Whipsnade park home. She asked me to come to see her a couple of weeks ago, having corresponded with me for quite a while about the exorbitant cost of heating her home using liquid petroleum gas cylinders—this is common for many park home residents. She told me that last winter, when it was cold, she was spending £300 a month on average to keep her park home warm. It is possible to have five extremely cold months in a difficult winter in the United Kingdom, so my constituents are having to spend £1,500 to keep their park homes warm. If we bear in mind the fact that most park home residents are elderly—they tend to be pensioners—and often on low and fixed incomes, the House will realise the significance of that sum. It causes me great concern and that is why I wanted to raise the matter with the Minister today.

The Office of Fair Trading just completed its off-grid energy report in October of this year. It describes the cylinder LPG market as

“a mature and declining market”

of only some 25,000 to 50,000 homes for the 47 kg cylinders of LPG. It points out that bulk LPG is more economical and involves greater ease of delivery and handling, but even bulk LPG is more expensive than other off-grid fuels such as heating oil, about which we hear a lot in this House, solid fuel or electricity. They all, in turn, are much more expensive ways of heating one’s home than a mains gas supply connection, which many rural areas do not have.

The market for liquid petroleum gas—propane and butane in the main—is very limited. There are only three major cylinder suppliers, Calor Gas, Flogas and BP Gas, and the OFT noted that retail arrangements for cylinder LPG

“in effect require dealers to deal exclusively with one supplier.”

It notes, with considerable understatement, that

“these agreements could potentially restrict competition.”

The OFT has said that it

“may return to these issues in the context of the wider cylinder LPG market at a later date”.

It urgently needs to do so, because we are talking about very vulnerable people on low incomes with little choice about the way in which they heat their homes. Our current regulation is purely through the OFT and the Competition Commission, because Ofgem and Consumer Focus do not have a remit for this market.

What can we do? The first thing we need to do is ensure that any future potential park home residents are well aware before they move in of how much it could cost to heat their home. They need to have that knowledge before they take the decision to become a park home resident.

I was encouraged when earlier this year, on 24 March, in column 1084 of Hansard, one of the DECC Ministers said that the green deal and the energy company obligation would apply to park home residents. That is very welcome, but what has happened with the renewable heat premium payment? Some £15 million of Government money, aimed at around 25,000 homes, is due to be spent up to March next year, so have park homes been covered by that payment scheme? If they have not been, can we ensure that they are in the remaining months?

My major question for the Minister concerns whether the renewable heat incentive, which starts in March next year, will apply to park home owners. As I hope I have outlined, they are some of our most vulnerable residents who are in greatest need of the new technology and financial support that the Government are bringing in through that incentive. I understand that at the moment that decision is still, in classic Government language, “subject to policy development”, so I urge my hon. Friend the Member for North Norfolk (Norman Lamb), as the Minister on the Front Bench, to ensure that this group are covered. As I have said, they are the most vulnerable residents and they need this help.

A couple of weeks ago, I visited a major new development in my constituency in Houghton Regis, on Sandringham drive, where every roof—the hon. Member for Brighton, Pavilion (Caroline Lucas) will be pleased to hear this—had photovoltaic cells on it, leading to water heating. It did not benefit from the renewable heat incentive, but the residents told me that they had very light heating bills last year as a result of that new technology. Above all, park home residents, who are mainly pensioners and mainly on low incomes, should be the ones to benefit from the renewable heat incentive and the technology that is coming in, which could make heating their homes much more affordable.