Annual Energy Statement
Debate between Anne Main and Chris Huhne
Chris Huhne
I am grateful to the hon. Gentleman for raising the issue of home heating oil because, as he knows, last winter that issue caused us a lot of concern. We referred the matter to the Office of Fair Trading and I was surprised with its conclusion but we must accept that it followed a full investigation. The longer-run solution will be to ensure that people are less reliant on the heat from heating oil through energy insulation and the green deal. We are determined that those who are off the gas grid will be able to take every opportunity to enjoy the benefits of the green deal, too.
Mrs Anne Main (St Albans) (Con)
Small solar panel companies about which I have written to the Secretary of State’s Department are having a particularly hard experience following the change in the tariff. They will lose jobs over it and they are asking whether the domestic 4 kW rate can be considered as a taper for a longer period so that they can recover from the shock of the quick cut in the tariff rate when they cannot deliver as quickly as the big boys.
Chris Huhne
I am grateful to my hon. Friend for that question. This is a consultation and a genuine one. We have made serious proposals and we are waiting for the responses. We will take those responses into account when we come to make decisions.
Electricity Market Reform
Debate between Anne Main and Chris Huhne
Chris Huhne
The hon. Lady is referring, I think, to the potential impact of the carbon price floor, which will of course begin in 2013 and then rise slowly. There will be no impact of the type that she is suggesting until its introduction. It must be considered alongside all the measures we are introducing to save energy and protect those in fuel poverty.
Mrs Anne Main (St Albans) (Con)
The Secretary of State will be aware of the amount of green tax that is already put on people’s energy bills. I am puzzled about why his Department will set aside £30 million of taxpayers’ money for a certain technology. Surely if we are encouraging the market, it should be the market that puts up the money and not the taxpayer.
Chris Huhne
There is a sound argument in economic literature for encouraging early-stage technologies. Many British Governments have done that for many years. Green taxes are much lower than the estimates that have been bandied about recently in the press. We are committed to bringing forward in the annual energy statements our estimate of the overall impact of all our policies—not only the low-carbon policies, but the energy-saving policies—on consumer bills. The last time we did that, it was estimated that in 2020 our policies would add just 1% to consumer bills, and that assumed a world in which gas prices are lower than they are today and in which oil prices are only $80 a barrel, instead of $118 a barrel. If we want to protect British consumers against the vagaries of these markets that are buffeted by events, such as those in Libya and the middle east, we have to move to low-carbon sources of electricity. That is good news for British consumers, not bad.