Energy Bill [Lords]

Ben Lake Excerpts

2nd reading
Tuesday 9th May 2023 Commons Chamber

[Ben Lake (Ceredigion) (PC)]

It is a pleasure to follow the hon. Member for Banff and Buchan (David Duguid), who was effective in outlining the many complexities inherent in the transition of our energy system from dependence on fossil fuels. It is a complexity that we must bear in mind as we discuss the Bill. I welcome many of the measures in the Bill that are designed to provide a cleaner, more affordable and more secure energy system. However, I am concerned that more is required to address some of the short-term issues that we face.

Of course, I need not remind the House of the widespread concern that households across the UK are particularly vulnerable to any further increases in the cost of energy. We are told that energy bills might increase by some 17% this year. Hon. Members will know as well as I do that many households struggled last winter. They have had to exhaust their savings, and some have had to take out loans to meet the costs of last winter, so they are vulnerable to any further increases that might come next.

Citizens Advice Cymru has seen a sharp increase in the number of people seeking debt advice. It reports that more people are now falling into arrears on essential household bills. The charity saw a 150% increase in the number of people seeking advice on debt relating to energy bills between February 2020 and February this year. That further underlines the vulnerability of so many of our households and how exposed they are to any further increases in the cost of energy. Before I go into some of the Bill’s longer-term measures, I would like to impress on the Government that, before next winter, there is still time to bring forward measures to support some of those vulnerable households and ways of financing them.

[Anne McLaughlin (Glasgow North East) (SNP)]

Does the hon. Member share my concerns, which I think are widespread, about the plight of people on prepayment meters who are struggling to pay for energy? Does he share my disappointment that nothing has yet made it into the Bill that would protect people on prepayment meters in particular from so-called self-disconnection, where, when they run out of money, they are automatically cut off from all gas and electricity?

--- Later in debate ---

[Ben Lake]

I thank my hon. Friend for making that important point. I think we all agree that customers on prepayment meters are among the most vulnerable consumers of energy and electricity in the country, and they should be prioritised as we look to help households with the cost of energy.

It was mentioned earlier that one way of financing greater support for households could be a new tax on share buybacks. We have read in the news about Shell and its £3.2 billion plans announced in that regard, and we must question whether such funding could be used to increase support provided under the energy price guarantee in advance of next winter. Another round of the alternative fuel payment could be guaranteed, set at a level which better reflects the increase in the cost of alternative fuels experienced by off-grid households. In that regard, I am very grateful that the Government and the Minister are considering additional support for energy-intensive businesses not connected to the mains gas grid. That should be a priority.

Looking beyond next winter, I think Members will agree that the Bill offers a golden opportunity to step up investment in the energy efficiency of our housing stock. In the long term, reducing our energy demand represents one of the most important contributions to forging a more resilient and sustainable energy system, helping to permanently slash energy bills for both households and businesses alike. I have previously called for the £6 billion for energy efficiency measures, committed in the autumn statement, to be brought forward. The spending profile should be brought forward as much as possible. The more we can prioritise the investment of energy efficiency, the better. As chair of the all-party parliamentary group on fuel poverty, I emphasise that point and, in doing so, ask that the Government consider setting clearer pathways for improved energy efficiency standards for our housing stock.

The case for prioritising energy efficiency measures is well made, but for the avoidance of any doubt the New Economics Foundation estimates that had all homes in England and Wales been upgraded to EPC C by October last year, the energy price guarantee would have cost £3.5 billion less during its first six months. A Welsh home installation programme, set out by the Future Generations Commissioner for Wales, could save the Welsh NHS £4.4 billion by 2040 in improved health outcomes.

It is important that current energy company obligation schemes are delivered properly. Between April last year, when ECO4 commenced, and December, approximately 25,000 households received support. Given that that amounts to less than 6% of the 450,000 households ECO4 is supposed to support over its four-year lifetime, we should be concerned about the pace of the roll-out so far. Constituents and installers alike have contacted me to complain about the scheme’s deficiencies, which I believe demand the Government’s urgent attention. In particular, consideration needs to be given to reviewing the eligibility criteria, so that more people can benefit from the scheme. Also important is revision of the scheme’s cost assumptions, so they are brought in line with current supply costs.

Before I bring my remarks to a close, I would like to add my support for clauses 272 and 273, which were added to the Bill in the other place. The current energy and wider cost of living crisis brings into sharp focus the consequences of failing to transition away from fossil fuels. Action must be taken to accelerate the transition. In that regard, community energy projects have a crucial role to play. By establishing an export guarantee scheme for smaller-scale sites that generate low-carbon electricity, and by requiring larger suppliers to work with community schemes, the clauses could unlock the potential of community energy schemes across the United Kingdom, which the campaign group Power for People estimates could grow by between 12 and 20 times by 2030, powering up to 2.2 million homes. This is an important set of clauses that I very much hope the Government will see fit to retain in the Bill.