Oral Answers to Questions
Debate between Bill Esterson and Chris Huhne(12 years, 3 months ago)
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Bill Esterson (Sefton Central) (Lab)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Energy and Climate Change (Chris Huhne)
Since my Department’s last Question Time, I have attended the UN climate change conference, where the UK delegation as a whole played a key role in securing the Durban platform, a road map to a global legal agreement. DECC has published the carbon plan, which sets out how we will meet our first four carbon budgets; we have consulted on incentives for solar energy as part of our review of the feed-in tariff scheme; and our clean energy plans took an important step forward with the opening of the UK’s first carbon capture and storage plant in November last year.
Bill Esterson
The right hon. Gentleman neglected to mention the defeat in the High Court. My constituents Mark Davenport and Brian Malone lost money setting up solar power companies. Will the Government compensate people who lost money as a direct result of the Secretary of State’s illegal actions?
Chris Huhne
Evidence of the very sharp take-up when we announced that we were getting to grips with the problems of the scheme shows that those involved in the industry had plenty of forewarning. As in any other sector, businesses take risks: sometimes the rewards are high and sometimes they are not.
Oral Answers to Questions
Debate between Bill Esterson and Chris Huhne(12 years, 4 months ago)
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Chris Huhne
First, I pay tribute to my hon. Friend for his work on the issue, because it is crucial that people are provided with clear and specific advice on what they can do. He is absolutely right to draw attention to the two large energy companies that have already complied, and yes, indeed, we are bringing pressure to bear to ensure that all the others follow.
Bill Esterson (Sefton Central) (Lab)
Will not energy companies benefit from pricing at the expense of companies such as Energy Outlet, in Formby in my constituency, which has lost business due to the cuts in support for solar energy, and that consumers will also lose out due to the change that the Secretary of State has made at short notice?
Chris Huhne
I simply do not agree with the hon. Gentleman, who argues that consumers will lose out from the measure. If we had not acted quickly to deal with cost overruns in the sector, not only would we not have been able to provide a sustainable future for those who are employed and have businesses in it, but we would have added so substantially to consumer bills that the impact on many other businesses right across the country, through reduced consumer spending, would have been substantial.
Annual Energy Statement
Debate between Bill Esterson and Chris Huhne(12 years, 5 months ago)
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Chris Huhne
My hon. Friend will know that my esteemed colleague, the Minister of State, Department of Energy and Climate Change, the hon. Member for Bexhill and Battle (Gregory Barker), was there in September. We have done considerable work to look at the experience of other countries, which is a theme that we might come back to in the debate on the solar feed-in tariff. This Government do not believe that it is sensible to sit in a room and try to develop things from scratch and a priori if other countries have already done so and we can learn the lessons from them.
Bill Esterson (Sefton Central) (Lab)
How can the policy change on the tariff possibly be a consultation when it is already set to change on 6 December? My constituent, Keith Bonner, wanted to install solar panels and he tells me that the £12,000 investment is no longer viable because of the change in policy. How does the change in policy fit with the requirements set out in the Secretary of State’s statement of increasing renewable energy, tackling climate change and reducing emissions?
Chris Huhne
The hon. Gentleman should know that there will not be a change in tariff before April. The key point is that the old tariff is applicable to any scheme that is installed either before or after 12 December, but any scheme that is installed after 12 December will have a lower tariff from April. We will have plenty of opportunity to debate this later today and I am sure he will want to contribute to that debate.
Oral Answers to Questions
Debate between Bill Esterson and Chris Huhne(12 years, 6 months ago)
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Chris Huhne
I see that we have now got on to the topographical, rather than the topical, part of Question Time. The Department for Business, Innovation and Skills, rather than the Department of Energy and Climate Change, has the lead responsibility for the green investment bank. Progress is being made, the advisory group has been set up, and I am confident that we will be able to make good progress in the coming months.
Bill Esterson (Sefton Central) (Lab)
Installing insulation attracts a 5% reduced VAT rate, and so do installing central heating and hot water system controls, but installing an energy-efficient boiler attracts the 20% standard rate. Is the Secretary of State talking to Treasury colleagues about this, and the need for a 5% rate on all building repair, maintenance and improvement works for energy efficiency projects that are eligible under the green deal?
Chris Huhne
I am grateful for that question. The VAT regime and its complexities are a mystery to many of us who have studied it over the years. It is full of oddities. Of course, that is not just a matter for the Treasury, because the VAT that can be levied is subject to EU rules, too. The question of particular anomalies arises not just at a British level but at European level.
Oral Answers to Questions
Debate between Bill Esterson and Chris Huhne
Bill Esterson
The Secretary of State did not answer the point about the big six, so I will give him another chance. We have some of the highest energy prices in Europe. What action is he taking with the big six to ensure that electricity and gas prices in this country are fair for those whose living standards are being squeezed by his Government?
Chris Huhne
The hon. Gentleman is incorrect about the comparison with other European countries’ electricity and gas prices. In fact, in both cases our prices are among the lowest. They could certainly be lower, and I am determined to try to make sure that we have the maximum competition in the market, because in my experience that is always the best guarantee that the consumer will get the best deal. That is why we want more companies to enter the market, and the electricity market reform will encourage more market entrants on the generator side. That is also why in the long term—