Energy Bills
Debate between Bill Esterson and Ed Davey(10 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Davey
My hon. Friend is absolutely right. One of the reasons why we have to increase investment so much over a relatively short time, which comes at a price, is the failure of the last Government to invest in energy infrastructure. People warned them, and warned the former Secretary of State for Energy and Climate Change, currently the Leader of the Opposition, to do something; he failed.
Bill Esterson (Sefton Central) (Lab)
The Secretary of State says that he is spreading the money for the energy company obligation over an extra two years. That delays measures that would help people to keep their bills down. Is not the truth that people in fuel poverty will pay higher bills for longer after this statement?
Mr Davey
Not only did I not say what the hon. Gentleman said I did, but that is not true. Fuel poverty programmes, such as the affordable warmth programme and the carbon saving community obligation, remain in place, remain at the same rate in each year, and are being continued for two more years, so this is more investment to tackle fuel poverty.
Annual Energy Statement
Debate between Bill Esterson and Ed Davey
Mr Davey
We would not be asking for an annual competition assessment if we were not concerned to ensure more competition. My hon. Friend is right: we have faced a market created by the last Government who created the big six. We have already taken many measures that are working to get independent suppliers and generators, and our liquidity reforms with Ofgem will make a big difference in the forward markets.
Bill Esterson (Sefton Central) (Lab)
A disabled pensioner couple summed up the views of many of my constituents when they told me that they pay more than £3,000 a year in electricity and gas, which will go up by another £300 after the price rises. My constituents would benefit from Labour’s plan to put all over-75s on the cheapest tariff. Why will the Secretary of State not do that?
Mr Davey
Again, the Labour party needs to understand that the retail market review in the Energy Bill will get people on the lowest tariff. I hope that the hon. Gentleman will read the new guide that we have published today because it is aimed at those who, like him, are talking to people like his constituents to ensure that they get the help that they need.
Oral Answers to Questions
Debate between Bill Esterson and Ed Davey
Bill Esterson (Sefton Central) (Lab)
6. What steps he is taking to help households with their energy bills.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
We have a range of initiatives to help households with their energy bills. From our proposals to get consumers on to the cheapest tariffs and the provision of nearly £1 million for the big energy saving network, to the green deal, and from the warm home discount to our promotion of collective switching, this Government are working to help households keep their energy bills down.
Mr Davey
If the hon. Gentleman wants to write to me, we can first look at the details before we consider whether any meeting is required, because we might be able to help his constituent more quickly. He will know that part of the energy company obligation is for affordable warmth for people in fuel poverty. I do not know whether that would apply in her case, but if he writes to me with all the details, we will look at them very thoroughly.
Bill Esterson
Thousands of pensioners in my constituency would be up to £200 a year better off if the Government adopted Labour’s plan to put all over-75s on the cheapest tariff. The Energy Bill will not become law until next year, when the Government say they will put everyone on the cheapest tariff, but why not act now to help 4 million pensioners with their energy bills this winter?
Mr Davey
I do not recognise the hon. Gentleman’s argument. The proposals that we have put forward in the Energy Bill, working with Ofgem, apply to everybody, not just to a part of the population. We want to get benefits for everybody in our society. He says that he will have to wait for Royal Assent for the Energy Bill. He is not right about that: Ofgem is proceeding apace with its consultations for tariff reforms. The Energy Bill aims to support and strengthen that, in case there was any foot dragging by the energy companies, so actually we are acting very quickly—much more quickly than under the proposal he puts forward.
Oral Answers to Questions
Debate between Bill Esterson and Ed Davey(11 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Davey
The hon. Gentleman got a lot of questions in there. I have looked at the headlines but I cannot say that I have read the full report, although I certainly intend to do so. I agree that it poses some challenges to those who debate energy policy, because it suggests that with a high gas price prediction, we could see energy bills going up by, I think, £600, whereas under a renewables strategy it would be only £100. The Government are adopting a mixed-energy approach, so that we are not dependent on any single energy source and can therefore manage the risks, because we cannot know the future of gas prices or predict how the cost of renewables will go down. I believe that our approach is the best one for the British economy.
Bill Esterson
The cost of energy is crucial for the nearly 10,000 pensioners in my constituency, and I am worried about the Government’s policy to get people on to the lowest tariff. What would happen if the energy companies simply raised the price of the lowest tariff? How would the Secretary of State address that problem?
Mr Davey
We have taken a balanced approach in our tariff reform proposals, on which we are now consulting. We have tried to ensure that those people who are on so-called dead tariffs, or on unnecessarily high tariffs, will automatically be switched down to the lowest tariff, given their preferences. We have also tried to ensure that there will still be competition, in that there will be four classes of core tariff so that the energy companies will be able to compete using those tariffs. The key is to try to help people who do not engage with the energy market to get a good deal, as well as to ensure that competition can deliver for consumers and for businesses.
Oral Answers to Questions
Debate between Bill Esterson and Ed Davey
Mr Davey
My hon. Friend is right to pay tribute to the work of the Energy Saving Trust. It does a huge amount of work on providing information, advice and support to a whole range of people, particularly the most vulnerable, and I am sure that it will have heard her welcome comments.
Bill Esterson (Sefton Central) (Lab)
If the Secretary of State is serious about the green deal, why will he not ensure that the energy companies have to put the 9,914 pensioners over the age of 75 in my constituency, and others around the country, on to the lowest tariff?
Mr Davey
I think the hon. Gentleman is mixing up the green deal with the action that we are taking to help people with their consumer bills. The warm home discount, which targets the 600,000 poorest pensioners, is one of the most effective ways of providing that help. Under the scheme proposed by Labour, some of the wealthiest pensioners would get the discounts, and I am afraid that that shows that it is no longer the party of the many.