Oil and Gas Industry

Bill Grant Excerpts

Tuesday 9th October 2018 Westminster Hall

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

It is a pleasure to serve under your chairmanship, Mr Hollobone, and I thank the hon. Member for Falkirk (John Mc Nally) for securing this important debate.

I welcome the stated aim of the Oil & Gas UK trade association, which is

“to strengthen the long-term health of the offshore oil and gas industry in the United Kingdom by working closely with companies across the sector, governments and all other stakeholders”.

In late 2014, Her Majesty’s Treasury developed a plan to reform the oil and gas fiscal regime. Over the last 50 years the oil and gas industry has contributed more than £350 billion to the UK Exchequer in production tax revenue alone—not an insignificant sum.

In 2017 the UK Government’s industrial strategy stated:

“We can also reduce costs for the UK as a whole by making intelligent use of our oil and gas assets and expertise. While the move towards clean growth is clear, oil and gas remains one of the most productive sectors of the UK economy, supporting 200,000 jobs directly and in the supply chain, and generating £24 billion in annual exports. The emerging shale gas industry offers the prospect of creating jobs, enhancing the competitiveness of downstream sectors and building up supply chains.”

It seems likely that shale gas will be extracted only south of the border, as the Scottish Government appear—I emphasise the word “appear”—to have placed a moratorium on that source of energy. I understand, however, that imported shale gas from the US is helpful when securing the future of the important Grangemouth plant.

I read with interest a recent post note in the journal of the all-party group for energy studies, which considered decarbonising or reducing the carbon content of UK gas supplies as an option for reducing emissions from heating, potentially substituting natural gas with hydrogen or biomethane. I am pleased that such welcome research is continuing in that field. Indeed, some businesses in my constituency are already utilising biomethane, although not necessarily to the exclusion of natural gas.

The opening in February 2017 of Aberdeen’s Oil & Gas Technology Centre clearly illustrates both the UK and Scottish Governments’ commitment to the future of the oil and gas sector. The £180 million investment aims to unlock the full potential of the UK North sea for future generations, which is vital given that future energy demand, not just in the UK but globally, is predicted to increase as global living standards and population levels rise.

Another important aspect for the future is securing for the UK work associated with the decommissioning of platforms and subsea facilities where a cost-benefit analysis proves that to be prudent. The Oil & Gas Authority has stated that such work may create a globally competitive market for the UK. The aim of the Department for Business, Energy and Industrial Strategy is to maximise the economic recovery in relation to the UK’s continental shelf, and it endeavours to secure maximum value for economically recoverable hydrocarbons.

Although the oil market is volatile—post 2014 the price of a barrel of Brent crude plummeted—it is clear that oil and gas have a positive future. That future may not be a mirror image of the past, but rather a new vision, as scientific research and innovation define and constantly refine it for our children and grandchildren. Oil and gas may not have the same exclusivity they once experienced, but in my view they will remain part of an inclusive package of energy options for some time to come.

Let me turn to a fuel from the past—coal. These days, open-cast or imported coal is used mostly as an integral part of the UK manufacturing sector, especially in the chemical process to make steel and cement. Many Members present, however, will recall when coal was king. Collieries in Ayr, Carrick and Cumnock, such as Littlemill, Killoch, Barony, Knockshinnoch and Beoch, to name but a few, fuelled the industrial revolution and kept the home fires burning. Sadly, there are no longer any deep mines in the United Kingdom, and coal is outlawed as a polluting fuel. With the recent alarming UN report on global warming, we must be aware that the same fate may befall oil and gas in the rush to embrace clean renewables and to prevent a catastrophic rise in global temperatures. In closing, therefore, I ask the Minister to comment briefly on that recent UN report on rising global temperatures.

Brexit, Science and Innovation

Bill Grant Excerpts

Thursday 6th September 2018 Commons Chamber

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

It is a pleasure to follow the enthusiasm of the hon. Member for Oxford East (Anneliese Dodds). I thank the Chair of the Science and Technology Committee, the right hon. Member for North Norfolk (Norman Lamb), for securing this important debate.

Many Members will agree that we need an immigration system that works for the science and innovation community. Back in March 2018, the Prime Minister, speaking on our future economic partnership with the European Union, called for

“a far-reaching science and innovation pact with the EU, facilitating the exchange of ideas and researchers.”

Collaborative research environments are currently being nurtured in our colleges and universities throughout the United Kingdom, and we must ensure that those arrangements do not simply survive but continue to thrive post Brexit. If we peruse the alumni of such colleges and universities, it is clear that students attend from many parts of the world, with many going on to complete PhDs here in the United Kingdom.

Similarly, several institutions and their professional journals cater for a global membership, again clearly illustrating the exchange of ideas and practices. Many members travel and participate in conferences around the world. One example is the Institution of Fire Engineers, which offers chartered engineer status to people throughout the world. We would not wish to lose such valuable contributions due to visa restrictions. Further evidence is to be found in medical and scientific textbooks. For example, one textbook on the complicated subject of polymyalgia rheumatica has 32 contributors from no fewer than eight countries. It is imperative that such contributors’ expertise and skills transcend borders and are not held back by them, to benefit practitioners and patients alike, whether that be by visiting to collaborate on further publications, lecture on good practice or carry out and demonstrate life-saving procedures.

Some countries operate consortia, with scientists sharing expensive equipment, such as in the fields of astronomy and astrophysics. That allows access to data through computers within laboratories or universities in their own countries without the necessity of travelling. However, for practical experience, and where shortages exist in specific skillsets, it is often necessary to ensure free movement of scientists and students of science. Such talent is vital to fulfil the vision set out in the Government’s industrial strategy to raise the total research and development investment to 2.4% of GDP by 2027. The immigration system needs to be supportive of that strategy, and it must be affordable and have a degree of flexibility.

While addressing EEA nationals, it may be an opportune time to reflect on the current immigration system for non-EEA nationals and any possible improvements to it. According to the Chartered Institute of Personnel and Development, the number of applicants per vacancy has fallen since last summer across all levels of skilled jobs, and the number of people moving to the UK from other EU countries has fallen to its lowest level since 2013. In placing greater emphasis on the need, when taking back control of our borders, to honour the stated aim to maintain a close friendship with our European neighbours, we need to find a pragmatic way to encourage the continued exchange of skills and developments, particularly but not exclusively in the scientific and innovative arena.

I fully acknowledge that people cannot be looked at in isolation, and due consideration will need to be given by the Government to funding for Horizon 2020 and various framework programmes and their successors, together with appropriate regulation to facilitate fruitful contributions by future generations of scientists and innovators. I trust that the Minister will be able to confirm that all those issues are being urgently addressed, in order to secure the future of science and innovation here in the United Kingdom, which is, and I am sure will remain, world leading.

Oral Answers to Questions

Bill Grant Excerpts

Tuesday 17th July 2018 Commons Chamber

[Claire Perry]

Again, that is an excellent point, demonstrating that we are so much stronger when we work together. We all, including my right hon. Friend the Secretary of State, speak to representatives of the devolved Administration on issues such as the auto sector deal and the nuclear sector deal, which was very much a joint effort.

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

8. What steps the Government is taking to ensure that Scotland benefits from the modern industrial strategy.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)]

I am pleased to assure my hon. Friend that our modern industrial strategy continues to deliver strongly for Scotland. The progress in negotiations for a growth deal with Ayrshire demonstrates our commitment to regional growth. Investment in Scotland through the industrial strategy challenge fund includes last month’s £13 million for a medicines manufacturing innovation centre in Renfrewshire.

[Bill Grant]

I thank the Minister for that reply. In November 2017, the Secretary of State announced a review into how Scotland’s two Governments can collaborate better on business support. Will he update the House on the progress of that review, and will he reassure me that he will strive to ensure that the industrial strategy and the Scottish Government’s business support programmes complement, rather than compete, with each other?

[Richard Harrington]

I am very pleased to reassure my hon. Friend, who works so hard on this subject, that we continue to work closely with the Scottish Government on many industrial strategy priorities, including our support for innovation and business productivity. Regarding the review, work is under way across government to determine its scope. Clearly, our partnership with the Scottish Government will be essential as that progresses.

Domestic Gas and Electricity (Tariff Cap) Bill

Bill Grant Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Monday 30th April 2018 Commons Chamber

[Patricia Gibson]

I thank the hon. Gentleman for that clarification. I appreciate that such tariffs will benefit some consumers—I do not think anyone would deny that—but I question whether the system would be flexible enough to benefit all families with children, and others whose energy use cannot be as flexible as they might like.

The amendment to ensure that customers must benefit from the cap by at least £100 seems very arbitrary and risks unintended consequences. I agree with the hon. Member for Wells about that, and with my hon. Friend the Member for Kilmarnock and Loudoun (Alan Brown). There is widespread concern that the big energy companies will use exemptions and green tariffs to ensure that they meet the target.

It is essential that the Bill delivers for consumers and that the period of the cap is used to deliver a fairer, more competitive market for consumers. It must deliver a change for consumers who have been overcharged for too long. There is consensus that the energy market is broken and needs to be fixed, which is why the Bill was introduced in the first place. It enables us to begin to do that, but we must ensure that we get it right and that there are no unintended consequences for the very consumers whom we seek to protect and assist. I know that the Minister will be mindful of that. We need to ensure that consumers benefit from action on this issue after the tariff is lifted in 2020 or 2023.

The launch of the independently chaired commission for customers in vulnerable circumstances by Energy UK in January will report on its findings and recommendations on energy companies, the Government, regulators and consumer groups towards the end of this year. I hope that the Minister or the Secretary of State will note that as we approach the end of the tariff cap, so that the voices of consumers can feed directly into the process of ensuring that they are offered as much protection as possible as the broken market is improved to become more fair and transparent.

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

It is a pleasure to follow the hon. Member for North Ayrshire and Arran (Patricia Gibson).

It is clear that the energy market is not working for the consumer, and with that in mind, I am pleased to support the Bill. However, I firmly believe that these additional measures must be temporary. Permanent Government intervention in the energy market of the kind that is proposed in new clause 1 is, I believe, unnecessary. Indeed, things are already changing. As recently as 2010, there were only 13 energy suppliers in the United Kingdom; now there are well over 60. Independent suppliers are growing and, rightly, posing new challenges for the big six. They already account for some 20% of the dual fuel market.

The basis of healthy competition is enabling consumers to go elsewhere with relative ease if they find a better deal. Nearly 20% of households a year already switch suppliers. By making switching quicker and easier, we can make that figure even higher and force big suppliers to stop taking long-standing customers for granted as they have done for many years.

There are now about 10 million first-generation smart meters in operation in the United Kingdom. While the roll-out is progressing, there is a long way to go to meet the ambitious target of 53 million by 2020. In the context of the Bill, a key element is the roll-out of the SMETS 2 meters, which is due to begin this year. SMETS 2 consumers will benefit from quick and easy switching, and the meters should be intelligent enough to identify the lowest tariff. They have the potential to be a real force for competition in the energy market. At that point, there will be no need for the price cap, which is why it would not be prudent to introduce a permanent relative cap. It would be bad for customers, and it would work against the positive changes that will be made over the next few years.

New clause 1 is the product of a belief that markets simply do not work. As a Conservative, I believe that they can work. I note the progress that we have made, and the progress that we will make in the coming years. I acknowledge that the market needs the temporary cap, and I support the Bill as a means of protecting consumers, not only in my constituency but throughout Scotland and throughout the United Kingdom. I am sure that it will contribute to a reduction in the very real fuel poverty that some people endure.

[Michelle Donelan (Chippenham) (Con)]

I am delighted to speak about the Bill, having supported it throughout this Parliament and having been a member of the Bill Committee. I think it important that, when considering the new clauses and amendments, we consider the fundamental aim of the Bill, which is to guarantee protection for the 11 million households that are currently on the highest energy tariffs—as well as the 5 million vulnerable households that are already protected by Ofgem’s prepayment meter safeguard tariff cap—by introducing a measured temporary intervention to correct a market that is currently letting down and ripping off thousands of people in my constituency, and millions throughout the country.

New clause 1 would allow the Secretary of State to make requirements in relation to a differential between the cheapest and the most expensive rates offered by suppliers: in other words, a relative price cap. In practice, that would mean that once effective competition was in place in the market—or by the end of 2023 at the latest —and that tariff cap was removed, a maximum differential between the most expensive and the cheapest tariffs would be introduced. That goes against the principle of the Bill, which is to ensure that it is temporary. This should be a temporary measure to correct the market, and it should not allow Government intervention to remain permanent. This Bill is based on a mandate that came out of the Conservative manifesto, which set out a temporary intervention.

Dieter Helm Energy Review

Bill Grant Excerpts

Tuesday 24th April 2018 Westminster Hall

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

It is a pleasure to serve under your chairmanship, Mr McCabe, and I thank the hon. Member for Blackley and Broughton (Graham Stringer) for securing this important debate.

I thank Professor Helm and the advisory board for their work on the independent review. It has certainly contributed to the wider debate on how we should approach energy policy in a way that balances the challenges of climate change, energy security and justice for customers. The true cost, or benefit, of the review will be determined by what the Government do with the findings. I am confident that the review, or at least the debate it has provoked, will lead to positive and successful steps to reduce the price of energy in this country for both domestic and business users.

The concept of starting an important debate about the future of energy markets, with the aim of bringing down the cost of energy for customers, must surely be the right thing to do. The UK Government have already shown that they are serious about making energy prices more affordable for consumers. In July 2017, the UK Government and Ofgem set out a plan to create a smarter energy system. We are seeing some progress, although perhaps not as much as many would like, on smart meters. It is a big hill to climb and I only hope it will continue to accelerate in the next couple of years. I am looking forward to the return of the Domestic Gas and Electricity (Tariff Cap) Bill to the House for its remaining stages, which I believe will be next week. It is entirely reasonable that the UK Government have sought to build on those actions with a review of what else can be done to bring energy prices down and provide energy security in a low-carbon economy. All the elements of energy production and the low carbon aspect make this quite a difficult Rubik’s cube to square off.

Professor Helm has frequently raised concerns about the price of renewable energy as produced by current technology and has called for Governments to take a more balanced approach to sourcing and securing energy. In his review, he put forward many interesting proposals for the future of UK energy policy, from a carbon price to the replacement of overpriced standard variable tariffs with a new default tariff, to a wider simplification of the whole raft and range of state interventions, which are cumbersome and only understood by a few people, if by anybody.

We do not necessarily have to subscribe to the findings of the review in full to acknowledge that many of its proposals are interesting contributions to the debate and at least merit further examination. That is why it is right that the UK Government have responded to the review by taking evidence from a range of interested parties, including consumer groups, and are now analysing that evidence. The review has been worthwhile and I am confident that it will prove to have been a valuable contribution to the UK Government’s efforts to reduce the cost of energy and to reduce fuel poverty—an important aspect for many—and to assist industry to become far more competitive as we go forward.

Domestic Gas and Electricity (Tariff Cap) Bill (First sitting)

Bill Grant Excerpts

Committee Debate: 1st sitting: House of Commons
Tuesday 13th March 2018 Public Bill Committees

[Stephen Kerr]

Neither of you had any concerns relating to that. You agreed with the Select Committee.

Hayden Wood: I would say that this goes back to the transparency point that I made earlier. I have an issue with a non-transparent process where the methodology, formula, and data input into that process are not published. That is an issue. I do not have information on the appeal issue.

Greg Jackson: The idea that you end up going to appeal in order to get the right to over-charge customers is going to be pretty grotesque. The reality is that they may try to do that, and you have to stop them. We have to prevent it becoming tied up in process. The prices are all still grotesquely high, whether they are set at £1,050, £1,075 or £1,030.

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

Q Juliet touched on smart meters earlier and the rather ambitious and expensive project that is endeavouring to secure 53 million installations by 2020. To what extent do you believe that smart meters can make the market work for consumers? This is to everyone. Could it lead to an early end to the cap, or could it make it redundant before 2023? It is not a freeze, it is a cap. There are opportunities three years prior to 2023 in which it could be eased or lifted. What is your view on that?

Greg Jackson: I think smart meters make this all the more important right now. If we do not clean up the energy market before we end up with everybody having a different price every half hour, it is going to be a wild west. We have the opportunity to clean up pricing now, and that is why it is particularly important that we deal with this topic of the difference between the highest and lowest tariffs. If it is hard for someone to know where they stand at the moment, then it will be even harder for them to know where they stand in the world of rampant time-of-use tariffs. Let us tidy up pricing now, and then smart meters really can be a path to success.

Hayden Wood: To add to that, we find the conflation of the price cap and the smart metering quite troubling. We do not see a relation between them. A person’s understanding of how much energy they use does not influence how often they might go into the market and look at price comparison sites and understand how much they are paying versus other suppliers. We are also not aware of any evidence suggesting that installing a smart meter would offset the £100 a year that a consumer would save under this price cap. The Government’s own data would suggest that the installation of a smart meter saves the consumer only £11 a year on their energy bill. They are actually separate things.

Juliet Davenport: My personal view is that they do come together when we get proper smart meters: SMETS2 in as opposed to SMETS1. The SMETS2 meters are going to make a significant difference to switchability. At the moment, if you take on a SMETS1 and you are not SMETS1-qualified you cannot switch them to smart metering. You would have a proper smart process in terms of switching. We are going to see some disruption in the market there with accessibility of data and third parties providing information in the house that can switch you instantly to another supplier if you are over-paying. That is the intelligence we are going to see with an increased amount of data. I am quite excited about smart meters and what they can do. They will facilitate households in saving much more than at the moment because we are going to see the smart house plug into that.

[The Chair]

I am sorry, I just wanted to bring in Alex Norris.

[Alex Norris (Nottingham North) (Lab/Co-op)]

My question has been answered.

[Bill Grant]

I welcome the embracing of the new technology and I know it is not perfect right now. You seem rather negative, Hayden.

Hayden Wood: On smart meters? Oh no, we are extremely positive about smart meters, but not—

[Bill Grant]

Thank you, we will leave it at that. It was my misinterpretation.

[James Heappey]

Q You have the Minister to your front and the regulator behind you. What does the end-state look like? Is this price cap to repair the current market, or to deliver something new. If new, what is it?

Greg Jackson: You now have a market of 70-odd companies, mainly vying it out in a 20% churning area. If we get this right, you will be able to let loose the competitive efforts of companies like ours and 68 or however many others to bring prices down for everyone. Getting it right involves the decency cap or the absolute cap and finding a way to tidy up the entirely unjustifiable hundreds of pounds of difference between the cheapest and most expensive tariffs from each supplier. At that point you can let loose our competitive efforts to bring prices down for everyone.

--- Later in debate ---

[Vicky Ford]

Q So, is 2023 the right date?

Pete Moorey: Yes. I think it is the right date, but the critical thing is that Ofgem has the ability on a very regular basis to review how the price cap is working, to set out transparently the changes being made in the market, and to be able to recommend to the Government whether the cap should be removed earlier. I think that having that balance is right.

[Bill Grant]

Q We mentioned smart meters. Do you believe that the roll-out of the smart meters will engender or promote effective competition in the energy market, and, if so, will that contribute to the ending of the cap by 2023? Indeed, I think there is an opportunity in the previous three years to end the cap. What part do you think that process will play?

Finally, picking up on Pete’s reference the less well-off groups, or those who are less price-savvy—I think that was the term—do you think the meters will assist those people in understanding their expenditure? Do you really think it will have an impact?

Pete Moorey: I hope so, but I think there are significant challenges for the roll-out. The fact is that the roll-out does not appear to be going as well as it should. Our own research in the last few months revealed that energy suppliers would be having to install 24 meters per minute for us to hit the target by 2020. So we have to keep a close eye on the smart meter roll-out. I do hope that it leads to changes, and changes that benefit all consumers, but that will require not only groups like us but also yourselves to keep an incredibly close eye on the roll-out.

Peter Smith: National Energy Action runs something called the communities programme, alongside Smart Energy GB, which is the organisation that exists to engage smart meter roll-out. We are doing some valuable work on that, but we are concerned that the roll-out is significantly back-loaded now. That challenges the cost-benefit analysis that the Government originally estimated, which assumes cumulative benefits running all the way through successive years, up to 2020. Now we are in 2018—and 2020 is there; so there is a concern.

[Bill Grant]

Q Is it 53 million installations? I think that is the target by—

Peter Smith: It would be slightly less than that, but it depends whether you think you need to put in SMETS2 meters, once they are ready, and replace the SMETS1 meters. We recognise the value of smart meters, particularly for low-income and vulnerable households, given the fear of an unknown bill. Estimated bills are the biggest concern that these guys get, so we recognise that they can have sufficient benefits. The trouble is we are so back-loaded now, the care and attention and extra help that we thought was going to be possible with smart meter roll-out is now going to be compromised, as everybody, as you say, is just going for volume.

[Kerry McCarthy (Bristol East) (Lab)]

Q This question is for NEA; I think you have already covered quite a bit of this. Obviously your remit is to look at issues of fuel poverty. You have already spoken about the warm home discount scheme and the safeguarding tariff, and the need for more engagement to make more people aware of those. You have just mentioned that smart meters have a role to play in fuel poverty as well. Do you think this Bill will help to address fuel poverty? Do you think there is enough in it? Do you think it really gets to the heart of it, or is it just about consumers being overpriced at the top end of the market and people being perhaps neglected at the bottom?

Peter Smith: First things first: it was reflected in my comments to the Business, Energy and Industrial Strategy Committee as well that NEA believes we must also tackle the vicious overlap between the households with the lowest incomes living in the least efficient homes. That needs to continue to be a priority, and, sadly, we have seen a dramatic drop-off recently in home energy efficiency delivery rates. You could build that into one condition by which Ofgem could make an assessment about whether we are now pulling on that lever as hard as can, maybe as part of an ambitious energy efficiency infrastructure programme.

The second thing relates particularly to the Bill. As I have described, there is a risk that we are assuming that the same people are covered through the SVT-wide cap as benefit currently—or would do in a few months’ time, with the extension of data-sharing powers—in the safeguard tariff. There is a difference between the people that it covers, so not everybody that will be protected by the SVT-wide cap will be protected by the safeguard tariff currently; and the values are very different—or could potentially be very different—in terms of the value of the safeguard tariff currently in place. That is about £100.

Given the drivers on Ofgem to create headroom to encourage competition and so on, that headroom might be significantly reduced. Therefore the general value that the two relative caps present might be very different. So in simple terms we cannot assure ourselves that the provisions in the Bill are consistent with the value that the safeguard tariff is currently providing. Ofgem need to consider that issue in relation to clause 2. It should be written into the Bill.

Oral Answers to Questions

Bill Grant Excerpts

Tuesday 13th March 2018 Commons Chamber

[Lee Rowley (North East Derbyshire) (Con)]

2. What assessment he has made of the level of consumer satisfaction with smart meters.

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

20. What assessment his Department has made of the effect of smart meters on consumer energy behaviour.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)]

Government research on consumer satisfaction published in August last year shows that satisfaction with smart meters is high. Eighty per cent. of consumers are satisfied with their smart meters and 80% would recommend them to friends and family. Smart Energy GB found that nearly 90% of people with a smart meter made energy savings and changed their behavioural patterns.

[Richard Harrington]

My hon. Friend has made a point about the Killamarsh juniors club in his constituency. I would be very happy to meet him on that specifically. However, I have not found this generally to be the case. The roll-out of smart meters is a very important national modernisation programme that brings major benefits to consumers generally and to his constituents specifically.

[Bill Grant]

Smart meters are good for consumers and suppliers alike, but the roll-out relies on there being a good mobile phone signal for them to be effective, and in many parts of rural Scotland that is simply not the case. Can the Minister reassure me that he is working across the Government and with relevant stakeholders to ensure that residents in rural areas benefit from smart meters?

[Richard Harrington]

I agree entirely with my hon. Friend. We are working on that, and the Arqiva radio solution provides communications services for the north region. That covers Scotland, and it is contracted to cover nearly 100% of premises by the end of 2020.

Domestic Gas and Electricity (Tariff Cap) Bill

Bill Grant Excerpts

2nd reading: House of Commons
Tuesday 6th March 2018 Commons Chamber

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

It would be prudent at this time for me to thank the Business, Energy and Industrial Strategy Committee for its hard work and its contribution to the Bill. I wish to refer to what the hon. Member for Leeds North West (Alex Sobel), who is no longer in his place, said earlier about paying with meters. He appeared to think that they came along with privatisation, but I can go back to the 1950s and 1960s, when meters took a shilling, which is the equivalent of 5p today. Prepayment meters have been with us for quite some time.

When competition works, it delivers the best for consumers, shareholders and the Government alike, and over the past two decades, energy utilities have secured significant investment. It would be a mistake to damage the market that has evolved in recent decades or distort it unnecessarily by introducing state-owned or publicly owned suppliers. That would jeopardise public investment, cost the taxpayer significant sums and lead to the loss of corporate tax receipts. That approach would, in my view, be folly, given that this Conservative Government have already worked hard, and continue to do so, to ensure that the market is more competitive.

The number of energy suppliers has increased fourfold, from about 13 to 50, since 2010, giving the consumer a much wider range of options should they choose to take them. The advent of smart meters will in due course make energy bills more accurate and pricing more transparent, although I concede that there is some way to go to secure the installation of about 53 million such meters by 2020, which is an ambitious target. By working with Ofgem, which has rightly come in for some criticism this afternoon, and by harnessing the power of the internet, the Government will make it quicker and easier for consumers to switch suppliers, which should reduce their energy costs.

There is a large of group of over 5 million active consumers who are willing to use their options to secure the best deal, as was referred to earlier in the debate. Almost one in five United Kingdom households are switching supplier each and every year. The big six are having to work much harder and offer better deals to retain that group of important customers and to compete for their loyalty. However, there are people who, for whatever reason, still do not switch. The non-switchers, who include some of the least well off and the most vulnerable in society, remain for the most part a captive market for the large and dominant suppliers. A form of two-tier market has inadvertently emerged, and those households tend to be on high-cost tariffs.

Our aim as Conservatives must be to create a competitive market that is fair to consumers and to the suppliers, and in which the big six cannot rest on their laurels and prosper—and they have prospered—by inflicting higher charges on those who can least afford it. Encouraging switching does go some way towards achieving that, and we should certainly continue those efforts, but in the meantime we also need to protect the very large group of non-switchers.

The Conservative manifesto proposed the introduction of a safeguard tariff that would protect consumers on the poorest-value tariffs, and I am pleased to support this Bill, which honours that commitment. Indeed, I commend the Government for driving forward their promise to deliver lower fuel bills for millions of customers. This temporary cap, which is not a freeze, as has been said often today, will ensure that 11 million or so customers on a standard variable tariff will, delightfully, no longer have to pay an inflated price for their gas or electricity. That can only be good news for constituents in Ayr, Carrick and Cumnock and throughout the United Kingdom. It is not a distortion of the market, but a corrective measure.

In 2015-16, it was estimated that domestic customers in the UK supplied by the big six paid almost £1.5 billion more than they would have done in a properly functioning marketplace. It is clear that the marketplace is not working, but it will work better, because the Bill will help to reduce that figure and bring prices into line with what they should be in a properly functioning market, while letting the market continue and even flourish within the confines of the cap.

In conclusion, as a Conservative, I believe in the free market, but like many, I recognise that there are times when it can fall short, and this is one of those occasions. It is then the Government’s responsibility to listen, step in and make the necessary reforms and regulations to ensure that the market works well for as many people as possible. The Bill will ease the unfairness and yet allow the market to prosper. I am pleased to support it and, in doing so, note that the cap will cease by the end of 2023 at the latest, but there is the opportunity for it to end in the near future, in 2020.

Fireworks

Bill Grant Excerpts

Monday 29th January 2018 Westminster Hall

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

Thank you, Mr Walker; it is a pleasure to serve under your stewardship. I apologise to my colleague the hon. Member for Poplar and Limehouse (Jim Fitzpatrick), whom I know well, and I thank the hon. Member for Clwyd South (Susan Elan Jones) for introducing the debate.

I have a background of some 31 years in the Strathclyde fire and rescue service. Way back in 1974—44 years ago —bonfire night was inevitably busier than any other night of the year, and that remains the case. It is indeed important to “Remember, remember, the fifth of November”, because it stretches the resources of all emergency services, not just the fire and rescue service. Colleagues in the ambulance service treat people injured by flying embers or by fireworks, and regrettably, police officers often have to accompany other emergency services workers to ensure their safety from attacks.

We must bear in mind that the greatest costs are the human costs—the costs of burns that may scar or disfigure someone for life, of loss of sight and, as we heard, of the triggering of PTSD, which often happens to members of the armed forces who have served this country well. Albeit that fireworks often provide a colourful spectacle at small private displays and large public events, many humans and animals find them very distressing, particularly given their noise, even if they do not inflict physical injury.

As a member of a pet-owning and pet-loving family, I am acutely aware of the stress that fireworks cause many domestic pets. There are products on the market—CDs and garments with pressure pads, for example—that claim to afford pets relief and desensitise them, but it is impossible to assist livestock in fields. The light and noise from fireworks may spook sheep and cause them to crowd in the corners of fields and risk suffocation, and cattle may bolt from their field and become distressed, or worse. We heard horrific figures about the deaths of horses resulting from the irresponsible use of fireworks, and we must never forget assistance dogs, such as guide dogs, hearing dogs and companion dogs, which may be unnecessarily distracted from their important duties.

Of course, many domestic pets are simply unnecessarily petrified by the noise of fireworks, which is often not simply a bang but a screech or a whine. Their hearing is distinctly different from ours. Given the more frequent use of fireworks, we inflict that experience on man’s best friend more than just one day a year. Those pets, who are much loved, including by many in the Chamber, are simply inconsolable.

I appreciate that quieter fireworks are available on the market, but, according to a recent report commissioned by the City of Edinburgh Council, they lack the propellants that give the height and burst of colour for those viewing at a distance. In other words, they are second-rate fireworks and not particularly acceptable.

There is a raft of UK-wide and Scottish-specific categorisations and legislative controls for fireworks, including on their production, storage, sale and use, ranging from the Explosives Act 1875—slightly before my time—to the Fireworks (Scotland) Regulations 2004 and, more recently, the Pyrotechnic Articles (Safety) Regulations 2010. However, the question, which has been asked before, is whether they are fully understood by those enforcing them, such as trading standards and the police, and by the public, who indiscriminately activate them.

[Mr Jim Cunningham (Coventry South) (Lab)]

I certainly would not comment on what happens in Scotland, but in England one of the big problems, as mentioned earlier, is policing. In the west midlands we have a particular shortage of police and a shortage of trading standards officers, and that—I am trying not to be too political—is because of local government cuts. Over the past 26 years I have listened to debates about fireworks like nobody’s business, but nothing positive happens. This time round we should have a commission to take a good look at it.

[Bill Grant]

The hon. Gentleman is partly correct. We should have a good look at this issue and get the statistics. I do not know whether there is an association with cuts, because when we were in the land of plenty I do not think the laws were well understood or policed. I do not link cuts to the tragedies that occur.

In my view, such categorisations and controls alone are not sufficient. It is important to minimise potential physical injuries and psychological distress further to both humans and animals.

I will take a wee look at statistics. The website of the Royal Society for the Prevention of Accidents tells us that in 2014-15—this an unbelievable figure—4,506 people visited accident and emergency departments in England having suffered a firework injury. On that one night, 114 were admitted to hospital, of whom 44 were under 18 years of age. That includes 11 admissions involving children under five. For the benefit of fun and gratification from fireworks, should we be doing that to our children? Should we have that risk, or should we mitigate it? I think we should mitigate it.

In Scotland in 2017, 5 November resulted in 330 bonfire incidents, and on 11 occasions crews faced missiles and fireworks not for entertainment but fired towards them. They needed police assistance each time. Is that ignition of fireworks necessary on a bonfire night for the gratification of the public? In addition, 800 calls were received during that night.

I fully acknowledge that the Government have highlighted themselves and through other agencies the dangers of fireworks and taken steps to promote safety advice and guidance. However, even one life-changing incident is one too many. For that reason, and because of the distress, injury and deaths caused to animals we heard about earlier, I advocate a ban on the sale of fireworks to individual members of the public. I believe firmly that the sale of fireworks should be restricted to professionals with health and safety training and qualifications who have permission to undertake an organised display for specific commemorative events at pre-arranged dates and times. Fireworks should not be used just at someone’s whim, whenever they want to frighten the life out of a neighbour’s cats and dogs, or when someone in a remote cottage wants to frighten the life out of nearby horses or farm animals.

Some may be fearful about potential job losses in the United Kingdom from such a ban. However, as I understand it few people are employed here in the manufacture of fireworks—no more than double figures —as most fireworks are imported. As an inadvertent consequence of banning the sale of fireworks, we might reduce our trade deficit with some of the countries from whom we import them.

I am not an advocate of state intervention. However, look at the success of seatbelt and crash helmet legislation and the long-term success of the smoking ban. Let us not ban organised events but end the retail sale of fireworks, and make that a success, too. As colleagues have said, we need to gather evidence from all corners of the United Kingdom, and I think the evidence will show that such a ban would be good for our children and future generations. On that night, I am sure they do not know what they are celebrating.

Delivery Charges (Scotland)

Bill Grant Excerpts

Wednesday 20th December 2017 Westminster Hall

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

It is a pleasure to serve under your chairmanship, Ms Dorries.

I congratulate my hon. Friend the Member for Moray (Douglas Ross) on securing the debate. My input is not going to be as romantic as his, but I was 47 years married yesterday, on 19 December; I remembered late last night, but I did make the phone call this morning. [Laughter.] There was a lovely minister; he must have been very good at his job.

A number of people have contacted me regarding surcharges, but at a recent surgery one of my constituents from a lovely village called Barrhill, raised concerns about delivery charges imposed by various private companies. Barrhill is an Ayrshire village with a small population. It is 12 miles inland from Girvan, which sits on a busy artery, the A77, which my colleagues from Northern Ireland will be familiar with. For the inhabitants it is an idyllic part of the countryside for them to call home; for the delivery companies it is apparently a remote rural location attracting, in some cases, a significant surcharge, which is often disproportionate to the value of the goods being delivered.

[Luke Graham (Ochil and South Perthshire) (Con)]

My hon. Friend is making a strong speech. Does he agree that it should not matter what size the village or town—everyone should have equality when it comes to these payments? In my constituency, people in the PH and FK postcodes have the same disadvantage; does he agree that that is something they should not have to endure?

[Bill Grant]

I do indeed agree with my hon. Friend about the equality—that is the key word—aspect of deliveries.

The term “remote” is open to interpretation. Could the issue be the centralisation of distribution hubs? Could the dispatch hubs look seriously at the bulky and excessive packaging for small items, where a ballpoint pen is delivered in a box the size of a shoebox, and thereby either increase the delivery capacity of their vehicles or permit the use of smaller, more fuel-efficient vehicles for rural, remote deliveries? Some company websites confirm that a surcharge is applied to remote location deliveries, with “remote” defined as highlands and islands, a postcode that is difficult to serve or a suburb or town that is distant and inaccessible or infrequently serviced. There is a whole range of excuses.

[David Duguid (Banff and Buchan) (Con)]

I thank my hon. Friend for giving way and congratulate my hon. Friend the Member for Moray (Douglas Ross) on securing this debate. As many of my colleagues on the Conservative side of the Chamber will remember, I have an issue with the word “remote”. Does my hon. Friend the Member for Ayr, Carrick and Cumnock (Bill Grant) agree that it is the lack of these services or the disproportionate removal of them that makes our rural areas remote?

[Bill Grant]

I fully agree, and we need to do more to secure the vibrancy of these remote locations.

Citizens Advice produced a short report entitled “The Postcode Penalty”. It was done a few years ago, and a number of the respondents to the survey were from my constituency in Ayr, Carrick and Cumnock. The report appeared to conclude that some online retailers are disadvantaging Scottish consumers. I think that we could extend that to consumers and our neighbours in Northern Ireland and those elsewhere in our United Kingdom. At that time, approximately 63% of retailers that charged extra for delivery to remote locations did not offer delivery by Royal Mail, which was referred to by the hon. Member for Coatbridge, Chryston and Bellshill (Hugh Gaffney), as an alternative. It may be prudent to offer the customer this lower-cost and very trusted service.

I understand that it is a breach of consumer protection to add an additional charge after purchase, with the Consumer Protection (Distance Selling) Regulations 2000 providing that prior to the conclusion of a contract from distant sellers—that is, a transaction that is not done face to face—they are required to disclose delivery costs so that the purchaser is not caught unawares by what are, in some cases, very significant charges. However, such transparency does not detract from the often disproportionate and unfair charges for those who, for a variety of reasons, may not be free to choose or change where they live, and so become embroiled in this delivery postcode lottery.

It may be prudent to look at the proud founding principles of the Royal Mail, which was established in 1516. The introduction in May 1840 of the penny black postage stamp paved the way for the prepaid one-price-goes-anywhere postage system that we love and value in the UK today. This system applies—the hon. Gentleman will keep me right— to 30 million addresses in the United Kingdom, including 2.5 million addresses in Scotland. It is a six day a week service and caters for parcels up to 20 kg. Royal Mail’s sister company—this is like an advert for Royal Mail—Parcelforce Worldwide has a single Scotland-wide tariff for all mainland deliveries and has limited surcharges to highlands and islands contract customers only.

In closing, we must bear in mind the fact that in many cases rural incomes tend to be less than their city counterparts, and that surcharges are a financial burden on a limited income. I ask the Minister to strive to let us have some fairness and equality when it comes to delivery charges in rural areas.

[Several hon. Members rose—]