Caroline Flint
Main Page: Caroline Flint (Labour - Don Valley)On 12 occasions the Prime Minister has promised to force the energy companies by law to put everyone on to the cheapest tariff, but clause 121 of the Energy Bill clearly states that the power to require an energy company to change a customer’s tariff applies only to people on closed tariffs. There are 25.5 million households in Britain. How many are on closed tariffs?
I cannot give the right hon. Lady the exact figure off the top of my head, so I will write to her on that. The Labour party is in complete denial. The Prime Minister pledged radical action to put everyone on to the cheapest tariffs for them. We have come forward with a solution and we have put it into law; the Opposition had 13 years to do that and did nothing for consumers. We are taking radical action to cut through the swathe of tariffs that they left consumers when they left office.
I have tabled written questions, I have asked Ofgem and now I have asked the Minister, and nobody can tell me how many people will find themselves on a better deal, let alone save money.
Let us look at another promise. On Tuesday, the Secretary of State told the House that the Energy Bill would give Ofgem the power to force energy companies to compensate consumers, something I called for in October 2011. Ofgem is undertaking 15 formal investigations with another 12 cases at informal review stage. Will the Minister confirm that even after the Energy Bill has received Royal Assent and even if there is evidence of wrongdoing in any of those cases, Ofgem will have no powers to force the companies to pay a single penny in compensation to their customers?
It is a big pity that the right hon. Lady first started taking an interest in these matters in 2011 and not during the 13 years for which Labour was in government when it did nothing to address those issues for the consumer. I am happy to say that our Energy Bill takes those issues into account and Ofgem will be able to take them into account as the investigations go through. This Government are putting the consumer first after 13 years of inaction from Labour.
I know that my hon. Friend does a huge amount for businesses in his constituency, and I would be happy to meet him, Baxi UK, and representatives of the industry in my Department. The coalition Government are committed to delivering not just cheaper bills but cleaner energy, and biomass boilers are part of that strategy. The good news is that we have recently announced that renewable heat payment vouchers for biomass will increase to £2,000 until March 2014, and later this summer we will provide details for the scheme that we will be launching for domestic renewable heat initiatives next spring.
Apparently, more than 5 million homes could still benefit from cavity wall insulation, so there is still a lot of work that could be done.
The Government have claimed it is too early to set a decarbonisation target for 2030, but next month they will publish their electricity market reform delivery plan, which will determine our energy mix and its carbon intensity. In the absence of a legally binding decarbonisation target, will the Secretary of State at least confirm that his long overdue delivery plan will be in line with our legally binding carbon budgets, or will the Government be rewriting the fourth carbon budget?
No, the plan will be in line with our legally binding obligations. As I have explained to the House, before we set the decarbonisation target in 2016 we will give National Grid guidance on setting the EMR delivery plan to ensure that it is on path to meet our decarbonisation targets in the least-cost way.