Absolutely. Just as the railways were so important in the 19th century and just as super-highways will be so important, so clean energy is important. It is an energy industrial revolution that we should embrace. I am very pleased to pay tribute to my hon. Friend as well as to my hon. Friends the Members for Swansea West (Geraint Davies) and for Aberavon (Stephen Kinnock) for the work that they have done to support the project. The Welsh Assembly and, I should say, the former Member for Swansea East, Siân James, deserve massive credit, as do local councillors who have fought hard for it.
I would, however, tell the Secretary of State in relation to yesterday’s announcement that more steps need to be taken to take us closer to the clean energy and green jobs that we will need. I urge her to have a look at whether the civil servants working with the company can get a bit of a shift on and get some of the documentation into the Commission as soon as possible so that it can start to check it out for state aid. With such projects, to get shovels in the ground—or whatever they will use in the bay—people need to know the timescale so that they do not miss it because of the weather and the seasons. I urge the Department to help make that work happen sooner rather than later.
I welcome this debate. I was delighted to notice earlier today that nine Labour Members of the European Parliament joined the Greens in voting for a Europe-wide moratorium on fracking. Will the right hon. Lady reconsider her and her party’s position on fracking given the importance of what she has just said—that what we do at home sends a really strong signal about the seriousness with which we treat leaving fossil fuels in the ground?
As the hon. Lady will know, we have been very clear—we made it very clear at the tail end of the last Parliament—that no fracking should take place unless the safeguards that we set out in amendments in Parliament are in place to allow it to go ahead. She knows as well as I do that 80% of our heating comes from gas, so we have to think about where gas fits into the picture, but fracking has to be done safely. She will also know that I think we should have a review of the possibilities for green gas, because all the evidence shows that that could be a major contributing factor in making sure that we can still heat our homes as we come off fossil fuel gas.
More steps need to be taken to bring us closer to realising clean energy and green jobs, but with yesterday’s announcement the Government are sending out some damaging mixed messages. The Queen’s Speech reiterated their commitment to fighting climate change, but also followed through on their plans to make it more difficult to build onshore wind projects. No one is saying that we should not be sensitive to the best places to put onshore wind farms, but let us be serious: that is not what is going on. As we saw in the last Parliament, we have a Government searching for ways to placate their Back Benchers. The moves currently being briefed out to end the renewables obligation a year early show that the Tories are bad for green business. Investors have been spending money in good faith under an agreed framework. There are nearly 1,000 projects with planning permission. I would like the Secretary of State to clarify whether those 1,000 projects will be affected by the statements we have heard since the general election.
That damages investment not just in onshore wind but in other technologies—it damages confidence that the Government will not withdraw support from them or move the goalposts. Onshore wind is currently the cheapest type of clean energy. The Government’s actions mean that it may cost consumers more in the long term. The truth is onshore wind could be cheaper than new gas generation by 2020.
I will make some progress before I give way again.
What the Secretary of State has to understand is that markets work only with consent. We know that there are some on the Government Benches who want to turn concern about rising energy bills into opposition against renewable energy. Unless we reform this market and restore trust, those same people will continue to undermine public support for the investment we need.
I support the Opposition motion, as far as it goes, but does the right hon. Lady accept that without serious investment in energy efficiency, there will be no permanent end to fuel poverty? If so, can she explain why there is no mention of energy efficiency in her motion?
The hon. Lady is right. Energy efficiency is important, and I am sure that, like me, she is saddened by the attacks on those parts of the Bill that support energy efficiency measures for the most vulnerable and poor households in our country. It is interesting to see how the big six—[Hon. Members: “Seven.”]—the big seven have gone to Government saying, “Relieve us of this burden,” but they take out full-page adverts in national papers talking about how they have helped millions of people with their energy efficiency. They cannot have their cake and eat it. Labour will produce a Green Paper in 2014 with more detailed proposals on energy efficiency to make sure that we deal with both parts of the problem—market reform, prices and investment in renewable and clean energy, as well as how we help people keep bills down through energy efficiency.
(11 years, 2 months ago)
Commons ChamberI absolutely agree with my hon. Friend. Just for the record, energy bills fell under my right hon. Friend the Leader of the Opposition. When he became Secretary of State for Energy and Climate Change the average bill was £1,215, and when he left it was £1,105. I am happy with that drop of more than £100, but since then there has been an increase of more than £300 in the past few years.
Alongside simpler tariffs, which we would all agree with, protections should be put in place for people less able or less inclined to switch. That is why our motion proposes to require the energy companies to put all those over the age of 75 on to the cheapest tariff. We know that the over-75s are the most likely to live in homes with poor energy efficiency and the most vulnerable to the cold weather, but the least likely to switch supplier, so they often pay more than they need to. That is sometimes simply because they do not have enough confidence to access the internet, where the information on the cheapest deals is available, or to operate an online account. I have discussed our proposal with suppliers, and they indicate that there is no reason why it cannot be done, so I hope that the Secretary of State will be able to give a more positive response than he has in the past.
Yesterday, Lord Stern dismissed claims that fracking could bring down the price of gas in the UK as “baseless economics”. Given the long list of experts explaining why shale gas will not help people who are struggling with high energy bills and will actually trash our climate commitments, will the right hon. Lady take this opportunity to rule out fracking in the UK under any future Labour Government?
I have been clear that our approach to fracking and what it could offer must be evidence-led. In the past few years, I have been disappointed by the fact that, for all sorts of reasons, the Government have chosen to up the ante on what gas from such exploration can provide. We do not really know the exact cost-benefits of fracking for gas. We do not know how much is there and whether those benefits will be realised when we get it out of the ground. I am afraid that I shall have to disappoint the hon. Lady by not ruling it out, but our approach must be evidence-based and pragmatic. I certainly do not believe that we should be offering tax breaks, given everything that is going on in this country, for something that might not happen for 10 years, if it happens at all.
The Government have harmed the reasonable debate that we should be having about fracking by trying to polarise the use of the gas against that of renewables. That has been incredibly unfortunate as regards having a practical, reasonable and evidence-led debate. That is what we will lead on in trying to debate the issue, which is important for our country.
As I have said, we can simplify the tariffs. We can take our proposal to put all those who are over 75 on the cheapest tariff. But before we even get to tariffs, we must ensure that the prices that make up bills are set fairly and openly in a properly competitive environment. That is crucial because wholesale costs are the single biggest component of domestic energy bills and make up more than half the prices consumers pay.
If we do not have a competitive wholesale market putting a downward pressure on prices, people might be on the cheapest tariff but might still not be getting a fair deal. The Government seem to say that they agree that the market is not as transparent or competitive as it should be, but what are they doing about it? Not very much.
No. I will make some progress; I have taken a number of interventions.
I have discussed energy and water, but what about those families who get up to do the right thing and head off to work each day? Among them are hard-working commuters forced to travel at peak time. Often, they have moved a long distance away from their workplace to stand a chance of buying their own home. Their reward for doing the right thing, day in and day out, is season ticket price hikes of up to 9.2%. What understanding have the Government shown them? How about squeezing them further by allowing new “super peak” fares? As my hon. Friend the Member for Garston and Halewood (Maria Eagle) has made clear, if we were in government and if this was our Queen’s Speech, we would put passengers first, not siding with the powerful private train operators. Our consumers Bill would cap fares at no more than 1% above inflation in each year of this Parliament and ban train companies from introducing even higher “super peak” fares.
Would the Queen’s Speech of the right hon. Lady’s party include a Bill to bring the railways back into public ownership? Reports suggest that doing so would save around £1 billion a year in administration costs.
What we are clear about is that the rail companies must prove themselves when it comes to their franchises being renewed. On my local line—the east coast line—the operator has done a remarkable job. Unlike some of the other operators, it has paid premium payments back into the Government’s coffers to spend on other things. However, we must ensure that each rail company is fit for purpose, and where a company is not doing the job and we need to take action, we can make a decision on a case-by-case basis at the time.
On housing, as my right hon. Friend the Member for Leeds Central will set out in his speech later today, the Government are not just failing to tackle the housing crisis; their policies are making it worse. House building is at its lowest level since the 1920s, annual housing starts are down and housing completions were lower in both years of this Government than in Labour’s last year in power. As a result, more and more people are locked out of home ownership, stuck on local authority waiting lists or forced to live in the private rented sector. Whereas this Government sit back and do nothing, Labour would act now to change the private rented sector so that it works for all—landlords and tenants.
(11 years, 10 months ago)
Commons ChamberIt is very worrying, as my hon. Friend has stated, that Consumer Focus has indicated that both electricity and gas customers—often the same household will pay both bills—are finding that the debt that they owe their energy supplier is going up. That should be an indication that more needs to be done.
Does the right hon. Lady agree that it is a scandal that under this Government, for the first time in 30 years, there is no Treasury-funded scheme to insulate people’s homes? Does she support the call to use the revenue from the carbon floor price or the emissions trading scheme on fuel-poverty measures?
I agree; as I will say in my speech, when Warm Front closes on Saturday, it will be the first time since the 1970s that a British Government have not provided an energy efficiency programme. That is a shame. In answer to the hon. Lady’s second question, I believe that we should look at how we can better deal with the issue of energy efficiency. Although the motion does not cover the suggestion that she has made, we have outlined how we can use some money that is already available to get to some of the most vulnerable households.
The difference between Warm Front and ECO is that the Government pay for Warm Front, whereas consumers pay for ECO through their bills. Starting ECO is therefore no excuse for ending Warm Front before the budget is spent.
As a result of the choices that this Government have made, more people are being pushed into fuel poverty, more people are being forced to choose between eating and heating, and pensioners are going to bed early to seek warmth in a house that they cannot afford to heat. Not only Labour Members are saying that. Transform UK predicts that more than 9 million households will be in fuel poverty by 2016. The Hills fuel poverty review, which was commissioned by this Government, but about which we have heard little since its publication, warned that unless Ministers change course, 200,000 more people are set to be in fuel poverty in the next four years and millions of families will be pushed into even deeper fuel poverty. Before Christmas, the Government’s advisers on fuel poverty, the Fuel Poverty Advisory Group, predicted that 300,000 more people will fall into fuel poverty this winter.