Fuel Poverty and Energy Efficiency

Debate between Caroline Lucas and Andrew Jones

Wednesday 16th January 2013 Commons Chamber

[Andrew Jones (Harrogate and Knaresborough) (Con)]

This is a timely debate, given the weather outside and the big increases in fuel prices over the past few years, which are causing real problems for people. It is highly appropriate, therefore, that we are discussing this issue.

Ensuring that people stay warm requires progress in many areas: energy supply, energy efficiency, market reform and taking advantage of the opportunities that new technologies will provide. Progress in one area alone will not deliver us the desired outcome of cheaper bills for households and businesses. Market changes across the world are an important driver of costs, of course. Global demand has been growing, and that influences what happens here in the UK. We must recognise that wholesale prices have doubled here since 2007. The issue of supply is not covered by the motion, but increased supply will cut bills, so it should be recognised. I therefore support the Government’s initiatives to increase supply, whether it is the renewal of nuclear, opportunities presented by shale gas or the expansion of renewables. The answer lies in multiple solutions and multiple sources. Over the past few years, we have been too casual in recognising the importance of ensuring long-term, secure and affordable supply.

The motion states that energy efficiency is one of the most important ways of cutting bills sustainably. I completely agree that it is an important factor. We have made progress on that over the past few years, but the progress needs to be faster and better targeted. It is a complicated area, with that complication coming from different places. We all know that there are different ways of making our homes more energy efficient, but some times the range of options can be daunting. The installation of renewable energy also presents significant opportunities, but again the range of options is daunting. Do I choose solar, ground source, air source, water source, heat pumps, photovoltaic or biomass?

It is not easy to navigate those options, yet I remain a huge fan of renewables and would like to draw the House’s attention to my personal experience while a councillor on Harrogate borough council. We installed ground source heat pumps in council properties, starting in more rural areas that were off mains gas. Our motive was to bring cheap, clean power to homes that would not otherwise have had it. We were the first council in the country to do that, and it was a great success.

[Caroline Lucas]

I am pleased to support the hon. Gentleman’s enthusiasm for renewables. Does he agree that community-owned energy can play an important part, not only in increasing supply, but in getting fuel bills down, because communities can share in the profits? Would he urge his Government to bring forward their community energy strategy without further delay?

[Andrew Jones]

I think that community ownership will play an important part in the future, and I am sure that my right hon. Friend the Minister will pick up on that point later.

I have to say that retrofitting was expensive, because we were not just fitting heat pumps, but fully insulating homes. Nevertheless, the cost of heating fell for the homes with the pumps, and carbon emissions were much reduced as well. It required some changes in behaviour in how residents used their power, but that was easily communicated, and I spoke to many residents who were basically extremely positive about what had happened.

Ministers deserve credit for the green deal. I have seen the high upfront costs that insulation and energy efficiency improvements bring, and removing the challenges of these upfront costs will remove one of the biggest barriers to progress. Under the green deal, bill payers will be able to get their energy efficiency improvements without having to pay upfront, as businesses will provide the capital and consumers will pay back the costs over time through their energy bills. I like some elements of the scheme in particular, but I will emphasise just two things: the way businesses can be included and the way the scheme will be extended to the private rented sector.

The range of tariffs has been highlighted as something that can be confusing. I agreed with the points that the hon. Member for Rotherham (Sarah Champion) made. It has been hard—probably deliberately so—for people to see which tariff was right for them. It took me months just to get my supplier to merge my personal accounts, including gas, to take advantage of a dual-fuel tariff, and I was not even changing suppliers. My personal experience is mirrored up and down the country. It is simply far too hard to make changes, so I applaud the Prime Minister’s work to cut through all this and ensure that by next year everyone is on the lowest tariff that is right for their needs.

A further area of complexity is the range of schemes that are available to help. Sometimes they are hard to access or even know about in the first place. Last month I visited two constituents, Mr and Mrs Courtman, who needed a new boiler installed, as theirs was breaking down and they urgently needed reliable heat at home for their health. Unable to afford a replacement, they turned to the local council’s home improvement agency to see whether help was available. Help was available; the point is that it came through the SSAFA—the Soldiers, Sailors and Airmen’s Families Association—and an npower scheme. However, Mr and Mrs Courtman were not even npower customers, so how could they even become aware of the scheme? It is hard to know where to go. That is why I produced a guide called “How to Save Money on Your Energy Bills”—alongside other colleagues in the House—which I have been distributing locally in Harrogate and Knaresborough and which has been well received.

Let me end by reiterating the point that market simplification, Government assistance and new technologies all have important roles to play, but it is long-term work to boost capacity that will be critical to delivering what we all want for the future.