Charles Hendry
Main Page: Charles Hendry (Conservative - Wealden)(13 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text
Gordon Henderson (Sittingbourne and Sheppey) (Con)
6. If he will hold a review of the smart meter infrastructure upgrade.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
The introduction of smart meters will unlock huge benefits for the people of this country. There is a solid evidence base to support the roll-out, and it is important that we start to realise the benefits sooner rather than later. The coalition Government have published detailed plans showing how we will deliver smart meters; the last thing we need is more delay.
Gordon Henderson
I welcome that answer, but will my hon. Friend do something to ensure that the programme costs are reported and properly controlled in the interests of those who will pay the bills—that is, the consumer?
Charles Hendry
My hon. Friend makes a very important point. That is one of the most important mechanisms we have in any part of Government policy to bring benefits to consumers. The total cost of the programme is estimated to be about £11 billion and the benefits are estimated to be about £18 billion, so there will be £7 billion of benefits, and that we is why we want to see it happening as soon as we can.
Bill Esterson (Sefton Central) (Lab)
Suppliers of mobile phones include warnings with new devices about the potential danger of electromagnetic radiation. Does the Minister think that suppliers of smart meters should do the same?
Charles Hendry
We believe that people will benefit from having smart meters, but we will not make them obligatory. If people are concerned about the electromagnetic issues, they will not be required to have one. We have been willing to give assurances to hon. Members on that account.
Andrew George (St Ives) (LD)
There is little incentive for supply companies to inform their domestic customers better on their rate of energy use, so although I appreciate what the Minister has said so far, what can the Government do to ensure that that process of better awareness and better information is speeded up?
Charles Hendry
A very important part of this programme is education. Smart meters will work only if the consumer understands how to use them effectively to get the best value for money out of them. We are drawing a very clear distinction between education and sales practice because we do not want the installation of smart meters to be an opportunity for unscrupulous sales practices.
Mr Dave Watts (St Helens North) (Lab)
7. What steps he is taking to encourage households to improve their energy efficiency.
John Robertson (Glasgow North West) (Lab)
11. What the level of debt is by which a prepayment meter customer is able to change supplier.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
The debt assignment protocol helps prepayment meter customers with a debt of £200 or less to switch, providing the new supplier agrees to take on the debt. Ofgem monitors the protocol’s effectiveness by recording the number of customers blocked from switching as a result of having a debt.
John Robertson
I am sure the Minister will understand my question when I mention that because of debt 200,000 customers are trapped on tariffs that they cannot get out of. If the level was extended to £350, a lot of those people would be able to get their debt down. What is he doing to try to deal with that and will he persuade Ofgem to set the figure at £350?
Charles Hendry
The hon. Gentleman raises an important point, and I shall ask Ofgem to look at the issue in detail. Many people are on prepayment meters because they were already in debt and it was a way of trying to manage their repayments to get them back on a firm footing. Clearly, we want people in all circumstances to be able to benefit from lower tariffs and it is important that they should be set at the right level in that part of the protocol.
Mr Mike Weir (Angus) (SNP)
Whether or not they are trying to switch, many people on prepayment meters are clearly fuel-poor. What action is the Department taking to monitor self-disconnection among that group?
Charles Hendry
We understand that about 20% of those who are fuel-poor are on prepayment meters, and we will clearly look at any reasons why anybody is disconnected. If they are required to be disconnected by the supplier, the evidence has to be reported to us and those figures have fallen very sharply in recent years, but if people are self-disconnecting we need to understand the reasons behind that.
Oliver Colvile (Plymouth, Sutton and Devonport) (Con)
15. What assessment he has made of British Antarctic Survey research on the effects of historic industrialisation on global carbon dioxide levels.
Nicky Morgan (Loughborough) (Con)
16. What steps he is taking to ensure a competitive energy market.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
Greater competition requires more companies taking part in the market, and increased transparency for consumers. Ofgem will shortly announce proposals to improve wholesale market liquidity and it is important that the regulator takes decisive steps. We have also taken action to cut red tape for small suppliers and Ofgem has published radical proposals to help suppliers to simplify their tariffs and billing information, helping consumers switch supplier and thereby boosting competition.
Nicky Morgan
I thank the Minister very much indeed for his reply. The people who should benefit from a competitive energy market are the companies’ customers—our constituents. Is he aware of the practice by some energy companies of repeatedly putting up direct debit payment demands? The customer then has to call the company to negotiate them down, but the next time a bill arrives the direct debit has gone up yet again. What does he think of that behaviour by our energy companies?
Charles Hendry
One of the most important aspects of a functioning energy market is transparency; people need to be clear about why their prices are changing and the factors that contribute towards that. The requirement for greater transparency and more information on bills is therefore a fundamental part of the reforms that we see coming through.
Barry Gardiner (Brent North) (Lab)
Does the Minister recognise that the insistence on the energy performance certificate at level 3 in order to qualify for the new solar PV fix will be anticompetitive in its practice? The industry has said that it may contribute to reducing employment in solar PV down to 8% of the current levels of employment, and yet it is not related to gas, which is used most for warming Britain’s homes.
Charles Hendry
I hope the hon. Gentleman would agree that it is important that if people are receiving a subsidy for electricity which is generated, they should have generally well insulated homes and they should not be wasting it—[Interruption.] But for many people it does help. That was a proposal that was put forward in the consultation process. We have had many responses to that. We are currently considering those with a view to making a final decision.
Mr Jim Cunningham (Coventry South) (Lab)
17. What recent discussions he has had with the Secretary of State for Business, Innovation and Skills on growth in the renewable energy sector.
Mark Pawsey (Rugby) (Con)
19. What discussions he has had with National Grid on the shutting down of wind farms during times of high wind intensity.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
Ministers and DECC officials have regular discussions with National Grid about the operation of the electricity network, and this has included the issue of transmission constraints, including our consultation on the transmission constraint licence condition. Reducing or increasing output of generators of all types is a normal part of National Grid’s role in balancing the network at all times. Wind is not treated any differently from any other technology in this respect.
Mark Pawsey
My constituents in Rugby, who face applications for wind farms, will be concerned about reports that turbines are switched off in times of high wind speeds because the current infrastructure is unable to handle the amount of electricity generated. When that happens, National Grid pays operators compensation—
Mark Pawsey
What steps has the Minister taken to protect consumers from that element of the increase in their electricity bills?
Charles Hendry
About £250 million was paid last year in constraint payments, of which only 10%— £24 million—was paid to the wind sector. The Government are reviewing the transmission constraint licence condition and trying to ensure upgrades are made in many parts of the country, so that the power generated can get where it is needed.
Jonathan Ashworth (Leicester South) (Lab)
Given the importance we attach to National Grid maintaining balance in the system, will the Minister tell us what discussions he has had with National Grid on how it contracts with short-term operating reserve aggregators? There is concern that National Grid is paying for so-called phantom megawatts and the cost is being passed on to consumers. Does the Minister agree that we need an independent auditor?
Charles Hendry
In all these matters, National Grid is regulated by the official regulator, Ofgem. The STOR arrangements play an important role in the process, ensuring that when there is a significant and sudden change in requirement, generation capacity to meet that demand is available. Of course that important function of our grid system must be operated in a transparent way.
Bill Esterson (Sefton Central) (Lab)
T1. If he will make a statement on his departmental responsibilities.
Albert Owen (Ynys Môn) (Lab)
T6. The Secretary of State seemed to misunderstand my question on oil refinery capacity earlier. Oil and petroleum trade bodies tell me that there is a shortage of oil refinery capacity in this country, and that crude oil is exported to India and brought back in. What assessment has the Secretary of State made of that, and how is he responding to that serious question?
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
It is a very serious question and I am grateful to the hon. Gentleman for pursuing it further. Some of the crude produced in this country is not suitable for use here because of the diesel demand and therefore it is exported, and the diesel fuel tends to have to be imported, which results in an imbalance. Through the downstream oil infrastructure forum we are looking at the industry’s strategy to put in place a long-term programme to assess how we can support and build up that industry, and the role of international investors is critical to that process.
Philip Davies (Shipley) (Con)
T5. Further to the question from my hon. Friend the Member for Rugby (Mark Pawsey), what estimate has the Secretary of State made of the number of wind turbines that stopped working at some point during the year, and how many of those stopped working due to too little wind and how many of them stopped working because of too much wind?
Tessa Munt (Wells) (LD)
On Tuesday the Institution of Engineering and Technology is due to publish its long-awaited report on the undergrounding of electricity transmission lines. Given that 1,000 new pylons would have a significant effect on the natural environment and the landscape, what steps has the Secretary of State taken to ensure that the study considers the wider economic benefits of undergrounding to tourism, particularly in my part of Somerset, and the lifetime maintenance costs of undergrounding compared with using mile upon mile of pylons?
Charles Hendry
It is a very important study. As part of the process of understanding whether the grid should be under or above ground, we need to start with an assessment of the real costs of undergrounding and overgrounding. This authoritative study is the most dedicated of its kind ever carried out and makes an important contribution to the debate. It will not answer all the questions, but it is an important element.
Fiona Mactaggart (Slough) (Lab)
The Minister will be aware that the cost of smart meters will be borne by us in our electricity bills, but the benefits will not automatically accrue to the consumer. How will he ensure that the most vulnerable, poor and elderly consumers benefit from the installation of smart meters and are protected from disconnection?
Charles Hendry
The hon. Lady makes an extremely important point. One of the keys to the success of smart meter roll-out is the education programme that will go with it to ensure that householders know how to use them to their greatest benefit. We are talking to consumer groups to ensure that that is done in the most effective way and looking at how we can involve parish councils, local charities and other organisations trusted by consumers to ensure that they get the greatest benefit as quickly as possible.
George Eustice (Camborne and Redruth) (Con)
The Minister mentioned the creation of the south-west marine energy park, which is a tremendous boost to projects such as Wave Hub in my constituency. Does he agree that projects being assessed for capital grants to develop wave power should be given preference if they are located within the marine energy park?
Julie Hilling (Bolton West) (Lab)
The energy companies tell us that very few customers are disconnected, but we know that many customers are so-called self-disconnected because they cannot afford to put credit on their pre-payment meters, especially if they are already paying off previous arrears through the meter. Will the Minister as a matter of urgency ask the energy companies how many people are self-disconnected?
Charles Hendry
As I said earlier, it is important that we understand why people are disconnected. If there is not enough clarity about why people are self-disconnecting, we will ask for more details on why that is happening.
Neil Parish (Tiverton and Honiton) (Con)
Mid Devon district council, which is based in Tiverton, was planning just before the tariff rate was cut to have 1,800 social homes with solar panels. Will Ministers be prepared to meet officials from the council to discuss a way forward?