Charles Hendry
Main Page: Charles Hendry (Conservative - Wealden)
David Wright (Telford) (Lab)
10. What steps he is taking to assist households with their energy costs.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
We expect the warm home discount scheme to help about 2 million low-income and vulnerable households per year. This winter, energy suppliers will be required to provide automatic rebates of £120 on energy bills to more than 600,000 pensioners on the pension credit guarantee. In future, the green deal and the energy company obligation will provide energy efficiency measures at no up-front cost.
Ian Murray
The Minister will be aware that the Secretary of State, at the Liberal Democrat conference just a few weeks ago, said:
“None of us should have to save on warmth in a cold winter. Some of the most vulnerable and elderly will shiver—and worse—if we do not help.”
Why then does he believe that the Government should cut winter fuel payments to 12.7 million pensioners?
Charles Hendry
The hon. Gentleman will be completely aware that that policy was announced by the previous Government, who did not put the money into their budget for it to go forward. We have therefore continued the policy that was put in place, but we have introduced the most rigorous scheme of energy efficiency in our homes—rolling it out in a way not even dreamed of by the previous Administration—to bring lasting help and care to support such people.
David Wright
Twenty-eight per cent. of households in the west midlands live in fuel poverty, and one of the key issues for them is the quality of the housing stock in which they live. Obviously, the poorer the housing stock, the more difficult it is to heat. What specific support are the Government giving to help those in private rented housing, which is often not invested in by landlords and often very fuel inefficient?
Charles Hendry
The hon. Gentleman makes a very important point. That is why the green deal has focused very strongly on those in the private rented sector and why we are considering introducing a legal obligation on private landlords to ensure that their homes are brought up to a reasonable standard. This sector has often been overlooked and has been harder hit than many others, and we are determined to make sure that it is now addressed properly.
Mr Tobias Ellwood (Bournemouth East) (Con)
I very much welcome the warm home discount scheme, for which a number of elderly people in Bournemouth would probably be eligible. How are the Government making people aware of this important scheme?
Charles Hendry
My hon. Friend rightly draws attention to the warm home discount, which is up by two thirds as a result of the decisions we have made, whereby £120 million will be spent supporting 600,000 poorer pensioners. The energy companies are writing directly to many of their customers—and we, as a Government, are writing to millions of others—to make sure that they are aware of the extra energy efficiency support that they can have.
Andrew George (St Ives) (LD)
How does my hon. Friend believe that the practice of falling block tariffs and direct debit discounts for the comfortably off helps to address fuel poverty?
Charles Hendry
My hon. Friend raises the important issue of whether people should pay more for the additional units they use or whether the level should drop. Our concern about moving to a rising rate is that children, pensioners or people with disabilities who are at home more and need more warmth could be adversely hit by such a change. Not only the larger properties and the richer families would be affected; it could easily also affect those whom we are most keen to support and help.
Caroline Lucas (Brighton, Pavilion) (Green)
Does the green deal Minister remember telling the Energy Bill Committee that he fully expected the energy company obligation to provide a far greater level of support to tackle fuel poverty than either the carbon emissions reduction target or Warm Front? In what way is ECO’s pitifully small £325 million a year for fuel-poor homes a far greater level of resource than the 2010-11 Warm Front spending of £370 million or CERT spending of about £600 million on priority groups?
Charles Hendry
I am sure that the hon. Lady is aware that this is funding that people can have in addition to the green deal support. It is designed to make sure that there is a comprehensive approach. We have sought to ensure that we have an holistic approach and that we do more on energy efficiency and on assisting poorer households. We are trying to make sure that we do this in the most effective way possible.
Joan Walley (Stoke-on-Trent North) (Lab)
5. What representations he has received on feed-in tariffs from people in Stoke-on-Trent.
Glyn Davies (Montgomeryshire) (Con)
13. What recent assessment he has made of the prospects for shale gas in the UK.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
Exploration for shale gas in the UK has only recently started, and it will be some years before the prospects for production in our geological, regulatory and economic conditions, and the economic prospects for the industry, can be fully assessed. However, a British Geological Survey study last year estimated that UK shales might yield some 150 billion cubic metres of gas—equivalent to roughly two years’ demand. Work is in hand to update these geological estimates in the light of more recent information, including Cuadrilla’s estimate of gas in place under its licences in Lancashire.
Glyn Davies
Media reports in the US state that shale gas discoveries have reinvigorated US oil and gas production. There have been substantial discoveries of shale gas in the UK, as the Minister mentioned, so does he agree that the UK could learn lessons from the US experience with a view to developing shale gas in the UK?
Charles Hendry
My hon. Friend is right to point to the lessons from the United States. Shale gas has transformed the energy outlook there and potentially turned the US from a gas importer to a gas exporter. There might be lessons to learn, but there are very different rules here on land ownership that will make things much more complicated. We are a much more densely populated area, and other countries such as Poland and elsewhere are clearly attracting interest in this connection, but we will explore the matter. There are no barriers to doing so but nevertheless we recognise the limitations.
Mr Iain Wright (Hartlepool) (Lab)
14. What recent discussions he has had on investment in jobs and skills in the green economy.
Craig Whittaker (Calder Valley) (Con)
17. What recent discussions he has had with energy suppliers on the provision of credit for energy supply to new businesses; and what assessment he has made of the effect on growth of the level of deposit currently required.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
The level of security deposits is a matter of negotiation between individual businesses and energy suppliers. If the terms of an energy supply contract are felt to be unreasonable, businesses should seek to obtain a supply from an alternative provider or seek independent advice from Consumer Direct.
Craig Whittaker
I thank the Minister for that reply, but requests from energy companies for large deposits up front is an increasing issue for new businesses in Calder Valley, as well as those being taken over by new owners. Will he reassure Calder Valley business people that the heavy-armed tactics that energy companies are using will be looked at and pressure brought to bear?
Charles Hendry
My hon. Friend raises an important issue, and I am grateful to him for raising it with me previously in a meeting. I understand the concerns facing businesses in Calder Valley and elsewhere. There are issues that Ofgem should be looking into, and I am happy to write and draw its attention to them. Indeed, Ofgem has recently said that it is doing more to try to ensure that businesses get a fair deal in this regard.
Mr Edward Timpson (Crewe and Nantwich) (Con)
T2. Will the Minister join me in congratulating Bentley Motors in my constituency on becoming the first plant in the UK car industry to achieve the new global energy management standard, snappily entitled the ISO 50001? What are the Government doing to ensure that businesses such as Bentley can continue to meet their renewable energy targets by investing in alternative energy sources?
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
I was delighted to have a chance to visit Bentley recently with my hon. Friend to see the work it is doing. I pay tribute to Bentley and to Volkswagen, the parent company, for the investment that they have put in place. There are systems in the CRC—carbon reduction commitment—energy efficiency scheme that help to encourage companies to improve their energy efficiency. Companies can qualify for climate change agreements through which they receive discount on the climate change levy in return for meeting energy efficiency targets. Many measures are already in place, but I congratulate the company my hon. Friend mentions on what it has already achieved.
Jonathan Ashworth (Leicester South) (Lab)
T5. The Secretary of State will be aware that in the last few days the National Grid Company has said it would welcome greater independent auditing of its contracting arrangements with STOR—short-term operating reserve—aggregators. Given that the National Grid admits that it buys 500 phantom MW a year, which it presumably passes on to consumers, will the Secretary of State now insist on independent auditing of this relationship with STOR aggregators so that consumers get a fairer deal?
Charles Hendry
The hon. Gentleman raises an important issue. We have had discussions with the National Grid Company about this matter and we are glad that it recognises the scale of the problem. We will work with the National Grid to try to make sure that it is addressed.
Chris White (Warwick and Leamington) (Con)
T6. In my constituency, there are plenty of small businesses, co-operatives and charities that wish to play their part in building a greener economy. Many are concerned about some of the changes to feed-in tariffs but are hopeful that other measures such as the green deal will enable them to grow. Will the Minister give an assurance that the Government will make it as easy as possible for small businesses to get involved in the delivery of the green deal?
John Pugh (Southport) (LD)
May I return the Minister to the subject of shale gas? Given the figures that have been announced for gas in place in the Bowland field, is it not important for the Government to form an early view on what can be economically and safely extracted?
Charles Hendry
A great deal of work needs to be done to assess the role that shale gas can play. We are aware of the gas-in-place estimate, but it is very different from an estimate of the amount of gas that may be recoverable. Much more research is needed, but we are satisfied that if the extraction goes ahead, it can take place under the existing legislative requirements relating to safety and environmental protection.
John Robertson (Glasgow North West) (Lab)
T8. An early-day motion tabled today, signed by me and the hon. Members for St Ives (Andrew George), for South Suffolk (Mr Yeo) and for Brighton, Pavilion (Caroline Lucas), calls on Ofgem to raise the level of debt for which pre-payment meter customers can switch suppliers from £200 to £350. According to the House of Commons Library, that would help more than 200,000 people immediately. Can we rely on the Secretary of State’s support?
Mr Peter Bone (Wellingborough) (Con)
I know that our splendid Liberal Democrat Secretary of State believes passionately in localism. Can he explain why, having been rejected, the proposed Nun Wood wind farm development, which covers three parliamentary constituencies and is opposed by the three Members of Parliament and the three local authorities concerned, has suddenly been granted approval on appeal? That cannot be localism at work.
Charles Hendry
My hon. Friend has made an important point. In future, as a result of one of the changes that we are making to the planning system, it will not be possible to overrule such decisions on appeal simply because the developments involved meet a regional renewable energy target. That target has been removed, and we are giving much more authority and many more decision-making powers to local bodies. Applications involving more than 50 MW will be submitted to the Infrastructure Planning Commission and then to Ministers for approval, but we are determined to strike the right balance between local and national interests.
Gordon Henderson (Sittingbourne and Sheppey) (Con)
The planned roll-out of smart meters across the UK will entail millions of homes being fitted with new devices. Will steps be taken to ensure that such devices are interoperable so that they do not act as a disincentive to consumers switching suppliers in order to get a better deal?
Charles Hendry
My hon. Friend makes a very important point. That is fundamental to our approach. Smart meters are designed to give consumers more control over the energy they use in their homes, and allowing people to switch and take advantage of different tariffs will be a fundamental part of their success.
Charles Hendry
The right hon. Gentleman raises an issue that is of even greater importance in Northern Ireland than anywhere else in the country. I recently met Bord Gáis to talk about some of its plans for extending the gas grid in Northern Ireland. I welcome those investments, and in addition the Office of Fair Trading has taken measures to ensure that the market operates fairly and properly in the interests of consumers. The OFT has committed to continuing to investigate any examples of market abuse.
Mr Tobias Ellwood (Bournemouth East) (Con)
Does the Secretary of State share my pleasure in the fact that the Daylight Savings Bill will finally reach its Committee stage next week, and does he agree that it makes sense for us to align our lives more with daylight hours? That will support tourism, help business and reduce carbon emissions.
Mr David Hanson (Delyn) (Lab)
Will the Government, along with Ofgem, urgently look again at standing charges? In my constituency, Scottish Power has recently raised the daily standing charge from 15p to 31p, thus at a stroke adding £50 to my constituents’ bills.
Charles Hendry
I urge the right hon. Gentleman to consider the announcements Ofgem has made today, dramatically simplifying the range of tariffs. Ofgem states that there must be a standard tariff that every company must apply in a similar way, and also that the variable tariffs must meet certain conditions. This is all part of trying to ensure that charging is much more straightforward and clearer for consumers, so they can see whether they are getting a good deal and switch if necessary.