Oral Answers to Questions
Debate between Charles Hendry and Andrew George
Charles Hendry
I am grateful to the hon. Gentleman for the work that he and his fellow members of the Select Committee on Energy and Climate Change have done on the proposal and on alternative counterparty models. The Government have made one approach clear in the draft Bill, but we have also made it clear that a single counterparty model could work separately. If we propose different models, we will publish a separate impact assessment.
Andrew George (St Ives) (LD)
4. When he plans to announce the outcome of the renewables obligation banding review.
Charles Hendry
Let me provide the hon. Lady with reassurances. We have sped up the programme that we inherited and brought it forward by 12 months, we have been going forward in a very collaborative approach with industry to get its buy-in to all the key decisions, and we have submitted the technical specification for European Commission approval, which is happening in two stages, with one going through now and the second shortly. We see this as a very important aspect of energy efficiency and putting consumers in power, and also for real business opportunities for large and small companies alike.
Andrew George (St Ives) (LD)
Energy bills are still impenetrable to many households. What progress are the Government making to ensure that energy companies improve the transparency and clarity of their domestic bills?
Oral Answers to Questions
Debate between Charles Hendry and Andrew George
Charles Hendry
The most important thing that we can do for the coal mine industry is to show that there is a continuing role for coal in the generating mix. We are all clear that we cannot have unabated coal in the mix in the future, and new plants will need to be equipped with carbon capture and storage technology. That is why the competition that we are launching here to put the United Kingdom at the forefront of the development of CCS technologies offers the best possible future for coal to have a long-term role in the energy mix going forward.
Andrew George (St Ives) (LD)
Further to the question asked by the hon. Member for Sittingbourne and Sheppey (Gordon Henderson), Warm Front was, in my view, undermined by the extortionate charges of a small cartel of suppliers. Given that only 22 companies are so far among the providers for the green deal, can the Minister assure us that local fitters and local suppliers can be part of the programme, so that costs are competitive?
Oral Answers to Questions
Debate between Charles Hendry and Andrew George(12 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
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.
Oral Answers to Questions
Debate between Charles Hendry and Andrew George
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.
Oral Answers to Questions
Debate between Charles Hendry and Andrew George(13 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text
Andrew George (St Ives) (LD)
In respect of the Minister of State’s responses regarding the Office of Fair Trading’s inquiry into off-grid energy supplies, which identified the importance of a diversity of suppliers, does he accept that the nature of the contracts that have been entered into restricts the opportunities for those who are supplied, particularly where they are forced to have a container to hold the liquefied petroleum gas?
Charles Hendry
The Office of Fair Trading has indicated that it will look at further examples of market abuse and anti-competitive behaviour, and that it is looking for evidence to be submitted to it in order to take that work forward, so there will undoubtedly be areas of further work that needs to be done. Some of that may need to be referred to the Competition Commission, and I hope that my hon. Friend will make forceful representations to that effect.
National Policy Statements (Energy)
Debate between Charles Hendry and Andrew George
Charles Hendry
Again, the hon. Gentleman raises an important point. We have made changes to the feed-in tariff to focus on microgeneration, as was the original intention. The nature of the tariff will drive forward significant investment in solar. We have to recognise that the UK is not a game changer in the pricing structure of solar, because our market will always be smaller than that of countries where there is greater potential for solar. Nevertheless, we want solar to achieve what it can in this country, and we want an industry to grow up to support that and deliver the products.
Andrew George (St Ives) (LD)
The Government have a coherent and ambitious plan for major renewables. In addition to the green investment bank, the energy market reform and the fourth carbon budget, how will the national policy statement aid genuine renewables more than the other energy sources covered by these statements?
Charles Hendry
The purpose of the national policy statements is to facilitate the planning process. What we hear time and again from people keen to invest in different parts of our energy infrastructure is that the planning process is one of the biggest blocks to their being able to make progress—huge amounts of renewable energy are blocked in the planning process. The statements are intended to give greater clarity to investors and to those who are making the decisions, so that our process can not only be much faster and much more constructive, but can provide appropriate engagement for local communities, because we are equally committed to ensuring that their voice is heard in decisions on how their communities evolve.
Oral Answers to Questions
Debate between Charles Hendry and Andrew George(13 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Charles Hendry
The renewable heat incentive is not actually related to the offshore wind development sector, in which Siemens is looking to operate. We are working closely with Siemens. Yesterday I chaired the offshore wind developers forum to consider the barriers to potential investment. We see this as a massive opportunity for Britain to secure the sort of green jobs that the hon. Lady is talking about in her constituency, and which Siemens is looking at more generally in areas such as Humberside.
Andrew George (St Ives) (LD)
In order to encourage greater wind generation, what assistance can Ministers offer to communities that live very close to large wind farms or turbines? How can they share the benefits of having those on their doorstep?
Charles Hendry
Our evidence shows that community schemes—where there is community ownership of the scheme—get through the planning process much more readily than non-community schemes. As we move forward, we are keen to see schemes that will keep the local business rate within the local community and provide additional benefits through community ownership, so that communities can see exactly what they are getting out of having such a facility in their areas, rather than, as sometimes happens, getting the pain but not the gain.
Oral Answers to Questions
Debate between Charles Hendry and Andrew George
Charles Hendry
I am not quite sure how renewable heat ties into marine and tidal technologies, Mr Speaker, unless it is very hot water indeed. We are working to bring that to a conclusion; we understand the pressure across the House for that clarity and we will provide it in the very near future.
Andrew George (St Ives) (LD)
Now that the wave hub plug is in place off the north coast of my constituency—a very exciting project that scales up for the first time wave energy—what will the Minister do to ensure that it is a great success? In Scotland, ROCs provide a far better return for projects. Will he work with me to ensure that this project is a great success and adds to renewable energy?
Charles Hendry
The project in Cornwall is one of two beacon facilities in the country, the other being in Orkney. That is exactly the approach that we want to take forward for marine energy parks, bringing together the relevant technological, academic and engineering skills that can encourage companies to stay in this country. We have been concerned that some companies have looked overseas to take their technologies forward and we have to put in place the right mechanisms to keep them here in the United Kingdom. Cornwall has a fantastic opportunity in that regard.