Fuel Poverty

Debate between Charles Hendry and Robert Smith

Wednesday 19th January 2011 Westminster Hall

[Charles Hendry]

There is a great deal in what the hon. Gentleman says not just about the benefits of shopping around, but about people understanding the benefits of buying early. The price increase happened extremely quickly. It rose from 40p at the beginning of December to 70p within two or three weeks. More people should be ordering in October and November. I hope that they will not have the experience that the hon. Gentleman had of only getting a partial delivery. We need to ensure that people understand that issue more fully.

The most important change that we need to consider is whether to take a fundamentally different approach to energy efficiency. In this country, we have some of the least energy efficient housing in Europe. From 2012, the green deal, which is part of Energy Bill, will provide the opportunity for householders to take action to improve the energy efficiency of their homes and to protect themselves against energy price rises through greater energy efficiency. We are also introducing a new energy company obligation to replace both the carbon emissions reduction target and the community energy saving programme. That will do more to help the poorest and the most vulnerable consumers and it will offer basic heating alongside insulation.

The key to the green deal is that the consumer should receive the benefit before they have to pay for it. We also hope that it will be of benefit to people who are in private rented accommodation, which is often the most difficult area to deal with. The landlord will no longer have to pay up front to cover the costs because they will be recovered over time from the people living in that property, as a result of a small addition to the Energy Bill. We hope that the landlords will decide to do that work voluntarily, but the Energy Bill will provide powers to require that work to be done, including a new power for local authorities from 2015 to require action to improve the worst performing homes. As the Energy Bill goes through the other place and, ultimately, the House of Commons, we are keen to discuss much of the detail and to ensure that we deal with the matter in the most effective way possible.

[Sir Robert Smith]

The hon. Member for Suffolk Coastal (Dr Coffey) raised the fact that a lot of the early talk about the green deal related to measures such as the physical insulation of the home. Has there been any discussion with suppliers about expanding the green deal or working with installers to put more efficient equipment into the home? Is there any way that that can be integrated into the green deal?

[Charles Hendry]

The golden rule with the green deal is that the saving has to be greater than the long-term cost. Accordingly, measures can be considered—for example, more efficient boilers and thermostat controls—that will help to meet that energy efficiency goal and to fit within the total golden rule that I have mentioned.

The root of the problem of fuel poverty is that price rises and changes are reflected in the cost of energy. I am very disappointed that most energy suppliers announced price increases before the winter. I join the hon. Member for Islwyn in paying tribute to EDF, which deferred a price increase until after the winter. We should recognise good practice where it occurs, and EDF’s customers will recognise and appreciate such action. In addition, we want a complete end to retrospective increases, where customers are only told after an increase has come in that it is going to happen. We want to do more to help consumers switch by requiring more helpful information to be provided on bills, and we are pleased that Ofgem has announced a market review to consider the large increase that it has seen in the profit margins of such companies.

As the hon. Member for West Aberdeenshire and Kincardine (Sir Robert Smith) mentioned, rising commodity prices have been reflected in consumer prices. The increase has been on a rising trajectory, and I think that most hon. Members would assume that the price of oil—currently, $90-plus a barrel—will continue to increase. We are looking to the same companies to rebuild our energy infrastructure. Some £200 billion needs to be found to upgrade our energy infrastructure, because of the lack of investment over recent decades. Accordingly, an enormous amount needs to be done by the companies and we need to recognise that. I am pleased by Ofgem’s work and by the evidence that Alistair Buchanan gave to the Select Committee on Energy and Climate Change yesterday. I am in absolutely no doubt whatsoever about the robustness and thoroughness of the Select Committee’s investigation and the real powers that it has to address these issues.

Once again, I congratulate the hon. Member for Islwyn not only on securing the debate, but on giving hon. Members the chance to address these issues at an important time of year, when they are very much on people’s minds. I also congratulate him on the constructive and thoughtful way in which he introduced the debate.

Oral Answers to Questions

Debate between Charles Hendry and Robert Smith

Thursday 16th December 2010 Commons Chamber

[Charles Hendry]

The hon. Lady is right that the consumer experience is absolutely at the heart of the success of the smart meter roll-out. We are working very closely with Citizens Advice, Consumer Focus and other groups that represent consumers, including those representing older consumers, because the experience of consumers and making sure that they use smart meters most effectively to their advantage is at the core of what we are trying to achieve.

[Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)]

Crucial to obtaining the benefits of smart meters is ensuring that they are for everyone in this country, no matter where they live—no matter how remote and rural their location—and no matter what the construction of their house, even if it be with walls so thick that most signals will not get through. We need to be mindful that none of the early roll-outs of smart metering lock in a technology that will not be universal. Will the Minister ensure that his response to the consultation gives us a truly universal metering system?

[Charles Hendry]

I congratulate my hon. Friend on his tenacity on this issue and the way in which he continually pushes us to make sure that we keep it very much in our mind. We are involving Ofcom directly in our discussions and our approach to developing this area to ensure that exactly those issues are very much in our mind.

Oral Answers to Questions

Debate between Charles Hendry and Robert Smith

Thursday 11th November 2010 Commons Chamber

[Charles Hendry]

One of the most immediate actions taken was to ensure that we have capping and containment devices—two containment devices that could deal very quickly with such an emergency are now based in the UK. We are also working with the industry on capping devices that would provide early, permanent solutions.

[Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)]

Will the Minister ensure not only that we will rightly learn any lessons from the inquiries into the gulf of Mexico incident, but that nothing is done to lose the leading-edge safety case regime that has been so well established since the Piper Alpha disaster?

[Charles Hendry]

My hon. Friend is absolutely right. We are keen to see international standards and work on that basis. However, that means bringing other countries up to the standard that already operates in the North sea, rather than lowering our standards to other international levels.

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[Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)]

T7. Smart meters have a great potential to benefit both consumers and the national interest in reducing our carbon emissions. What discussions are the Government having with industry and regulators to ensure that the vital spectrum is still available to ensure that the roll-out of smart metering extends to the whole United Kingdom, including difficult-to-reach rural areas?

[Charles Hendry]

My hon. Friend has put his finger on an important point. A number of communication technologies may be appropriate in the context of smart metering. In July my Department, together with Ofgem, published proposals for the establishment of a national smart meter communications organisation. Ofcom is also directly involved, and we are working closely with it to deliver exactly the sort of solution that my hon. Friend wants.