The hon. Lady will know that I am passionately committed to helping the fuel poor. That is why we have increased the amount of warm home discount compared with the voluntary schemes. I disagree with her that the ECO subsidy is an ineffective way of reaching such people or that it is more regressive than other schemes. The fact that the previous scheme was Exchequer-funded was by the bye. What is important is achieving the key outcome of tackling the root causes of fuel poverty, and that we will do.
I understand that France has persuaded the European Commission to accept nuclear power as a renewable. Will the Secretary of State negotiate a similar deal for this country, and will he also make sure that the information on our energy bills is transparently clear, so we know how much of what we pay is subsidy for renewable energy?
I can do better than that, because the document published today contains precisely that information on the impacts on prices and bills. We want to be as transparent as possible, because it is important that people understand that although there will be price increases, we can, particularly as a result of our energy saving measures, also get volumes down, which is crucial to getting bills down. There is no point in our having unsubsidised energy and merely heating the atmosphere; we want to heat our homes, not merely push the heat out of leaky and draughty homes into the atmosphere.
(13 years, 2 months ago)
Commons ChamberThe hon. Gentleman has a marvellous turn of phrase, and I pay tribute to that. However, he has chosen his question with extraordinarily inappropriate timing, because we have today announced a renewables obligation review that increases the renewables obligation certificates available for precisely the technology that he seeks to advocate.
T5. York Handmade Brick Company is precisely the type of company that would benefit from the exemption from carbon floor prices now being given in Germany. Will the Government agree to extend the number of industries—from aluminium and other industries to brick and ceramics—that benefit from high energy user exemptions in this country?
I am grateful to my hon. Friend for her question. With UK support, the European Union agreed in May that the ceramics sector is at significant risk of carbon leakage, and as a result that sector will receive 100% of its European Union emissions trading scheme credits free from 2013. That will enable the sector to contribute to the environmental outcomes of the ETS while maintaining its own competitiveness.
5. What representations he has received on his objectives for the reduction of carbon emissions by 2020; and if he will make a statement.
The Government have committed to reduce UK emissions by 34% by 2020. The Committee on Climate Change confirmed on 30 June that we are on track to meeting this target. Internationally, the Government remain committed to moving to a 30% EU target. I have had numerous discussions with my EU colleagues and a wide variety of stakeholders in recent months on the importance of the EU low-carbon transition, including a move to 30%.
Given the agreement, and the ambition of the targets, what reassurance can the Secretary of State give the House today that businesses will be able to meet those targets without incurring ever higher energy bills or having to pass on the costs to their consumers, who might not be able to afford them?
We are working hard with the Department for Business, Innovation and Skills on a package to help energy-intensive industries to ensure that, for example, when we build much of the important energy infrastructure that we are going to be building over the next 10 years, the demand for steel and aluminium stays in the United Kingdom. That is a crucial part of what we are doing. My hon. Friend should not forget that we are also seeking an enormous increase in demand for British manufacturing as a result of the need to replace our energy infrastructure, and that investment levels will be running at double the normal level. That will give an enormous shot in the arm to manufacturing.
(13 years, 10 months ago)
Commons ChamberThere are ongoing discussions between Ministers—[Hon. Members: “Ah!] I would merely make the point to Opposition Members that it is more important to get this right than to do it quickly and get it wrong. With the green investment bank, let us remember that we are looking at an institution that will be crucial in supporting the transition to a low-carbon economy not over a two or three-year period, but over 40 years. If we look back at our economic history, and at similarly massive changes in the way our economy has been powered—for example, the move to coal and then oil, with the internal combustion engine—we see that these things do not happen in a day. Let us get the green investment bank right. That is what Ministers are going to do, and announcements will be made in due course.
T2. The green deal will bring huge fuel efficiency benefits in heating homes. Will the Secretary of State consider extending it to cover water efficiency, and in particular to educating households to save water, and to save energy by heating only the water that they need to use?
I am very sympathetic to my hon. Friend’s points. There is an important agenda for trying to make water use sustainable, as well as the other elements covered by the green deal. The difficulty lies in attaching measures that would affect water to an electricity and gas Bill, and that has so far proved insuperable for the ministerial team. We would like to see real improvements, however, and we have been working across Government on this. I know that the Secretary of State for Environment, Food and Rural Affairs, my right hon. Friend the Member for Meriden (Mrs Spelman) is also concerned about this, and is working hard on proposals.