Ed Davey
Main Page: Ed Davey (Liberal Democrat - Kingston and Surbiton)(11 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Iain McKenzie (Inverclyde) (Lab)
1. What steps he is taking to help households improve their energy efficiency.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
Before I answer may I, on behalf of many Members of the House, welcome the election of the new pope, Pope Francis?
The green deal, which went fully live on Monday 28 January, will help transform the homes of British people over the coming decade and beyond. This transformational policy, along with the energy company obligation and the roll-out of smart meters, will drive the development of a new energy efficiency market, providing unprecedented choice, benefits and access to low-cost finance for British households.
Mr McKenzie
The Government claim that the green deal will be the biggest and best home improvement plan since the second world war. Can the Minister tell us how many households have taken out the green deal so far?
Mr Davey
The green deal has got off to an excellent start. As the hon. Gentleman may know, we have released data today which show that nearly 2,000 green deal assessments have been made, and already that figure is out of date. There are more than 600 accredited advisers and more than 600 installing firms have been accredited. Nearly £30 million of ecos have been traded on eco-brokerage. The hon. Gentleman should listen to the industry. I do not often recommend that people listen to tweets, but if he looks at the tweets of British Gas, GHE Solar, Toriga and Green Deal Shop, they will tell him and other right hon. and hon. Members how well those firms are doing with assessments and, they believe, taking those on to installations.
Stephen Mosley (City of Chester) (Con)
It is estimated that 8 million homes would benefit from solid wall insulation and 4 million from cavity insulation. There is a huge market out there for the green deal. What is my right hon. Friend doing to promote the green deal to make sure that as many people as possible take it up?
Mr Davey
I can assure my hon. Friend that I, my Ministers, the whole Department and the whole Government are pushing the green deal. The solid walls that he referred to—those 8 million homes—have not featured in energy efficiency programmes in any major way before. It has been an undealt-with issue in energy efficiency. We have not ducked that and we are tackling it.
Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)
It is just over a month since the green deal was launched. We have just heard that more than 2,000 assessments have taken place. However, the Secretary of State refuses to reveal how many households have actually signed for a green deal package. We know that the Department is monitoring green deal uptake in real time through the energy performance certificate register. Why will he not share that information with the House today?
Mr Davey
I am surprised that the hon. Lady has asked that question as it suggests that she does not understand how the green deal plans work. She should know, and I think she probably does, that after an assessment has been made and an installation programme has been booked, the green deal plan is signed only after the installation has been completed and then goes on to the green deal register for the green deal payments to appear on the bill. So there is quite a lag, as the hon. Lady would know. We did not expect a huge number of green deal plans to have already been signed. The key issue at this stage is the green deal assessments and the green deal assessors, and we are making huge progress, as the industry is saying.
Luciana Berger
I thank the Secretary of State for that response, but he will know that the public want to know how many people, having seen their assessment, have signed on the dotted line for the deal. Given that Nationwide is offering energy efficiency loans with an interest rate of just 2.29%—less than a third of the interest rate under the green deal—does the Secretary of State believe that more people would take out the green deal if offered a better deal?
Mr Davey
The green deal is going well, as the industry says. I welcome Nationwide’s product because it shows that there is more competition in the market. It shows what the green deal is spurring. It is not just green deal plans that will be a mark of the programme’s success; it is green deal self-funded plans, which will be a result of the green deal assessments being made. They would not be made in the way that they are if we had not gone forward, and the hon. Lady should welcome that.
Mr Philip Hollobone (Kettering) (Con)
Domestic LED lighting can use as little as 5% of the power of a normal light bulb. Though more expensive initially to buy, LED light bulbs require very little maintenance and have a very long life. What incentives are there in the green deal or elsewhere to promote domestic LED lighting?
Mr Davey
My hon. Friend makes an important point. We strongly support LED lighting. There are issues about whether different types of lighting can come under the green deal because light bulbs can be taken away, and if the cost of those is in the electricity meter for the next tenant or the next owner-occupier, that would not be fair and would not, therefore, abide by the green deal rules. However, we agree with my hon. Friend: there is a strong case for people investing in LED.
Ian Lavery (Wansbeck) (Lab)
2. What assessment he has made of the future of the deep-mine coal industry in the UK.
Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
11. What steps he is taking to help households with their energy bills.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
We have a range of initiatives to help people with their energy bills, including tariff reforms, energy saving programmes, and additional help for those on the lowest incomes. From our proposals to help get consumers on the cheapest tariffs to the green deal, from the warm home discount to our promotion of collective switching, this Government are working to help people keep their energy bills down.
Mr Raab
I thank the Secretary of State for that answer. However, supply is also crucial. Ofgem forecasts that UK spare electricity capacity will slump to 4% by 2015, and that highlights the acute need to get more nuclear power on stream. May I urge him to strain every sinew to finalise the right deal with EDF to build a new nuclear power station at Hinkley Point?
Mr Davey
I assure my hon. Friend that we are straining every sinew in the negotiations with EDF. He will recognise that I cannot be more explicit than that given that they are commercial negotiations. I will say, though, that we take energy security very seriously and listen to Ofgem, National Grid and others. However, we do not imagine that new nuclear power will assist in the rest of this decade, because new nuclear power stations take such a long time to build.
Mark Lazarowicz
We are currently going through a cold spell and, as night follows day, we know that in a few months’ time the energy companies will announce even bigger boosts in profits because people have been using more energy. Is it not time to get to a situation whereby a cold spell is not an occasion for energy companies to make even more profits but to keep prices down for consumers?
Mr Davey
The hon. Gentleman will know that we have taken a lot of extra powers in the Energy Bill to make sure that Ofgem’s reforms on tariffs can go through and that the energy companies cannot be allowed to drag their feet. That has been welcomed by many consumer groups. This Government have also taken action to help people on the lowest incomes. We have trebled cold weather payments, so when there is a cold snap people get the help they need when they need it.
Chris Heaton-Harris (Daventry) (Con)
When the House of Commons analysed the DECC-produced fuel poverty data set of 2009, the figures suggested that the renewables obligation could have pushed 100,000 people into fuel poverty, in 40,000 to 50,000 cases because of the wind element. How many people were pushed into fuel poverty last year because of expensive wind energy?
Mr Davey
I congratulate my hon. Friend on his ingenuity, but the analysis that others have done of those figures shows that what has really pushed people into fuel poverty has been gas prices, with global gas prices having increased significantly. We also have to deal with the renewal of the transmission mechanism and distribution networks. Those things have far bigger impacts on prices and bills. The hon. Gentleman ought to have a balanced approach.
Caroline Flint (Don Valley) (Lab)
The single biggest driver of rising energy bills is global gas prices. Last week the Institute for Public Policy Research think tank found that household energy bills would be lower and less volatile if the Government decarbonised the power sector by 2030. Does the Secretary of State agree?
Caroline Flint
Although the Secretary of State says he agrees, the problem is that the Government are not tackling the issue. The truth is that the Energy Bill does not require the Government to set a decarbonisation target. Even if such a target were set, there is nothing under the Bill’s present arrangements to ensure that it would be met. The Committee on Climate Change is absolutely clear: the Government should set a decarbonisation target now, not in 2016, and all the Government are doing is extending the uncertainty for another two years. Was not the former Energy Minister, the hon. Member for Wealden (Charles Hendry), right when he said that this uncertainty will lead to higher capital costs and, ultimately, higher energy bills for the public?
Mr Davey
I have to remind the right hon. Lady and the House that no single party—not the Labour party, the Conservative party, the Liberal Democrats or even the Green party—argued in its 2010 manifesto for a decarbonisation target for the power sector. It was this Government and me as Secretary of State who argued for such a target and got the power to set one in the Energy Bill. When it comes to targets and having the policies to meet them, this Government have done far more than the previous one. The previous Government were right to set targets in the Climate Change Act 2008, but they did not produce the policies to meet them. This Government are doing that.
Sir Nick Harvey (North Devon) (LD)
6. What recent assessment he has made of the long-term environmental effects of Government support for large-scale biomass conversion.
Mr Edward Leigh (Gainsborough) (Con)
12. What the height will be of the proposed wind farms in north Lincolnshire; and if he will make a statement.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
The proposed height of wind turbines is set out in the planning applications that are submitted for proposed wind farms. The local planning portal shows four wind farms with applications submitted in north Lincolnshire, with heights that vary from up to 100 metres to 126.5 metres. We are committed to supporting onshore wind as part of a balanced mix of energy to meet the UK’s needs. Wind farms must be well designed and well sited to be approved, and the planning process can take account of concerns, including landscape and visual amenity concerns.
Mr Leigh
Will my good friend visit me in north Lincolnshire so that we can stand together on the edge of the Wolds, an area of outstanding natural beauty, near the Ramblers church at Walesby and look at the amazing Lincolnshire clay and the 40-mile view? Will he then come back in 10 years’ time to see that great view desecrated by vast arrays of windmills 100 metres high, all in the name of some controversial science? Can we not place these windmills somewhere where they do not desecrate our lives?
Mr Davey
The hon. Gentleman will know that I benefit from an infallible Minister of State who comes from Lincolnshire. He keeps me informed of all the issues to do with Lincolnshire and gives me his own particular line on them. I can reassure the hon. Gentleman that I am well versed in Lincolnshire issues. We take community concerns seriously, not just in Lincolnshire but across the country. That is why we published the call for evidence on community benefits in September. We will report to the House on that in the summer.
Mr Adrian Sanders (Torbay) (LD)
13. What steps he is taking to reduce the number of households in fuel poverty.
Andrew Jones (Harrogate and Knaresborough) (Con)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
The core purpose of the Department of Energy and Climate Change is to power the country and protect the planet, and to avoid catastrophic climate change while providing secure, affordable energy supplies to the UK.
I want to take this opportunity to express my regret at the closure of Daw Mill colliery following a fire. The closure will be felt keenly by the communities surrounding the colliery, and particularly by the families of those whose jobs are threatened as a result. We are in close contact with UK Coal and the unions to try to develop a way forward, as the Minister of State, my hon. Friend the Member for South Holland and The Deepings (Mr Hayes) said earlier. Since the last oral questions, the Energy Bill has continued its passage through this House and we remain on track.
Andrew Jones
There are proposals to create what will be the largest onshore wind farm in the country on the edge of my constituency. I am a huge supporter of renewable energy, but I have major reservations about onshore wind, as I believe it is very expensive and unreliable. I am therefore not at all supportive of the proposals. Does the Secretary of State agree that we have enough onshore wind farms already?
Mr Davey
I am sorry to disappoint my hon. Friend but I cannot agree with that bold statement, not least because onshore wind is one of the cheapest—if not the cheapest—of the large-scale renewable technologies. It has huge benefits. The planning system is important, however, and local communities can have a say on these matters. One reason that we published the call for evidence on community benefits was to ensure that local communities benefit more from hosting such installations.
Pamela Nash (Airdrie and Shotts) (Lab)
T3. The village of Salsburgh in my constituency is not on the gas distribution network, which means that the inhabitants have to spend more money on electric and oil heating systems. That situation is replicated throughout the country. What are the Government going to do to tackle the issue?
Mr Davey
The hon. Lady raises an important issue, and it is one that many hon. Members have experienced in their constituencies. In the past, people who are off the gas grid have not had the support they deserve, but the Minister of State, my hon. Friend the Member for South Holland and The Deepings is looking into the matter. We are looking at tackling fuel poverty through mechanisms such as collective switching, for example, and at renewable heat, which can really help people who are off grid. We are looking across the range of our policies to see whether we can help.
Neil Carmichael (Stroud) (Con)
T2. In my Stroud constituency, we have a large number of innovative energy firms eager to pursue research and development projects. One area I think worth developing is energy storage, particularly storing electricity, which answers quite a few questions about engineering and providing an industrial base, as well as the peak problem in relation to renewable energy. What measures will the Government take to encourage investment in energy storage?
Mr Davey
My hon. Friend is absolutely right. I think energy storage technology holds out massive potential for the future, and UK firms are at the cutting edge of some of these technologies. When we finalised the Energy Bill, we said that we were minded to run a capacity market next year. One thing we would do with that is to have an early capacity market auction for demand-side response and storage technologies. That would send a very clear signal to these innovators.
Steve Rotheram (Liverpool, Walton) (Lab)
T5. I have written previously to his Department, so the Secretary of State should be aware that the people of Merseyside pay more for their electricity than people anywhere else in England. Will he therefore insist that Ofgem recommends a price reduction so that people in Liverpool pay the same tariff as others elsewhere in the country?
Mr Davey
I am sure Ofgem will have heard the hon. Gentleman’s question. He will also know that Ofgem has proposed major reforms of tariff, which we believe will help many people, particularly those stranded on the so-called dead tariffs who are paying far more than they need to. This will, I believe, support competition in the market. Let me point out that the hon. Gentleman’s Front-Bench team is in favour of abolishing Ofgem—a particularly interesting position.
Chris White (Warwick and Leamington) (Con)
T4. In my constituency, a number of groups are looking at ways to set up new renewable energy projects. However, I have met some who have faced barriers from organisations such as the Environmental Protection Agency and other Government bodies. Will the Minister outline what help is being given to local community groups to get their organisations off the ground and will he look at ways of ensuring that the regulatory regime is proportionate both in cost and time to the scale of the projects involved?
Mr Davey
I am grateful for the hon. Gentleman’s question. I have seen that letter. He will know that there is a case, which I have supported, for bringing this forward and setting a target in 2014, but we have reached an agreement across the coalition. I think it is a very sensible agreement, because we are the first Government ever to propose setting a decarbonisation target. I think we should be proud of that. Rather than talking it down, the Opposition should realise that we have moved further and faster than they did.
Glyn Davies (Montgomeryshire) (Con)
T6. I want to thank the Minister of State, my hon. Friend the Member for South Holland and The Deepings (Mr Hayes) for hosting a constructive meeting with the Welsh Assembly Member Russell George and myself earlier this week about planning permission for onshore wind farms and associated infrastructure in mid-Wales. Will the Minister tell us how he intends to ensure that more weight be given to the view of planning authorities and local communities when they fiercely oppose wind farms in their areas?
Andrew Selous (South West Bedfordshire) (Con)
T8. The United Kingdom is not alone in Europe in wanting to build new nuclear power stations. How can we co-operate with other European countries to our advantage, without ceding further powers to them?
Mr Davey
Only just last week we hosted, here in London, a meeting of EU member states which either have nuclear power or want to invest in it. We are working with them, not just looking for opportunities for new finance and so forth, but trying to ensure, together, that the EU understands the case for investment in low-carbon energy sources such as nuclear power.
Kerry McCarthy (Bristol East) (Lab)
In their response to the Environment Audit Committee’s report “Protecting the Arctic”, the Government said that oil drilling would be necessary in the Arctic to preserve domestic energy security and meet global demand. That was based on projections in the 2011 World Energy Outlook report. However, the 2012 report shows that projected demand can be met entirely by production from already discovered fields. Will the Government be reviewing their position in the light of that?
Mr Davey
As we said in our response to the Committee, we are working with members of the Arctic Council, which are the key countries that develop policies of that kind. We do not have the power to infringe their sovereignty, and I would not wish that, but we are working closely with them, particularly with close colleagues such as Norway.
Mr Adrian Sanders (Torbay) (LD)
T9. Many of my constituents are concerned about fracking, but I am not aware of any applications for fracking in the south Devon area. Can the Minister reassure my constituents that the Government are not aware of any such applications?
Mr William Bain (Glasgow North East) (Lab)
The CBI estimates that more than a third of the pitiful economic growth that we saw last year came from the green economy. Why is the Secretary of State listening to the Chancellor rather than to green businesses, which say that they want a target in law for the decarbonisation of the energy sector by 2030 and they want that target now?
Mr Davey
The hon. Gentleman is right: green growth enables our economy to perform. We are seeing green growth, and I welcome that. I have been working closely with the Chancellor. The deal that we agreed before Christmas will mean a tripling of support for renewable energy, and, for the first time, the power to set a decarbonisation target will be put into law. That provides a framework that the last Government did not provide.
Julian Smith (Skipton and Ripon) (Con)
I am concerned by the Secretary of State’s brush-off of my constituency neighbour, my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones), in connection with the Penny Pot Lane wind development. Communities throughout north Yorkshire are being bullied by wind companies, and money is being wasted. Will the Secretary of State meet me, and other north Yorkshire Members of Parliament, to discuss why the Liberal Democrat obsession with wind is not what north Yorkshire wants?
Mr Davey
I did not give my hon. Friend’s neighbour a brush-off. His hon. Friend—and my hon. Friend—asked me whether I thought that we had enough onshore wind. I do not think that, but, as my hon. Friend the Member for Skipton and Ripon (Julian Smith) knows, Secretaries of State rightly do not comment on local planning applications.
Andrew Gwynne (Denton and Reddish) (Lab)
The last Labour Government helped to lift 1.75 million people out of fuel poverty. Does the Secretary of State expect next year’s fuel poverty figures, which will show for the first time what has happened under this Government, to reveal that fuel poverty has risen or fallen on his watch?
Mr Davey
I must remind the hon. Gentleman that the figures based on the old way of counting show that fuel poverty increased under the last Government. This Government have conducted an independent review of the way in which fuel poverty is measured, and it showed that the last Government could not even measure it correctly. According to the old measurement, the Queen was sometimes in fuel poverty. However, we are reforming not just the measurement of fuel poverty but the policies themselves, and I shall be producing a fuel poverty strategy later this year.
Mr Marcus Jones (Nuneaton) (Con)
I want to thank the Minister of State, my hon. Friend the Member for South Holland and The Deepings (Mr Hayes) for the care and support he has shown for the workers at the Daw Mill colliery during this difficult time. In addition to the work he is doing, will he make representations to the Department for Business, Innovation and Skills to ensure that it is fully engaged with local organisations in the provision of careers advice, support and retraining opportunities for the workers who cannot be redeployed in the coal industry?
Alison Seabeck (Plymouth, Moor View) (Lab)
The Hills fuel poverty review said that unless the Government changed course a further 200,000 families would be in fuel poverty within four years. Does the Secretary of State agree with the Hills conclusions, and if not, will he place in the Library the evidence on which he is basing his views?
Mr Davey
Professor John Hills’ report was extremely welcome and had a very important analysis. In reforming the design of the ECO, we took account of the understandings and research Professor Hills laid out, and that is also one of the reasons why we will be developing and publishing a fuel poverty strategy to show we are serious about tackling this issue.
Duncan Hames (Chippenham) (LD)
In how many of the homes in need of improved insulation does the Minister expect measures to be taken over the remainder of this Parliament?
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
I am sure the Secretary of State knows about the Innovate UK conference held in Islington in London this week. Will he take a greater interest in clean, energy-efficient, sustainable production? There is a great market for Britain in this field; we lead the world, but we need leadership to make sure we conquer China, India and other markets.
Mr Davey
I was not aware of that particular conference, but I did attend an exhibition called Ecobuild, which showed many British companies that are innovating in saving energy. I am extremely aware of companies that are involved in clean energy, and I am working with my right hon. Friend the Secretary of State for Business, Innovation and Skills to develop supply-chain policies so not only are low-carbon technologies developed, but innovating British firms get the benefit and we have green jobs in this country.