Energy Update
Debate between Greg Hands and Patricia Gibson(2 years, 2 months ago)
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Madam Deputy Speaker (Dame Rosie Winterton)
Order. I call Patricia Gibson.
Patricia Gibson (North Ayrshire and Arran) (SNP)
The energy price cap is set to double. Businesses have received no support with energy costs, households have simply not received enough and those in park homes have been completely ignored so far. On top of that, the cost of supplier failures means that the poorest, who use less energy, will continue to be disproportionately impacted by punishing standing charges. Today the Minister has said nothing about any of these issues, because today’s statement is about a zombie Government giving the illusion of activity. When will we see urgent and decisive action to tackle this increasingly painful and in some cases life-threatening crisis for businesses and households on the brink?
Greg Hands
There is a lot in that question. The hon. Lady raised a new issue, not raised in these questions so far—the issue of park homes. That is a serious concern, because around 1% of households in this country are not reached by the current £400 scheme, although they are being reached by other schemes. We have said clearly that we will announce measures to assist those living in park homes, houseboats and so on, which are not covered because they do not have a meter point. There will be a scheme announced this autumn to help them, with funding attached, as part of an additional scheme.
Gas and Electricity Costs
Debate between Greg Hands and Patricia Gibson(2 years, 10 months ago)
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Greg Hands
That is exactly what we are doing. The new contract for difference auction that was launched in September is as big as the previous three auctions, when it comes to renewables. Our dependence on foreign gas is less than 20%. Our dependence on gas from Russia within that is less than 3% or 4%. That is action that we have already taken.
Our long-term strategy is about finding effective replacements for fossil fuels, which are reliable and do not expose us to the volatility of international commodity markets. We already have the world’s largest capacity in offshore wind, but we are not resting on our laurels, because we are going to quadruple that over the course of the next decade. That is all a major step towards delivering the Government’s increased ambition on renewables.
In answer to the hon. Member for Strangford (Jim Shannon) on new technology, it is both renewables and nuclear, to which I will turn briefly, which is a key plank in the Prime Minister’s 10-point plan in the energy White Paper and the legislation that is passing through the House of Commons. I will return in a moment to the comments from the hon. Member for Kilmarnock and Loudoun (Alan Brown).
In the brief time of six minutes available to me, I will answer some of the points raised. The hon. Member for Caithness, Sutherland and Easter Ross referred to his constituent, the businessman Andrew Mackay. I am happy to engage with the hon. Member on behalf of his constituent. Business bills tend to be set on long-term contracts, which give a certain insulation from volatile prices, at least until the point where the contract comes up for renewal.
On rural support, 15% of the energy company obligation—ECO3—must be delivered to households in rural areas. We consulted in the summer of last year on its successor scheme—ECO4—for delivering energy efficiency heating measures in off-grid homes in Scotland and Wales. We are already extending the warm home discount from about 2 million to 3 million households, from £140 to £150. It is worth pointing out, as the hon. Member for Kilmarnock and Loudoun knows well, that the warm home discount is not a zero-cost option. There are people who have to pay additional money on their bills to support recipients of the warm home discount, so it is not something that we can just take action on with the stroke of a pen, like the Labour motion last week—the trebling—without considering the consequences.
The hon. Member for Newton Abbot (Anne Marie Morris) is absolutely right on cost-of-living issues, but let us look at a lot of what is happening in this country. We have record figures for those in employment. We have the national living wage increase. We have beneficial changes in the universal credit taper rate and so on. All these things are providing support for people facing cost-of-living issues. I totally appreciate and am totally with the hon. Lady on the impact that energy bills may be having and will be having later this year. On levies and on the heat and buildings strategy, we said that we would publish a fairness and affordability call for evidence, which will set out the options to help rebalance electricity and gas prices and to support green choices, with a view to taking decisions in this year—2022.
The hon. Member for Bath (Wera Hobhouse) said that we are scrapping the ECO scheme. No—as I have already pointed out, we are moving from the ECO3 scheme to the ECO4 scheme. I guess, Sir Edward, technically you may describe that as scrapping it, but we see it as improving it and building on it. The hon. Lady called for a windfall tax. She praised German energy company E.ON for doing a great job, and it does do a great job, but she and other Members have to be careful when they call for a windfall tax while also praising those investing in the energy sector. She has to be mindful of what impact any windfall tax would have on those investment rates.
The hon. Member for Makerfield (Yvonne Fovargue) made a very moving speech about the situation for low-income households and prepayment customers. There are 4 million prepayment customers. Ofgem obviously put in place licensing conditions to protect prepayment customers at risk—particularly of self-disconnection—including dedicated helplines for prepayment meter customers. There is a lot of support in place, but the issue of PPM customers is something that we keep a very, very close eye on in the Department for Business, Energy and Industrial Strategy, and I know Ofgem does as well.
The hon. Member for Strangford (Jim Shannon) wanted an indication of what the Government are doing to help. We are doing a lot. We have in place winter fuel payments of between £100 and £300. I have already discussed the warm home discount. There are the cold weather payments. There is the £421 million household support fund. There is a lot of support. I say that while recognising Northern Ireland’s particular status as regards electricity. Obviously, a lot of that is devolved to the Northern Ireland Executive.
The hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) called for a VAT reduction. That is obviously, as she rightly pointed out, a matter for Her Majesty’s Treasury. It is not a very targeted way of supporting vulnerable customers. We heard from the hon. Member for North Ayrshire and Arran (Patricia Gibson). I do not think this is really the right place for a Brexit debate, but she said that leaving the EU allows us to cut VAT on domestic fuel. Her policy of rejoining the EU would surely negate that policy.
Greg Hands
No. I have only two minutes left. The hon. Lady asked a question about storage, and I repeat that the current issue is not a question of supply. Storage helps if there are supply issues, but we have an issue relating to price. Storage does not protect, generally, from price shocks if the supply is secure, and I have already said that our supply is secure.
The hon. Member for Oxford West and Abingdon (Layla Moran) made an extraordinary speech, in which she said, I think, a windfall tax would be a powerful message to Moscow. I thought the intervention by the hon. Member for Kilmarnock and Loudoun slightly exposed that. If the hon. Member for Oxford West and Abingdon can show me how to design a windfall tax that would clobber Gazprom, I am all ears. Bearing in mind that our imports of gas from Russia are almost entirely liquefied natural gas and only less than a handful of percentage points, if the hon. Lady can show me how her Robin Hood tax would have an impact on Gazprom, I am all ears. We are not dependent on—she said “rogue states”. More than half of our gas imports come from Norway. I do not think anything she is proposing is going to protect us from rogue states.
The hon. Member for Kilmarnock and Loudoun made a number of familiar points on supplier of last resort costs. SoLR is there to protect customers when their energy supplier ceases to trade, so that they can transfer their account.
Agricultural Exports from Australia: Tariffs
Debate between Greg Hands and Patricia Gibson(3 years, 6 months ago)
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Greg Hands
My hon. Friend is absolutely right. In any trade deal, we have to look across the whole piece. His question is just about agriculture, but we should look at the other opportunities for the Black Country to benefit from—for example, 5% car tariffs and the huge amount of machinery sold by this country into Australia, including from Northern Ireland. There are other great opportunities in, for example, financial services, gin, vodka and cheese. Australian cheese tariffs can be as high as 21%. There are big opportunities for UK exporters not limited just to agriculture.
Patricia Gibson (North Ayrshire and Arran) (SNP)
Farmers in Scotland and across the UK fear this trade deal with Australia could put them out of businesses and flood our supermarkets shelves with inferior-quality products. I know that the Minister rejects that and does not recognise those fears as being valid, so can he explain why it seems that our farmers and consumers simply do not understand how fabulous this deal is, or could it be that the Government are being disingenuous about the impact this deal will have on our farmers and our food?
Greg Hands
The hon. Lady used the word “disingenuous”, but I notice that, while she talks a good game about supporting British meat farming, her neighbouring SNP council, South Ayrshire Council, put out a tweet just recently encouraging residents to eat 75% less red meat. She cannot have it both ways: she cannot be encouraging less red meat consumption and then complaining about a trade deal that she thinks will import a lot more of it. I remind her that Scotland will benefit very strongly from this deal. I notice, again, that we do not hear anything from the SNP about Scotch whisky and the huge amount of other Scottish goods that we are selling in Australia through this deal.
Oral Answers to Questions
Debate between Greg Hands and Patricia Gibson(3 years, 7 months ago)
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The Minister for Trade Policy (Greg Hands)
The UK has long supported the promotion of our values globally. We are clear that more trade does not have to come at the expense of human rights. Although our approach to agreements will vary between partners, our strong economic relationships allow us to have open discussions on a range of issues, including human rights and responsibilities.
Patricia Gibson
In a leaked recording last month, the Foreign Secretary said he wants to do trade deals with countries that violate international standards on human rights, as not doing so would mean missing out on profit. Will the record now be set straight? Does the Minister recognise the remarks made by the Foreign Secretary as Government policy and is this the view shared by the Department for International Trade?
Greg Hands
I think the hon. Lady has misquoted the Foreign Secretary in her account of what he said, but let me be absolutely clear that we will continue to encourage all states to uphold international human rights obligations. The UK has long supported the promotion of our values globally and remains absolutely committed to its international obligations. We are currently negotiating with Australia, New Zealand and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. They will all be important partners and they are all places that the UK will be engaging with when it comes to questions of maintenance and international support for global human rights.
Sale of Arms: War in Yemen
Debate between Greg Hands and Patricia Gibson(4 years, 4 months ago)
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Patricia Gibson (North Ayrshire and Arran) (SNP)
Like many people listening today, I am astonished that the Minister has said that the global human rights sanctions regime is a separate matter from selling arms to the brutal Saudi regime. Can he tell me how this Government can, in all good conscience, continue to export weapons to Saudi Arabia when we know that there is a risk that they may be used in Yemen, after 17,640 civilian casualties have been documented in that country? Is it simply a case of profit before Yemeni lives?
Greg Hands
The process that is with me is to use the consolidated criteria. That is why we have developed a revised methodology in respect of all the allegations which it is assessed are likely to have occurred and to have been caused by fixed-wing aircraft. Each of those allegations has been subject to detailed analysis by reference to the relevant principles of international humanitarian law. An evaluation has been made and it has been applied to all credible incidents of concern of which we are aware. Importantly, our revised methodology will allow us to make these decisions going forward.