Energy Bill

Debate between Guy Opperman and Albert Owen

Tuesday 4th June 2013 Commons Chamber

[Guy Opperman (Hexham) (Con)]

In the north-east, energy in all its forms concerns my constituents almost more than any other issue. Whether it be fuel prices, energy prices, the role of wind, biomass and nuclear, opencast mining, the renewable heat incentive, solar, off-grid, liquefied petroleum gas, heating oil, gas or electricity prices, not to mention the role that climate change should play—these are all key issues for the people of Hexham.

It is definitely the case that the Government have a fundamental duty to keep the lights on and to lift the people of the north-east out of fuel poverty. Like the hon. Member for Wansbeck (Ian Lavery), I inherited a situation in which 24% of our population were living in fuel poverty. It is a situation that has sadly not improved that much, although I applaud what the Government have tried to do. I especially welcome the work that they have done on fuel prices, and their support for household energy.

In case I am required to do so, I make the declaration that I am a member of the all-party parliamentary group on off-gas grid and the all-party parliamentary group for the wood panel industry, and that my constituency contains employers in the timber industry.

I entirely accept that our desire to reduce carbon consumption is often incompatible with a reduction in energy prices. The fact is that renewable energies are not as efficient as coal, oil and other fuels, which often has the knock-on effect of increasing energy prices. Anyone who doubts that should read the maiden speech made by Lord Ridley in the other place last month. Notwithstanding the competing difficulties with which the Government have to deal, carbon reduction and renewable energy obligations will continue to be met, and energy companies will be required to place gas and electricity consumers on the cheapest tariffs.

I welcome the Government’s efforts in relation to the green deal, about which I should have liked to say more. It is having a considerable impact, although we need it to trickle down to local suppliers, too few of whom are providing it on an ongoing basis.

I applaud the efforts made to deal with fuel poverty through the buy oil early campaign, and look forward to doing my bit later in the year. However, it has been put to me that the success of the campaign would be massively increased if winter fuel payments were made earlier in the year, when oil is much cheaper—hypothetically, on 1 August.

Having listened to what was said about decarbonisation by my hon. Friend the Member for South Suffolk (Mr Yeo), I am sadly not persuaded. This is a debate that has seen the hon. Member for Edinburgh West (Mike Crockart) charge, with Tennyson, to the redoubts of Sebastopol, and also to the shifting climatic sands of South Suffolk. The hon. Member for Rutherglen and Hamilton West (Tom Greatrex) disparages the Secretary of State and sees him as the political equivalent of Queens Park Rangers, but fails to add that Hamilton Academical are not exactly in the champions league.

It strikes me as entirely sensible for the decarbonisation target to be set after the Energy and Climate Change Committee has provided its advice on the fifth carbon budget in 2016. However, while I support the Government’s strategy of shifting away from oil and decarbonising, we must be careful not to rely excessively on wind energy. The hon. Member for Wansbeck and I face twin problems in that regard, because the Northumberland area is being randomly covered with wind farms. There is no proper strategy and no local development plan, and our constituents are not encouraging the move in any way.

I urge the Government to address the future role of wind, and also that of biomass. The continuing domestic subsidy for biomass is having an impact on the jobs of all utilisers of wood. It means that the demand for timber from energy companies increases, and so too does the price. The subsidy gives those companies a competitive advantage, enabling them to purchase timber more cheaply than any other provider in the country. I repeat my calls for the subsidy to be scrapped, so that the wood panel industry—and, indeed, anyone who utilises timber—can compete on a level playing field, while continuing to decarbonise.

The Bill should be strongly supported. I shall vote against the Labour amendment—[Interruption]—which, I hasten to add, is also the amendment of my hon. Friend the Member for South Suffolk. I should have liked to include many more items on my wish list—much like the hon. Member for Edinburgh West—but, in the interests of satisfying you, Mr Deputy Speaker, I shall end my speech.

[Albert Owen]

It is a pleasure to follow the hon. Member for Hexham (Guy Opperman), although I am disappointed that he will not be joining us in the Lobby.

Many of those who oppose the amendment have tried to suggest that it is pro-wind, but it is not about wind energy. I am proud to put on record that I am pro-nuclear, pro-renewables and pro-energy efficiency. I see no contradiction in holding those three views, because I want to decarbonise the economy, but I do not want to do so only for the sake of decarbonising it. Many Members who support the amendment are not—the hon. Member for Rochester and Strood (Mark Reckless) has just left the Chamber—just ideological greens. I consider myself to be a practical environmentalist. I want to see the environment looked after properly, quality jobs in this country, and the promotion of quality jobs in the energy sector. I want to see our country become the world leader in all forms of new generation. I want to see us, as pro-nuclear, being the forerunner in that new technology. There is also great untapped marine energy potential in this country, and I want it to be unlocked. The Bill offers a good mechanism for doing that.

Arch Cru Compensation Scheme

Debate between Guy Opperman and Albert Owen

Wednesday 19th October 2011 Westminster Hall

[Guy Opperman]

I endorse the hon. Lady’s comments about the authority.

There are tremendous financial consequences here, but there is also a human one. All hon. Members—I have been here for only 18 months, but others have been here for many years—will have gone through the pain, difficulty and correspondence in relation to Equitable Life. To be fair, this situation is not the same, but it is similar in that constituents have written to me because they have given up. One told me about a retired couple in ill health who have already given up, because

“they have not the energy or the mental resolve to fight this”.

The Minister had an extremely difficult job with Equitable Life, and I applaud the fact that he did the best he could in very difficult circumstances. This matter, however, is far simpler, and I hope that he takes on board the four key points. First, will the inquiry be a section 14 inquiry? Secondly, why is the offer a closed one? Thirdly, why is the offer deadlined and time-limited? Fourthly, does the Minister agree with a large proportion of hon. Members—I say this based on the comments that have been made during the past hour and 11 minutes—that Capita has a simple choice: either it gives 100% compensation, or it is left with no friends in this House?

[Albert Owen (in the Chair)]

I shall call the Front-Bench spokespeople at 10.45 am. I now call Duncan Hames.

Energy Prices

Debate between Guy Opperman and Albert Owen

Wednesday 19th October 2011 Commons Chamber

[Guy Opperman]

With respect, I would say that the answer is somewhere in between. There cannot be regulation without submissions being made and investigations taking place. It is incumbent upon us not just to get upset about how our constituents are being affected by heating oil prices but to make representations to organisations such as the OFT. We must also invite the Energy and Climate Change Committee to investigate off-grid energy, which I very much hope it will do.

[Albert Owen]

I am pleased to help the hon. Gentleman by saying that we are going to have a further inquiry into the retail market, in which we will examine off-grid energy.

[Guy Opperman]

I am most grateful, and I hope that as part of that inquiry the Committee will examine the weighty report that the OFT has provided, as well as specific submissions from individuals and organisations that, like the previous three speakers, can give specific examples of price fixing or the appearance of price fixing. That is in the context of DCC, the company that I am particularly concerned about and have to deal with, recording operating profits of approximately 19.9% on an ongoing basis. I find that figure hard to square with the one given by the managing director, who when questioned in The Sunday Times said that the operating profit was only 2%—but I have taken my figure from the published accounts.

In Hexham five independents operate—WCF, Par Petroleum, Wallace Oils, GB Fuels Ltd and Rix Petroleum. I urge individual Members to draw to their constituents’ attention by every possible means, as I do for each and every constituent who is faced by heating oil problems, which independents operate in the constituency, so that they are in a better position to get a fair price.

I want to trumpet the great success of the way in which certain communities, such as Tarset, Allendale and Humshaugh, have come together and produced their own price comparison sites. For example, there is Humshaugh village shop, which is run as a co-operative. It was set up by the local community and is financed and run by the 60 people of Humshaugh. Every Monday they publish the prices available from all the genuinely independent local heating oil suppliers. Individuals can either go to the shop’s website or—this addresses the point that was raised about people who do not have internet access—see the prices in the village shop throughout the week. Everybody in the village can then assess who is providing oil locally. Such ideas need to be taken forward.

I welcome the fact that the OFT report indicates that there are problems. However, I would ask the OFT to go further, not least because the report shows that when a company is one of a multitude owned by a larger company, it is obliged to give people who telephone it specific information about who its ultimate owner is. That needs to be monitored, because it is not necessarily taking place. My researcher phoned one of those only yesterday and was not given that information, as should have happened according to the OFT report. I urge the various Committees involved to examine that point.

There is also tremendous difficulty for those who wish to compare prices themselves, because heating companies have no obligation to tell people the price that they are offering. Unless people ask to buy, they are not necessarily given the price. With respect, the Government can do something about that, and I invite them to sit down with individual suppliers, particularly the larger suppliers, and make that point very clear to them. If people ring up and ask for a price, they should be told it rather than the company withholding it.

Energy Bill [Lords]

Debate between Guy Opperman and Albert Owen

Wednesday 14th September 2011 Commons Chamber

[Guy Opperman]

I totally endorse that. In certain areas in Northumberland, such as in the communities of Tarset and Allendale, similar approaches are being pursued by local communities’ grouping together and purchasing from a local supplier. In my area, we thought we had 21 different companies but in fact we have one company masquerading as 17 providers and four independents. Fortunately, the four independents have been identified and should be supported; indeed, I assure hon. Members that they will be supported because of the way they are trying to do business and support the local economy and are not an Irish-based provider in a cartel.

Following on from the community projects we have been talking about, I endorse the work of organisations that have addressed this issue and worked to improve the position for the individual consumer and constituent. To their great credit, Age UK and the National Farmers Union have done tremendous work to address the matter. It is worth noting that of the 10 things most likely to be stolen in thefts and burglaries of people’s houses, the sixth-highest is fuel—in Northumberland, the figure is probably even higher. The Countryside Alliance should also be complimented because the rural action that it has proposed is massively successful; it is identifying ways in which the community can be assisted, and not just in farming communities and market towns. In my constituency there is no question but that fuel poverty is an issue in residential parts of places such as Prudhoe, Haltwhistle and west Wylam. Those are not areas of farmland and sheep—they are nothing other than normal houses where people are struggling to stay above the fuel poverty line.

Today, I met representatives of the Young Foundation, which supports The U—a citizens’ university-based organisation in Hexham that is working for specific energy efficiency projects. Those projects are just the sort of thing that will benefit from the green deal in future. They, along with the Green Alliance and several Members of Parliament, are working together to try to provide flagship examples and leadership for the type of constituency and community that is putting green policies at the heart of the community. There is great scope for a community-based way forward to try to strengthen our ability to address energy efficiency.

I support the Bill, but I want to touch briefly on new clause 19, which was tabled by my hon. Friend the Member for Basildon and Billericay. It will be no surprise to hon. Members who have listened to my contributions to hear that I should like to see clarity of provider ownership on bills. At the moment, individual consumers are being misled by their failure to understand which parent company owns particular providers. I accept and endorse my hon. Friend’s comments that new clause 19 is a way forward. It addresses the additional information that should be supplied by energy suppliers on bills and I hope that the Government will support it. It is supported by Which?—an organisation that self-evidently works on behalf of individual constituents and consumers—and a number of other organisations that are greatly to be credited. Anything that ensures that a generic signposting message is displayed prominently on all customers’ energy bills, detailing how they might reduce those bills, should go ahead. We should ensure that such messages are on bills. Indeed, I go further in saying that it would be of great benefit if something were supplied on that issue this year, although I accept that it might be difficult to do that by 1 December given the bureaucracy involved.

I should like to have seen a further subsection added to new clause 19—it is to my detriment that I failed to table an amendment to it—that would have touched on clarity of ownership, but perhaps we can return to that after the OFT has produced its report, when we know what it says about the role of DCC Energy.

I support the Bill and the green deal. The constituency that I represent and the whole of Northumberland is well behind the green deal and the objectives that it seeks to achieve.

[Albert Owen]

It is a pleasure to follow the hon. Member for Hexham (Guy Opperman). I welcome him back to the House. He is in good campaigning mode on fuel poverty and off-grid fuels in peripheral areas of the United Kingdom. I support new clause 1 and the other Opposition new clauses and amendments, but I shall limit my remarks to new clause 19, tabled by the hon. Member for Basildon and Billericay (Mr Baron). He highlighted in his opening remarks how important energy issues are to households and how the price hike of recent months and the trend that is forming are hurting every household in the United Kingdom. That is something that we need to address.

Good measures have been taken by previous Governments and, indeed, this Government with social tariffs, but the market simply does not work for many people. The price hikes are unsustainable, hurting and causing fuel poverty across the country. I welcome new clause 19 when it talks about clarity and simplifying bills, so that people have ready information.

I am glad that the Minister of State, Department of Energy and Climate Change, the hon. Member for Bexhill and Battle (Gregory Barker) is still on the Front Bench. He is on record as saying that he was so confused by the information available when he tried to switch supplier that he just gave up. I am in the same league as him. Energy companies deliberately give so much information to their potential consumers and customers that they do not bother.

I am a member of the Select Committee on Energy and Climate Change. We have held a number of inquiries and a mini-inquiry when price rises were announced just before the recess. We took evidence from three of the big six companies. There has been a review and there will be further reviews of energy pricing and tariffs and how the companies present their bills. It was interesting that 40% of those who decide to switch supplier are no better off when they do so, and many of them do so under duress; they switch just to get rid of cold-callers. So it is important that we have such a clause as well as other legislation and regulations that allow individuals to have clear and concise bills, so that they can make clear and concise choices and, we hope, reduce their energy prices, thereby reducing fuel poverty.

We will extend the retail market inquiry being undertaken by the Department of Energy and Climate Change to find out more from experts, including consumer groups, which have been helpful. I join hon. Members in putting on record my appreciation of the work done by consumer groups, such as Which?, Consumer Focus and Citizens Advice, in helping to frame proper protection guidelines for energy consumers.

The confusion needs to be addressed, and new clause 19 would go some way to doing so. When I intervened on the hon. Member for Basildon and Billericay to ask whether he would expect the measure to be extended to people off-grid and not on the mains, he said that he would. Of course, such an extension would be difficult because, as has been said in the previous contribution, the off-grid is not a regulated market. I am not sure—I am willing to take an intervention—how he envisages that independent suppliers would do what would be required of the big six, with dual tariffs and so on. Obviously, people without gas supplies cannot get the dual tariffs or other reductions that many people have.