Oral Answers to Questions

Ian Lavery Excerpts

Thursday 20th October 2011 Commons Chamber

[Charles Hendry]

There is evidence, which Ofgem is gathering, that people on prepayment meters are paying less now than they were in the past. One reason we have been keen to take forward the smart meter programme is to ensure that people get absolute accuracy in their billing. That programme is furthest advanced in Northern Ireland, and people on prepayment meters there pay less than people on normal tariffs.

[Ian Lavery (Wansbeck) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Energy and Climate Change (Chris Huhne)]

My Department is tasked with powering our people and protecting our planet. Since the last departmental questions, we have published the renewables obligation banding review, which examines the support that different technologies will receive under the renewables obligation. We have also published the electricity market reform White Paper, which sets out our plans to secure affordable low-carbon energy for decades to come. We have also held a consumer energy summit, bringing together consumer groups, the industry, Ministers and the regulator to help people save money on their bills this winter. Finally, the Energy Bill—including our flagship energy-saving programme, the green deal—received Royal Assent on Tuesday and is now the Energy Act 2011.

[Ian Lavery]

The Secretary of State is aware of the situation at Rio Tinto Alcan at Lynemouth in my constituency. Some 650 private sector jobs are hanging by a thread. The company says that the problem is the green taxes implemented by the Government, which will wipe out £50 million in annual profit. Will the Minister say when he will make announcements on the renewables obligation certificates banding and on the energy-intensive industries package, and will he assure the House that those packages combined will prevent mass job losses in the energy-intensive industry sector?

[Chris Huhne]

I am grateful to the hon. Gentleman for his question, not least because I have had discussions with Rio Tinto about the Alcan plant. It is regrettable that it made its decision ahead of the publication of the renewables obligation. That was published today, so, to answer one of the hon. Gentleman’s questions, those figures are now available, and we have just heard from the Minister of State, my hon. Friend the Member for Wealden (Charles Hendry), that the energy efficiency package for energy-intensive industries will be in place by the end of the year. In our discussions with Rio Tinto I asked the company whether it would give a guarantee about local employment if it received the support that it wanted in converting the electricity generation plant to biomass. It did not give that guarantee. That is regrettable, and the hon. Gentleman will have noticed that the Alcan decision is part of a wider programme of worldwide disposals by the company.