Energy Prices

Debate between Ian Lavery and Andrew George

Wednesday 19th October 2011 Commons Chamber

[Andrew George (St Ives) (LD)]

It is a pleasure to follow the hon. Member for North West Durham (Pat Glass) in the light of how this debate has developed and evolved. She has made a constructive and considered contribution to a debate that is going to conclude with a clear consensus, whereby this Parliament can move forward and encourage the Government to do a great deal more.

[Ian Lavery]

rose—

[Andrew George]

I do not think I have said anything yet, but I am happy to give way.

[Ian Lavery]

I thank the hon. Gentleman for giving way. Is he as surprised as I am that Government Members are supporting the Opposition motion when it is highly critical of many aspects of energy prices and Government policies?

[Andrew George]

No, I am not at all surprised that the Government have decided that, on balance, looking at the motion—it could, of course, be tinkered with—it says a lot of the right things. We need to start coalescing around the issue to move it forward effectively in the interests of the nation. My concern is that we started this debate in the customary and traditional manner of a yah-boo pantomime. There is a sense that we are obliged to endure the opening of Opposition day debates in that way, so I am pleased that we seem to have moved on from the traditional type of exchanges—when we hear the trading of “It’s your fault” followed by “No, it’s yours”, which takes us nowhere and certainly does not impress the country as a whole—and identified areas on which we can agree. That is what the country wants us to do. Rather than wasting our energy—if Members will excuse the pun—on the yah-boo pantomime, we should build on the constructive speeches made by Members in all parts of the House today. Given that there is a great deal of agreement among us, we must ask what it is that we all agree we can do.

I accept that my right hon. Friend the Secretary of State is a self-declared ambassador for the sharp-elbowed middle classes who will be scrutinising their bills, understanding what they mean, and chopping and changing on a regular basis, but the fact is that 60% of the population do not do that. Although it was rightly said at the energy summit that there should be a more transparent and effective way in which consumers could become informed and make informed choices, the fact is that many people lead busy lives, cannot penetrate the opacity of the bills with which they are presented, and do not understand how choices can be made.

I may not be a member of the sharp-elbowed middle classes, but I am so busy doing my job that I know more about my constituents’ finances and bills than about my own. I never get around to dealing with these issues, and I would not recommend anyone to follow any of the financial decisions that I make about my own life. I am sure that many other Members have the same problem.

The right hon. Member for Wentworth and Dearne (John Healey) referred to a five-point plan. Usually three is about as much as we can count up to in the Chamber, but five is very helpful. He spoke of the need for greater transparency, and the possibility of regulating standing charges. I think that that idea should be thrown into the melting pot, and I hope that the Government will consider it.

Others, including the hon. Member for Ynys Môn (Albert Owen), suggested that, given the profiteering of the big six, a windfall tax should be introduced. We know that we cannot opt, as a country, for a Soviet-style state-owned energy system—and there is no appetite for that in any part of the House—but the fact is that, although the system will of course continue to be in private hands, we need to do something about the profiteering. The idea of introducing a windfall tax, or threatening to introduce one if the energy companies do not start demonstrating that they are prepared to provide a genuine and a better service rather than simply putting money into the pockets of their shareholders, might also be thrown into the melting pot. We need to do more to incentivise fuel efficiency, which is not something that energy companies favour at present. They want to sell their energy and do not necessarily want people to conserve it, and we need regulations that will encourage that to happen.

Earlier, I mentioned rising block tariffs, which exist peripatetically more or less throughout the industry. I hope that the Government will think about those, because they plainly disincentivise fuel efficiency in the domestic market. Many other Members have mentioned key meters and pre-payment arrangements, and we should also consider special groups such as park home owners. The hon. Members for Ynys Môn and for Hexham (Guy Opperman), among others, made telling references to off-grid energy and, in particular, to the LPG market.

We should not ignore a minority group, namely the rural poor, and in particular the fuel-poor in rural areas. We should bear in mind that 29% of households with oil-fired central heating are in fuel poverty. It is clear from the position in my constituency—it includes the Isles of Scilly, which means adding a further 20% to the LPG costs—that many people are struggling to pay their fuel bills in rural as well as urban areas. The Office of Fair Trading report is of course welcome. It suggests that most customers now sign two-year exclusive contracts with their supplier. That is the maximum time allowed following the Competition Commission investigation. Under those contracts, the supplier usually retains ownership of the tank, which makes it hard to switch supplier if prices rise. The Government must keep an eye on that.

In debates such as this we always hear from the climate change deniers—the environmental equivalent of deficit deniers. The balance of opinion in peer-reviewed science is clear, however: if we do not address this issue, there will be significant economic costs and impacts for future generations. We must deal with it; we cannot simply close our eyes.

I understand that the Government will make an announcement on the renewables obligation certificates review shortly. I hope we get a significant degree of parity between Scotland and the countries south of Hadrian’s wall in respect of ROCs. In my constituency, we have the first commercial-scale wave hub in the country, and I give the previous Government great credit for having invested in it. Although it is based just outside my constituency, the wave hub itself lies within it. It is important that we have measures that encourage such initiatives, so I hope that we have a favourable outcome to the ROCs review.

This has been a constructive debate, and I hope we can take the key issues forward constructively with all parties engaged.