HELMS and the Green Deal

Jim Shannon Excerpts

Tuesday 23rd October 2018 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this debate, Mr Robertson. I congratulate the hon. Member for Paisley and Renfrewshire North (Gavin Newlands) on securing the debate and on making the case so succinctly on behalf of his constituents. I am sure that colleagues are well aware that the green deal was not extended to Northern Ireland, but tackling fuel poverty and making homes more energy efficient remains a priority for us. I will speak about a number of similar schemes and options available in Northern Ireland. I support the hon. Gentleman and I am sure that other hon. Members will back him up.

I support redress for all the hon. Gentleman’s constituents and others who have been financially disadvantaged to a considerable extent. When reading up on the topic, I was truly shocked to read about the questionable business practices that many HELMS employees seemed to adopt; we have heard about some already and we will hear more. It is no wonder that so many Members are here today talking about the negative impact on their constituents. Many were left out of pocket and some have struggled to sell their homes, which the hon. Member for Central Ayrshire (Dr Whitford) mentioned.

[David Simpson (Upper Bann) (DUP)]

Over the past few years, there has been an increase in fraud, especially in relation to solar panels. In 2017, directors of a company were jailed, and recently a six-member gang committed a £17 million fraud in a solar panel scam. The full rigour of the law must be brought to bear on the company directors responsible.

[Jim Shannon]

The Minister is listening intently to what is being said and I look forward to her response. I know this matter is not ultimately her responsibility and she is filling in; nevertheless, I hope she is able to respond to my hon. Friend’s intervention.

When the company went into liquidation, many customers found themselves at a total loss, unable to take up their case with either the ombudsman or the company. The fact that the green deal was backed by Government undoubtedly gave the scheme credibility. The hon. Member for Paisley and Renfrewshire North said that one of his constituents phoned to check the scheme and found that it was Government-backed, so thought that it must be all right, but it was not. Coupled with the idea of saving money and being green, that resulted in many customers signing agreements that they did not necessarily understand, on the premise that their bills would not increase. It was disappointing for many that that did not turn out to be the case.

Members have given evidence that these operators of the scheme took advantage of their constituents. That said, Members must ensure that we do not undermine public trust in these types of scheme, given the potential benefits they can deliver. For example, in Northern Ireland, we have worked hard to tackle fuel poverty, and earlier this year, fuel poverty figures for the Province fell to 22%—a welcome drop from 42%. That indicates what we are doing back home, even with a stuttering Assembly.

[Dr Whitford]

I understand that the Government hope to do a future green deal project. Will that not be completely undermined if this issue is not resolved?

[Jim Shannon]

The hon. Lady is absolutely right. The Government have a great responsibility to address the issue for the sake of the credibility of any future schemes and so that participants in them will not worry about the future.

It is important to recognise that price fluctuations in home heating oil played a role in the fuel poverty figures I just gave. The reduction is welcome news, but we should not rest on our laurels: 22% of people considered fuel poor is still 22% too many.

A scheme that has proved to be extremely successful is the Northern Ireland sustainable energy programme. It has a particular focus on tackling fuel poverty, with 80% of funding ring-fenced for vulnerable and low-income families. The NISEP provides help to install energy-saving measures in homes, including energy-efficient boilers, heating controls, loft insulation and cavity wall insulation. With funding coming from a levy paid by all electricity customers, the scheme is delivered by energy companies and managed by the Utility Regulator. We have a system in place that has managed the programme well and delivered.

In 2017-18, five energy companies provided schemes, each of which had different eligibility criteria and incentives and/or grants to help people to make their homes more energy efficient and perhaps reduce their overall energy bills. As I mentioned, the focus is on those at risk of fuel poverty—for example, many of the schemes work directly with housing associations, which identify eligible tenants. The sheer variety of schemes means that people can make informed decisions about which scheme would best suit them and address their specific needs.

The NISEP provides some £7.9 million towards energy efficiency interventions, which include insulation and heating upgrades. It has proved so successful that it has been extended again until March 2019. The programme is working. The hon. Member for Paisley and Renfrewshire North referred to a different scheme. I only wish that scheme were the same as then we would not have needed this debate. We have accountability whereas, as he said and as we want to illustrate, there is no accountability in that scheme.

[Angela Crawley]

The hon. Gentleman is speaking to specific issues of fuel poverty in Northern Ireland. To come back to the mis-selling of the green deal, does he agree that people were conned into buying mis-sold products on the basis that there were UK Government logos on the paperwork, and UK Government approval gave them the confidence to go ahead, so the Government should compensate those individuals? That is what we are seeking from the debate.

[Jim Shannon]

The hon. Lady is absolutely right. With great respect to the Minister and the Government, I expect the Government to respond positively to the request being made on behalf of the constituents who have been disadvantaged and mis-sold products and who, as a consequence, are poorer today than they thought they would be. I cannot understand how someone who was paying an electricity bill of £80 a month can suddenly be paying £170 or £240 a month, as the hon. Member for Paisley and Renfrewshire North described. How can that be cheaper? How can it be legal? How can that be allowed to happen? That must be taken on board.

Across the United Kingdom, we all recognise the importance of becoming greener and the need to have a diverse and sustainable energy mix, which is why it is important to look at new technologies as well as to harness those that are already tried and tested. The Northern Ireland renewables obligation, like its equivalent in Great Britain, requires suppliers to source an increasing proportion of the electricity they supply from renewable sources. Colleagues might be surprised that, despite the often wet and windy climate in Strangford—in fact, my constituency has among the lowest rainfall in Northern Ireland; we sometimes wonder if that is true, but the statistics prove it—one of the most popular sources of renewable energy that people are turning to is solar. This might be controversial given the topic of the debate, but it really does work when done well.

There is a number of large farms in Strangford, and many of them have installed solar panels—in fact, one farm in my constituency has 10 acres of solar panels. That is an example of what can happen when green energy is done right, and that is what we want. With renewables obligation certificates guaranteeing payment for every unit of electricity generated, it is not surprising that so many are investing in solar panels. Not only can people save money on electricity bills, but they help to make Northern Ireland, and the whole United Kingdom, a greener place for the next generation, reducing our reliance on fossil fuels.

What has happened with HELMS has probably put a lot of constituents off installing solar panels and, more broadly, installing renewable energy measures, but as we try to tackle climate change and battle to keep the lights on, it is important that we look closely at green energy measures, from electric cars and smart homes to making simple energy-efficiency changes to our homes. Not everyone will benefit from solar panels—people who do not generate enough electricity are unlikely to reap benefits and will end up paying more. As has been illustrated today, that was the case for many hon. Members’ constituents, and HELMS was at fault. The Minister, the Department and the Government must respond. However, it is so important that we do all we can both to help people out of fuel poverty and to support the use of renewables where possible and appropriate.