Oral Answers to Questions

Kerry McCarthy Excerpts

Thursday 5th February 2015 Commons Chamber

[Matthew Hancock]

These are good questions and they were being discussed even before the oil price fell. It is very important that we come to the best possible answer, but I think the hon. Lady and I would agree that it is far better that we sustain a strong industry through these challenges in Aberdeen—which we can do because we have a whole-of-the-UK balance sheet off which we can take decisions to support Aberdeen.

[Kerry McCarthy (Bristol East) (Lab)]

12. What steps he is taking to encourage community energy generation.

[The Parliamentary Under-Secretary of State for Energy and Climate Change (Amber Rudd)]

This Government are proud of launching the UK’s first community energy strategy, which is increasing the proportion of home-grown, low-carbon generation across the country. We have committed £25 million to rural and urban community energy funds to help kick-start generation projects, and communities can access the feed-in tariff scheme, which provides a long-term guaranteed income stream for communities.

[Kerry McCarthy]

Bristol, as European green capital this year, is certainly very keen to push forward on community energy, but I am told that progress has stalled as a result of Treasury changes to tax incentives and Financial Conduct Authority changes to the rules for establishing energy co-ops. Community Energy England and Co-operatives UK say these changes threaten the very viability of the community co-operative model. What is the Minister doing to respond to these concerns?

[Amber Rudd]

I congratulate the hon. Lady on Bristol’s nomination for European green capital, and it was a pleasure to visit the city with her and see some evidence of the green initiatives. I am aware of the problem she raises and I will follow that carefully and try to ensure it does not create any further blockage, because community energy is essential to our development of a proper renewables strategy in the UK.

--- Later in debate ---

[Mr Davey]

Some energy suppliers have reduced their prices by 10%, and OVO Energy recently cut its prices by more than 10%. It is a complicated analysis and, working with the Treasury, we have looked at it in some detail. Wholesale gas costs represent about a quarter of the average bill; other costs are also changing and not all of them are going down. This is complicated, but it is right that the independent competition authorities look at this—they are specifically addressing this issue—because if there is any malpractice in the energy markets they will be able to expose it and have the teeth to tackle it.

[Kerry McCarthy (Bristol East) (Lab)]

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

[The Secretary of State for Energy and Climate Change (Mr Edward Davey)]

Since our last Department of Energy and Climate Change orals, we have seen significant progress for consumers on switching, energy prices and energy efficiency. Energy firms have responded to my challenge and halved the time it takes to switch, from five weeks last year to 17 days now. That is helping people to switch to get big savings on their energy bills, as the extra competition we have backed is now seeing bills being not just frozen, but cut. Figures to the end of November show that the energy companies obligation and the green deal have delivered new boilers, windows and insulation to more than 1 million homes, four months ahead of our March 2015 target. In introducing to the House today tough new regulations to require landlords to ensure that their properties meet minimum energy-efficiency standards, we aim over the next three years to help about 1 million private sector tenants enjoy lower energy bills and warmer homes.

[Kerry McCarthy]

The global calculator published by the Department last week found that reducing our meat consumption is essential if we are to reduce our contribution towards greenhouse gases. Everyone from the United Nations downwards has for many years been talking about the contribution of the livestock sector to global emissions. His Department has always ignored this issue, so I urge him now to take action and to tell us what he is doing to encourage people to reduce their consumption.