Lord Barker of Battle
Main Page: Lord Barker of Battle (Conservative - Life peer)(12 years, 7 months ago)
Commons Chamber2. What steps he is taking to help households to reduce their energy bills.
The coalition is taking action to help consumers to reduce their bills. The Department of Energy and Climate Change has launched the “check, switch, insulate to save” campaign, which was showcased in big energy week. That measure, together with the new warm home discount, the winter fuel and cold weather payments, the carbon emissions reduction target and community energy saving programmes, the Warm Front scheme and signposts on bills to the cheapest tariff information, will help hard-pressed consumers. However, the green deal will be the game-changer that the country really needs.
Does the Minister grasp the seriousness of the situation facing families across the country? The average fuel bill is now £1,345 a year—an increase of 48% in the last five years. When are the Government going to act to pare back the system of tariffs—the number of which has risen by 70 in the past year under this Government—which discriminates against those who use the least energy?
I am afraid that it was actually under the last Labour Government, when the present Leader of the Opposition was Secretary of State, that the number of tariffs went up to 400, an increase of 75%. We are now getting to grips with that, but if the hon. Gentleman wants to blame someone for the proliferation of tariffs, he should blame the total inaction of the then Secretary of State.
Does the Minister realise that he could help businesses, as well as households, to reduce their energy bills, by introducing mandatory motion-sensitive lighting systems? That would reduce the carbon intensity of our built environment and promote the ability of many people to enjoy starry, starry nights.
That is just the kind of technology that will be brought into the reach of millions of homes by the green deal, and it is just the kind of innovation that we want to spur. We would also look at how we might drive that by making amendments to consequential improvements. I am very interested in my hon. Friend’s ideas.
It is understood that there has been a significant underspend, of up to £30 million, in the Warm Front scheme, because DECC has made the eligibility criteria too strict and has not promoted the scheme. That means that up to 20% of the scheme’s funding could go unclaimed. Is it correct that there will be an underspend at the end of the financial year, and if so, what is the reason for it?
The hon. Lady is right; we are slightly behind. The unseasonably warm weather that we have had this winter, compared with the cold weather last year, has meant that the number of applications has been lower. However, I am in touch with the leaders of our big metropolitan authorities, and I have spoken to the big six energy companies, Citizens Advice and others this week in order to drive forward the roll-out of Warm Front to ensure that we do not have the underspend that she has highlighted.
The green deal has just been described as the “game-changer”, but the concern being expressed by those living in Thirsk, Malton and Filey is that it will push up their household energy bills. Will the Minister follow up the suggestion put to the Prime Minister yesterday by looking favourably on schemes such as biomass, rather than unreliable wind farms, in the green energy mix?
My hon. Friend is a little bit confused. Biomass and other forms of renewable heating or electricity generation have nothing to do with the green deal, which is an energy efficiency roll-out that will reduce the amount of electricity and heating required in homes, but I will certainly be happy to look at her ideas.
According to an answer that I received to a question just the other day, the underspend is actually £32 million, so it has gone up. We all know that soaring energy bills are contributing to the cost-of-living crisis afflicting millions of families. Millions of pensioners over the age of 75, who are the most susceptible to the cold weather and the least able to access the advantages of online energy deals, pay more for their electricity and gas than they need to. Surely it is only fair that energy companies should guarantee that elderly customers over the age of 75 should be placed on the cheapest tariff for their gas and electricity. Will the Government ensure that the energy companies have access to the data that they will need in order to achieve that?
As I said earlier, the number of tariffs proliferated by 75% in the last three years of the Labour Government, when they had the opportunity to do something about this. We actually want everyone to be on cheaper tariffs, but there is lots to do, because of the appalling inheritance from the last Government. We want everyone to get a good deal, not just the over-75s, and we are taking action to make that happen.
3. When he expects a decision to be taken on the EU target for carbon emission reductions under the second commitment period of the Kyoto protocol.
The EU must submit a target for the second commitment period of the Kyoto protocol at the UN conference of parties at the end of the year in Qatar. There is a debate in the EU about whether to increase its 2020 emission reduction target from 20% to 30% from 1990 levels. The UK is a leading advocate of a 30% target.
The Secretary of State has publicly and consistently expressed his desire to see the EU 2020 emissions reduction target increase to 30%, but what concrete action will he take to realise that ambition?
We are very active on this agenda. The Secretary of State and I firmly believe that the EU should submit a 30% target in the Kyoto protocol. We are working closely with ministerial colleagues from key member states to build support for a 30% target, directly engaging the more sceptical. At the Environment Council in March, the Secretary of State will argue strongly for approval of the EU low-carbon road map, which sets out milestones for reducing emissions through to 2050.
4. What assessment he has made of the potential effects on UK oil and gas supplies of any disruption of shipping through the Strait of Hormuz.
My right hon. Friend the Secretary of State and I have regular meetings with ministerial counterparts in the Department for Business, Innovation and Skills on a variety of topics, including renewable energy issues.
What discussions has the Minister had with the Business Secretary regarding the 45,000 jobs that could be lost in the construction industry over the next three years and the impact that will have on green energy delivery?
I regularly discuss renewable energy with colleagues, but we remain very optimistic about the future for British renewables. We inherited a terrible position from Labour, third from bottom of the EU table, but I am glad to say that as of December 2011 there was 11 GW of installed renewable electricity, 15.5 GW in construction and 10.5 GW in planning; and in the hon. Gentleman’s constituency this month we have seen £12 million invested in Geothermal International, alongside £2.5 billion of announced investments since April 2011. That is a very encouraging picture.
A major area of growth for the renewable energy industry will be marine energy, particularly, of course, the Pentland firth. I congratulate the Minister on the renewable energy park that he has put in the south-west and I thank him for the conversations we have had on turning the Pentland firth into a renewable energy park. Can he tell me what progress we are making?
I was delighted that this week we were able to launch the UK’s first marine energy park, and under the coalition marine energy in the UK is finally getting the drive forward that it has needed for years. The hon. Gentleman played a key role in developing marine energy potential in Scotland, and I should like to invite him to host a board meeting of the marine energy programme board in Caithness in the summer, where I hope we shall have some good news on the creation of the second marine energy park in the UK, in Scotland.
18. What support his Department provides to community initiatives to help households reduce their carbon emissions.
The coalition has big ambitions for community energy. Last week, we announced 82 community winners in the first tranche of DECC’s £10 million competition to help mobilise community energy groups. I will be announcing funding for at least another 100 winning schemes early next month. This new fund is just one element of our strategy to drive local and community energy action.
We need consistency in Government policy. City of York council has spent time and money developing a solar energy scheme for council houses, and yet it has been blown out of the water by the Minister’s announcement of 31 October. In order to ensure continuity of policy, do the Government agree that those councils whose schemes to develop solar energy for council houses were being developed before the announcement should continue to get the feed-in tariff at the previous rate?
Unfortunately, the scheme that the hon. Gentleman refers to—the feed-in tariffs—was devised and implemented by Ed Miliband—[Interruption.]
Order. The hon. Gentleman should observe the correct forms of address, and he should not refer—[Interruption.] Order. He should not refer to another Member by name in that way. He should briefly finish his answer and resume his seat.
The feed-in tariffs were devised by the right hon. Member for Doncaster North (Edward Miliband), and unfortunately did not anticipate a single scheme of the type to which the hon. Member for York Central (Hugh Bayley) refers. Under our reformed and restructured feed-in tariff schemes, in the future we very much hope that those schemes will be able to be supported, unlike the shambles of the scheme that we inherited from Labour.
19. What discussions he has had with National Grid on the shutting down of wind farms during times of high wind intensity.
T3. The green deal is very dependent on consumer uptake and consumer trust in the energy companies. What sort of expertise has the Department in understanding consumer behaviour and how will we be able to deliver this programme through consumer behaviour change?
My hon. Friend has considerable experience and understanding of consumer behaviour, and she will be pleased to know that we have a specific consumer behavioural insight team in DECC, but the greatest value comes from liaising with retail companies with real track records, such as Kingfisher, B&Q, John Lewis, Sainsbury’s and Tesco. Ultimately, it is the private sector that will guide our thinking and be responsible for the success of the green deal.
T6. The Secretary of State seemed to misunderstand my question on oil refinery capacity earlier. Oil and petroleum trade bodies tell me that there is a shortage of oil refinery capacity in this country, and that crude oil is exported to India and brought back in. What assessment has the Secretary of State made of that, and how is he responding to that serious question?
The Minister mentioned the creation of the south-west marine energy park, which is a tremendous boost to projects such as Wave Hub in my constituency. Does he agree that projects being assessed for capital grants to develop wave power should be given preference if they are located within the marine energy park?
The reason we have created marine energy parks is to bring together resources in a co-ordinated and strategic fashion, which has not happened in the past. My hon. Friend’s point is extremely well made and very valid. I expect a significant part of the Department’s research budget—£20 million—to be set aside for wave and tidal technology and to flow to his part of the world.
The energy companies tell us that very few customers are disconnected, but we know that many customers are so-called self-disconnected because they cannot afford to put credit on their pre-payment meters, especially if they are already paying off previous arrears through the meter. Will the Minister as a matter of urgency ask the energy companies how many people are self-disconnected?
Mid Devon district council, which is based in Tiverton, was planning just before the tariff rate was cut to have 1,800 social homes with solar panels. Will Ministers be prepared to meet officials from the council to discuss a way forward?
I would be delighted to meet my hon. Friend to discuss the matter. Obviously we want to build a consensus on the way forward. I will publish plans for the reform of the feed-in tariff so that we can put it on a much sounder footing and learn from the mistakes of the system we inherited.
What assessment has the Secretary of State made of the Government’s liability for their unlawful actions in bringing in the feed-in tariff consultation?