Lord Barker of Battle
Main Page: Lord Barker of Battle (Conservative - Life peer)
Andrew Gwynne (Denton and Reddish) (Lab)
2. What steps he is taking to help households with their energy bills.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
This coalition Government are determined to help hard-working families with the cost of living. We have a range of initiatives to help with energy bills. From the Prime Minister’s proposals to get consumers on to the cheapest energy tariffs to our flagship green deal, and from the warm home discount to our promotion of collective switching and building a more competitive energy market, this Government are putting the consumer first.
Andrew Gwynne
The Minister must be aware that the respected think-tank the Institute for Public Policy Research has produced a report that shows that if the energy market were more competitive, bills could be reduced by at least £70 from efficiency savings alone, so why will he not get behind Labour’s plans to break the dominance of the big six by ensuring that they supply energy into a pool to enable more businesses to access the market and to bring down bills for customers?
Gregory Barker
The hon. Gentleman will forgive us if we do not take lessons on how to widen the big six from the party that created the big six. When Labour came to office there were 14 major participants in the energy sector; when they left office, the number had shrunk to six. We believe our radical energy market reforms that are going through the House are the way to bring in real competition.
Andrew Bridgen (North West Leicestershire) (Con)
Does the Minister agree that making bills simpler and easier to understand is a big step towards empowering consumers to allow them to make the best choices and get the best deals?
Gregory Barker
Absolutely. My hon. Friend is, as ever, spot on. We have been working very closely with Ofgem to ensure that consumers are not baffled by the information on their bills and that they can make informed choices. Our market reforms will make it even easier for them to get the best deal.
Mr Iain McKenzie (Inverclyde) (Lab)
12. This House was told that the green deal would be the biggest home improvement scheme since the second world war, creating thousands of jobs and hundreds of new businesses. If that were true, why does Enact Energy, which has been in the insulation business for 20 years, cite late payments from the green deal as having put it into administration, resulting in the laying off of all its staff?
Gregory Barker
Obviously, we are very sorry when any business goes into administration, but I think the hon. Gentleman is being a little hasty. It is very early days for the green deal and for one business that, sadly, has gone into receivership there are dozens, if not hundreds, of new small and medium-sized enterprises that are starting up to come into the new competitive marketplace that we are creating.
John Pugh (Southport) (LD)
What steps are being taken to stop profiteering by the National Grid, which can charge a fortune to move or change a domestic meter?
Gregory Barker
If my hon. Friend has real evidence of profiteering, we would love to see it. If he shares it with us, we will take steps to crack down on it.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Does the Minister agree that smart metering gives the consumer—the householder—real information on how much energy they are using? How quickly can we get smart metering into every home in Britain, hopefully along with a carbon monoxide detector that will save people’s lives?[Official Report, 12 June 2013, Vol. 564, c. 1MC.]
Gregory Barker
First, on carbon monoxide detectors, the hon. Gentleman is the champion in this House of that very important technology and I thank him for his engagement with my Department. We are working closely to ensure that the green deal will push through the roll-out of carbon monoxide detectors.
On smart meters, we now have what we believe to be the most ambitious programme in Europe, beginning in earnest in 2014 and completing by 2019. It is very exciting and very radical.
Caroline Flint (Don Valley) (Lab)
On 12 occasions the Prime Minister has promised to force the energy companies by law to put everyone on to the cheapest tariff, but clause 121 of the Energy Bill clearly states that the power to require an energy company to change a customer’s tariff applies only to people on closed tariffs. There are 25.5 million households in Britain. How many are on closed tariffs?
Gregory Barker
I cannot give the right hon. Lady the exact figure off the top of my head, so I will write to her on that. The Labour party is in complete denial. The Prime Minister pledged radical action to put everyone on to the cheapest tariffs for them. We have come forward with a solution and we have put it into law; the Opposition had 13 years to do that and did nothing for consumers. We are taking radical action to cut through the swathe of tariffs that they left consumers when they left office.
Caroline Flint
I have tabled written questions, I have asked Ofgem and now I have asked the Minister, and nobody can tell me how many people will find themselves on a better deal, let alone save money.
Let us look at another promise. On Tuesday, the Secretary of State told the House that the Energy Bill would give Ofgem the power to force energy companies to compensate consumers, something I called for in October 2011. Ofgem is undertaking 15 formal investigations with another 12 cases at informal review stage. Will the Minister confirm that even after the Energy Bill has received Royal Assent and even if there is evidence of wrongdoing in any of those cases, Ofgem will have no powers to force the companies to pay a single penny in compensation to their customers?
Gregory Barker
It is a big pity that the right hon. Lady first started taking an interest in these matters in 2011 and not during the 13 years for which Labour was in government when it did nothing to address those issues for the consumer. I am happy to say that our Energy Bill takes those issues into account and Ofgem will be able to take them into account as the investigations go through. This Government are putting the consumer first after 13 years of inaction from Labour.
Pauline Latham (Mid Derbyshire) (Con)
6. What steps he is taking to encourage green investment.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
The coalition is committed to growing the green economy. An unprecedented £29 billion of new investment has been announced in renewable energy alone since 2010. We are driving further green investment through the Energy Bill, the green deal and the energy company obligation, the green investment bank, our carbon capture and storage competition, the reformed feed-in tariff, the renewable heat incentive, and our support for low-carbon research and innovation.
Pauline Latham
I congratulate my right hon. Friend on his article in The Daily Telegraph today showing that we are working closely with Sweden on these matters. What assessment has he made of the proposed EU anti-dumping tariffs on the Chinese solar PVs?
Gregory Barker
My hon. Friend is right. We are very concerned by the impact of EU tariffs on the UK solar industry. In the past three years we have added about 2.5 GW of solar here in the UK. We are making great progress but that could be jeopardised if those tariffs go ahead. I have personally been to Brussels with a number of key stakeholders from the UK solar industry to lobby the Commission, and we will continue to fight on for open borders and for the interests of the UK renewables industry.
Nick Smith (Blaenau Gwent) (Lab)
Will the Minister explain why the UK has fallen to seventh in the world for investment in clean energy since the Government came to power?
Gregory Barker
There are a number of surveys, but the Ernst and Young survey shows that the UK is now the fifth most attractive place for renewables investment and deployment, up one place on last year.
Andrew George (St Ives) (LD)
The announcement by the Scottish Government of the relaunch of the marine renewables commercialisation fund, while welcome, has, as my right hon. Friend knows, created an imbalance between that and Wave Hub in west Cornwall. What can the Government do to ensure that the Scottish Government and this Government work in partnership on marine renewables?
Gregory Barker
As my hon. Friend knows, I am a keen champion of UK-wide marine energy. Under this coalition, we have opened a marine energy park in the south-west, and also in the waters off the north of Scotland. It is vital that we develop the marine resource right the way around the British Isles. However, I take on board the point raised by my hon. Friend, who is a big champion of marine energy in the south-west, and I will be happy to meet him to discuss it further.
Katy Clark (North Ayrshire and Arran) (Lab)
Why does research by Bloomberg New Energy Finance show that investment in renewables has more than halved since this Government came to power?
Gregory Barker
Actually, as I said, an unprecedented sum of over £29 billion has been invested in renewables since the coalition came to power. As my right hon. Friend the Secretary of State said, there has been a slight tailing off in recent months, but that is to be expected, just as we expect a real acceleration once the strike price is announced and the Energy Bill is enacted.
Mr David Nuttall (Bury North) (Con)
Thank you, Mr Speaker.
I want to pursue further the EU’s imposition of tariffs. Perhaps the Minister could explain how on earth this will do anything to make it easier for people, if they wish, to install solar panels, and how on earth it will do anything to make it cheaper for those struggling to pay their energy bills.
Gregory Barker
My hon. Friend and I are absolutely on the same page on this matter. That is why I am fighting this EU proposal very hard. It is not just me; 18 other member states take a similar view to us. We are determined to continue to push the EU Commission to come to a sensible agreement with China and to make sure that the EU stands for free trade and open borders.
Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)
One significant form of low-carbon green investment that the Secretary of State spoke about during his speech to the Met Office on Monday is carbon capture and storage. His predecessor told the House in October 2011, when Scottish Power pulled out of the Longannet project, that he guaranteed that there would be no Treasury backsliding on the capital funds for CCS demonstrator projects in the competition. Will the Minister confirm whether that remains the case—yes or no—and whether the £1 billion is still available?
Tom Greatrex
I am grateful for that answer, and I am sure that those in the industry who will be slightly disconcerted by the tenor of some of the remarks by the Minister of State, Department for Business, Innovation and Skills, the right hon. Member for Sevenoaks (Michael Fallon), during the passage of the Energy Bill will be gratified as well. However, may I press the Minister a little further? Given that the Cabinet Office project assessment review that I obtained last year said that in the current comprehensive spending review only £200 million was available, will the remainder of the £1 billion be available for the next CSR period? Can he confirm that whatever else he has given up in his less grand bargain with the Treasury on DECC’s budget, that money is safeguarded for CCS in the next CSR period?
Gregory Barker
I am very happy to scotch the hon. Gentleman’s baseless scaremongering and political point-scoring. The fact of the matter is that we are going forward with the CCS programme, and it is going to be successful, unlike Labour’s failed attempts at CCS. We have two preferred bidders in place, and it is backed by £1 billion, putting the UK at the front of the global race for carbon capture and storage.
Julie Hilling (Bolton West) (Lab)
8. What recent assessment he has made of the likely level of future fuel poverty in the UK.
Damian Hinds (East Hampshire) (Con)
14. What recent progress he has made on the roll-out of the green deal.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
The coalition is committed to helping consumers up and down the UK reduce their energy bills by driving energy efficiency. The green deal went live on time, as planned, on Monday 28 January. By the end of April, more than 18,000 assessments had been carried out. Later this month, we will publish data on the number of green deal plans and a breakdown of measures installed through the green deal and ECO.
Damian Hinds
It is encouraging to hear of so many assessments, but how many providers does the Minister anticipate will be offering plans by the end of the year?
Gregory Barker
My hon. Friend is right that the number of companies that are able to offer finance is key. I am extremely encouraged that four companies are already writing plans. The Green Deal Finance Company anticipates that another eight companies will start this month and that a further 20 will begin to write plans by the end of July. We think that about 50-plus companies will offer finance by the end of the year. Ultimately, when to start writing plans is a commercial decision for each company because the green deal is primarily a private sector market that is being created by this Government.
Mr Marcus Jones (Nuneaton) (Con)
16. What progress the Government has made on facilitating exploration of UK shale gas reserves.
Iain Stewart (Milton Keynes South) (Con)
17. When he next plans to visit home energy efficiency schemes in Milton Keynes.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
I was delighted to visit Milton Keynes in July last year, when I was pleased to launch new guidance for local authorities under the Home Energy Conservation Act 1995 and to visit, with my hon. Friend, the Lakes estate retrofit project, which is improving homes and cutting energy bills for his constituents.
Iain Stewart
As part of the pioneer places project in Milton Keynes, the National Energy Foundation has engaged with 30 local traders to promote the benefits of becoming green deal installers. What plans does my right hon. Friend have to roll out that scheme nationally?
Gregory Barker
My hon. Friend has done a huge amount in the Milton Keynes area to work with small and medium-sized enterprises and traders in the supply chain. Nationally, we have provided more than £2 million to support the training of 1,000 go-early green deal assessors and 1,000 advisers as part of our support for the developing market. Since last autumn, DECC has organised a series of 12 roadshows, which have reached more than 1,600 companies across the country. My team has worked most recently with Energy UK to deliver a further regional roadshow programme. It is early days for the green deal, but the prospects are exciting.
Mr Peter Bone (Wellingborough) (Con)
Will the Minister agree to my hon. Friend’s request to go to Milton Keynes, because he could then pop down the road to Wellingborough to meet councillors and constituents who are worried about applications for wind farms that, although not in the constituency, would affect them? That would be a great opportunity to explain our new policy.
Gregory Barker
I would be delighted to return to Milton Keynes, and to visit the constituency of my hon. Friend the Member for Wellingborough (Mr Bone), particularly if there is an opportunity to compare notes with Mrs Bone.
Guy Opperman (Hexham) (Con)
18. With reference to the findings of the all-party parliamentary group on off-gas grid, what plans he has to help residents living off the gas grid.
Chris White (Warwick and Leamington) (Con)
T2. One way we can reduce the cost of heating and carbon emissions is through the use of biomass boilers, which can save households hundreds of pounds each year. The Government have a target of installing 1 million biomass boilers in the UK by 2030, but some are concerned that the target might not be met. Will the Minister outline what steps are being taken to achieve the target, and meet businesses such as Baxi UK in my constituency to discuss the issue?
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
I know that my hon. Friend does a huge amount for businesses in his constituency, and I would be happy to meet him, Baxi UK, and representatives of the industry in my Department. The coalition Government are committed to delivering not just cheaper bills but cleaner energy, and biomass boilers are part of that strategy. The good news is that we have recently announced that renewable heat payment vouchers for biomass will increase to £2,000 until March 2014, and later this summer we will provide details for the scheme that we will be launching for domestic renewable heat initiatives next spring.
Caroline Flint (Don Valley) (Lab)
Apparently, more than 5 million homes could still benefit from cavity wall insulation, so there is still a lot of work that could be done.
The Government have claimed it is too early to set a decarbonisation target for 2030, but next month they will publish their electricity market reform delivery plan, which will determine our energy mix and its carbon intensity. In the absence of a legally binding decarbonisation target, will the Secretary of State at least confirm that his long overdue delivery plan will be in line with our legally binding carbon budgets, or will the Government be rewriting the fourth carbon budget?
Andrew Bridgen (North West Leicestershire) (Con)
Will my right hon. Friend explain what role he sees the energy efficiency strategy playing in reducing demand for energy?
Gregory Barker
My hon. Friend will know that earlier this year the Prime Minister launched our first-ever national energy efficiency mission. We are determined always to pursue the cheapest option, including where the cheapest option is saving energy rather than building new plant, but we will do that in a way that is good for consumers and gives us lower bills as well as cleaner energy.
Duncan Hames (Chippenham) (LD)
I welcome the Minister’s support for biomass boilers, but the renewable heat incentive was announced in October 2010. Why is it not possible to open up the domestic scheme for payment before spring 2014?
Gregory Barker
It has been much more challenging than we anticipated, not least because when we entered government we found that the previous Government had done absolutely no work on this whatsoever. This is the first renewable heat scheme of its type in the world, and heat is much more difficult to quantify and value than exporting electricity, but it is good news. We prioritised industrial heat and are now moving on to domestic heat, and I am looking forward to the scheme’s launch this spring.
Julie Hilling (Bolton West) (Lab)
The Minister claims that the energy company obligation will help people in fuel poverty, but is it not true that nearly 60% of the funding will go to households that can already afford to pay, not to those people in fuel poverty?
Gregory Barker
It is anticipated that more than £500 million of the ECO funding will go directly to the most vulnerable and those who need it most, but the balance of the energy company obligation is intended to support roll-outs street by street. It was the specific nature of previous Government schemes under Labour that made them so bureaucratic and ineffective. Our view is that we ultimately need to focus on properties, not just the individuals who live in them.
Miss Anne McIntosh (Thirsk and Malton) (Con)
The co-firing of biomass at power stations such as Drax brings enormous opportunities to growers and farmers in Thirsk and Malton, but will the Minister or Secretary of State assure the House that unfair subsidies to imported wood chip are not undermining our home-grown produce?