Oral Answers to Questions Debate
Full Debate: Read Full DebateLord Harrington of Watford
Main Page: Lord Harrington of Watford (Non-affiliated - Life peer)Department Debates - View all Lord Harrington of Watford's debates with the Department for Business, Energy and Industrial Strategy
(6 years, 7 months ago)
Commons ChamberGovernment research on consumer satisfaction published in August last year shows that satisfaction with smart meters is high. Eighty per cent. of consumers are satisfied with their smart meters and 80% would recommend them to friends and family. Smart Energy GB found that nearly 90% of people with a smart meter made energy savings and changed their behavioural patterns.
I thank the Minister for his response. It is good to hear that so many people are reaping the benefits from smart meters. No system is ever perfect, however, and that is the case for a small number of customers such as a club in my constituency, Killamarsh juniors athletics club, which is now on its third smart meter and is getting really unhelpful responses from its electricity provider. Can he provide any advice to the club in my constituency?
My hon. Friend has made a point about the Killamarsh juniors club in his constituency. I would be very happy to meet him on that specifically. However, I have not found this generally to be the case. The roll-out of smart meters is a very important national modernisation programme that brings major benefits to consumers generally and to his constituents specifically.
Smart meters are good for consumers and suppliers alike, but the roll-out relies on there being a good mobile phone signal for them to be effective, and in many parts of rural Scotland that is simply not the case. Can the Minister reassure me that he is working across the Government and with relevant stakeholders to ensure that residents in rural areas benefit from smart meters?
I agree entirely with my hon. Friend. We are working on that, and the Arqiva radio solution provides communications services for the north region. That covers Scotland, and it is contracted to cover nearly 100% of premises by the end of 2020.
Does the Minister accept that his statistics are based on surveys that are carried out about 10 weeks after installation? My own survey found that 54% of constituents would currently refuse a smart meter, 97% want to see the costs of the programme shown on their bills, and 74% said that receiving one had not yet made any difference to the size of their bills. Will he also take those findings into account?
The hon. Gentleman knows me well enough to know that I am very interested in anything he has to say. He contributed a lot to the passage of the Smart Meters Bill in the House of Commons. I would be very interested to receive those statistics, but we do receive them from quite a few different places, and I do not just quote one sample.
I am sure the Minister is speaking in good faith, but I have come across constituents who find that bills are not reducing, but increasing. Has he had discussions with the utility companies about keeping an eye on this and making sure that the effect of smart meters is to reduce costs for constituents, many of whom are poor, not raise them?
I am very surprised to hear what the hon. Gentleman says. As he said—I am grateful for it—I am talking in good faith; I know he is too. I would be pleased to hear of those examples, but I cannot quite understand why bills would go up, because nearly 90% of people with smart meters say that it is changing their energy patterns and that bills are going down.
Can the Minister update us on where we are with the roll-out of SMETS 2 smart meters?
As my hon. Friend, who also contributed a lot to the passage of the Bill, knows, SMETS 2 is the newer type of meter which at the moment is in its trial phase. As the months go on, SMETS 1 meters will be converted through software that is being developed by the Data Communications Company, and all new meters will be SMETS 2.
How satisfied are consumers when they realise that a smart meter becomes a dumb meter when they switch suppliers? Can he put an accurate timeline on the roll-out of SMETS 2 meters?
As I explained, the software that is being developed now and will be in place shortly after the summer will ensure that that does not happen. The comparatively small number of SMETS 1 meters that do not operate as smart meters when suppliers change will suddenly become compliant, and they will all be able to speak to one another electronically, which is what we all want.
The Government remain committed to supporting the industry and building on the £2.3 billion package announced in recent Budgets. My right hon. Friend the Minister for Energy and Clean Growth greatly enjoyed her recent visit to Aberdeen—as did I, when I visited—when the industry presented its initial proposals for a deal. My right hon. Friend is meeting the sector deal champion, Trevor Garlick, tomorrow.
I thank my hon. Friend for that answer. The oil and gas industry based in the north-east of Scotland has contributed over £330 billion to the economy, supports over 330,000 jobs across the United Kingdom and has a supply chain worth nearly £30 billion. With an estimated 20 million barrels of oil still to get out of the North sea, the industry has huge potential to drive this country’s growth, but of course there is still uncertainty, so I know that the Minister will welcome the response—
Will the Minister pledge to work continually with the industry to develop and deliver the sector deal?
What discussions has the Minister had with the Treasury about the impact of Her Majesty’s Revenue and Customs’ new end-use procedure changes on the gas and oil industry?
I will give a very succinct answer, as you have requested, Mr Speaker. I do not know, but I will happily meet the hon. Gentleman to discuss it.
What consideration is my hon. Friend giving to the downstream sector? Our remaining oil refineries are important national assets and major centres of employment, and they could benefit from clear, long-term thinking.
As my right hon. Friend will be aware, the whole sector is important to us, and specifically the supply chain. I have met various players involved, and it is of critical importance to us.
The UK Government have so far failed to announce a sector deal for oil and gas, and there was no mention of one in their industrial strategy. There is a need for a sector deal approach to the industry. The Scottish Government have been calling for such action. Will the Minister finally rectify this glaring omission and commit that vital support for the industry and the jobs and investment it relies on?
The hon. Gentleman should be aware that this is a priority for us. We are working very hard with the sector to come up with a sector deal, and I expect those talks to come to fruition very soon.
I know that the hon. Lady has a keen interest in this subject, and we have met to discuss the impact on many of her constituents working at the Culham Centre for Fusion Energy. As she knows, our assessment was detailed in the “Nuclear Sector Report” at the end of December last year, and in an impact assessment for the Nuclear Safeguards Bill, which was first published on 18 December. We continue to engage with stakeholders, and the hon. Lady knows that my door is always open if she wishes to discuss this matter further.
I thank the Minister for his response. We know that the Government are seeking a close association with Euratom, but with just 109 days until Austria takes up the presidency, Oxfordshire needs clarity now to plan for the future. Can the Government categorically say they are seeking an associate agreement, and can they guarantee that they will kick-start the process before 1 July?
I can confirm that, as the hon. Lady knows, we are seeking the closest possible association with Euratom. We are working very hard to achieve that objective.
Does the Minister agree that at the recent meeting of the all-party group on nuclear fusion, which I chair, the Government’s attitude to expanding their collaboration in nuclear activity was greatly evident?
I thank my hon. Friend for that question. He also has a keen constituency interest in this, and I am very keen to represent the interests of his constituents.
The Government are determined to improve payment practices, and we understand that retentions have caused problems for contractors in the supply chain. We consulted on the contractual practice of cash retention and we are now considering the responses to assess the extent of the issues and to determine what further intervention is required.
I have met Juergen Maier, the chief executive of Siemens UK, to discuss that. At a recent dinner, my right hon. Friend the Secretary of State announced a “Made Smarter” commission and asked Sir Mark Walport to work with Juergen on the development of an industrial strategy challenge for the digitisation of our manufacturing industry.
The number of electric vehicles on our roads is likely to increase significantly over the next few years. What work is being done to ensure that charging points are more frequently powered by renewable sources over that period?
I was in Brussels yesterday to meet other European Union Ministers, trade union leaders and representatives of employers to ensure that we do exactly that.
The Business, Energy and Industrial Strategy Committee has heard powerful evidence on why the Government should call in the Melrose bid for GKN on national security grounds, and the Secretary of State for Defence has written to the Business Secretary about the matter. Will the Business Secretary use his powers, before it is too late, to protect this great British engineering giant?