Energy: Prices

Lord McKenzie of Luton Excerpts

Monday 9th December 2013 Lords Chamber

[Lord Kennedy of Southwark]

To ask Her Majesty’s Government what estimate they have made of the impact of recent energy price rises on local authorities in financial years 2015-16 and 2016-17, compared to a price freeze.

[Lord McKenzie of Luton (Lab)]

My Lords, on behalf of my noble friend Lord Kennedy of Southwark, and with his consent, I beg leave to ask the Question standing in his name on the Order Paper.

[The Parliamentary Under-Secretary of State, Department of Energy and Climate Change (Baroness Verma) (Con)]

My Lords, the Government are helping local authorities with their energy bills. The Salix Finance public sector energy efficiency loan scheme provides interest-free loans to public sector organisations, including local authorities in England, Scotland and Wales. Last week we announced an additional £90 million of funding to help improve the energy efficiency of public sector buildings. The Government Procurement Service purchases energy on behalf of many public sector organisations, including local authorities, resulting in lower energy costs for the public sector.

[Lord McKenzie of Luton]

My Lords, I thank the Minister for that reply. However, we know that local authority budgets are being cut to the bone and many local authorities are already struggling to meet their statutory obligations to vulnerable people. Notwithstanding what the Minister has said, does she agree that, by ruling out price freezes, households are faced with a double challenge of rising energy prices at home and further cuts to vital local authority services on which so many depend?

[Baroness Verma]

My Lords, although the Government cannot, of course, control wholesale prices, in our announcement last week we put forward a package of measures which should help local authorities and consumers. The noble Lord will be aware that only today the OECD said that if it were to follow the noble Lord’s party’s plans on an energy price freeze, there would be underinvestment as investment would be frightened off coming to the UK. I am sure that is not what the noble Lord or his party want, but, sadly, that is what would happen. The noble Lord will also be aware of the complete drop in share prices across energy companies following the statement made by the leader of his party in September.