Energy Bill

Lord Pearson of Rannoch Excerpts

Wednesday 6th November 2013 Lords Chamber

[Lord Lawson of Blaby (Con)]

My Lords, I, too, support my noble friend Lord Forsyth. I do not think that anyone can disagree with this amendment—although, sadly, I suspect that the Minister may. It has been striking that there has been no disagreement on any side of the House, and support on all sides, for this transparency amendment. Indeed, support has come not merely from all sides of the House but from all sides of the green debate. Everybody agrees that there should be transparency. Everybody agrees, as the noble Lord, Lord Kerr, suggested, that there should be no hypocrisy. There is no argument against this amendment other than a desire for concealment. A desire for concealment is not a very reputable position for the Government to take. As a strong supporter of this Government, I regret that they should be in the business of promoting concealment, for that is what this is about.

If the amendment is not carried and the Government do not get the credit for introducing this transparency, sooner or later—I suspect it will be sooner rather than later—one of our great newspapers, maybe the Daily Mail, will run a great campaign, saying that the Government are concealing the position and that consumers should be told. Eventually the Government will have to give in. It will be a great triumph for the Daily Mail, or whichever newspaper it is, and it will be a great defeat for the Government. It is very foolish for the Government to go into this knowing they will get—I do not know whether this is a parliamentary expression—a bloody nose. So I ask my noble friend to think again. She is skilful and politically aware. Her officials are not—that is not their job. She should have the nous to accept this amendment, which has been so reasonably proposed by my noble friend Lord Forsyth and so widely, indeed universally, supported on all sides of the House.

[Lord Pearson of Rannoch (UKIP)]

My Lords, very briefly, I, too, support this amendment. My only regret is that perhaps it does not go far enough in suggesting that all the various environmental levies should be broken down to show how much has been spent on wind power, and what percentage of electricity consumed and paid for came from wind. If that were revealed to the general public through this amendment, it would hasten the end of the absurd and socially unfair wind farm project.

[Lord Whitty]

My Lords, this has been an interesting debate. Nobody who spoke was against transparency of costs. In passing, as an avid reader of the Daily Mail, I say to the noble Lord, Lord Lawson, that the Mail has made a pretty good job of drawing the consumer’s attention to the fact that there are such charges—although not always accurately, as the noble Lord, Lord Teverson, implied. It may be that from all points of view that a different form of transparency would make things clearer.

My noble friend Lord Campbell-Savours hoped to get a knee-jerk reaction from his Front Bench in support of this, and that was my initial inclination. I am in favour of transparency for consumers. I am not in favour of concealing any costs which make up the bill, including those imposed by the Government, whether the charges were started under the previous Government or were, like the carbon floor price, started by this Government. The problem all Governments have with this is that it is all very well to argue for this all going onto direct taxation—intellectually that must be the case and in terms of fairness one can argue it—but I am afraid that there are those in government, one of whom is not unknown to the noble Lord, Lord Howell, who would object to significant amounts of money coming from direct taxation. To be frank, I do not think any Government would easily be persuaded, having put these charges on consumer bills, to move them back to direct taxation. However, that option is always there.

The other, less drastic option is to make these charges less regressive, because they are effectively a poll tax. However, I am not completely joining the surrounding of the Minister on this because, while it is right to seek transparency, it is not right to do so in order to attack the Government’s green or social charges. We should look at the totality of costs which make up the consumer bill. The noble Lord, Lord Teverson, is right, but it needs to go further.

The corporations have used the green charges to explain price rises. Sometimes they have been right and sometimes they have been, at best, misleading. There are other things which go on within supply companies. We do not know the cost of the network. Network charges are a significant part of costs. Nor do we know how the internal finances of the energy companies operate. Some of these companies are vertically integrated. Are they buying from themselves? What is the actual price that is reflected in the bill?

The Minister should take this away and look at how we would break down all costs in a way which consumers could understand, and which did not highlight just one aspect of them. With my noble friend Lord Campbell-Savours and the noble Lord, Lord Teverson, I support green charges. I do not think they are geared in the proper way, and perhaps schemes funded by taxation might be better, but I am in favour of green charges. I am also unafraid of scrutinising them and getting greater transparency, but that should be done in the context of looking at all the costs which make up a bill.

The list here is incomplete. If it had been a longer list, or if it had stopped as a general principle at the word “consumer” in the last line of the main paragraph, I think that the Minister could accept it and I would support her. I hope she—