Energy: Action on Bills

Lord Teverson Excerpts

Monday 2nd December 2013 Lords Chamber

[Baroness Verma]

My Lords, when the noble Lord speaks about economic downturns, I have to remind him that it was his Government who were in charge of that. It was his Government who oversaw the worst economic problems that this country has ever faced in peacetime, so let me just put that on record. Since 2010, we have had to make some really difficult decisions, and those decisions have had, in part, to be taken because of the incompetence of the party opposite for 13 years when it was in charge.

On the impact assessment, I told the House that we will see something early next year. I really regret that the noble Lord keeps putting down the Green Deal, given that it gives so many jobs to small suppliers. I say to the noble Lord that we need to encourage the growth of the Green Deal, because it supports small and medium-sized enterprises across our great country.

[Lord Teverson (LD)]

My Lords, I was quite pessimistic when the negotiations started between the Treasury and the DECC on this matter but I congratulate the Minister on the outcome. It has not moved us backwards; it has actually moved the energy efficiency and carbon agenda forward. I very much like the fact that, for new home buyers or people moving, there will be that discount or a contribution towards energy efficiency. Certainly, there needs to be a deal for landlords; that is also good. The other thing that has not been mentioned so far is that we have had a reaction from distribution network operators, who seem to have been left out of this somehow and have some responsibility themselves. Perhaps from that small move on taxation, we will have a more progressive regime. On the existing regime, we have affordable warmth, the carbon-saving community obligation still in place and the low-carbon regime that comes out of the Energy Bill, which we hope will pass unchanged. Those are all items of good news.

Will the Minister tell us when the scheme to do with people moving houses and the landlord scheme are likely to come in? Many people will welcome those schemes very strongly. Will the new focus on distribution network operators continue and what will her department be doing in that area? We seem to be held captive by the mantra that energy prices relate entirely to wholesale gas prices. We have seen cheap coal becoming an increasingly important part of the energy mix. Where have the profits that the energy generating companies have made through that cheaper fuel gone? They certainly have not come through to consumer bills. Will my noble friend pursue that investigation?

[Baroness Verma]

My Lords, I thank my noble friend for his endorsement of the Statement and the work behind the scenes to ensure that we have not lost all the important elements and measures that will reduce carbon, provide energy efficiency and help the most vulnerable households that we need to make sure we are helping.

My noble friend asked when the new schemes will come in. They will come in around mid-2014. They have to follow the proper processes and consultations. Ofgem regulates the distribution network operators. It is for Ofgem to ensure that the costs the networks are proposing are viable. We must accept the package in the round. A lot of things need to be done. This Government are taking that on board.

My noble friend asked about competition and coal. We are taking both extremely seriously, and I hope to come back with a little more detail about how we propose to see Ofgem strengthen what it is doing to ensure that there is greater transparency on how energy companies use their profits.