Luciana Berger
Main Page: Luciana Berger (Liberal Democrat - Liverpool, Wavertree)Energy Bill [Lords]
Luciana Berger Excerpts(12 years, 8 months ago)
Commons ChamberRead Full debate Read Hansard Text
Gregory Barker
I can assure the hon. Gentleman that we will keep all elements of the green deal under close review. We are embarking on a really new, large-scale proposition; there is nothing quite like it anywhere in the world. We are pioneering a new model for energy saving, at scale, and as a result we will need continually to monitor all aspects of it, especially those relating to selling and mis-selling. We will need to ensure that the legislation that we have put on the statute book, the codes of practice that underpin it and the secondary legislation that we will introduce in due course before the launch of the green deal remain pertinent. If we identify any areas in which we think improvements can be made, we will not hesitate to make them.
Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)
Given the Minister’s response to the question from the hon. Member for South Northamptonshire (Andrea Leadsom), it would be useful to know whether there have been any developments over the summer following our discussions on the golden rule. The distinction between the green deal and other financial products is that the cumulative cost of the rate of interest and the cost of the installation should not exceed the amount that people are currently paying on their energy bills. We discussed that in Committee, and it would be useful to know whether there have been any developments on that front.
Gregory Barker
There has not been any substantive development on that because we have not yet undertaken the consultation on the secondary legislation that will bring in the regulations. We have begun to hold discussions with stakeholders, and we will consult on the detail of the golden rule because it forms an important part of the measures, but there was no substantive movement over the recess.
Gregory Barker
One or two, or small numbers, may fall through the net, but by and large we have to think about how the green deal will be implemented. Many of the families and individuals the hon. Gentleman is worried about will be captured by community roll-out and street-by-street roll-out of energy efficiency improvement schemes. We have the ECO so that we can offer whole communities the same service on an equal footing, regardless of their ability to pay. We will have to think about how to ensure fairness, because we want to include people living in isolated communities or those living in a relatively prosperous areas in a detached home, perhaps on their own, but I think the vast majority of the types of vulnerable consumer the hon. Gentleman is worried about will be captured by the whole-community approach that we anticipate will be taken up by many local authorities in street-by-street approaches. We need the ECO to be able to offer insulation and home improvements to whole streets, regardless of income, to ensure that we do these things at scale. I do not pretend that we have the perfect solution, but I believe that what we have is by far the best approach in comparison with anything tried before.
With that, I will finish. I will respond to the other amendments raised by hon. Members when I wind up the debate on this group.
Luciana Berger
We are delighted that the Government are keeping the amendments proposed in Committee. We accept the proposals to make the provisions more workable, as the Minister set out.
Andrew Percy (Brigg and Goole) (Con)
I wish to speak to my amendment 28. I am delighted to hear the Minister say that he will respond to it later, which allows me to make my points before they are addressed.
I say at the outset that I think the green deal is a fantastic idea. As we went into the election campaign, I was very enthusiastic about it and I found a lot of support for the concept on the doorstep. I pay tribute to the ministerial team for bringing it forward so quickly and in such a concise manner. It is especially important because it provides for improved energy efficiency of our housing stock, which is vital to protect not only the environment, but residents. It will also have the benefit of reducing carbon emissions and hopefully, if it works correctly, insulate our residents and consumers against rising energy prices. If the “pay as you save” model works as envisioned, many more homes will be made much more energy efficient than could have been achieved under the previous schemes, whose limitations anyone who has served as an MP or a local councillor will have seen. This model is a great improvement.
Affordability is a massive issue for our constituents, as no doubt all of us have seen over the summer, with a large amount of correspondence in our postbags arising from various energy companies raising their prices. Citizens Advice has informed me and other Members that there has been a 78% increase in hits to its advice websites compared with a year ago. That clearly demonstrates how welcome is any measure that helps to bring down prices and encourage energy efficiency. It is in all our interests that the green deal works properly and effectively and is accessible to as many residents as possible on an equal basis.
There are some concerns—the Minister probably heard them in Committee—about the attractiveness of the green deal to certain sections of our constituents. The Great British Refurb campaign has said that although the green deal is attractive, mass demand will be contingent on a number of factors. I believe it surveyed about 2,000 people across the UK and found that whereas 56% of respondents saw the green deal as attractive, only 7% said that they would be prepared to take it up if a 6% interest rate applied. That is why my amendment focuses on interest rates.
We need to ensure that the interest rates are as low as possible to make the scheme as attractive as possible to as many people as possible. That is what amendment 28 would allow. The advantage of setting a single scheme interest rate is that it will stimulate demand from as many people as possible while forcing green deal providers to compete directly for customers based on the cost and quality of the energy efficiency measures and installation, rather than on the headline interest rate of the finance. I believe that it will also help to increase transparency and empower consumers who would find it much easier to compare different offers and the services provided by different companies.
Luciana Berger
It is helpful at this point to refer to the Treasury levy cap, which has not yet been mentioned. We will not know for some time whether the Office for National Statistics will determine that the ECO should be considered in the same vein as the warm homes discount, the feed-in tariff and the renewable obligation. If it does, the ECO could be even more constricted and less than the figures that my hon. Friend is talking about.
Barry Gardiner
The shadow Minister is absolutely right that there has yet to be clarity on the issue, and clarity is vital. If we are to meet the targets that the Committee on Climate Change has set and the budgets, we must know that sufficient funds are available for the ECO to meet those targets. At present, my analysis and other analyses are quite clear that up to £22 billion is required, although an absolute cap of £1 billion might be provided under the ECO. As my hon. Friend suggests, that £1 billion might prove not to be a full £1 billion after all.
On new clause 9, the Secretary of State for Energy and Climate Change has estimated that the green deal will lead to employment in the sector increasing from 27,000 jobs currently to something approaching 250,000 jobs by 2020. That involves the creation of 27,875 jobs every year from the start of the green deal until 2020. Double the number of jobs that currently exist must be created every year. We heard earlier at Prime Minister’s Question Time about the latest unemployment figures and particularly the problems of youth unemployment. Of course, if those jobs were created, we would all welcome them, but there must be a doubt about these provisions.
In opposition, the Prime Minister called for a revolution in skills and training, so that the skills system responds far more effectively to the needs of individuals and businesses in a greener economy, but the recent green economy road map recognises the importance of that and refers to the introduction of new skills for a green economy and the grouping of sector skills councils to help businesses understand the changing skills requirement. It is crucial that that new grouping of sector skills councils supports the development of the additional 27,875 jobs every year between now and 2020. It would be of considerable interest to the House if the Minister explained what financial provision will be made to the sector skills councils to enable that sort of expansion—a tenfold expansion—to take place in the next nine years.
Gregory Barker
All those issues are the subject of a constructive and thoughtful conversation between my Department and the Treasury.
Luciana Berger
The Minister has said that interest rates are just one element, and we have argued that it is integral and crucial to whether the green deal will deliver, not only because of the affordability of products—if the interest rate is 8% or more, very few products will fall within the golden rule, and if it is 6% or more, a few more will be added but some of the more ambitious measures would not be included—but most importantly because of public uptake. According to the Great British Refurb campaign study and polling of the public, just 7% of the public said that they would take up the green deal if the interest rate was 6% or more. The Government will not meet their ambition of reaching 14 million homes by 2020 if the interest rate is too high.
Luciana Berger
We are obviously aware of the stakeholder groups and the consultations going on in DECC, but as far as I am aware only one or two consumer groups are involved, and the majority of organisations taking part in those discussions are businesses. None of the businesses I have spoken with has indicated that it will seek to present a 0% interest rate on its green deal package. Returning to the polling I just asked the Minister about, does he accept the polling from the Great British Refurb campaign, which indicates that only 7% of the British public would take up the green deal if the interest rate was 6% or more? All the organisations we have spoken with have indicated that the interest rate would be at that level or above.
Gregory Barker
I am afraid that the hon. Lady is wrong. We have a huge degree of engagement with consumer groups. All the obvious consumer groups have been involved heavily in formulating different parts of the green deal, and that work is ongoing. I have not seen the particular research she mentions, but we have certainly had involvement from Which?, Citizens Advice and Consumer Focus, as well as from sophisticated investors and institutions in the City of London. I do not expect offers to appear until October next year, and it is most unlikely that ambitious new entrants in the market will declare their hand so far in advance: they will wait to see how the market shapes up and look at their competitors before revealing their offers. That is my expectation, which is based on observing what else happens in the market, rather than on what stakeholders have said to me at DECC.
Gregory Barker
I shall give way to the hon. Lady, but then I really do need to make some progress so that we can get on to other parts of the Bill.
Luciana Berger
I am grateful to the Minister for stating the developments for those customers who have the same energy provider for their electricity and gas supply. He says there are 14.8 million of them, but my question, which came up in Committee, is about those customers who have different providers for electricity and for gas. What will happen to them? How will they be able to measure the savings across their two bills? My conversations with many energy providers tell me that their systems do not currently speak to each other, and that to make them to do so would cost a great deal.
Gregory Barker
There will be access to the energy annual statement, which will make that crystal clear.
Energy suppliers are already prohibited from disconnecting households in the winter months when they know or have reason to believe that the customer is a pensioner or lives with pensioners or with those under 18 years old. We plan to extend those protections to the non-payment of green deal charges.
We have had a very good debate. I have commented on the green investment bank to make clear the Government’s views on what appropriate interventions for the green investment bank would be. Although we understand the intention behind new clause 8, we will not support it. I hope that the hon. Member for Brighton, Pavilion is reassured by my explanation and will not press her amendments 26, 27, 49 and 50 or new clause 8; and that the hon. Member for Manchester, Withington and my hon. Friend the Member for Brigg and Goole are similarly reassured on amendment 28. I hope also that the hon. Member for Manchester, Withington found my explanation regarding amendment 45 equally compelling and will not press that, either. I urge the House to support Government amendments 29 to 34 and 36 and new clause 10.
Question put and agreed to.
New clause 10 accordingly read a Second time, and added to the Bill.
New Clause 11
Agreement about modifying decommissioning programme
‘(1) Section 46 of the Energy Act 2008 (approval of a decommissioning programme) is amended as follows.
(2) After subsection (3) insert—
“(3A) When approving a programme the Secretary of State may agree to exercise, or not to exercise, the section 48 power—
(a) in a particular manner;
(b) within a particular period.
(3B) An agreement under subsection (3A) may subsequently be amended by the Secretary of State and the other party to the agreement.
(3C) The Secretary of State may not make such an agreement or amend such an agreement unless satisfied that the agreement (or the agreement as amended) includes adequate provision for the modification of the programme in the event that the provision made by it for the technical matters (including the financing of the designated technical matters) ceases to be prudent.
(3D) Provision in such an agreement (including the provision mentioned in subsection (3C)) may include provision—
(a) for a determination by a third party in relation to a relevant matter specified in the agreement, and
(b) for the Secretary of State to be bound by such a determination.
(3E) A “relevant matter” is a matter relating to the provision made by the programme for the technical matters.
(3F) Subsections (3A) to (3D) apply notwithstanding that the agreement or amendment fetters the Secretary of State’s discretion.
(3G) In subsection (3A) “section 48 power” means the power of the Secretary of State under section 48 to propose a modification of the programme or a modification of the conditions to which the approval of the programme is subject.”
(3) In subsection (4) for “(3)” substitute “(3B)”.’.—(Charles Hendry.)
Brought up, and read the First time.
Charles Hendry
The hon. Lady raises an entirely separate issue. A funded decommissioning programme is constantly reviewed. If there is evidence that not enough money has been put aside for decommissioning issues, that money will have to be increased. The operators entirely accept that if the costs rise, they will have to contribute more towards the decommissioning pot. The new clause is about whether the Secretary of State should be able to say, “You know, I’ve decided that rather than you putting that money into a pot over 20 years, I’d like it in 12 months.” That would be a fundamental change which, under the existing legislation, the companies would not have been able to challenge. There will be no change in the measures ensuring that enough money is put into the decommissioning pot. If that goes up or down, the amount put in will have to reflect that. That is not touched in any way by the changes that we are making through the Bill.
On the hon. Lady’s new clause 17, at present anybody can write to me as a Minister and say, “We don’t think this is adequate,” and we will consider that. That, as she says, would not be a legal power, but an advisory power. It would still be for the Secretary of State to decide whether to take it forward. The Secretary of State has a number of choices. He can choose to modify, to modify in part or to take no action, so considerable power rests with him.
That comes to the heart of the questions that we were asked by the hon. Member for Southampton, Test. There is something vaguely Rumsfeldian about the concept of unforeseen. What are foreseen unforeseen circumstances and what are unforeseen unforeseen circumstances? I think we have been wise to move away from that. A prudence test is a better one, which both Government and industry are more comfortable with. The Secretary of State will have the power to make those decisions, but we will also make clear in those programmes the role of the third parties.
We have had a considerable amount of discussion with the hon. Gentleman about the nature of those third parties. It would clearly have to be somebody who was acceptable both to the Government and to the operators and who was not prejudiced towards one side or the other. That is a role that the Government are used to developing. The Secretary of State would have significant powers but there would also be a role for third parties. Critically, the Government and the operator would be bound by the decision of the third party. This gives the extra degree of certainty and comfort that the hon. Gentleman sought. I hope we have been able to reassure him.
We have had a useful exchange. I thank the official Opposition for the constructive way in which they have engaged with the issue, so that the nuclear aspects of the Bill are stronger and more effective than they were before.
Question put and agreed to.
New clause 11 accordingly read a Second time, and added to the Bill.
New Clause 12
Adjustment of electricity transmission charges
‘In section 185(11) of the Energy Act 2004 (areas suitable for renewable electricity generation: end date for schemes adjusting transmission charges) for “2024” substitute “2034”.’.—(Charles Hendry.)
Brought up, read the First and Second time, and added to the Bill.
New Clause 13
Consultation
‘A requirement for the Secretary of State to consult which arises under or by virtue of this Act may be satisfied by consultation before, as well as consultation after, the passing of this Act.’.—(Charles Hendry.)
Brought up, read the First and Second time, and added to the Bill.
New Clause 1
Energy efficiency aim
‘(1) The principal purpose of this Part is to deliver energy savings from the building stock which will make commensurate contributions to—
(a) the fulfilment by the Secretary of State of the duties under section 1(1) (reduction of net UK carbon account by 2050) and section 4(1)(b)(carbon budgets) of the Climate Change Act 2008; and
(b) the elimination of fuel poverty by the target date required by section 2(2)(d) of the Warm Homes and Energy Conservation Act 2000.
(2) In performing functions under this Part the Secretary of State will have regard to—
(a) the principal purpose set out in subsection (1) above, and
(b) the recommendations from time to time of the Committee on Climate Change where these are adopted by the Secretary of State.’.—(Luciana Berger.)
Brought up, and read the First time.
Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)
I beg to move, That the clause be read a Second time.
Mr Deputy Speaker (Mr Lindsay Hoyle)
With this it will be convenient to discuss the following:
New clause 2—Duty of the Secretary of State to improve energy efficiency—
‘(1) The Secretary of State must prepare and publish a plan for achieving the principal purpose set out in section [Energy efficiency aim] in England.
(2) The plan must establish specific aims and describe the proposed means of achieving them, together with methods of reporting on progress towards meeting them.
(3) Where an aim is designated under this section, the Secretary of State must take all reasonable steps to achieve the aim.
(4) The plan prepared under subsection (1) must be published no later the 12 months after the day on which this section comes into force.
(5) The Secretary of State must, as soon as reasonably practicable after publishing a plan under this section lay it before Parliament.
(6) The Secretary of State must, within one year of each order setting a carbon budget under section 8(1) of the Climate Change Act 2008, review the plan prepared and published under this section.
(7) Where, following a review under subsection (6), the Secretary of State varies the plan, he must, as soon as reasonably practicable after so doing, publish the plan as so varied.’.
New clause 3—Carbon emissions in local authority areas—
‘(1) Within 12 months of this Bill receiving Royal Assent the Committee on Climate Change shall advise the Secretary of State about—
(a) the scale of action needed in local authority areas to help meet UK Climate Change Act carbon budgets;
(b) climate mitigation and adaptation policies that are effective when locally co-ordinated by councils.
(2) The advice given under subsection (1) should include but not be limited to—
(a) carbon emissions from a local authority’s own buildings and operations;
(b) carbon emissions from the local area;
(c) local renewable energy generation;
(d) national carbon reduction initiatives delivered at the local level
(3) The Committee on Climate Change may advise the Secretary of State on local level adaption to climate change to ensure that individual local carbon budgets are both appropriate for the circumstances of different local areas that the totality of all local carbon budgets is consistent with the requirements of subsection (1)(a).
(4) The Secretary of State must lay before Parliament a response to the advice given by the Committee on Climate Change under subsection (1) or (2), within six months of receiving the advice.
(5) For the purposes of this section—
(a) “budgetary period”, “carbon budget” and “national authorities” have the same meaning as in Part 1 of the Climate Change Act 2008;
(b) “local authority” means a county council or district council in England, or a London borough council, or the Council of Isles of Scilly.’.
New clause 4—Climate change strategy for local authority areas—
‘(1) Local authorities must develop and promote a climate change strategy for their local area.
(2) In preparing the strategy, local authorities must take into account any advice given by the Committee on Climate Change on local action to meet carbon budgets.
(3) In preparing the strategy, local authorities must consult with local residents, businesses, social enterprises and co-operatives and other institutions.
(4) Local authorities must publish and promote their local climate change strategy, publish an annual report on progress towards carrying out the strategy and engage with local citizens and community groups.
(5) The Secretary of State must work with local authorities and the Local Government Association to assist them in producing and implementing their climate change strategies, taking into account any relevant advice from the Committee on Climate Change.’.
New clause 7—Supplementing the Energy Company Obligation—
‘(1) The Secretary of State must, within six months of this Bill receiving Royal Assent, report to Parliament with proposals on the ways in which the Energy Company Obligation could be supplemented by—
(a) revenues from the European Emissions Trading Scheme;
(b) revenues from the Carbon Floor Price;
(c) an additional tax on the profits of gas transporters and suppliers, and electricity generators, distributors and suppliers; and
(d) such other funds as the Secretary of State considers appropriate.
(2) In considering the supplement to the Energy Company Obligation that may be made by the sources of funds listed in section (1) the Secretary of State must include an estimate of—
(a) the extent to which the additional sources of funds listed in subsection (1) could increase the contribution made by a carbon emissions reduction target and a home-heating target to meeting—
(i) the carbon budgets established under the Climate Change Act 2008; and
(ii) the fuel poverty target established under the Warm Homes and Energy Conservation Act 2000.
(b) the extent to which the additional sources of funds listed in subsection (1) could allow the Secretary of State to increase the level of a carbon emissions reduction target and a home-heating cost reduction target without increasing the cost of household gas or electricity bills.
(3) The proposals reported under subsection (1) of this Clause must include an assessment of the extent to which the Energy Company Obligation could make a greater contribution to—
(a) the carbon budgets established under the Climate Change Act 2008, and
(b) the fuel poverty target established under the Warm Homes and Energy Conservation Act 2000
if charges levied on consumers’ bills under this obligation were levied on a per kilowatt hour basis.
(4) The assessment made under subsection (3) must take into account the effect on equity for those living in fuel poverty of levying charges on consumer bills under the Energy Company Obligation on a per kilowatt hour basis.’.
New clause 18—Disclosure of information for the purpose of reducing fuel poverty—
‘(1) The Secretary of State may by regulations make provision authorising the Secretary of State, or a person providing services to the Secretary of State, to supply relevant persons with social security and tax credit information about persons in receipt of welfare benefits.
(2) In this section “relevant person” means—
(a) a person who holds a licence under section 6(1)(d) of the Electricity Act 1989 (c. 29) or section 7A(1) of the Gas Act 1986 (c. 44) (supply of electricity or gas to premises), or
(b) a person providing services to the Secretary of State or to a person within paragraph (a).
(3) Regulations under this section must specify the purposes for which information may be supplied by virtue of subsection (1), which must be purposes in connection with reducing fuel poverty or making homes more energy efficient.
(4) Regulations under this section may authorise the supply of information by a relevant person to the Secretary of State or another relevant person—
(a) for the purpose of determining what information is to be supplied by virtue of subsection (1), or
(b) to enable information supplied to a relevant person by virtue of subsection (1) to be used by that or another relevant person for purposes within subsection (3).
(5) Regulations under this section may—
(a) make provision as to the use or disclosure of information supplied under the regulations (including provision creating criminal offences);
(b) provide for the recovery by the Secretary of State of costs incurred in connection with the supply or use of information under the regulations.
(6) In this section—
(a) “social security information” means information held by or on behalf of the Secretary of State and obtained as a result of, or for the purpose of, the exercise of the Secretary of State’s functions in relation to social security;
(b) “tax credit information” means information held by or on behalf of the Secretary of State and obtained as a result of, or for the purpose of, the exercise of the Secretary of State’s functions in relation to tax credits;
(c) “welfare benefit” means any prescribed benefit, allowance, payment or credit.’.
New clause 19—Additional information provided by energy suppliers—
‘The Secretary of State shall make provision for energy suppliers to—
(a) ensure a generic signpost message is displayed prominently on all customer bills from 1 December 2011, detailing how customers may be able to reduce their energy bills,
(b) ensure a letter reaches all of their customers by 1 December 2011, clearly detailing the extent to which customers overpay or underpay compared to that supplier’s cheapest standard direct debit tariff,
(c) implement, by 1 December 2012, the findings of research undertaken on the efficacy of—
(i) a generic signpost message, to be displayed prominently on customers’ bills;
(ii) a more detailed message, quoting pounds saved depending on payment method and tariff, as influenced by the customer’s actual usage over a 12-month period where appropriate;
in encouraging customers to switch to that supplier’s cheapest standard tariff available.’.
Amendment 2, in clause 42, page 27, line 37, after ‘landlord’, insert ‘, or his appointed agent,’.
Amendment 3, page 28, line 4, after ‘may not let’, insert
‘, let on behalf of the landlord as his appointed agent or market to let’.
Amendment 4, page 28, line 7, at end insert
‘such that the property shall not fall below the level of energy efficiency specified in subsection (1 )(c).’.
Amendment 5, page 28, line 13, after ‘“let the property”’, insert ‘and “market to let”’.
Amendment 19, page 28, line 31, at end insert—
‘(5A) The first domestic energy efficiency regulations shall be made no later than 30 September 2012.’.
Amendment 47, page 28, line 33, leave out ‘April 2018’ and insert ‘January 2016’.
Amendment 6, page 28, line 33, leave out ‘2018’ and insert ‘2016’.
Amendment 48, in clause 45, page 30, line 36, leave out ‘April 2016’ and insert ‘January 2013’.
Amendment 7, page 30, line 36, leave out ‘2016’ and insert ‘2013’.
Amendment 8, in clause 46, page 31, line 4, at end insert—
‘(e) any protections to be afforded to a tenant making a request under the regulations, including, if the Secretary of State considers it appropriate, the circumstances in which no notice under section 21(1)(b) or (4) of the Housing Act 1988 may be given pending the outcome of the request.
‘(1A) In determining whether it is appropriate to make provision under subsection (1)(e), the Secretary of State shall take into account the advice of any relevant body or bodies.’.
Amendment 24, in clause 70, page 52, line 28, at end insert—
‘(ab) to publish a report setting out the intended impact of a carbon emissions reduction order or a home-heating cost reduction order on fuel poverty and on the energy efficiency of domestic properties of different tenures.’.
Amendment 25, in clause 73, page 55, line 11, at end insert—
‘(2A) The Secretary of State may in addition require the register referred to in subsection (1) to record information on—
(a) the tenure of each property; and
(b) in the case of a domestic PR property, the name and address of the landlord.’.
Amendment 23, in clause 74, page 55, line 43, at end insert—
‘(2A) The Secretary of State may in addition require the register referred to in subsection (1) to record information on—
(a) the tenure of each property; and
(b) in the case of a domestic PR property, the name and address of the landlord.’.
Amendment 1, in clause 107, page 88, line 33, after subsection (1) insert—
‘(1A) In setting out the extent to which the green deal plans under Chapter 1 of Part 1 and energy company obligations have contributed to the Secretary of State fulfilling the duty under section 4(1)(b) of the Climate Change Act 2008 (carbon budgeting), the Secretary of State must if necessary explain why the appropriate contribution has not been made and the additional measures he will bring forward.’.
Amendment 9, in clause 108, page 89, line 6, leave out ‘residential accommodation’ and insert ‘buildings’.
Amendment 10, page 89, line 8, at end insert
‘in such a way as to ensure that the energy efficiency of buildings makes its optimal contribution to the delivery of a low carbon energy system at least cost.’.
Amendment 11, page 89, line 9, leave out subsection (2) and insert—
‘( ) In subsection (1) “energy system” means the production, transmission, distribution, storage and consumption of energy.’.
Amendment 12, page 89, line 14, at end insert—
‘(5) The Secretary of State must within 12 months of the passing of this Act publish a report on the steps that he has taken and proposes to take to discharge his duty under subsection (1).’.
Amendment 21, page 89, line 14, at end insert—
‘(5) For the purpose of assisting the Secretary of State to fulfil his duty pursuant to this section, each energy conservation authority must—
(a) take reasonable steps to increase the installation of energy efficiency improvements in residential accommodation in its area;
(b) involve persons and communities in its area in seeking to increase the installation of energy efficiency improvements in its area; and
(c) include a description of the steps it has taken pursuant to this section in its report pursuant to section 2 of the Home Energy Conservation Act 1995.
(6) An energy conservation authority must also consider whether, as a means of assisting the Secretary of State to fulfil his duty pursuant to the Climate Change Act 2008, it would be cost effective to draw up a sustainable energy plan for its area.
(7) In this section—
(a) “energy conservation authority” has the same meaning as in the Home Energy Conservation Act 1995;
(b) “energy efficiency improvements” are such measures as are specified by section 2(4), (5) and (6) of this Act; and
(c) “a sustainable energy plan” is a plan promoting energy from sustainable or renewable sources.’.
Luciana Berger
With so many households struggling under the weight of increased energy bills and fuel poverty at record levels, improving the energy efficiency of our nation’s building stock and reducing our energy use has never been more important. A successful green deal scheme would offer protection to worried consumers hit by unfair gas and electricity price rises and reduce our country’s damaging carbon emissions. As they stand, however, the Government’s proposals lack detail, fail to provide clarity to businesses and risk being inadequate. The new clauses and amendments that we have tabled for debate today seek to rectify the Bill’s weaknesses.
Since the Bill was first published last December, we have endeavoured to work constructively with Ministers to improve the proposals, not just because the green deal was born out of pilots begun under Labour in government, but because we recognise the urgent need to improve energy efficiency across our country. We are disappointed that the Bill did not receive Royal Assent before the summer recess, as the Government promised it would. Meeting that deadline was used by Ministers as a justification for expediting debate during the Bill’s previous stages. In addition, the large volume of secondary legislation involved calls into question whether the green deal will be up and running by October next year, which has been set as the Government’s deadline.
We offered a raft of proposals in Committee to increase consumer protection, boost small businesses and provide extra support for those struggling to heat their homes. Our vision of the green deal is one where co-operatives, small businesses, charities and social enterprises can compete equally alongside large companies that want to take part in the scheme. Our vision is of a scheme that supports Britain’s 2 million small businesses, rather than simply leaving them with warm words and empty order books, which is what the Government risk doing. The Government voted against our vision, although I am delighted that Ministers did not oppose our proposal for a green deal apprenticeship scheme. I assure the Minister that all of us on the Labour Benches will be joining him at the next general election to champion the Government’s policy—Labour’s green deal apprenticeship scheme.
Despite that victory, we still have huge concerns that the Bill will not be as effective as it should be. As a result, we have tabled the new clauses and amendments in this group, which, if passed, would define the scale and purpose of the green deal. They would incentivise councils and engage local communities in the fight against climate change, give businesses the confidence to invest by linking the scheme to the UK’s statutory carbon reduction targets, and end the misery for the hundreds of thousands of men, women and children who are left freezing, shivering under their blankets because they live in cold homes that are not fit for the 21st century.
Labour’s new clauses 1 and 2 would address the lack of clarity in the Bill, better define the purpose of the green deal and ensure that businesses have the clarity and confidence they need in the green deal scheme. Together with amendment 1, our new clauses would explicitly link the green deal to meeting the UK’s targets in our carbon budgets and our fuel poverty targets. New clauses 1 and 2 would place a duty on the Secretary of State to produce a plan for improving energy efficiency and a duty on the Government to report to Parliament on the green deal’s progress towards achieving carbon reductions.
We have heard many soundbites from Ministers about the green deal, such as their description of it as “the biggest home improvement programme since the second world war”, but the Bill contains no strategy for delivering it. We have heard today about the 14 million homes to be improved by 2020, yet we have seen no way to measure whether the green deal is delivering the refit of 4,800 properties a day, or 145,000 a month. None of that is in the Bill. As it stands, there is a danger that the green deal will not live up to the hype. I do not relish saying that: the Opposition want the Bill to be better, not worse, and we want the green deal to succeed, not fail. That is why we believe the Government must go further.
We are not the only ones voicing legitimate concern. After Committee, 51 organisations, including the World Wildlife Fund, Asda and the Federation of Small Businesses, sent a letter to the Secretary of State setting out the concerns that they still had about the Bill. They wrote:
“the debate during the Committee Stage of the Energy Bill has left us concerned that the energy saving programme is not yet guaranteed to be a coherent and ambitious programme, and that the Bill requires further significant improvements. We believe there needs to be an over-arching energy saving plan from the Government to ensure clarity of what is needed to be delivered by the market…Business will find it difficult to be in a position to deliver towards the Government’s aspirations on the Green Deal without this further clarity and certainty.”
The letter concluded:
“It is our view that the Government amendments need to go significantly further and currently do not deliver on the principles reflected in the Warm Homes Amendment. They do not deliver a policy ambition equivalent to the Government’s aspirations or ensure the provision of a plan to cut carbon emissions from buildings and contribute to eliminating fuel poverty.”
The letter proposes three ways to improve the Bill. The first is that
“an aim must be clarified in the Energy Bill that is tied to meeting the target set under…the Climate Change Act 2008, and importantly the individual carbon budgets. The aim must also be tied to the elimination of fuel poverty.”
The second is that an
“amendment to prepare and publish a plan to deliver these aims must be included in the Energy Bill.”
The third proposal is that a
“reporting amendment should ensure…the energy saving programme is linked with other…requirements”.
All three improvements could be made today if the Government accepted our new clauses.
The letter is signed by organisations as diverse as B&Q, Marks and Spencer, Friends of the Earth, the Co-operative Group and the National Insulation Association—the very organisations and businesses that the Government hope will deliver the green deal. Environmental groups, businesses and trade associations are all telling the Government the same thing: “You haven’t got this right. You need to go further.” They are asking the Government to do what the Opposition have suggested in this House and in the other place, but we are now running out of opportunities for the Minister to listen and change his mind.
In Committee, the Government added clause 108 to explain their ambitions for the green deal better, but unfortunately it is inadequate. The clause contains no qualified level of ambition and excludes non-residential properties. By repealing section 2 of the Sustainable Energy Act 2003 and introducing clause 108 to the Bill, the Government are in fact diluting existing energy efficiency requirements. That is why we have tabled amendment 1, alongside new clauses 1 and 2, to ensure that the Government’s green deal definitely results in real carbon reductions. We will press new clauses 1 and 2 to a vote if Government support is not forthcoming, because they are crucial to the success of the programme.
New clauses 3 and 4 would ensure that Britain’s transition to a low-carbon economy is fair. They would place power into the hands of councils and give them the freedom and flexibility to engage with local communities in finding innovative solutions to tackling climate change. They would boost the economy and create jobs by encouraging investment in green businesses. In practice, they would establish a three-stage process. The first part would involve the independent Committee on Climate Change examining the carbon output in every locality and assessing what reasonable action could be taken to reduce carbon emissions; those data would then be used by councils and central Government to agree a local carbon strategy, providing a road map for how the area would reduce its emissions. The local authority could use the strategy to engage the local community and voluntary groups in efforts to reduce carbon emissions and improve energy efficiency.
That idea is not new. The previous Labour Government introduced a pilot programme involving nine councils in January 2010. I am pleased that the Minister announced in Committee that further pilots were to follow, but what we are proposing would allow us to take advantage of economic opportunities that we are failing to exploit. The Federation of Small Businesses, speaking in support of local carbon plans, argues:
“Small businesses are keen to go green…but are not getting the help or incentives they need to do so”.
It goes on to say that they need
“a framework that is flexible and supportive to encourage small businesses rather than penalise them.”
Our new clauses would provide such a framework. They would provide certainty about the scale of carbon reductions locally while allowing local authorities to retain flexibility on how they go about achieving the cuts. It is vital that businesses play an integral role in tackling climate change. According to the FSB, at least one third of the UK’s emissions are from businesses, and the Carbon Trust estimates that 20% of the UK’s emissions are from small and medium-sized enterprises. The FSB calculates that if all UK businesses and public sector organisations install energy-efficient measures, at least £3.6 billion could be saved every year, thanks to the reduction in energy consumption. As well as helping businesses to cut energy usage and reduce costs, estimates of the potential for low-carbon job creation are significant.
Gregory Barker
I am very happy to do so. Indeed, I am sure that Members will have further ideas on how to build up the advice that we give local authorities. Given that it will go to councils of every political party, it is important that it is seen to be thoroughly objective, so a sense of co-ownership would indeed be very helpful.
New clauses 7 and 18 and amendment 24 deal with the ECO and fuel poverty. The hon. Member for Brighton, Pavilion (Caroline Lucas), who tabled new clause 7, may recall what I said in Committee in response to a similar amendment: that the Treasury is responsible for the allocation of public funds. Putting a duty on the Secretary of State to report on potential uses of central Government revenues would, I am afraid, conflict with the Treasury’s responsibility. I assure her, however, that the Government are taking great care to ensure that their policies in the round will be up to the task of delivering our climate change and fuel poverty objectives. The ECO is a key part of this, and we will make sure that it has the right level of ambition to achieve our goals without putting an unduly heavy or inequitable burden on energy bills. On that basis, I hope that the hon. Lady will not press the amendment.
Amendment 24, tabled by the hon. Members for Liverpool, Wavertree and for Ogmore, and new clause 18, tabled by the hon. Member for Brighton, Pavilion, focus on data sharing. Although I understand the intent of the proposal, we do not need it now because the existing warm home discount scheme will provide the six major energy suppliers with the details of more than 600,000 older poorer pensioners this winter and information on thousands of further customers over each of the three subsequent years. That information will be used to provide a £120 rebate this winter to those customers, but it can also be used to provide the customers with additional advice, including information about the ECO. Additional powers for further data sharing are therefore not necessary at this time.
The forthcoming ECO consultation will report on the likely impacts of the policy, as will the accompanying impact assessment. The type of statutory duty that amendment 24 would introduce is not necessary for the purpose of showing the intended impact that the ECO will have on fuel poverty and the energy efficiency of properties. I can therefore assure the hon. Members for Liverpool, Wavertree and for Ogmore that the intentions of the amendment are already met in full.
Amendments 2 to 8, 19, 47 and 48 deal with the private rented sector provisions. These were tabled by the right hon. Member for Berwick-upon-Tweed (Sir Alan Beith), the hon. Members for Manchester, Withington (Mr Leech), for Brighton, Pavilion, for Leeds North West (Greg Mulholland), for Foyle (Mark Durkan), for Liverpool, Wavertree and for Ogmore, and my hon. Friend the Member for Hove (Mike Weatherley). Amendments 6, 7, 19, 47 and 48 relate to timing issues, and I will consider those first, albeit briefly.
As we debated in Committee, we are providing landlords with a firm legislative position. The tenants’ energy efficiency regulations must come into force no later than 1 April 2016. Under those regulations, tenants will be able to ask for consent from their landlord to make relevant energy efficiency improvements such as those funded under the green deal or ECO, and their requests cannot be unreasonably refused. Amendments 7 and 48 propose that the regulations on tenants’ right to request should be introduced sooner, but as well as regulatory certainty, we need to provide landlords with a reasonable period in which to prepare and get up to speed with the regulations. The dates we have chosen strike a balance between pursuing greater energy efficiency benefits and giving landlords time to prepare.
I draw the House’s attention to the latest survey, published this week, which clearly shows that two thirds of landlords are keen to act and take up the green deal, and that only a relatively small minority—fewer than 20%—are dragging their feet. There are grounds to be optimistic that landlords are not resisting this agenda. We have set the dates of 2016 and, as a backstop, 2018, but I cannot reiterate strongly enough—
Gregory Barker
I will not give way, because I have to get through these points.
The backstop is 2018—the point at which we must cross the finishing line. Clearly, in the five years to 2018, from the point at which the green deal goes live, it will be up to the Government to monitor progress in the private rented sector. If we see that there is not a significant glide path towards being able to complete by 2018, it remains to us to take further measures and actions, and we will. [Interruption.] If the hon. Member for Brent North (Barry Gardiner) had been in the Committee, he would know that we will have available an improved online register that is much better than the existing data facilities. We will have the information, we will monitor it carefully, and we certainly see the 2018 date as the end line and reserve the right to introduce new powers, measures, regulations and incentives to drive uptake if we do not see it happening.
Amendment 4 considers the implementation of the minimum standard. The principle behind the amendment is that all F and G-rated properties should be brought up to the minimum standard, regardless of how much of the work can be funded through the green deal. However, the regulations come with safeguards. We do not want our regulations to have an adverse impact on the supply of properties in the private rented sector. For that reason, we remain committed to ensuring that there are no up-front costs for landlords. Landlords will either have to reach an E rating or carry out the maximum package of measures funded under the green deal and the ECO, even if that does not take them above an F rating.
My hon. Friend the Member for Hexham (Guy Opperman) raised a very important point. The Government hear and share the concerns that he expressed so eloquently. We were so concerned by the problems in the domestic heating oil sector last winter that the Minister of State, Department of Energy and Climate Change, my hon. Friend the Member for Wealden (Charles Hendry), asked the Office of Fair Trading to undertake an urgent assessment of the whole off-grid sector. I am pleased to say that it has already taken action to ensure that price comparison websites are genuinely independent. We look forward to its final report next month so that we can see what further steps may be necessary ahead of this winter and ensure that there is proper and effective competition in this important sector, where customers consistently get a very raw deal. The Minister of State is absolutely determined to drive home the agenda that my hon. Friend the Member for Hexham articulated so well.
I turn now to the points raised by my hon. Friend the Member for Basildon and Billericay (Mr Baron) and his new clause 19. This is an area in which he has considerable knowledge and I place on record my thanks to him for taking up the challenge of chairing the consumer billing stakeholder group, which has provided invaluable advice to the Government and has helped to drive forward the aim enshrined in clause 74 of providing consumers with additional information about their suppliers’ cheaper tariffs. My hon. Friend makes the good point that we should seek to provide consumers with helpful, clear information at the earliest opportunity, and that we should build on that through research informed by consumer groups and consumer responses. His new clause would put a set of specific implementation actions in the Bill.
As my hon. Friend is aware, because he has been essential to the steps that the Department is taking, we are on exactly the same page as him on identifying what needs to be done to give the consumer the best possible information. This winter we are doing what can reasonably be achieved, with a clear signpost on bills that will start going out in the next few weeks. There will then be an urgent communication—a letter in most cases—advising consumers of the advantages of switching. I greatly welcome the suggestion that that campaign be backed by consumer groups such as Which? and Consumer Focus to encourage a better take-up than sometimes results from similar mail. We are awaiting the recommendations of the retail market review. If we judge that it does not go far enough, we will look to go further and we have the back-stop of being able to legislate. I have conveyed clearly to the energy companies what we expect and that we will not hesitate to legislate if they do not come to a voluntary agreement.