Fuel Poverty and Energy Efficiency

Mark Lazarowicz Excerpts

Wednesday 16th January 2013 Commons Chamber

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

It is a statement of the obvious to say that fuel poverty is a function of both the cost of fuel and the income of the household of the consumers involved. We all know that over the next few years there are going to be massive changes in the benefits system because of the Government’s welfare reform measures. I shall not go into the rights and wrongs of them, which can be done on another day, but it is quite clear that such changes bring a great risk that those who are already vulnerable and on low incomes will lose out even more. That is true not necessarily because of the changes to benefits—I have said I am not raising that issue today—but because under any new system, major change or major upheaval in the applicable criteria bring the real risk of people falling through the net. Their applications for support from fuel companies might not get through at the right time.

That point has been made in an excellent report from Citizens Advice Scotland on energy issues recently brought to the attention of its citizens advice bureaux. The report states:

“With several years of upheaval ahead for the benefits system, suppliers should be proactive in monitoring usage, particularly amongst prepayment customers. Where customers are self-disconnecting, suppliers should proactively contact those customers…Arrears should be identified quickly by suppliers and communicated to customers to allow them to address the issue before the debt becomes unaffordable.”

I shall not go into any more detail, but this is a good report. I can send a copy to the Minister, who I hope will agree to read it and to take account of its suggestions. The Government must take that on board to ensure that what is being done through the green deal is closely linked to changes in the benefit system. This applies not just to the Government, but to suppliers, who need to keep an eye on what is happening.

My second point relates to the Government promise to make energy companies offer the lowest tariffs to their customers. I do not think we heard much about that in the Secretary of State’s opening speech, and there is still a lot of uncertainty, as we all know, about how that is going to operate. What still appears to be the case is that any benefits from that new policy will not go to those on prepayment meters—an issue raised by my hon. Friend the Member for Croydon North (Steve Reed). I urge the Government to make it absolutely clear when this policy is developed that those on prepayment meters should automatically be given the cheapest tariff that the supplier offers. There should be no qualification or hesitation about that.

My final point relates to how the green deal will operate in Scotland. The Minister will know that, because the energy company obligation is a UK or Great Britain-wide measure while the green deal equivalent is delivered in effect by the Scottish Government, the responsibility falls on two Governments to ensure that the system works as effectively as possible. I raised this matter with the Minister, who was helpful in providing some information about it. I have to tell him, however, that there is still a great deal of uncertainty within the industry and among consumers in Scotland about how the green deal will operate in Scotland. That is partly because of the role of the different Governments and partly because of the need to work on solid-wall properties, reflecting the peculiarities of the Scottish system of property ownership. As my hon. Friend the Member for Edinburgh West (Mike Crockart) will know, that can sometimes vary between different cities. I hope the Minister will ensure that attention is paid to making the green deal work effectively in Scotland and in all our constituencies.

I am a great supporter of the principles behind the green deal. That is why I find it a tragedy that such a very good idea has not to date shown its full potential. As the Minister well knows, the Insulation Industry Forum has pointed out that although it strongly supports the green deal,

“the delays in the Government’s implementation of it have now begun to destroy some of our businesses as well as undermining the Coalition’s green ambitions for the country.”

That is, as I say, a tragedy. I hope that the defects in the implementation of the scheme so far can be repaired, so that all of us who support the green deal in principle can see it bring the benefits that we want to all our constituents.