Draft Electricity and Gas (Energy Company Obligation) Order 2018

Mark Prisk Excerpts

Monday 22nd October 2018 General Committees

[Dr Alan Whitehead (Southampton, Test) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Walker. This is not any ordinary order; it is a complete ECO scheme in a box. The entire ECO3 scheme is there—all in one statutory instrument. As far as I understand, when and if the order is passed, the work of implementing ECO3 will be done and it will go ahead.

It is important, therefore, to talk about the entirety of the ECO scheme in the order and to compare it with the ECO schemes that went before it and with the programmes that went before them. We should consider what is at the heart of the order and ask: what are we in the UK doing about the appalling state of our homes and their energy efficiency, and what measures are we taking to bring the energy efficiency of those properties up to a decent standard?

[Mr Mark Prisk (Hertford and Stortford) (Con)]

I am unclear as to whether the hon. Gentleman thinks that the measure is sharply distinguished from the original scheme that he mentioned. I am concerned about the impact on fuel poverty not only in important areas such as Cornwall, but in areas that are often not defined as being in fuel poverty, such as Hertfordshire. What is his view of the comparative benefits of the two?

[Dr Whitehead]

The essential point about the overall aim of ECO is that it should be concerned with all those issues—with urban and rural fuel poverty and with bringing properties up to a decent level of energy efficiency to ensure that our properties are in a fit and good state with regard to climate change and energy use changes.

The concentration on fuel poverty could solve those wider issues to some extent, providing that the scheme is large enough to enable that to happen. We know that people living in fuel poverty are disproportionately concentrated in properties that have low energy efficiency. In the private rented sector in particular, a large proportion of properties are in bands E, F and G. A large proportion of people living in fuel poverty are in that tenure and in those property efficiency bands. In principle, concentrating on fuel poverty is a good way of targeting the wider issues, as long as enough other things are happening within the scheme. It all depends on the overall status of the scheme.

Several good things have happened between ECO2 and ECO3. I commend the Government’s decision to reduce the obligation threshold for suppliers. A large number of energy supply companies fall just below the current level of 250,000 accounts and are therefore not obliged to undertake any ECO measures. Problems also arise in respect of whether people who switch are eligible for certain schemes. Within a short period, the obligation threshold will be reduced from 250,000 accounts to 150,000, which is a Good Thing, with a capital G and a capital T. I thoroughly support it.