Fuel Poverty (Wales)

Mark Williams Excerpts

Tuesday 19th March 2013 Westminster Hall

[Glyn Davies]

The first figures are for 1996, but I just made reference to the figures for the period from 2004 to 2009, which saw a massive increase. I simply wanted to draw attention to the fact that even though the Government at the time would have been very committed to protecting people from fuel poverty, there were international conditions that resulted in a massive increase. That is why I congratulate the hon. Gentleman on bringing forward a debate on such an important issue. It is one that faces us all. It is a particularly serious issue in Wales, and there are a number of reasons for that.

Clearly, one reason is that we have less insulated housing stock in Wales. The Welsh Government are seeking to deal with that issue, and here at Westminster we have the drive towards the green deal. Across Britain, we are tackling the issue of home insulation, which is massively important. However, there is one issue that we must always be careful of: all these things add costs to new housing; they make it very difficult to build. One of the worries that we have is that we should be focusing all our attention on making sure that properties are well insulated. That is why I so disagree with the sprinkler system that is being introduced in Wales. That puts a high value on new houses when that value should be coming from making houses more insulated.

The second issue is the higher dependence in Wales on oil, which is more expensive. That is an historical issue. And of course, in Wales—this is a big issue in Rhyl and certainly in the north of my constituency—average wages are lower, which increases the level of fuel poverty.

I commented initially on the huge rise in fuel poverty between 2004 and 2009, much of which was due to the international market, which is outside our control. We are seeing now the pressure that comes from international gas prices—probably the biggest contributor to the increase in energy prices that we have seen—which are outside our control. That means that we must be particularly careful about the additional things, which might not have quite as much impact but are within our control. That is why I want to refer again to an issue that I think my right hon. Friend the Minister will be tired of hearing me talk about: the impact of the environmental taxes that are put on the bottom of our energy bills. We are always told how little a factor that is compared with the international market. We cannot influence the latter, but we can influence the former, and I want to explain why we should reduce that increase.

[Mr Mark Williams (Ceredigion) (LD)]

I welcome my hon. Friend’s comments. He talks about action that we can take. One thing that we can do on oil prices is actively encourage, particularly in rural areas, the development of oil syndicates. The Department of Energy and Climate Change has taken some action on that. Would he encourage DECC to take more action to encourage the development of oil syndicates and get those prices down, particularly in rural areas that are off-grid and have no other options?

[Glyn Davies]

I thank the hon. Gentleman for his intervention and I certainly agree with him. I have encouraged DECC to do a number of things recently in relation to energy and oil prices. One thing it should not be doing is building wind farms and destroying the countryside in mid-Wales.

We must consider seriously the issue of shale gas. I know that there are an awful lot of conditions and we must be very careful about how we go forward with shale gas, but as a nation we must take the issue seriously. We have to take it forward and understand whether there is potential there to help us with energy prices.

--- Later in debate ---

[Mrs Siân C. James (Swansea East) (Lab)]

Fuel Poverty in Wales has reached an unacceptably high level, and despite much intervention by the UK and Welsh Governments, the problem is not improving; indeed, it is increasing at an alarming rate. We have heard some of the facts and figures, but according to Fuel Poverty Charter in Wales, 33.5% of the population or, in numerical terms, 425,161 Welsh households spend more than 10% of their income on heating bills. That figure grows daily, and Transform UK predicts that more than 9 million households across the UK will be in fuel poverty by 2016. What we really need in Wales is energy-efficient homes, decent incomes and affordable, reasonably priced utility bills. If we address those three issues, we will have a fighting chance of reducing fuel poverty for many of our constituents.

Fuel poverty is nothing new to us, because we have a legacy of poor housing stock. The quality of housing can be improved only if there is investment now to enable public and private landlords to drive up standards and ensure that all housing stock is dry and safe and meets basic needs. It is depressing to hear people in our surgeries talk about living in damp, poorly insulated homes. The excuse they are always given is that the damp is the result of condensation. I am sad when that happens, and it happens with alarming regularity.

Year on year, housing is getting damper and more run-down, and energy is disappearing out of poorly insulated homes and inefficient heating systems, which means that costs are rising. We should seriously consider giving further support to the Energy Bill Revolution campaign, which comprises more than 100 charities, organisations, private businesses and unions that are calling on the Government to use money raised from the carbon tax to fit all houses with effective insulation to stop heat being lost through roofs and walls. The group says a nationwide programme, insulating all homes across the country, could save the average family £310 a year on its fuel bill.

However, improving housing stock alone will not be enough. The Government need to work harder at bringing down the everyday costs of running our homes, cooking our meals and keeping warm. National Energy Action says that, as of March 2012, the average gas and electricity bill for households in Wales was more than a massive £1,250 per year. Many consumers could get better deals if they changed tariffs. Many of my constituents are adept at switching, which they do with a regularity that amazes me, but I am one of those people who rarely changes supplier. I have been with the same energy provider since the day I got married, and, for better or worse, I have stuck it out with that company because I know it. However, even I am seriously thinking about swapping. None the less, that is a big step, and many people cannot comprehend the bewildering number of tariffs and offers available. As I say, switching is often the most difficult step to take.

[Mr Mark Williams]

I know how much work the hon. Lady does on this important issue in her constituency. Does she accept that we have a particular problem in rural areas? We have no choice of energy sources, and most of my constituency is not gas-enabled, so we still rely on oil companies and suffer from what are sometimes their monopolistic practices.

[Mrs James]

I thank the hon. Gentleman for his intervention. Yes, it is clear that there is no choice. In Wales, 264,000 households—more than a quarter of a million homes—have no access to mains gas, so they have no option. I take on board his point.