Michael Fallon
Main Page: Michael Fallon (Conservative - Sevenoaks)(10 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Alan Reid (Argyll and Bute) (LD)
2. What assessment he has made of the process involved when a Scottish and Southern Energy customer on its “Total Heating, Total Control” tariff tries to switch to another electricity supplier.
The Minister of State, Department of Energy and Climate Change (Michael Fallon)
The ability to switch supplier is a key driver of a competitive market, and it is important that we address areas where this is difficult. I therefore welcome the opportunity to discuss with my hon. Friend the particular difficulties faced by customers on the “Total Heating, Total Control” tariff.
Mr Reid
The Government are right to encourage people to switch their supplier to get a better deal. However, consumers on SSE’s “Total Heating, Total Control” tariff find in practice that they cannot switch because wiring and meters need to be changed and other suppliers simply do not want to know. What can my right hon. Friend do to make it easier for these consumers to switch?
Michael Fallon
My hon. Friend is right to say that customers who have dynamic teleswitched meters inevitably have a narrower choice of supplier. It is therefore all the more important that Ofgem ensures that the tariffs they are on are kept reasonable. I would like to discuss further with him how we might help those particular customers to switch more easily.
Mr Mike Weir (Angus) (SNP)
Following on from what the Minister just said, one reason why people want to switch from this tariff is that they are finding that although the headline increase announced by the company is high enough, they are being quoted sometimes twice that increase in their electricity prices. Is there anything he can do to press Ofgem on why there is such a huge increase in this tariff?
Michael Fallon
I shall certainly do that. When Ofgem last looked at this tariff, it thought that the price was reasonable compared with some other time-of-use tariffs offered by other suppliers, such as Economy 7. However, I am very happy to take the matter up again with Ofgem.
Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)
In taking the issue up with Ofgem, the Minister needs to emphasise just how trapped these people feel. They feel that they cannot shop around and they want to be completely reassured that they are getting the fairest deal possible. In the long run, will he examine whether it would be worth accelerating and prioritising the roll-out of smart meters for these customers to make it easier for them to switch?
Michael Fallon
As I have said, it is not satisfactory that dynamic teleswitched meter customers have a choice of fewer suppliers than other customers, although there are technical reasons for that. I am happy to take this matter up again with Ofgem to see what we can do to make it easier for such customers to switch.
Bill Esterson (Sefton Central) (Lab)
A number of my constituents who have switched recently have been hit by significant charges—in one case, thousands of pounds. Given that switching is the Government’s main policy on energy, what can they do to ensure that mistakes are not being made by energy companies and that there is a fair deal for all customers who switch?
Michael Fallon
If the charges are at that level, it is clearly unacceptable. We will look at this with Ofgem to make sure that everybody is entitled to a choice— everybody is entitled to switch—and if there are particular difficulties with dynamic teleswitched meters, they need to be looked at.
Miss Anne McIntosh (Thirsk and Malton) (Con)
3. What representations he has received on the level of green levies; and if he will make a statement.
David Rutley (Macclesfield) (Con)
10. What recent assessment he has made of the UK’s energy security.
The Minister of State, Department of Energy and Climate Change (Michael Fallon)
We published the annual “Statutory Security of Supply” report last month. National Grid is preparing stronger balancing measures for the short term. We plan to run a capacity market auction next year for the medium term. Beyond that, we are incentivising new infrastructure, including new nuclear, through the Energy Bill.
David Rutley
I congratulate my right hon. Friend on agreeing terms for the first new nuclear power station since 1995, which is in marked contrast to the previous Government’s failure to replace ageing power stations. Will he tell the House what other steps the Government are taking to find additional sites further to secure and improve UK energy security?
Michael Fallon
It is very telling that in the year that Hinkley Point will come on stream—2023—eight of the nine existing plants will be off the system, unless their lives are extended, which shows the legacy of under-investment that we have to face. There are now proposals for 12 reactors in total, spread over five different sites.
Nick Smith (Blaenau Gwent) (Lab)
A quarter of our power supply will go off line in the next decade, so why is investment in new, clean energy infrastructure on course for a new low?
Michael Fallon
Since this Government came to office, five new gas plants have come on to the system and another is being built at Manchester, while two large wind farms opened this year and four more are under construction, and we have agreed terms, as we have heard, for the first new nuclear station in a generation. All that investment would be put at risk by the threat of price controls from a future socialist Government.
Katy Clark (North Ayrshire and Arran) (Lab)
15. Whether the Government overruled the Nuclear Decommissioning Authority on the decision to extend the contract with Nuclear Management Partners to run Sellafield; and if he will publish all the relevant documents.
The Minister of State, Department of Energy and Climate Change (Michael Fallon)
The contract review process and the decision to renew were the responsibility of the Nuclear Decommissioning Authority. Given the importance of Sellafield, Ministers were kept fully informed, and we endorsed the decision to extend the contract, which gives Sellafield the opportunity to build on the progress made so far.
Katy Clark
I thank the Minister for that answer. Will he publish the documents in relation to this decision? Will he agree to meet me and any other interested MPs to discuss the Government’s relationship with the Nuclear Decommissioning Authority, given some of the decisions that will be taken over the coming period?
Michael Fallon
I am always happy to meet any colleagues from the House, and I am certainly happy to meet the hon. Lady and other hon. Members to discuss the performance of the company at Sellafield. I think that she is referring to the KPMG report, which was commissioned by the Nuclear Decommissioning Authority, and its use and disclosure—whether or not it should be published—is the responsibility of the authority.
Mr David Heath (Somerton and Frome) (LD)
16. What steps he is taking to reduce energy costs for residents in rural areas.
The Minister of State, Department of Energy and Climate Change (Michael Fallon)
The Government have worked with industry to co-ordinate the “Buy oil early” campaign, which I launched in September, and to provide guidance on setting up or joining oil-buying groups. We also provide assistance to the most vulnerable consumers via the warm home discount, winter fuel payments and cold weather payments.
Mr Heath
Will the Minister bear in mind that those of us who live in the countryside very often live in old houses with solid or rubble-built walls, and very often in areas of water incursion? We cannot benefit from dual fuel tariffs, and we often rely on liquefied petroleum gas or fuel oil, which is cripplingly expensive. May I just remind him that people in rural areas have no ambition to be cold, damp and forgotten?
Michael Fallon
I assure my hon. Friend that those people have certainly not been forgotten. We have particularly addressed the issue of off-grid customers through publicising the adoption of a code of conduct so that petroleum suppliers treat their customers fairly. Ofgem is considering whether heating oil is properly covered by its consumer protection measures. We are working with the Fuel Poverty Advisory Group to improve the information available on vulnerable customers so that all the different agencies better understand where those customers live.
Mr Peter Bone (Wellingborough) (Con)
I thank the Minister for his comments. Is he aware that there are constituencies such as mine that are regarded as urban areas, but that contain substantial rural areas? The people in those rural areas are sometimes overlooked in this regard.
Michael Fallon
I understand that. My hon. Friend is a great champion of his constituents, whether urban or rural. There are off-grid consumers in suburban and more urban areas. We treat all consumers equally. I encourage him to look at the guide to keeping warm this winter that the Secretary of State has sent to all Members on how we can best promote such matters in our constituency.
Paul Maynard (Blackpool North and Cleveleys) (Con)
T1. If he will make a statement on his departmental responsibilities.
Mr Mike Weir (Angus) (SNP)
T7. This morning it has been reported that in looking at the costs of energy, the Government are considering changing the cost of transmission. Will they take the opportunity finally to get rid of the discriminatory locational system for transmission and distribution costs that raises prices in the north of Scotland?
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
National Grid has been looking at the balance in cost between north and south, but a lot of energy is generated in Scotland, not least in renewables, and Scotland has an interest in ensuring that that energy is transmitted to England.
Mr David Amess (Southend West) (Con)
T5. Will the Government continue to encourage people to switch energy suppliers if they feel they are being ripped off, as I was by British Gas and E.ON UK? I have switched to M&S Energy, and saved two thirds on my bill.
Ian Lavery (Wansbeck) (Lab)
Coal generates up to 50% of electricity in the UK, but sadly most of that coal is imported—there has been a 37% increase in the past year. What are the Government prepared to do to secure the future of the British deep-mining coal industry?
Michael Fallon
My Department played a role in ensuring that UK Coal Operations survived this year, following the serious fire at the Daw Mill colliery, and helped preserve 2,000 jobs at Killingworth and Thoresby. We continue to work with the UK Coal Forum and other bodies to ensure that the place of coal is properly recognised in our energy mix.
Lorely Burt (Solihull) (LD)
T9. What assessment has my right hon. Friend the Secretary of State made of the implications for fuel poverty if the suggestion by the Free Enterprise Group of Conservative MPs to upgrade VAT on fuel to 15% is implemented?
Albert Owen (Ynys Môn) (Lab)
Distribution and grid transmission costs account for between 20% and 25% of energy bills. Areas such as mine, which produce an awful lot of electricity, pay even more for their electricity. When will the Government review the transmission system so that we can have a level playing field across the country and National Grid can act in the national interest?
Michael Fallon
Ofgem and National Grid have been looking at transmission costs between north, south and different parts of the country. They are looking specifically at the distribution costs of local distribution operators to ensure that they are kept as low as is reasonably possible.
Mr Peter Bone (Wellingborough) (Con)
What does the Secretary of State say to my constituents in the rural part of Wellingborough who duly elect councillors, but when planning applications for wind farms come forward, councillors and my constituents are against those plans yet they are overturned by a planning inspector? My constituents think that democracy is not working.
Nic Dakin (Scunthorpe) (Lab)
The Secretary of State admitted, in answer to my right hon. Friend the Member for Don Valley (Caroline Flint), that due to Government incompetence no money has been paid to energy-intensive industries in mitigation for the carbon floor tax. However, he did say that money is being spent on the European Union emissions trading scheme. In answer to a parliamentary question, the Minister of State, the right hon. Member for Sevenoaks (Michael Fallon) told me:
“£16 million has been paid to 17 companies.”—[Official Report, 5 November 2013; Vol. 570, c. 142W.]
When I asked him to name those companies, he wrote:
“We are still assessing applications.”—[Official Report, 18 November 2013; Vol. 570, c. 663W.]
How can money have been paid out when applications are still being assessed?
Michael Fallon
More than 60 applications have been received and we have paid out on more than 20 of them. We have done that in the past few weeks. We are processing the others as quickly as possible. The scheme that my right hon. Friend the Secretary of State referred to was the carbon price floor compensation scheme, for which we are still awaiting approval under state aid rules from Brussels.