Michael Fallon
Main Page: Michael Fallon (Conservative - Sevenoaks)(10 years, 9 months ago)
Commons Chamber8. What recent progress has been made in the roll-out of smart meters; and if he will make a statement.
Good progress is being made. The first technical specifications have been confirmed and some energy suppliers are installing smart meters already, although most consumers will be offered smart meters from next year. We are on track to complete the national roll-out to 30 million premises by 2020.
Since the original Mott MacDonald assessment of smart meters, their cost has doubled. It is also estimated that half the meters already installed will have to be removed before 2020. Are we not heading for another IT disaster?
Absolutely not. I am a little surprised at the hon. Gentleman’s criticism, given that his colleague the right hon. Member for Wentworth and Dearne (John Healey) told this House on 23 April 2012 that our plan
“has a number of world-first features.”—[Official Report, 23 April 2012; Vol. 543, c. 782.]
9. What steps his Department is taking to support the city of Bristol in its role as European green capital 2015.
I congratulate Bristol on being named European green capital 2015. Ministerial colleagues across Whitehall are working to explore what support we can provide to the city. The Minister for cities, the Minister of State, Cabinet Office, my right hon. Friend the Member for Tunbridge Wells (Greg Clark), will shortly be hosting a business round-table with the mayor of Bristol to discuss the role the Government can play.
Bristol is a hub of green technology and growth and thoroughly deserves its title. However, it is also a city that has very bad traffic congestion problems, leading to carbon emissions. Will the Minister lend his support—possibly working with other Departments —to make sure that the European green capital award provides the impetus for a railway revolution in Bristol and the Henbury loop line in my constituency?
My hon. Friend is a powerful champion of the Henbury loop. It is for the West of England Partnership to identify that particular rail scheme as a priority in its strategic economic plan. If it does so, it may be considered for funding under the local growth fund.
10. What steps he is taking to help households with their energy bills.
This winter’s “Buy oil early” campaign, co-ordinated by my Department, was launched by the industry in September. We have worked with industry to provide consumer guidance on how to form oil buying clubs, which allow savings through bulk buying. I will review its progress at the next ministerial round table in May. The launch of the domestic renewable heat incentive this spring will also provide payments to promote a switch to renewable forms of home heating.
I very much welcome what my right hon. Friend says. As several colleagues have already mentioned this morning, the cost of heating oil for off-grid homes is a major concern. Will he give us more details of the domestic renewable heat incentive scheme, particularly in respect of domestic biomass boilers?
The domestic renewable heat incentive scheme is designed to drive forward the uptake of renewable heat technologies, such as biomass boilers. We published details of that scheme last July, and we intend it to be open for applications this spring. It is targeted at, but not limited to, homes that are off the gas grid, because those without mains gas have the most potential to save on fuel bills and to decrease their carbon emissions.
Surely one of the biggest problems for off-grid homes is that they are not even entitled to the protection of the fairly weak regulator, Ofgem. Regardless of who created what, will the Minister please tell us why oil customers are not entitled to this most basic of regulatory protections?
The new code that we have agreed with the industry gives those customers more protection than they have had in the past. We are looking at the operation of the code this winter, and we will review how effective it has been when we hold the next ministerial round table in May.
13. What steps he is taking to ensure that energy suppliers check the accuracy of meters.
Energy suppliers are required to investigate if a customer suspects that their energy meter is not recording consumption accurately. Under Ofgem’s standards of conduct, that must be carried out in an honest, transparent and professional manner. If necessary, a consumer can request that the meter be independently tested by a meter examiner appointed by the National Measurement Office.
What the Minister has outlined does not appear to have happened in the case of a customer working in my constituency to whom npower recently agreed to give a rebate of £2,548. He is a professional man who is well able to go through the time-consuming process and to afford the £96 fee he had to pay, but the process would have been a challenge for a more vulnerable customer. To add insult to injury, three months after the rebate was agreed, he still has not received his refund. What can be done to improve this unacceptable situation?
That is a quite unacceptable delay. Any charge should be reimbursed if the meter is found to have been inaccurate. I will take up the matter with the company and it needs to resolve it rapidly.
14. What recent assessment he has made of the effects of climate change on the frequency of extreme weather events.
T3. The Secretary of State stated in the Yorkshire Post on 14 February that he expects Eggborough power station to remain open, even if it does not obtain his support for converting from coal to biomass. Will he explain his Department’s detailed analysis, specific to Eggborough, that leads to that conclusion? I appreciate he might not be able to do that in the time allowed here, so will he—not just his officials—meet me and representatives from Eggborough to discuss that detailed analysis as a matter of urgency?
My hon. Friend is a consistent champion of Eggborough and its proposed conversion. He will know that I have already met him and representatives from the company to discuss the proposal for converting to biomass. We received a large number of investment projects under the intermediate regime. It was not possible, because of a limited budget, to support them all through the taxpayer, but he will know that Eggborough has a number of other options and routes to consider.
I am very pleased that the matter of Eggborough has been raised. The loss of 850 jobs at Eggborough, with thousands more in the supply chain, is very worrying. What steps is the Minister taking to ensure that his Government’s policies create jobs, not cost jobs, and safeguard, rather than threaten, our energy security?
The jobs have not yet been lost at Eggborough, which is still producing power. A large number of investment projects came forward under our intermediate regimes involving hundreds of other jobs. It was not possible, within a limited budget, to accommodate every single investment project. Eggborough has been given its provisional ranking and it has other alternatives, such as applying for a contract for difference under the enduring regime.
T5. The Minister will recall visiting my constituency a couple of years ago to look at a green deal project to make houses on the Lakes estate more energy efficient. Will he update me on how many families were able to benefit from the scheme?
The German Chancellor is visiting Parliament today. May I invite the Secretary of State to hold talks with her about the support that her Government give to energy-intensive industries in Germany? I am sure that that support is welcomed by those industries, but it makes it increasingly difficult for energy-intensive industries in our country, such as the steel industry, to compete.
We are already paying emission trading system compensation—some £28 million so far—to 53 companies, including eight steel companies, nine chemical companies and 28 paper companies. I discussed a carbon price floor compensation scheme with Vice-President Almunia in Brussels last week, and I hope that that too will be approved next month.
I recently met 90-year-old Norah at the Phoenix centre in Holmfirth to learn about the energy bill revolution. Does my right hon. Friend agree, however, that one of the best ways of reducing energy bills for those facing fuel poverty is to insulate their homes?
I agree completely that energy efficiency measures are one of the best ways of providing long-term sustainable support to the fuel-poor. I completely understand and appreciate the motives behind the energy bill revolution, although hypothecation itself may not always be the most effective way of managing public expenditure.
What action is the Secretary of State taking to ensure that the new fuel poverty target will address the specific needs of people affected by severe and devastating rare conditions such as muscular dystrophy and neuromuscular conditions?
With Angela Merkel’s forthcoming speech to both Houses of Parliament in mind, does the Secretary of State agree that it would be very wise and sensible to incorporate energy more thoroughly into the single market, and what steps is he taking to bring that about?
I discussed these issues with the German Government in Berlin yesterday and I agree with my hon. Friend that completing the internal market, with more interconnection and work on network codes and sharing, is part of the answer to making Europe more self-sufficient in its own energy and in reducing our dependence on fluctuating wholesale costs.
I draw attention to my entry in the Register of Members’ Financial Interests—and, indeed, also in The Mail on Sunday. The Secretary of State was good enough to welcome the GLOBE conference today in Washington and the fourth legislative study. Will he also welcome the forest legislators initiative that is going alongside that, which is looking into REDD-plus and the expansion of that work in Latin America and Africa in particular?