Oral Answers to Questions
Debate between Nadhim Zahawi and Chris Huhne(13 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text
Nadhim Zahawi (Stratford-on-Avon) (Con)
13. What steps he is taking to mitigate the effects of high oil prices on energy consumers.
The Secretary of State for Energy and Climate Change (Chris Huhne)
Oil is an internationally traded commodity with prices derived from the global market and, as such, the Government cannot control fuel prices. Within the UK, we have an open market for oil, which we believe provides the best long-term guarantee of competitive prices for the consumer. We are encouraging more energy-efficient cars and homes, and we have asked the Office of Fair Trading to report on the heating oil market. Internationally we are working to improve the functioning of the global oil market, and we are reinforcing the work of the international energy forum, especially by increasing transparency. The key is speeding up the shift to the low-carbon economy by getting us off the oil price hook.
Chris Huhne
The key part of the green deal, which is the centrepiece of the Energy Bill making its way through the Lords at the moment and shortly to come here, is an emphasis on being able to tackle fuel poverty. If we get to the roots of fuel poverty, which is often not low income per se, but people relying immensely on energy because they have poorly insulated homes, we can tackle the problem at its core, rather than merely stick on plasters.
Nadhim Zahawi
The renewable heat incentive is one way to mitigate this. My constituents, who are early adopters of ground-source heat pumps and other renewable sources, are disappointed that it appears they will not be able to access the RHI as they will not have installed their equipment before the launch of the incentive. Will the Secretary of State therefore please clarify the position on RHI in relation to individuals who have not installed equipment before the initiative is launched, as it appears that not only is the current uncertainty about new installations confusing constituents, but it is affecting the renewables industry?
Chris Huhne
Obviously, we are trying to eliminate uncertainty as rapidly as we can and trying to be as clear as possible about the policy framework. As can be seen from the announcement of the review of feed-in tariffs, it is important to get these policy details right. We cannot have a situation in which the budgeting is so badly miscalculated that there simply will not be the money to support it. We are determined to go ahead with this. Individuals will be supported under the renewable heat incentive and the details will be forthcoming.
Oral Answers to Questions
Debate between Nadhim Zahawi and Chris Huhne
Nadhim Zahawi (Stratford-on-Avon) (Con)
4. What steps he is taking to increase the security of the UK’s energy supply.
The Secretary of State for Energy and Climate Change (Chris Huhne)
The coalition agreement set out that we will reform energy markets to deliver security of supply and investment in low-carbon energy, and to ensure fair competition, including a review of the role of Ofgem. We will instruct Ofgem to establish a security guarantee of energy supplies, and we will give an annual energy statement to Parliament to set strategic energy policy and guide investment.
In addition, we are bringing forward a green deal as part of the key legislation for the first Session. That will help to close the gap between energy demand and supply in the cheapest way possible, through energy-saving measures.
Nadhim Zahawi
Actually, I am a chemical engineer. I believe that engineers should be taken into account when energy security is under consideration. Would my right hon. Friend consider appointing a Government chief engineer to feed into the thinking process?
Chris Huhne
I have enormous respect for engineers. There are an awful lot of them in my constituency, which is a very manufacturing constituency. Therefore, I think and hope that the country will go on providing greater status to engineers than has often been the case in the past. I am afraid that the question of whether the Government should appoint a chief engineer is above my pay grade, but perhaps my hon. Friend would like to raise it at Prime Minister’s questions.