Energy and Climate Change Committee Report
Debate between Nigel Evans and Tim Yeo(11 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Deputy Speaker (Mr Nigel Evans)
Order. I have, exceptionally, allowed that lengthy intervention because I know that the Minister is not allowed to make his own speech, but please could any further interventions be shorter?
Mr Yeo
May I assure my right hon. Friend that the phrase “cold turkey” is not going to be associated with my Christmas at all? Nevertheless, I welcome the constructive engagement that my Committee has with him and his Department, on these issues in particular.
The members of my Committee are all such gluttons for punishment and so well supported by our staff that we are, as I said, launching another inquiry today. Our consumer engagement report concluded that there was an urgent need to begin engaging consumers with the smart meter project, and that the concerns that have been raised about smart meters need to be addressed if roll-out is to be a success. Every home and small business in the country is due to have a smart meter installed by 2020. That roll-out will be paid for partly by consumers in their bills. Energy suppliers are expected to benefit from reduced operating and generation costs, and suppliers should pass on some of those savings to consumers through lower prices. In order to reap the benefits of smart metering, consumers will need to use the information about energy use provided by their in-home display to reduce their energy consumption and cut their energy bills.
Our consumer engagement inquiry suggests that only about half of people have heard of smart meters and that not all of them support roll-out. Although the full roll-out is not due to begin until 2014, there is a risk that if engagement levels do not increase, consumers may be reluctant to allow smart meters to be installed in their homes. That could be an obstacle to the success of the programme and the potential for consumers to benefit from it.
Our consumer engagement report also highlighted a lack of consumer trust in energy companies, but it is those very energy suppliers that will be delivering smart meter roll-out directly to consumers. The Government must not be complacent. They should spread the word to consumers as part of the honest conversation that my Committee has recommended. The Committee will monitor progress towards delivering the smart meter roll-out and we are today putting out a call for evidence. We are particularly concerned to explore: what criteria will be used to judge the success of the project and whether the cost and time scale predictions are realistic; whether smart meters will empower consumers to take greater control of their energy consumption; whether enough is being done to ensure that financial benefits accruing to suppliers will be passed on to consumers; how to achieve transparency on what consumers are paying towards the roll-out; and how to ensure that vulnerable customers, including consumers on pre-payment meters, reap the benefits.
The consumer engagement report that we are publishing today has important messages for the energy industry, for the regulator, for consumers and for the Government. I commend the report to the House.
Question put and agreed to.
Fourth Carbon Budget
Debate between Nigel Evans and Tim Yeo
Mr Deputy Speaker (Mr Nigel Evans)
Order. I ask hon. Members to respect the convention that they do not question the Secretary of State if they were not here for the entirety of his statement.
Mr Tim Yeo (South Suffolk) (Con)
This is a most welcome decision by the Government. Does my right hon. Friend agree that there are considerable potential economic advantages for Britain in leading the world towards a lower carbon economy? Does he further agree that, although it is understandable that the Government should wish to retain the option of purchasing credits in order to achieve the target, the sooner that option is ruled out, the greater the incentive will be for British business to invest in low-carbon technology?