Energy Efficiency

Sarah Newton Excerpts

Wednesday 30th June 2010 Commons Chamber

[Sarah Newton (Truro and Falmouth) (Con)]

Thank you very much for letting me join this important debate, Mr Deputy Speaker. I wish to support what the hon. Member for Dunfermline and West Fife (Thomas Docherty) said about the fact that a lot of today’s debate has focused on energy generation, whereas in a debate on energy efficiency we should be focusing on energy consumed in the home, because that is a very large contributor to energy consumption in the UK and to our use of carbon fuels.

I also wish to associate myself with some of the comments made by my hon. Friend the Member for Bournemouth East (Mr Ellwood). I grew up in Cornwall, so I can remember the catastrophe of the Torrey Canyon and the oil spills that we saw off the coast of Cornwall, which in their day were as catastrophic as those we are seeing in the gulf of Mexico. That is, I think, a spur to us to reduce our dependence on oil and move swiftly to find more sustainable sources of energy.

I believe that the green deal will offer significant positive benefits to people living in my constituency. Fuel poverty in Cornwall is among the highest in the country. That in part relates to the profile of our population: we have many people living in poverty, with average incomes some 25% lower than the national average, and the fastest-growing population of 80-year-olds. We are also a very rural area, with more than 63% of the population of households living in rural areas—that figure is only 19% for the rest of the country. As a result, people do not have access to mains gas, which is, of course, the cheapest form of energy. Many homes, especially in villages—as many as 80% of the homes in villages—have to depend on Calor gas or on fuel oil, which are the most expensive ways of heating a home and tip a lot of people into fuel poverty.

There are also a lot of old properties, bungalows and properties built before the war with solid walls, which are difficult and expensive to insulate, as well as a large number of detached properties compared with the rest of England. As hon. Members will know, flats are usually the most energy-efficient properties and we have low numbers of those in Cornwall.

I believe that the green deal will enable many people in my constituency to switch from expensive and carbon-intensive forms of energy to more low-carbon and cheaper alternatives, especially ground heat. Ground heat pumps are manufactured in my constituency and, using the CERT programme and working with social housing providers around the country, they have lifted many people out of fuel poverty. However, like some of my hon. Friends, I am slightly concerned. Although the initial amount of money available through the green deal—about £6,000—is a good start, I would appreciate it if, over time, Ministers considered increasing the amount of money that could be made available for the green deal to take into consideration the considerable costs of insulating solid wall properties and putting in ground source heat pumps.

[Zac Goldsmith (Richmond Park) (Con)]

For a long time, energy efficiency has had Cinderella status in the energy debate, despite the fact that in terms of value for money it is second to none. I am hugely excited by the green deal and think it will transform the way in which we interact with energy in this country, but would my hon. Friend support moves to extend the green deal to the commercial sector, too? That sector is responsible for about a fifth of our emissions and it has been calculated—I have not done the maths myself—that if we were to raise the energy performance certificate standard for commercial buildings to level C, we would save about £5 billion a year. It seems to be a no-brainer.

[Sarah Newton]

I would be delighted to support my hon. Friend. It is important that schools, hospitals and commercial organisations can benefit from the green deal. There is a huge appetite for people to have renewable energy, but the capital costs can be prohibitive.

[Gregory Barker]

May I quickly assure both my hon. Friends that the commercial sector—particularly small and medium-sized enterprises, but the sector in general, too—will be included in the green deal?

[Sarah Newton]

That is extremely welcome news. That is marvellous, and—to return to my ground heat pump manufacturers—they will be able to provide ground heat for businesses, hospitals and schools, as they do at the moment.

I should be grateful if Ministers would consider one other matter in the context of renewable heat, and that is the incentive. The renewable heat incentive, as hon. Members will know, was designed to support the installation of a wide range of renewable heat technologies by compensating owners for the increased capital costs of such systems. I think it is an extremely bold and good idea, and Ministers will be receiving replies to the consultation process that was started by the last Government. Having listened to manufacturers in my constituency, I believe that although it is a good idea, some unfortunate anomalies have crept into the calculation of the tariff.

The Carbon Trust and ground heat pump manufacturers have highlighted an inconsistency in the tariff calculations for the RHI that is having the unintended consequence of effectively doubling the rate of return for air source heat pump installations. It has been well proven that ground source heat pumps are a far more efficient way of producing energy over time than air source pumps. If the tariff continues as it stands in the proposals, it will severely disadvantage the ground source pump industry and other renewable technologies; indeed, it might, sadly, eliminate both of those technologies just when we need to be encouraging businesses to supply and manufacture such products in this country. I would be very grateful if Ministers would urgently review the consultation process and look at the tariff for small air source heat pumps.