Oral Answers to Questions
Debate between Tessa Munt and Ed Davey(10 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text
Tessa Munt (Wells) (LD)
Given the complaints figures uncovered by Which? recently, which showed that the big six received more than 5.5 million complaints in 2013 alone, does the Secretary of State think the time has come to have a full overhaul of the broken energy market, starting with a full competition inquiry to increase competition after the market assessment has been completed?
Mr Davey
It would be wrong of me to anticipate what the annual competition assessment will conclude. We provided evidence for that, which was the right thing to do, but it is for that independent competition authority to decide what the problem is—that is why we have asked it to do it. It is doing detailed work, and when it has analysed the problem, it will decide what remedies are required.
Mr Davey
First, may I pay tribute to the hon. Gentleman for the work he does on forestry and the contribution he has made? I am not aware of the details of the legislative initiative he mentions, but it does sound very sensible. This Government have done a huge amount to support efforts to tackle deforestation in Latin America and elsewhere and I will certainly take note of what he said.
Tessa Munt (Wells) (LD)
Under the current business rates arrangements, businesses have very little incentive to increase energy efficiency as investing in premises can lead to higher business rates. Did the Secretary of State see last week’s British Retail Consortium proposals for modernising business rates, suggesting a scheme whereby energy efficiency and improvements are rewarded with lower business rates, rather than penalised? Will he discuss these proposals with his colleagues in government?
Mr Davey
I am grateful to my hon. Friend for her question. I did note those proposals and I thought they were very interesting. It would be unwise of me to prejudge the work that will be done on them in other Departments, including the Treasury, but the Minister of State, my right hon. Friend the Member for Sevenoaks (Michael Fallon), has a meeting later today to discuss the proposals with business representatives.
Energy Bills
Debate between Tessa Munt and Ed Davey
Mr Davey
I am afraid that the hon. Lady is completely wrong. The ECO scheme remains—let us be clear about that. The affordable warmth component of the ECO not only maintains at its current level, but is extended for two years. Similarly, the carbon saving community obligation continues in force now and is extended. The only part of the ECO that is being cut at all—but it still remains—is the carbon emissions reduction obligation. She ought to welcome that, not least because the proposals published by the right hon. Member for Don Valley (Caroline Flint) suggest that the Labour party would get rid of that part of the ECO.
Tessa Munt (Wells) (LD)
Does the Secretary of State agree that moving towards general taxation means that the cost of the social and environmental measures he wishes to take will be borne by those who are better off, rather than by people with very low incomes and vulnerable households, whom we seek to help?
Mr Davey
My hon. Friend is absolutely right; moving some of the costs that were on the bill and having to be paid by all bill payers, no matter whether they pay tax or not, to taxation results in a more progressive system overall. One would have thought that the Labour party would welcome that.
Oral Answers to Questions
Debate between Tessa Munt and Ed Davey
Mr Davey
My colleagues and I will stand together. On the green levy review, we need to do all we can to help consumers with energy bills and I should have thought that the Opposition supported that, but I have made it clear that we will not do that on the backs of the fuel poor—we will keep our support for them in the levy—and that we will ensure that there is investment in renewable energy.
Tessa Munt (Wells) (LD)
Will the Secretary of State ensure that in any review of the green levies measures are taken to protect the fuel poor, particularly those in rural Somerset?
Mr Davey
The House will be pleased to know that the social and green levies protect everybody, whether they are in rural Somerset or anywhere else in the country. On a number of occasions, I have made clear in this House and elsewhere my commitment to maintain the support for the fuel poor.
Annual Energy Statement
Debate between Tessa Munt and Ed Davey(11 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Davey
The hon. Lady should catch up, because the Ofgem reforms and the retail market review will put those people on the lowest tariff, which was backed by my right hon. Friend the Prime Minister. But she does have a point: some people are not using switching—not using the markets and competition—and some of them are older people. I take that issue seriously, and it is one of the reasons we want to use co-operative principles for collective switching, and why I am using third sector voluntary groups such as Citizens Advice and Age UK to deliver face-to-face advice to help exactly the people she is talking about.
Tessa Munt (Wells) (LD)
The Secretary of State will agree that the best way to cut fuel bills is to improve the energy efficiency of households. Would he care to comment on the fact that two of the big six energy companies—npower and British Gas—blame the energy company obligation, a measure designed to help the fuel-poor to cut their bills, for the increase in prices next year?
Oral Answers to Questions
Debate between Tessa Munt and Ed Davey
Tessa Munt
It is, Sir. I must explain myself. Will the Secretary of State investigate Ofgem’s administration of the scheme and the lack of information provided to everybody involved, so that it reverses its decision to categorise lottery money as state aid?
Mr Davey
My hon. Friend is a doughty campaigner for her constituents in villages, helping them with community halls and so on. I am aware of this issue—it is not just grants from the lottery, but grants from elsewhere in government that prevent installation of micro-technology receiving feed-in tariffs under the Ofgem scheme. This matter has been raised by a number of hon. Members and I hope we are able to look at it in due course.
New Nuclear Power
Debate between Tessa Munt and Ed Davey(11 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Davey
I am trying to explain our policy on no subsidy, but the hon. Gentleman interrupted me. If he will listen, the position is being put on the record in a way that I have never had a chance to do before.
Our aim is for a broadly standardised approach to contracts for difference that will allow for comparability between technologies and the introduction of competition for CFDs. I do not think that what is needed is a line-by-line comparison of the terms of each contract. That is not what our policy says or requires. In fact, there are likely to be variations in CFD designs between one technology and another, and perhaps also between different projects within the same technology. What is important is that the terms agreed deliver a similar result across technologies and projects, and that they result in a proper allocation of risk. In addition, each contract will need to deliver value for money for the consumer and be compatible with state-aid rules. A contract with a nuclear developer that does those things would be compatible with our no-subsidy policy.
Let me be clear—this is not about getting a deal at any price. We have put in place rigorous processes to ensure that any contract for Hinkley Point C, the most advanced nuclear project, represents the best possible deal for consumers. We are also committed to transparency with regard to any contracts for new nuclear—more transparency on nuclear than this House has ever seen. Under the Energy Bill, all investment contracts must be published and laid before Parliament. We have commissioned expert technical and financial advisers to conduct open-book scrutiny on the developer’s project plans and costs, and we will also publish a summary of the reports from our external advisers and our value-for-money appraisal for Hinkley Point C. Hon. and right hon. Members will be able to see the evidence and judge for themselves.
Tessa Munt
Will the Secretary of State clarify a point for me? I understand that, in chapter 5 of the Energy Bill, a single sentence gives effect to schedule 3 of the legislation and that it has been drafted with intentional obscurity to give the Secretary of State the power to make an agreement with the generator to purchase electricity at a fixed price, as well as the power to vary the price that has been set in the contract and to keep secret any details of the price except the reference price and the strike price.
Mr Davey
I might have to write to my hon. Friend about the note on schedule 3 to the Bill. I would say to her that we are being very open and transparent about the approach, as she has previously recognised.
Nuclear power remains a key part of the Government’s strategy for transition to a low carbon future. I recognise the strong concerns that have been expressed about affordability; I share them. That is why this is not a deal at any price. Nuclear power must be affordable and must offer value for money. We have a huge challenge ahead of us. We need to replace a fifth of our power generation in this country in this decade. We need to decarbonise our electricity sector to meet our emissions targets and our responsibilities to the next generation. We are embarked on the largest infrastructure programme in Government, with £110 billion of investment over 10 years. Are there risks? Of course, but the risks to the country and to the planet if we do not meet this challenge are infinitely worse. Affordable, low carbon new nuclear is just one part of the answer, but let the House be in no doubt that it is part of the answer.
Oral Answers to Questions
Debate between Tessa Munt and Ed Davey
Mr Davey
As the hon. Lady will know, a study was done on that early in the coalition Government. It was decided that although the Government would not take the matter forward, if a private consortium wanted to put forward proposals, we would study them. At the moment we have not seen proposals that we could back with any financial regime, whether renewables obligation certificates, contracts for difference or anything similar. I know that people are looking at the issue, but as yet the Government have not taken a decision to support any particular project.
Tessa Munt (Wells) (LD)
In light of today’s announcement, does the Secretary of State agree that fracking is not appropriate for the Mendip hills? The water that feeds the aptly named city of Wells and the villages that surround it in my constituency takes 900 to 1,000 years to reach the spas of Bath. Will the Secretary of State ensure that communities are consulted fully about this issue?
Mr Davey
I can certainly reassure my hon. Friend that communities will be fully consulted. We have made it clear that the regulatory regime is strong, and it will be strengthened if need be. We have put in the co-ordination that will give her constituents the reassurances that they need.
Oral Answers to Questions
Debate between Tessa Munt and Ed Davey
Mr Davey
The hon. Gentleman will know that Ofgem is undertaking a retail market review that is considering standing charges. We expect its deliberations to be published in the autumn. Given that it is an independent regulator, I am sure that the hon. Gentleman will agree that I should not pre-judge its conclusions.
Tessa Munt (Wells) (LD)
Investing in a balanced mix of low-carbon energy projects has huge job creation potential. The CBI’s analysis has shown that the green economy currently supports 940,000 jobs, two thirds of which are outside London and the south-east. Does the Minister agree that that reveals how the green economy can support a balanced nationwide economic recovery?
Mr Davey
I strongly agree with my hon. Friend and pay tribute to the work she does in her constituency to promote energy efficiency and renewables. She mentions the CBI report and it is clear that the CBI’s director-general, John Cridland, is very supportive of the Energy Bill and our attempts to increase investment in energy infrastructure, which he sees as a key part of this Government’s growth policy.
Oral Answers to Questions
Debate between Tessa Munt and Ed Davey
Mr Davey
The hon. Gentleman is right. Energy bills are a real concern for many households around the country. That is why we are taking the action we are. He refers to consolidation in the sector. That certainly happened under the last Government. What we are doing is trying to make sure we can get more competition into the sector. We have seen Ofgem’s proposals for dealing with liquidity in the wholesale markets, while the work I am leading on collective switching is intended to enable consumers to generate more competition. Competition is what we want to see.
Tessa Munt (Wells) (LD)
5. What discussions he has had with the Secretary of State for Communities and Local Government on the potential long-term community benefits of the Hinkley Point C nuclear power station and other major infrastructure projects.