Oral Answers to Questions

Tim Yeo Excerpts

Thursday 5th February 2015 Commons Chamber

[Mr Davey]

I disagree that the policy is creating failure, but I agree with the hon. Gentleman and other Opposition Members that high energy bills need to be dealt with. The question is what is the best way of dealing with them. We have been dealing with them every single day since I took office by using competition, energy efficiency and direct financial support, and by helping energy-intensive industries. Our policies are working. Frankly, if we had listened to the Opposition, people would be paying higher energy bills.

[Mr Tim Yeo (South Suffolk) (Con)]

Does the Secretary of State agree that transmission and distribution charges account for more than a fifth of many household bills? Will he press Ofgem to bear down more toughly on the charges made by the monopoly transmission company, National Grid, and by near-monopoly distribution companies all over the country?

--- Later in debate ---

[Mr Davey]

I absolutely will answer the questions put to me by the workers and their representatives, and I will ensure that the NDA and Sellafield Ltd make sure that they answer those questions, too. That is only right.

[Mr Tim Yeo (South Suffolk) (Con)]

Does my right hon. Friend agree that maintaining high levels of generating capacity to meet peak demand, which may be for very short periods, imposes a cost on all consumers? Will he therefore undertake to look carefully at the capacity market mechanism next year to see whether a greater contribution can be made by demand-side response—the system under which consumers are incentivised to reduce their consumption at short notice during periods of peak demand?

[The Minister of State, Department of Energy and Climate Change (Matthew Hancock)]

Demand-side response currently accounts for around 1.8 GW of balancing services, and we expect it to rise to around 2.5 GW. I have met the demand-side response industry a couple of times, and we will ensure that we take into account its concerns as we review the operation of the capacity market, which was incredibly successful this December.