Oral Answers to Questions
Debate between William Bain and Ed Davey(9 years, 10 months ago)
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Albert Owen (Ynys Môn) (Lab)
17. What recent assessment he has made of the UK’s energy security.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
The UK remains the most energy secure country in the European Union and is ranked fourth in the world by the US chamber of commerce. On electricity security of supply, we are successfully implementing short, medium and long-term policies to overcome the legacy of underinvestment that we inherited, so we will keep the lights on. From National Grid’s supplemental balancing reserve to the capacity market auctions this week through to the £45 billion investment in the UK’s electricity generation networks in 2010, this Government have delivered on energy security for the UK.
Mr Bain
Meeting our security of supply challenge requires stable investment, and investors need confidence in the long-term direction of Government policy. After 2020, when the levy control framework expires, that confidence evaporates in this Government’s current road map, so will the Secretary of State give the industry a big pre-Christmas present by finally committing this Government to a 2030 decarbonisation plan to give the sector the certainty it needs?
Mr Davey
I have done a lot better than that. Through UK leadership in the European Union, we now have European Union 2030 targets, which are among the most ambitious in the world. The UK led that and that gives confidence to the sector not just in the UK, but across the whole European Union.
Oral Answers to Questions
Debate between William Bain and Ed Davey(9 years, 12 months ago)
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Mr William Bain (Glasgow North East) (Lab)
17. What recent progress has been made on the EU 2030 framework for energy and climate policies; and if he will make a statement.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
With permission, Mr Speaker, I will answer question 1 and questions 13, 19 and 21 together.
I am delighted to tell the House that European leaders recently signed an historic deal agreeing to cut greenhouse gas emissions by at least 40% by 2030, and that the UK played a crucial leadership role over two years to deliver that deal. It establishes EU leadership and influence ahead of negotiations for a global climate deal next year, and it provides business with additional certainty to help unlock billions for low-carbon investment. It reforms EU energy policy to give member states more flexibility so that they can go green at the lowest cost, and it helps to improve Europe’s energy security, sending a strong signal to Russia at a moment of heightened tension. I commend the EU deal on energy and climate change to the House.
Mr Bain
More than 50 companies have called on the Secretary of State to implement a 2030 decarbonisation target, including Asda, Sky and PepsiCo. They have warned that the absence of a specific carbon intensity target is undermining investment. Does he regret the fact that he did not join the other 16 hon. Members of his own party who rebelled against the Government to vote for the target?
Mr Davey
It is interesting that not a single Labour Member has got up to congratulate the Government on leading in Europe and securing an historic deal to cut greenhouse gas emissions in the EU, which is Europeanising Britain’s Climate Change Act 2008. It is absolutely pathetic that they are not prepared to show that they support the Government on this historic deal. As Secretary of State, I introduced into the Energy Bill—now the Energy Act 2013—the power to bring in power sector decarbonisation, and we will do it. The Liberal Democrats will support that policy at the election, and I hope that Labour will too.
Oral Answers to Questions
Debate between William Bain and Ed Davey
Mr Davey
Unlike the hon. Lady’s party leader when he was doing my job, we have referred the energy markets to the independent competition authorities for the most thorough investigation to check that they are behaving in the interests of consumers. More than that, unlike the previous Government who saw the number of energy companies fall from 15 to six, we have increased competition so that people have a real choice, and that is now working. There is still more to do, because the energy markets we inherited from the previous Government were in such a mess.
Mr Bain
Once again, the Secretary of State is sounding dreadfully out of touch. Has he not looked at the latest annual fuel poverty survey, which shows that 2.33 million households in this country are in fuel poverty, and that the gap between what households can afford and what they are expected to pay has increased to £480 under this Government? When are the Government going to stop the excuses, take action and bring in a proper energy price freeze so that consumers can get some relief from this rising cost of living?
Mr Davey
I am grateful to the hon. Gentleman for raising the issue of fuel poverty, because I do look at the statistics and we are focusing very much on that. It is worth noticing that fuel poverty went up under the previous Government, but under this Government it has gone down by 5% according to the latest figures. It is interesting that the figures have gone down under both the old definition and the new one.
Right hon. and hon. Members might want to understand why we brought in a new definition of fuel poverty. The old definition, which was introduced by the previous Government, was so ineffective that it described the Queen as being in fuel poverty in some years. We are targeting fuel poverty, and we are spending more on tackling fuel poverty than the previous Government. We have a good record, and we want to do more.
Oral Answers to Questions
Debate between William Bain and Ed Davey
Mr Davey
I think the hon. Lady ought to talk to the leader of her party because when he was doing my job he said, after many years of increases in gas and electricity prices that were higher and faster than they have been under this Government:
“As I have said before in the House, I am not in favour of referring these matters to the Competition Commission.”—[Official Report, 25 February 2010; Vol. 506, c. 444.]
When the Leader of the Opposition had the chance to take this measure, he did not.
Mr Bain
May I draw the Secretary of State’s attention to the fact that the Institute for Public Policy Research has said that increasing competition in the energy market will produce efficiency savings which could mean £70 a year being knocked off the average bill? Why will he not back Labour’s plan to break the domination of the big six, require them to sell power into a pool, get new businesses into the market and cut bills for consumers and businesses?
Mr Davey
Some Labour Members are suffering from amnesia. It was the Labour party that created the big six. It was this coalition that deregulated to enable new independent suppliers to come into the market—11 new suppliers coming in since 2010, and there has been a big increase in the number of customers for the smaller suppliers, who are taking on the big six. It is this party and this coalition Government who have been the force behind competition, while Labour Members are the friends of the big six.
Oral Answers to Questions
Debate between William Bain and Ed Davey(11 years, 7 months ago)
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Mr William Bain (Glasgow North East) (Lab)
The CBI estimates that more than a third of the pitiful economic growth that we saw last year came from the green economy. Why is the Secretary of State listening to the Chancellor rather than to green businesses, which say that they want a target in law for the decarbonisation of the energy sector by 2030 and they want that target now?
Mr Davey
The hon. Gentleman is right: green growth enables our economy to perform. We are seeing green growth, and I welcome that. I have been working closely with the Chancellor. The deal that we agreed before Christmas will mean a tripling of support for renewable energy, and, for the first time, the power to set a decarbonisation target will be put into law. That provides a framework that the last Government did not provide.
Oral Answers to Questions
Debate between William Bain and Ed Davey(11 years, 9 months ago)
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Mr William Bain (Glasgow North East) (Lab)
1. What recent discussions he has had with his EU counterparts on European electricity and gas markets.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
The UK strongly supports the single energy market, which will bring benefits to the EU economy by increasing competitiveness and energy security. Last week, I met my Irish counterpart to sign a memorandum of understanding on exploring the scope for trading renewable energy. In November, I attended the first meeting of the North European energy dialogue to discuss the growth potential of energy infrastructure investment with ministerial colleagues from across northern Europe. I hope to host a follow-up meeting in London this year.
Mr Bain
I am grateful to the Secretary of State. I would be even more grateful if he reminded his Conservative colleagues that we can shape the single market only by remaining a member state of the European Union. Does he agree with the Commission that getting member states back on track to complete the single energy market is critical as it will reduce bills for consumers across Europe by €100 a year, increase Europe’s growth rate by 0.8% of GDP and create 5 million jobs across the energy industries?
Mr Davey
The hon. Gentleman is absolutely right. The single energy market is an important development for Europe and the UK. The coalition Government have been united in support of developments in the single energy market in Europe. It is in Britain’s interests and we will pursue it.
Oral Answers to Questions
Debate between William Bain and Ed Davey(11 years, 10 months ago)
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Mr William Bain (Glasgow North East) (Lab)
Do the Secretary of State and the Minister of State, Department of Energy and Climate Change, the hon. Member for South Holland and The Deepings (Mr Hayes), agree with the recent report by Greenpeace and WWF, which states that investment in wind energy could create an additional 70,000 jobs, help us to meet our carbon reduction targets, and boost the economy by £20 billion a year by 2030?
Gas Market Fraud
Debate between William Bain and Ed Davey(11 years, 11 months ago)
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Mr Davey
My hon. Friend is absolutely right. That shows the importance of taking these allegations seriously, because were they proven true they would have such a wide application for people’s energy bills—and, if proven true, they would relate to and impact on consumer markets.
Mr William Bain (Glasgow North East) (Lab)
Does the Secretary of State recognise how wrong it will seem to the 800,000 people in fuel poverty in Scotland if they have been ripped off while speculators have benefited from lucrative derivatives contracts? Does that not make the case for a new energy regulator here at home and proper regulation of excessive speculation at G20 level?
Mr Davey
I agree with the hon. Gentleman that, if it turns out that abuses have been committed that have affected prices for his and my constituents’ energy bills, that is an extremely serious matter, and we want the full weight of the law and investigatory bodies to chase down those people responsible. I have to say, however, that I do not think that makes the case for a new regulatory body. We need to make sure that the existing regulatory bodies, which have very strong and wide-ranging powers which this Government have increased, can take the necessary measures and penalise people if they are proven to have committed an offence.
Oral Answers to Questions
Debate between William Bain and Ed Davey
Mr William Bain (Glasgow North East) (Lab)
1. What steps he is taking to increase protection for consumers in the energy market.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
As the independent regulator of the gas and electricity markets, Ofgem’s primary duty is to protect consumers, and it has consulted on proposals to improve consumer protection and competition in its retail market review. The Government have consulted on new powers for Ofgem to compel energy companies to provide redress to consumers who have lost out because of a regulatory breach.
Mr Bain
According to the Government’s own figures, fuel poverty in England is set to rise by 400,000 this year. In Scotland, more than one in four people are in fuel poverty, in Wales the figure is one in three and in Northern Ireland it is nearly one in two, yet 5 million customers are still being overcharged by the big six energy companies. When will the Government take the strong action that is needed with those companies to ensure that over-75s are always put on the cheapest tariffs—a change that would help 6,299 people in my constituency and 4 million pensioners across the country?
Mr Davey
The Government have consulted on how we can change the measure of fuel poverty so that it is more exact and so that we can ensure that we tackle the worst fuel poverty. The previous Government could not even measure fuel poverty properly. As regards ensuring that the big companies give a fairer deal, Ofgem’s retail market review is considering everything from standards of contact to improving billing and tariff simplification. Those and other measures will help people.
Oral Answers to Questions
Debate between William Bain and Ed Davey(13 years ago)
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Mr Davey
I again pay tribute to my hon. Friend, because he has been a stalwart campaigner for that change. I am delighted that we were able to publish the draft Groceries Code Adjudicator Bill on 24 May, and that the Business, Innovation and Skills Committee’s report on it has welcomed our proposals. He will know that the proposal is unique, because it allows anonymous claims to be made to the adjudicator and for reports, of which the adjudicator will be able to take note, to be put into the public domain.
Mr William Bain (Glasgow North East) (Lab)
The Bank of England’s own data released last week indicate that lending by banks to small businesses fell by £2.5 billion in the three months to August. Was not the Secretary of State right to admit at last that the economy is in a far weaker state under this Government than it ever was in the last year under Labour?