Asked by: Alistair Carmichael (Liberal Democrat - Orkney and Shetland)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what discussions he has had with representatives of the Scottish Government on proposals for a policy of national fixed pricing on energy distribution in the last 12 months.
Answered by Margot James
The Government undertakes a triennial review of the Hydro Benefit Replacement Scheme. As part of the last review which completed in July 2016, we concluded that there was not a good case for a national fixed tariff for distribution as the move away from cost reflective charging risked increasing overall network costs for consumers across GB. Ofgem’s assessment of regional differences in network charges, which was published in October 2015, concluded that there was no compelling case from a regulatory perspective for a national fixed tariff. Ofgem found that it would have left 16 million households worse off, with only 11 million benefitting.
Asked by: Alistair Carmichael (Liberal Democrat - Orkney and Shetland)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, which stakeholders his Department has held discussions with on national fixed pricing for electricity distribution; when the meetings took place, and if he will publish details of those discussions.
Answered by Margot James
The Government undertakes a triennial review of the Hydro Benefit Replacement Scheme. As part of the last review which completed in July 2016, we concluded that there was not a good case for a national fixed tariff for distribution as the move away from cost reflective charging risked increasing overall network costs for consumers across GB. Ofgem’s assessment of regional differences in network charges, which was published in October 2015, concluded that there was no compelling case from a regulatory perspective for a national fixed tariff. Ofgem found that it would have left 16 million households worse off, with only 11 million benefitting.
Asked by: Alistair Carmichael (Liberal Democrat - Orkney and Shetland)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what his Department's timetable is for publication of its plans for the next Contract for Difference allocation round for less established technologies.
Answered by Jesse Norman
We published further details of the next Contract for Difference Allocation Round on 9 November 2016. Details can be found at https://www.gov.uk/government/publications/contracts-for-difference/contract-for-difference
Asked by: Alistair Carmichael (Liberal Democrat - Orkney and Shetland)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what the reasons are for the time taken to prepare the readiness of the Data and Communications Company after Capita plc was awarded the operating licence in October 2013; and what the timetable is for that company to become ready.
Answered by Jesse Norman
The majority of the new smart metering data and communications infrastructure went live on 8 November. This will enable the next generation of smart meters to be installed across Great Britain and put households and business in control of their energy use.
Since being awarded the DCC Licence in September 2013, Smart DCC Ltd has overseen the detailed design, build and test of the shared system that will carry smart metering data for all energy suppliers. It was important that the system was fully tested so energy suppliers can use it reliably and consumers can benefit from accurate bills, feedback on their energy consumption, and can switch energy suppliers quickly and easily.
Asked by: Alistair Carmichael (Liberal Democrat - Orkney and Shetland)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the effect of increased volumes of SMETS1 smart meters being installed on customers' ability to switch energy supplier.
Answered by Jesse Norman
The roll-out of SMETS1 meters is enabling consumers to take control of their energy use, save money and receive accurate bills, as energy suppliers trial, test and optimise their approaches prior to the main phase of the roll-out.
Households and small businesses with SMETS1 meters can still switch energy suppliers. If the new supplier can’t operate the meter in smart mode, the meter will continue accurately to record energy consumption and can be used in ‘traditional’ mode, with meter readings taken manually.
Work is underway to make existing SMETS1 meters interoperable with the DCC. Once this work is complete, customers will be able to retain their smart service when they switch energy supplier.
Ofgem has introduced rules designed to help domestic consumers understand if the smart services they are receiving will be maintained when they switch supplier[1].
[1] (https://www.ofgem.gov.uk/ofgem-publications/41868/smart-meters-effective-switching.pdf.)
Asked by: Alistair Carmichael (Liberal Democrat - Orkney and Shetland)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the effect on the smart meter rollout in the North of Scotland of Arqiva providing signal coverage to 80 per cent of customers in that area.
Answered by Jesse Norman
As the Data and Communications Company’s communications service provider for the north region (which includes Scotland), Arqiva is contracted to provide Wide Area Network (WAN) coverage of at least 99.5% of GB premises by the end of 2020. This level of coverage compares favourably with other technologies, such as mobile and broadband networks.
Arqiva is on track to deliver its contractual coverage commitments, having already achieved coverage of more than 80% of premises in the north region. Energy suppliers will be made aware of the areas in which WAN is available at any point in time, and can plan their rollout accordingly.
Asked by: Alistair Carmichael (Liberal Democrat - Orkney and Shetland)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what estimate his Department has made of the potential economic benefits of the remote Scottish islands onshore wind projects for (a) the regional economies of those islands and (b) the wider UK supply chain.
Answered by Jesse Norman
The latest economic assessment of the benefits of onshore wind in the Scottish islands was made in 2013. The UK Government and the Scottish Government appointed Baringa Partners (incorporating Redpoint Energy) and TNEI to undertake an independent study to assess whether Scottish Island Renewables could make a cost effective contribution to meeting the UK’s renewable energy targets. The Scottish Islands Renewable Project report was published on 14 May 2013 and can be found at:
Asked by: Alistair Carmichael (Liberal Democrat - Orkney and Shetland)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what estimate he has made of the effect of delays to the DCC go-live date.
Answered by Jesse Norman
The Data and Communications Company has made significant progress and is undertaking final preparations for live services.
In the meantime, consumers are able to receive smart meters and more than 4.2 million are already operating in homes and small businesses across the country. This allows consumers the opportunity to start accessing the benefits of smart metering early, and helps suppliers learn important lessons ahead of the main phase of the Programme when most consumers will receive their smart meters.
Asked by: Alistair Carmichael (Liberal Democrat - Orkney and Shetland)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, when he plans to publish an updated impact assessment for the smart meter programme.
Answered by Jesse Norman
The Government intends to publish an updated cost-benefit analysis for the rollout of smart meters shortly.
Asked by: Alistair Carmichael (Liberal Democrat - Orkney and Shetland)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make an assessment of the effect of Ofgem's plans to introduce a Partial View in the Confidence Code Review 2016 on the proportion of the cheapest energy tariffs that will potentially be hidden from consumers using accredited price comparison websites.
Answered by Jesse Norman
It is vital that customers trust price comparison websites, as they offer real opportunities for improving competition and I expect price comparison websites to be clear to consumers when they are not providing a whole market tariff comparison.
Ofgem are currently consulting on proposals to allow price comparison websites to only show those tariffs that consumers can switch to through the price comparison website as a default, but they must also provide quick and easy access to a webpage showing all tariffs available on the market. The consultation closes on 28 September and is available online at
https://www.ofgem.gov.uk/system/files/docs/2016/08/whole_of_market_consultation.pdf