Energy Prices

Baroness Primarolo Excerpts

Wednesday 19th October 2011 Commons Chamber

[Several hon. Members]

rose—

[Madam Deputy Speaker (Dawn Primarolo)]

Order. Before I call the next speaker, I remind the House that the convention is that interventions should be short. Also, when addressing the House, a Member is supposed to address all of it, including the Speaker in the Chair, and not turn away so that the Speaker cannot attract the Member’s attention should it be necessary to do so.

--- Later in debate ---

[Dr Coffey]

In that case, I misunderstood the hon. Gentleman’s original intervention. He makes a fair point. In discussions with the OFT we particularly focused on off-gas grid households and the terms and conditions that people sign up to unwittingly. Various regulations protect consumers from unfair trade contracts, but those can be complicated. There should be as few barriers to switching as possible. I hope the Government’s actions earlier in the week will lead to that in Northern Ireland, as well as in Suffolk.

The House has heard more today about off-gas grid than it has for a while, but it is fair to say that those who do not have access to mains gas have considerably higher costs than they would if they had access to it. The percentage in fuel poverty is even worse. The hon. Member for St Ives (Andrew George) referred to that in the context of Cornwall. According to the latest statistics that I saw, 23% of oil consumers are in fuel poverty, as opposed to 10% of those on mains gas and 13% of those on electricity. There are other heating sources, including liquefied petroleum gas.

Let me complete my comments on heating oil. The OFT study found that the market has been generally competitive. I know that came as rather a surprise to some Members, especially the statistic that 97% of households that are affected have access to four or more suppliers. The OFT said that it would share that information with us so that we can make it as widely known to our constituents as possible.

One aspect that the report did not cover but which we can help with relates to intelligent consumers. That is where buying groups come into their own. There are several such groups around the country. I commend one village in my constituency, Boyton, which has a scheme that covers every single household. People in every household are made aware of the scheme when they move in. That is a little better than my own village, where there are several buying schemes, but my landlady forgot to include me in the one over the summer, so I will have to shell out next month. It is important that villages and parishes can reach out to their neighbours and make sure that they are fully aware and take full advantage of the opportunities.

Reference has been made to the Energy and Climate Change Committee’s 2010 report on fuel poverty. One of its recommendations was particularly useful for those buying oil, but unfortunately it was batted off to the Treasury. Many consumers, if they are organised, buy their oil in the summer when prices are lower because of seasonal pricing. A plea has been made that the Secretary of State should speak to the Treasury to see whether there might be an opportunity for pensioners to receive winter fuel payments at different times of the year so that they match outgoings for the purchase of oil.

I also inadvertently misled the hon. Member for Strangford (Jim Shannon) when I said that electricity companies automatically give a dual fuel discount to those people without access to gas. That is what I had been told by one of the big six energy companies. It turns out that only two of the big six do that, EDF Energy and E.ON, so that is something else that the other companies could do.

Another important consideration relating to off-gas-grid households is that many of the things the previous Government rightly did to focus on updating equipment meant that a lot of the money for Warm Front was directed at houses that had gas. In a way that makes sense; if significant energy reductions can be achieved by focusing on certain households, that is a good use of money. Anyone who wants a return would see that as a good use of capital. However, it meant that, in effect, many households missed out. We all know that older housing stock is much more difficult to treat, which is why I have made the plea before, and will make it again, that the Government should ensure that they do not forget rural households when trying to ensure that we all benefit from energy efficiency measures.

I have been using my iPad in the Chamber today in order to contribute to the debate. I have been able to check that rolls of Wickes ultraseal premium draught excluder—other DIY suppliers are available—cost a grand total of £3.49. I will take advantage of that this weekend, because I used it last year to provide extra seals for doors and windows in my house and I saw my consumption of gas fall by 18%. For £3.49, that is quite a good return. I encourage anyone and everyone to use the cheapest and simplest measures, such as draught excluders and the closing of doors, in older properties. I am not being patronising or saying that people must sit in front of one little heater; I am simply saying that there are some simple things we can do to ensure that we use less energy and that there are cheap and low-cost solutions.

I agree fundamentally with something that the hon. Member for Ynys Môn mentioned earlier. I feel very strongly that Ofgem should take ownership of all gas consumers. The Office of Fair Trading has done a good job with its inquiry, but people have to go to their trading standards officer and go down all sorts of other complicated routes.

I have just realised that I am out of time and must sit down.

[Madam Deputy Speaker (Dawn Primarolo)]

Exactly. I remind Members that the wind-ups are due to start at 6.30 pm and that a large number of Members still wish to speak. It is not compulsory to take the full 12 minutes or necessary to take interventions. Please bear in mind the number of Members who wish to speak.