Ed Davey
Main Page: Ed Davey (Liberal Democrat - Kingston and Surbiton)(9 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text
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 Speaker
The grouping is actually with questions 9, 15 and 17. I fear that the Secretary of State has not been as well served as he might have been. People must try to keep up.
Dr Whitehead
In the light of that deal, I am sure that the Secretary of State will now be anxious to make the UK’s contribution by laying down the order for the decarbonisation of the UK’s energy supply to 2030. Will he tell me when he intends to lay down that order and, when he has done so, what he has in mind for the decarbonisation range that will be in it?
Mr Davey
I am surprised that the hon. Gentleman asks that question because, having been an assiduous member of the Committee that considered the Energy Bill, which became the Energy Act 2013, he will know that we cannot lay down that order until the fifth carbon budget, which is due in 2015-16. He will also know that this Government have met the first carbon budget and are on track to meet the second and third carbon budgets, and that in the summer I confirmed the fourth carbon budget at the ambitious levels we have set. We are meeting our Climate Change Act 2008 obligations.
Mrs Glindon
The Labour party has already set out its position on carbon capture and storage as a vital part of our future energy mix. Is the Secretary of State concerned that Europe appears to be falling behind on CCS, and does he agree that his Government need to do more to stop that happening?
Mr Davey
I am grateful to the hon. Lady for asking me about CCS. This Government are actually leading Europe on CCS; we have the only two commercial-scale CCS projects, one of which was the only such project to get funding from Europe. It was because of the UK Government’s actions that the conclusions of the recent energy and climate change deal included CCS. Like the hon. Lady, we are a strong supporter of CCS.
Kerry McCarthy
Given the non-binding EU targets on renewables and energy efficiency, does the Secretary of State agree that the Government now need to demonstrate how we can use that flexibility to increase the UK’s low-carbon programme, especially as it is being undermined by other Departments—for example, by stripping farmers of their common agricultural policy subsidies for solar farms and by rejecting applications for onshore wind farms? What will he do to encourage the Government to support renewables?
Mr Davey
No Government in history have done more for renewables than this one. We have seen renewable electricity generation more than double; we have a much better record on this than the last Government. We have also seen renewable electricity investment more than double, with a huge pipeline of investment in renewables, including onshore, offshore, solar and tidal power.
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.
Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
The Secretary of State will know that there are times when many European countries have a surplus of electricity from renewable energy but cannot do anything with it because of failures in the energy market and a lack of interconnectors. Is that not the kind of issue the entire Government—not just him, but the Prime Minister as well—should be trying to sort out in Europe, rather than banging on about referendums and European exits?
Mr Davey
I am grateful to the hon. Gentleman for that question, because it dealt with one of the big issues we were working on in the negotiations for the 2030 deal. I worked well with my Spanish and Portuguese colleagues, because one of the biggest blocks on renewable electricity flowing through the single energy market in Europe is on the Iberian peninsula because of France’s unwillingness to have investment in interconnections. The European Council’s conclusions were very positive on this, and we will continue to support the case for greater interconnections, both in the Iberian peninsula and, particularly, in central and eastern Europe and the Baltics.
Mr Dennis Skinner (Bolsover) (Lab)
On reflection, will the Energy Secretary now condemn the Thatcher decision to shut not only the pits, but the clean coal technology plant in south Yorkshire? She was so determined to smash the National Union of Mineworkers that she closed that plant as well. When he thinks about it—the late ’80s—does he condemn it? Come on, stand up!
Mr Speaker
With reference to the EU 2030 framework. [Laughter.] I look to the Secretary of State now to deal with the matter pithily.
Mr David Amess (Southend West) (Con)
7. What steps he is taking to help households manage the cost of energy bills in winter 2014-15.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
Despite the energy price freezes this year, which were delivered by competition, not regulation, energy bills remain a huge concern for many people this winter. That is why the Government have delivered a £50 cut in the average energy bill by reducing our own policy costs, why we have introduced the warm home discount, to take £140 directly off energy bills this winter for 2 million households on low incomes, and why we have permanently trebled cold weather payments, to provide £25 for every week of a cold spell.
Mr Amess
As the promoter of the Warm Homes and Energy Conservation Act 2000, I am very keen on any efforts to reduce fuel poverty. Given that switching energy suppliers could make a useful contribution to that end, will the Minister please update the House on how we are progressing with the policy of 24-hour switching, and might it exclude political parties?
Mr Davey
First, may I pay tribute to my hon. Friend for the work he has done on fuel poverty? It is something that is very close to my heart. We have done a huge amount in this Government. We will shortly be publishing the first fuel poverty strategy in over a decade. With regard to switching, we are seeing huge progress. I challenged the large energy companies to halve switching times by the end of this year, and that is on track. Indeed, some of the smaller companies will achieve that by the end of the year. Ofgem is currently consulting on an idea I have pushed for 24-hour switching, linked to smart meters, and we expect a decision next year.
Julie Hilling (Bolton West)(Lab)
19. Consumer electricity prices went up by 4.4% and gas prices went up by 3.5% between April and June this year, but the price paid by major energy firms for coal fell by 12% and for gas it fell by a massive 21% over the same period. Why does the Secretary of State not act to ensure that cuts in wholesale prices are passed on to consumers?
Mr Davey
I share some of the hon. Lady’s concern about that. Sustained falls in wholesale energy costs should be passed on to consumers. While we have seen some fixed-price tariffs come down, standard tariffs in the main have not, which is why I supported the regulator’s warning to suppliers this summer. When the Leader of the Opposition was doing my job, wholesale electricity prices fell by 62.5%, and what did he do? He called a summit.
Mr John Leech (Manchester, Withington) (LD)
One of the best ways to help struggling households with bills is to improve energy efficiency, so will my right hon. Friend update the House on what progress is being made in implementing the minimum energy efficiency standard in the private rented sector?
Mr Davey
I am grateful to my hon. Friend for his question, because that is something I have been pushing for strongly. We have had a consultation, which has now concluded, and we are analysing the responses, which have been very positive about our proposals for minimum energy standards in the private rented sector. We will update the House in due course.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
The Minister knows that many of us think that smart metering can deliver real energy efficiency to the consumer, but are the Government not getting themselves into a bit of a mess? First, it will no longer be compulsory, so it will be more expensive. Secondly, will he be very careful, because the technology is changing very fast? Much of the early smart metering is already out of date because of the innovation of companies such as Nest and Hive. Will he look at that carefully in case we end up spending £20 billion on the wrong technology?
Mr Davey
We have looked at this very carefully, taking on the programme started by the previous Government. The hon. Gentleman will understand that the smart metering equipment technical specifications—SMETS 1 for the first generation of smart meters and now SMETS 2—set a minimum floor for standards, but of course we are seeing energy companies, through the competition we put into the implementation, actually compete on improving the technology, so there is room for innovation over and above the standards that have been set.
Annette Brooke (Mid Dorset and North Poole) (LD)
What progress is my right hon. Friend making in addressing the particular disadvantages faced by park home owners, who are unable to access a social tariff or the green deal and yet are people on very low incomes, for the most part?
Mr Davey
My right hon. Friend has been a huge champion of park home owners over a number of years, and I pay tribute to her for the work she has done. Partly due to the contribution she has made, we are looking at this issue in some huge depth. I hope to be able to report to the House before Christmas or early in the new year on the ideas that we have to tackle those issues.
Albert Owen (Ynys Môn) (Lab)
One of the largest components of an energy bill is distribution costs, which are rising while other wholesale costs are coming down. The nations and regions across the United Kingdom have varying prices. Does the Secretary of State agree that there should be a smoothing of this so that we can have fair pricing across the United Kingdom, because many periphery areas, including mine, that produce the electricity are paying more for it due to these distribution costs?
Mr Davey
As the Minister of State said to the departmental Select Committee, of which the hon. Gentleman is a member, the Government believe that we should look at this issue. However, let us be clear: if we were to socialise the costs across the UK, other people would be paying more, so it is not quite as simple as he suggests.
Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)
8. What steps he is taking to help off-gas grid consumers manage energy bills in winter 2014-15.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
In addition to the measures that I described in response to the hon. Member for Southend West (Mr Amess), we have already taken action, but intend to take yet more action, to help off-gas grid customers. We support the Buy Oil Early campaign to encourage people to stock up at good times for price and quick delivery. As my hon. Friend knows, because he attended it, this week we held the fourth ministerial round table on heating oil and liquified petroleum gas to bring together the industry, consumer groups and MPs to discuss these issues. Our amendments to the ECO—energy companies obligation—affordable warmth scheme provide stronger incentives for energy suppliers to install energy efficiency measures in off-gas grid homes.
Sir Robert Smith
One of the benefits of being on the gas grid is that people get use of the suppliers’ vulnerable customer register. What more can be done to ensure that those using other fuels can also see the benefits of being registered as vulnerable customers with their suppliers?
Mr Davey
That is a very important point that the ministerial round table discussed in some detail. The issue is not just price but resilience of supply of heating oil over the winter months, particularly when there is bad weather. That is one of the reasons why we have the Buy Oil Early campaign. My hon. Friend is right: we need to work with the industry to make sure that customers who are off the gas grid and could be vulnerable are registered.
Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)
Nearly 1 million measures have been installed under ECO to date, but fewer than 1,500 of those were installed under the rural sub-obligation—just 0.1%. That means that off-grid customers who have contributed £153 million towards ECO from their energy bills have received measures worth just £600,000. Do the Government agree that they have failed those people and that ECO is not fit for purpose?
Mr Davey
No. In fact, the Government have reformed ECO to address that issue. As I would have thought the hon. Gentleman would know, analysis of our ECO reforms, particularly in relation to the affordable warmth scheme to tackle the issue of the fuel poor in off-gas grid areas, shows that we expect to see a 30% delivery of affordable warmth measures in off-gas grid areas compared with just 2% previously.
Bob Blackman (Harrow East) (Con)
10. What steps he is taking to increase the number of new nuclear power stations.
David Mowat (Warrington South) (Con)
11. What recent discussions he has had with his counterparts in European Union member states about carbon and renewables targets.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
As my hon. Friend knows, I have been engaging with a large number of my EU counterparts over the past two years on these issues. By engaging in Europe—by building relationships and trust over a period—I believe that a UK Minister is better placed to win arguments in the EU that are in British interests.
That is what we have done over carbon and renewable targets, so now we have more ambitious carbon targets than many thought possible. We have an EU-wide renewables target, not a rigid member-state-based target, so European countries can cut carbon emissions using the lowest-cost technologies for them while still providing a strong signal to Europe’s renewables industry.
David Mowat
I agree that decarbonisation targets, not purely renewables targets, are a good way forward. However, the Secretary of State may be aware that the Government of Austria—a country that since 1990 has increased its carbon emissions, which are more than 25% higher than ours—have reportedly said that they are going to sue us over Hinkley Point C. Could the Secretary of State give us his perspective on their comments? Is there anything we can do to counter-sue carbon junky countries such as Austria that repeatedly fail to meet their emission targets?
Mr Davey
I probably will not answer the last part of that question, because the Foreign and Commonwealth Office might want to have a word with me. On the first part of my hon. Friend’s question, Austria has reportedly been considering taking the European Commission to court, to judicially review its state aid decision. We are confident that that decision was taken in a robust way and we were very supportive of it.
Mr Peter Lilley (Hitchin and Harpenden) (Con)
Given that Germany obtains a higher proportion of its energy from renewables than we do, why is it that it has higher emissions per head and that those emissions are rising as it replaces nuclear with lignite-burning coal-fired power stations?
Mr Davey
A number of final investment decisions were taken around 2007, before the 2020 agreement, and they are now resulting in some coal power stations coming online. Since then, however, almost all of the proposals for new coal power stations in Germany have been turned down. My right hon. Friend is right to say that there is an effect, but in the long term I am clear, from talking to German Ministers, that they will get their carbon emissions on a downward trajectory.
Andrew Jones (Harrogate and Knaresborough) (Con)
12. What steps he is taking to promote investment in energy generation.
Graeme Morrice (Livingston) (Lab)
14. What recent steps he has taken to help households with energy bills.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
In addition to the average £50 off bills, the £140 warm home discount, and the trebling of cold weather payments that I set out in answer to the hon. Member for Southend West (Mr Amess), I point the hon. Gentleman to the big energy saving network we have established with the voluntary sector to help the most vulnerable get better energy deals. I also recommend to him the collective switching movement that I boosted when becoming Secretary of State, with the £5 million cheaper energy together fund. The Sun newspaper is now partnering with the Big Deal to help its readers come together to save money, and MoneySavingExpert.com launched its collective energy switching scheme this week.
Graeme Morrice
But the Government must go further to support ordinary families who are struggling to pay their rising energy bills, because households in my constituency and across the United Kingdom continue to suffer from fuel poverty. According to the Scottish House Condition survey, 26% of households in my constituency are in fuel poverty, and an energy price freeze will save money for 27 million households. Will the Secretary of State finally recognise that we need a proper energy bill price freeze to help those struggling with the cost of living crisis?
Mr Davey
The hon. Gentleman has not noticed that in the competitive energy market that we have helped deliver, the large energy companies are announcing price freezes that have been delivered by competition, not regulation. Moreover, a lot of smaller independent suppliers that have come into the market are offering good deals that people can switch to and save literally hundreds of pounds. I hope he will recommend those to his constituents.
Caroline Flint (Don Valley) (Lab)
According to Government figures nearly 2.5 million households are in fuel poverty in England alone, with 1 million more in Scotland and Wales. A written parliamentary question to me on 4 September revealed that the Government’s flagship policy—the energy companies obligation—will lift just 10,000 households out of fuel poverty between 2015 and 2017. Will the Secretary of State explain why out of a budget of nearly £2 billion, and with hundreds of thousands of measures due to be installed, so few people living in fuel poverty will be helped?
Mr Davey
Fuel poverty increased massively under the previous Government and it is falling under this Government because of a range of measures that we are taking. We are about to publish—either this year or early next year—the first fuel poverty strategy in a decade. I think we have been very active, and I am totally committed to helping people in fuel poverty.
Caroline Flint
Under Labour fuel poverty fell by 1.7 million, but this Government have changed the definition of fuel poverty—that may be the reason for the answer given by the Secretary of State. Let me tell him why the ECO has done so little for the fuel poor. It is because nearly half the funding goes to people who are not in fuel poverty, and households in fuel poverty get only one measure, which is not enough to make a difference. Despite that, the Government have announced a further £100 million for the green deal home improvement fund—another scheme that goes to people with no assessment of their ability to pay or need for energy efficiency improvements. Is that just throwing good money after bad, and will the Secretary of State make a decision today to ensure that all that funding goes to the people who need it most?
Mr Davey
Fuel poverty increased under the previous Government under both their measures. We changed the measure of fuel poverty after an independent review because the previous Government measured fuel poverty so inaccurately that the Queen was deemed to be in fuel poverty. We thought that needed to change. Under the right hon. Lady’s approach, a lot of the money she would have spent would have been wasted—it would not have gone to people in need. Under our more accurate approach, we are ensuring that the money goes to the right people. She should know not only that more than 50% of the ECO goes to those in fuel poverty, but that because we have protected the affordable warmth part of the ECO for fuel poverty until 2017, even more people will be taken out of fuel poverty.
Sir Andrew Stunell (Hazel Grove) (LD)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
Since the previous Energy and Climate Change oral questions, we have made significant progress for consumers, with all the large energy firms confirming they will have met my target to cut switching times in half at the end of the year, and with the good news this week that some independent energy retailers such as First Utility have committed to halving switching times this year.
I can confirm to the House that the EU has agreed ambitious greenhouse gas reduction targets following two years of negotiations in which the UK played a leading role. Thanks to the Government’s long-term, medium-term and short-term plans, our energy security remains rated the best in the European Union and among the best in the world.
Sir Andrew Stunell
My constituent Sara Martin has been ripped off by Network Green Deal Ltd of Oakham, Rutland, a green deal assessment firm. She complained but her complaint has fallen because she did not take out the green deal itself. Her complaints to the regulator and the Department of Energy and Climate Change were brushed off, as were mine. Will the Secretary of State meet me to find an urgent remedy for my constituent and others like her who are victims of assessment firms that recklessly, or perhaps fraudulently, take money from them?
Julie Elliott (Sunderland Central) (Lab)
Last month, the Secretary of State for Environment, Food and Rural Affairs announced that solar farms would no longer be eligible for common agricultural policy payments, under the guise of ensuring that more agricultural land is dedicated to growing crops and food. The Government have since admitted that they have made no estimate of the potential annual reduction in energy capacity; that they have no idea how many solar farms include livestock grazing; and that they do not even know how much arable land has been taken out of production as a result of solar farms. They do not like onshore wind and they do not like solar, so will the Secretary of State tell us whether they support any clean energy?
Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)
T3. With several major oil and gas projects coming to fruition and a downturn in confidence in the industry, what will the Government do to encourage greater investment in exploration and production so that we can ensure the protection of the vital jobs that are supported by that industry?
Mr Davey
As I am sure my hon. Friend is aware, Her Majesty’s Treasury is looking at the tax issues for the North sea and the UK continental shelf. It will report in due course, but he will know that the Wood review, which I commissioned last year, is pressing ahead with legislation. I can today announce the appointment of the future chief executive of the Oil and Gas Authority: a Mr Andy Samuel.
Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
T2. As part of the discussions on further devolution, it has been suggested that the powers of the Department to grant licences for fracking in Scotland should be devolved to the Scottish Government. That seems an eminently sensible suggestion and I support it. Will the Government support it?
Mr Davey
Of course we are looking at all issues around future devolution of energy policy following the referendum and the commitments made by the Prime Minister and the Deputy Prime Minister. On fracking, it is often not understood that the Scottish Government, the equivalent of the Environment Agency in Scotland and local planning authorities in Scotland already have a huge role to play in the development of fracking in Scotland.
Gregory Barker (Bexhill and Battle) (Con)
May I commend the Secretary of State for the role he played, along with my right hon. Friend the Prime Minister, in securing a tremendous outcome on the 2030 package? Given that the agreement will mean we can drive an ambitious target through the most cost-effective pathway, will he look again at the Solar Trade Association path to zero subsidy? One of the most exciting things about solar is not only the opportunity for deploying on roofs, but the fact that it offers a near-term opportunity to get to a zero-subsidy world where we can really contemplate renewables at scale.
Mr Davey
I am very grateful to my right hon. Friend, who has been a champion for both the climate cause internationally and solar. He is aware that solar offers the prospect, as indeed do other renewables, of a subsidy-free energy future. The cost of solar has plummeted in recent years and experts suggest that it will continue to fall. That is very exciting and he has been right to champion it. The Government also champion it.
Nia Griffith (Llanelli) (Lab)
T5. Consumers in both south and north Wales face higher electricity costs than most of the rest of the country. In his response to my hon. Friend the Member for Ynys Môn (Albert Owen), was the Minister really suggesting that this is just too difficult to tackle, or will he now tell us more about what talks he is having with regulatory bodies on this problem and what his commitment is to trying to get a fairer system right across the UK?
Dr Alan Whitehead (Southampton, Test) (Lab)
T6. What is the origin of the £128 million funding that the Secretary of State has committed, over 40 years, to communities affected by the Hinkley C development? Will it come from the developer, as is the case with other technologies, or will it come from his Department’s funds or another Department’s funds?
Duncan Hames (Chippenham) (LD)
The Minister will have seen the Solar Trade Association’s standards for proposals for field-based solar projects. Does she agree that they should incorporate proper respect for listed buildings in our countryside? Will she encourage local councils to give short shrift to any developments that do not attempt to live up to the industry’s own standards?
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Does the Secretary of State get the message that most people in this country, including my constituents, are quite fair-minded about new ways of producing energy and know of its urgency, but that, be it energy from waste, solar or wind power, they want to know why the incentives and benefits for local communities cannot be more generous and are not more widely known?
Mr Davey
This Government have done more than any other to enable that to happen: we have worked with industry to increase the community benefits on offer through the community energy strategy—Britain’s first ever—that I published in January; and we have set up several taskforces, one of which, the shared ownership taskforce, is reporting today and will enable the co-ownership of new energy by local communities. I therefore refer the hon. Gentleman to all the work we have been doing.
Bob Blackman (Harrow East) (Con)
The world price of oil has fallen to $84 a barrel—almost a 25% reduction—yet it does not appear that the benefit is being passed on to consumers through domestic oil or other energy supply. What representations is my right hon. Friend making to ensure that consumers get the benefit of this welcome fall?
Albert Owen (Ynys Môn) (Lab)
Had the Secretary of State accepted my invitation to Anglesey day last week, he would have seen a microcosm of the United Kingdom’s energy future. Will he genuinely thank the officials who helped with giving consent to the biomass plant, which will have an eco plant alongside it, creating real green jobs? Is not that the way forward for Anglesey and the United Kingdom?
Mr Davey
I completely agree with the hon. Gentleman, both in thanking my officials, who are extremely hard working and talented people, and on the future of low-carbon energy on Anglesey. He has been a real champion of those sorts of projects and the Horizon project for the new nuclear power plant there.
David Mowat (Warrington South) (Con)
Earlier in Question Time the Secretary of State made the point that the 2030 agreement was the export of our Climate Change Act across the EU. I very much welcome the 2030 agreement, but does he agree that the rate of decrease implied by that agreement is quite a lot slower than our Climate Change Act? Does he intend to harmonise the targets in the two agreements?
Mr Davey
It is a little more complicated than sometimes the headlines show, because there is an effort-sharing decision that is being worked on. Some countries will take more of an effort share in reducing their carbon emissions than the 40% average and others that will take less, but I am happy to talk to my hon. Friend about that.
Kerry McCarthy (Bristol East) (Lab)
Last night, as we have heard, the planning committee in Bristol rejected an application for a controversial biomass plant. Is the Minister confident that Ofgem has sufficient powers to enforce planning conditions against wood-burning biomass plants that claim to use only waste wood but actually use virgin wood, for example by revoking their renewables obligation certificates?