Oral Answers to Questions

Debate between Ed Davey and Albert Owen

Thursday 18th December 2014 Commons Chamber

[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 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.

[Albert Owen]

The Secretary of State was right earlier when he said that to get energy security we need a proper rich energy mix, but is he as disappointed as I am that the most predictable of energy sources, tidal energy, has not progressed beyond the demonstration schemes and into commercial energy projects, including Siemens in my constituency? Will he meet me and a delegation from the Anglesey Energy Island to see how we can progress so that national needs can be met by local sources?

[Mr Davey]

I will always be delighted to meet the hon. Gentleman. Although there have been some setbacks with Marine Current Turbines being put up for sale by Siemens, there are some positive signs—for example, MeyGen in the north of Scotland is the world’s first tidal array, and we are very proud of that. Moreover, I hope the hon. Gentleman will welcome the fact that we are intensifying our negotiations with Tidal Lagoon Power over Swansea bay.

--- Later in debate ---

[Mr Davey]

I think that my last answer to the hon. Gentleman, in which I recommended EU product regulations as very effective in reducing his constituents’ bills, must have annoyed him a tad. The UK’s leadership on climate change is acknowledged not just in this country or in Europe but around the world. We are taking forward the climate change negotiations successfully and I look forward to a successful agreement in Paris. The one thing that we have to achieve next year is to ensure that the deal is ambitious enough.

[Albert Owen (Ynys Môn) (Lab)]

The Secretary of State will be aware that the Energy and Climate Change Committee has produced a report on small nuclear reactors. May we have a quick response from the Government very early in the new year? When we produced a report on fracking in 2010, it took three or four years before it became a flagship policy of the Government. We could go on to lose the opportunity.

Oral Answers to Questions

Debate between Ed Davey and Albert Owen

Thursday 6th November 2014 Commons Chamber

[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.

--- Later in debate ---

[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.

Energy Price Freeze

Debate between Ed Davey and Albert Owen

Wednesday 2nd April 2014 Commons Chamber

[Mr Davey]

My hon. Friend is right. Although we have managed to reduce the subsidies to solar and onshore wind, we are seeing a boom in renewable electricity investment.

[Albert Owen (Ynys Môn) (Lab)]

Is the Secretary of State comparing and contrasting the years 2009 and 2010 to 2013, and seriously telling the House of Commons that many of the billion-pound contracts for offshore wind started and finished in the period to which he refers, or will he be honest with us and say that we need continuity of policy by consent, so that we can get the policy structure we all need? Will he stop playing silly games about years and trying to blame the previous Government?

[Mr Davey]

I am prepared to give credit to all parties, which is something the Opposition rarely do. I am pleased that they voted for our Energy Act 2013 and now support the market investigation reference, but it was the Conservatives and Liberal Democrats, in opposition, who had to push time and again to get the Labour Government to act on things such as feed-in tariffs, so we will not take any lectures on that.

We are acting to bring far greater openness to the retail markets so that the energy suppliers can be held to account for their prices, and we are acting to increase liquidity in the wholesale markets, further boosting competition. All these actions maintain the pressure that bears down on prices. As the competition authorities take forward their work in the proper manner, we will continue to act to ensure that we have a real evidence base on how to continue to mend the markets that Labour ran into the ground. That work will take around 18 months to complete, but as I said at the start, because of Government action, the energy companies are now saying that there should be no further rises in bills over the next year unless circumstances change drastically. Some have gone further, and I welcome that.

Oral Answers to Questions

Debate between Ed Davey and Albert Owen

Thursday 28th November 2013 Commons Chamber

[Mr Davey]

The hon. Lady is absolutely right. It is a complete con to pretend that fixing prices is going to help with bills, because no Government proposing or implementing that could fix the prices before or after the freeze period. The price freeze offered by the Opposition is not just a con but would not work.

[Albert Owen (Ynys Môn) (Lab)]

Small businesses are important customers, and many have had huge energy price rises. They do not have the opportunity to switch easily; they do not even have a comparison website in order to look at what at other companies are offering. What are the Government going to do about this? Will they look seriously at helping small businesses with very poor margins, many of which are going under because they cannot afford energy costs?

[Mr Davey]

The hon. Gentleman raises an important point. We have been working very hard on this with No. 10 and with small business organisations and looking at the real issues—for example, the automatic roll-overs that cause so many problems. We are gaining agreements with the industry to stamp out these bad practices and to help small businesses.

Energy Prices and Profits

Debate between Ed Davey and Albert Owen

Wednesday 4th September 2013 Commons Chamber

[Mr Davey]

I was not making phoney accusations, but giving the facts and the history. Labour may want to run away from its history, but we will hold it to its record.

Before I talk about the action that I and the Government are taking to help consumers, let me return to Labour’s three-point plan, having already demolished its first proposal to abolish Ofgem. The House might like to note that the abolition of Ofgem is not recommended by the Energy and Climate Change Committee.

Labour’s second proposal is to drop Ofgem’s long-awaited reforms of the wholesale energy market in favour of reintroducing the pool. It was Labour that abolished the pool just over 10 years ago, as my hon. Friend the Member for Sherwood (Mr Spencer) reminded the House, at an estimated cost of £1.4 billion. Labour said that is was not working—wait for it!—in the interests of consumers. Apparently things have changed. However, under the policies that Labour put in place after it abolished the pool, things have not got much better. Labour’s abolition of the pool produced the vertically integrated energy markets that we see today. Independent generators find it tough to get into the wholesale market because of the changes that Labour made. Independent suppliers do not find the wholesale market competitive enough to supply their customers. Electricity prices are therefore likely to be higher than they should be.

The Government and Ofgem want to fix Labour’s mistake. We do not want to reintroduce the pool, because that would be an expensive distraction and would not tackle the real problem, which is liquidity in the forward markets. We are going to tackle that with a well thought through package that is designed to drive competition to help consumers. Ofgem’s “secure and promote” proposals include the idea of a market maker and mandating the six vertically integrated companies—the big six—to publish the prices at which they will buy and sell up to two years in advance. That will help independent suppliers and large power producers.

As Secretary of State, I want to be sure that such reforms by the regulator work and have teeth, so that they drive competition. That was why I introduced into the Energy Bill reserve powers to act should Ofgem’s reforms not work. In other words, whereas Labour wants to go back to a failed policy that it got rid of itself, we are taking the tough measures needed to boost competition and help the consumer.

[Albert Owen (Ynys Môn) (Lab)]

The Secretary of State said that he had improved and strengthened Ofgem. One issue that I have raised with him and his predecessor is extending its remit to cover customers who are not on the mains gas grid. Has he had a chance to look at that, and does he personally support giving it the strength to deal with those customers, as it does with those on mains gas? Yes or no?

[Mr Davey]

The hon. Gentleman asked that question when I appeared before the Energy and Climate Change Committee, and I told him then that I would examine the matter. I am afraid that we have not come to any conclusions—he only asked me a month or two ago—but I am happy to look at that. The Minister of State, my right hon. Friend the Member for Sevenoaks (Michael Fallon), is extremely concerned about the high prices paid by consumers who are off the gas grid, as I am. When we examine the research on fuel poverty, we see that some of the worst is among those customers, so this Government will do something about it where the last Government did not.

Petrol Prices

Debate between Ed Davey and Albert Owen

Wednesday 15th May 2013 Commons Chamber

[Mr Davey]

I am sorry to hear that my hon. Friend does not have faith in the independent competition authorities. According to the empirical evidence of how they compare to other competition authorities around the world, they actually score extremely highly. Nevertheless, even though I saw those findings when I was competition Minister, I wanted to strengthen them still further, because there is no room for complacency. I hope he realises that the Government will ensure that the competition authorities have the powers they need.

[Albert Owen (Ynys Môn) (Lab)]

My constituents are now paying more for petrol and diesel at the pumps not least thanks to the VAT increase of 2.5p on every litre which the Secretary of State and his Government introduced. He boasted in his statement that he was going to give Ofgem extra powers and responsibilities. In light of these allegations, will he seriously consider giving the OFT similar powers and extending its remit, so that we can prevent this from happening again in this country, instead of relying on the European Commission?

[Mr Davey]

Some of the information and allegations of market manipulation are cross-border, so it might well turn out that these allegations required a European competition authority. It is important that we have a strong European competition regulator, and I hope the hon. Gentleman would accept that, but of course we keep under review the powers of the regulators and competition authorities in general. The Government have acted strongly to strengthen them.

New Nuclear Power

Debate between Ed Davey and Albert Owen

Thursday 7th February 2013 Commons Chamber

[Mr Davey]

I am grateful to the hon. Lady and am glad that her train arrived. I will deal with the issue of subsidy later.

I urge the hon. Lady and, indeed, all colleagues to consider that the environmental case for new nuclear has got stronger in the past decade or more. I am one of those from the green movement who have been prepared to recognise the low carbon benefits of nuclear generation, which remain even when life-cycle analysis of carbon for a new nuclear station is taken into account. I believe that nuclear, alongside ambitious energy efficiency, renewables and carbon abatement, can play an important role in reducing greenhouse gas emissions.

Nuclear’s cost-effectiveness has to be seen in the context of climate change and decarbonising our power sector. It is right that this House asks the tough questions on the affordability, value for money and cost-effectiveness of nuclear power, for those questions are at the heart of this Government’s policy on nuclear power.

Before I turn to the key issue of the cost of nuclear and of subsidies, let me briefly address recent issues affecting nuclear policy and this debate. The first is GDF—the geological disposal facility for nuclear waste—and what will happen after the recent vote in Cumbria. It was the priority of the previous Government, as it is of this Government, to ensure the safe management of nuclear waste. Britain has a huge legacy of nuclear material to store and dispose of, whether or not we build a single new nuclear reactor. As we develop our new nuclear build programme, it is right that we press ahead with tackling that legacy. I believe that geological disposal is the right policy for the long-term safe and secure management of higher-activity radioactive waste.

Indeed, what happened in Cumbria convinced me even more so, for both Copeland and Allerdale councils voted to participate in the next phase of the work to identify potential sites for geological disposal. The communities that were most likely to host the facility wanted it. However, the Government agreed that Cumbria county council also needed to vote in favour in order to proceed to the next stage, but it did not, which is disappointing. However, the invitation for communities to come forward remains open.

This is a long-term programme, looking at the next century and beyond, to site and build a geological disposal facility. The views in Copeland and Allerdale make me confident that the programme will ultimately be successful. Last week’s decision does not undermine the prospects for new nuclear power stations, but it does require us to redouble efforts to find a safe, secure and permanent site for disposal.

[Albert Owen]

The Secretary of State is right to say that we need to deal with the legacy waste now. In fact, we should have done so generations ago. Does he also agree that all parties in this House have a responsibility to contribute to that debate, including the Green party, which I know has concerns about it? Much of this waste is not civil nuclear; as I said in an earlier intervention, defence and health projects contribute to some of it. We need to dispose of it safely and quickly.

[Mr Davey]

The hon. Gentleman is right to say that past Governments failed to tackle this legacy. The previous Government put in place a framework, which we are continuing, and it is right that we now grasp this legacy, because it shamelessly has not been grasped in the past.

Energy Policy

Debate between Ed Davey and Albert Owen

Thursday 29th November 2012 Commons Chamber

[Mr Davey]

I shall be happy to read that report, but I have considered the issue and I have to say that I think that the conversion of coal-fired power stations to biomass will have a beneficial effect on the UK’s carbon emissions. As my hon. Friend will know, a consultation is taking place on sustainability criteria relating to biomass energy. I believe that it will close on 30 November, and obviously we will respond to it.

[Albert Owen (Ynys Môn) (Lab)]

As a consistent pro-nuclear, pro-renewables and pro-energy efficiency Member, I welcome the announcement as an important step forward—although I have to say that the decarbonisation issue will be seen for what it is: a political fudge. Does the Secretary of State intend to table amendments to the Bill soon, so that Members have a chance to see them before Second Reading and we can have a proper debate, rather than have them hidden away in Committee where only a small group will debate them? Also, has the Secretary of State had time to respond to the Energy and Climate Change Committee’s recommendations?

[Mr Davey]

The hon. Gentleman is a very well informed and very talented Member, and I congratulate him on having managed to ask three questions. We will introduce amendments on both the tariff proposals and the decarbonisation powers, but we will do so in Committee, not before Second Reading. The whole House will be able to see them at Report stage, however. We want and value parliamentary scrutiny. I have lost track of the hon. Gentleman’s other two questions—he was a little greedy—but I am sure we will get back to him on them.

Oral Answers to Questions

Debate between Ed Davey and Albert Owen

Thursday 1st November 2012 Commons Chamber

[Mr Davey]

My hon. Friend is absolutely right. This is not only good news and a huge vote of confidence for the UK’s energy policy; it is also good news for British industry. Hitachi has already signed a memorandum of understanding with Rolls-Royce and Babcock, and the supply chain potential is huge, with 6,000 jobs during construction at Wylfa and Oldbury, and 1,000 permanent jobs after construction. When I announced the Hitachi decision, I also announced that we had set up the Nuclear Industry Council to enable the Government to work with the industry to maximise the potential for the supply chain in this country.

[Albert Owen (Ynys Môn) (Lab)]

As the Secretary of State said, the decision by Hitachi to purchase Horizon Nuclear Power is a vote of confidence in Anglesey, in north Wales and in UK plc, and I am proud to bat for all three. Will he give the House an assurance that, to make this project a reality, the Office for Nuclear Regulation will have adequate resources to assess the new technology, in order to ensure that we have safe nuclear generation as soon as is practical?

[Mr Davey]

I thank the hon. Gentleman for his question. I pay tribute to him, to the Government of Wales and to my right hon. Friend the Secretary of State for Wales for the important role that they have all played in this deal. I can confirm that the Office for Nuclear Regulation will have all the resources it needs to go through the generic design assessment for the advanced boiling water reactors that Hitachi is proposing.

Cost of Living

Debate between Ed Davey and Albert Owen

Wednesday 16th May 2012 Commons Chamber

[Mr Davey]

The right hon. Lady ought to know that we saw a massive V-curve because of how fuel poverty was measured under the previous Government—fuel poverty came down earlier in their period of office and shot up dramatically as global gas prices increased. She is not living in the real world if she thinks that is the correct way to measure fuel poverty. That is why this Government are getting to grips with the problem. We are ensuring we measure the problem properly so we have the right policies, which the previous Government never did.

To return to feed-in tariffs, I remind the right hon. Lady that we have had to reform the scheme designed by the Leader of the Opposition so that huge windfalls do not go to a few people. Our reforms will ensure that many people benefit from solar PV. We are the party of the solar many; they are the party of the solar few.

On Warm Front, the right hon. Lady offered no recognition of the progress we have made to spend our budget; of the reality that a warmer winter last year reduced demand; or of the fact that the shameful scaremongering by Labour Members on Warm Front, who said the scheme was closing more than a year before it will, might just have put some people off applying.

When it comes to Governments being responsible for putting people’s bills up, the right hon. Lady ought to talk to the leader of her party. Let me refer her to the UK’s low carbon transition plan, published by the Leader of the Opposition when he was in my job. Let me further refer her to the analytical annex, page 66, table 9, and the estimate of the cost of the renewable heat incentive on people’s gas bills, as proposed by Labour. The estimated increase in gas bills by 2020 was £179, but this Government stopped that approach, because we were not going to put £179 on people’s gas bills. That is 179 reasons for not taking Labour seriously on energy bills.

[Albert Owen (Ynys Môn) (Lab)]

I welcome the right hon. Gentleman to his post. I am a member of the Select Committee on Energy and Climate Change, so we will have a bit of knockabout on some issues, but knockabout on fuel poverty is not right. Whether or not we are changing the measures, more people have found themselves in fuel poverty this year and last year, and the previous Government reduced the number by 1 million people. That is a fact, whether the curve is V-shaped or not. What measures are this Government taking to assist those people who have fallen into fuel poverty?

[Mr Davey]

Let me give the hon. Gentleman one exact policy, for which Labour never legislated: the warm home discount is a way of targeting cuts in people’s bills directly, for the poorest people in our country. We have legislated for that, it is delivering, and we are proud of it.

Post Office Network

Debate between Ed Davey and Albert Owen

Tuesday 2nd November 2010 Westminster Hall

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

The debate has been extremely good; I counted at least 26 Members present during our discussion. We heard passionate defences of the services that many of our constituents enjoy up and down our country, and I want to reply to as much of the debate as possible, although I will be making a statement in the very near future—but not tomorrow; I apologise to my hon. Friend the Member for Solihull (Lorely Burt). We will publish our policy statement soon, and I hope that hon. Members will enjoy reading it and questioning me and other Ministers as we go through the Postal Services Bill over the next few weeks and, possibly, months.

I congratulate the hon. Member for The Cotswolds (Geoffrey Clifton-Brown) on his exemplary speech. He started by praising the Government, which is always a good beginning. It would have been even better if, with a Norfolk accent, he had burst into song like the postman; nevertheless, he talked cogently about the issues in his constituency and showed what a fine constituency MP he is. He has campaigned for his constituents, particularly for the local post offices in Stratton and the Beeches, and, although they were closed, he is still campaigning and working with local sub-postmasters and councils on putting forward a report to Post Office Ltd. His remarks about the importance of outreach services and their potential were well made.

Even before the debate, the hon. Gentleman scored a major victory because he got a review for those post offices and the potential for reopening them. He is meeting Post Office Ltd management shortly, and I wish him luck. He will understand that through legislation and Government practice over time, Post Office Ltd and Royal Mail operate at arm’s length, so it would be wrong for a Minister to instruct Post Office Ltd to meet his demands in detail, but he has already made a powerful case. I am sure that he will be listened to closely.

The hon. Members for Angus (Mr Weir) and for Ynys Môn (Albert Owen), among others, raised our plans for mutualisation. There is a little confusion, so I am grateful for the opportunity to put it right. The proposals in the Bill focus on Post Office Ltd—the national organisation that holds everything from the intellectual property, to the brand, the contracts, the discipline codes and so on. We are proposing that it could become a mutualised organisation in due course, if the network became more financially viable through our other plans. Let us be clear: that would mean an organisation that could be owned and run by sub-postmasters, post office employees and communities.

How are we approaching that? Because we need a number of years for our policies to take effect, it will be some time before we can be sure that the post office network is completely viable, but I hope that in the lifetime of this Parliament we can move towards mutualisation. We want a real debate, so I welcome the contributions that we have had. We have already had a pamphlet from Mutuo discussing the possibilities of mutualisation. The Government have asked Co-operatives UK to consult widely, not only within post offices, but in the co-operative movement and other mutualised organisations with expertise in the area. We asked it to do that because Government do not run co-operative and mutual organisations. This is not about Government imposing a structure; if the process is to be successful, it must be organic, which is why we are keen for the first big consultation on it to be led from outside Government.

Of course, Government must take responsibility, and once we have had the response to the Co-operatives UK-led consultation, we will hold a national consultation, which I expect to start some time after the Postal Services Bill receives Royal Assent. Members of the wider public can then be involved in the consultation. That will prepare the ground and the details, so when we have a financially viable post office network, or a network that is on train to becoming financially viable, the mutualisation option will become real. That is not to say that individual post offices cannot be mutualised.

As hon. Members know, individual post offices are often single, sub-postmaster-run, privately owned businesses. Some are chains run by different agents—such as WH Smith —and some already operate on a mutual basis, either as community mutuals, and we have heard examples of those, or through mutual organisations such as Co-operatives UK. Mutualisation already exists locally, and I think that more than 1,000 post offices are already run in that way. We are talking about mutualising the national organisation, which will improve the incentive structure by aligning the incentives for local sub-postmasters at community level with the incentives of the national organisation.

I hope that is a full answer. I am grateful for the opportunity to put it on record.

[Albert Owen]

There is a social enterprise in my constituency. That would be straightforward—a mutual could work with a mutual—but how would a private business that is investing retain its assets? Would that company have to go mutual to have a relationship with Post Office Ltd in its new form?

[Mr Davey]

No, it would remain a private organisation, but it would have a share in the mutual organisation, which would give it contracts and so on. In no way would we take assets from individual private entrepreneurs who have set up post offices and run them for years. That would be wrong.