Oral Answers to Questions
Debate between Ed Davey and Graeme Morrice
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
On 24 March, we will be publishing a detailed report on the progress this coalition is making on investment in low-carbon energy, but let me now share two findings from that report ahead of next week’s publication. First, for the second year running the UK has invested more in clean energy than any other country in Europe, Secondly, Bloomberg new energy finance data show that last year was the UK’s best ever year for new-build renewable energy finance, placing the UK in the global top five. I promise, Mr Speaker, to give each Member in turn a new statistic showing how the UK is doing so well on low-carbon energy investment.
Graeme Morrice
More than 50 companies called on the Secretary of State to implement a 2030 decarbonisation target. They warned that the absence of a specific carbon-intensity target was undermining investment. Does he regret not joining the 16 Members from his own party who rebelled against the Government and voted for this target?
Mr Davey
The hon. Gentleman knows that my party and I are in favour of this target, which is why we legislated in the Energy Act 2013 to put one in and it will be in our manifesto. But he is wrong if he thinks this target is some sort of panacea for low-carbon energy investment. We were told by the Labour party that if we did not do this, we would not see the supply chain growing. But here is a statistic for him: the supply chain in the UK for low-carbon energy investment is booming. We have had the massive investment from Siemens and Associated British Ports in Hull, transforming that city, and we have seen what MHI Vestas has been doing in the Isle of Wight. Under this Government, low-carbon energy investment and the whole supply chain are booming.
Graeme Morrice (Livingston) (Lab)
T10. An elderly constituent recently contacted me about her confusing energy bills. She had to make a payment, but the complicated bill structure meant that she had no idea of how the charges had been calculated, causing her some distress. It is obvious that Ofgem’s reforms to make bills simpler, clearer and fairer have not worked. Is it not about time that the Government started to stand up for consumers and treat ordinary people fairly and honestly by ensuring improved transparency in energy bills?
Mr Davey
I am surprised to hear the hon. Gentleman make that point. There has been a great improvement in bills, which are much simpler now. Furthermore, the energy suppliers must now inform consumers if a lower tariff is available, even if it involves different payment methods. However, if there is an issue I shall be happy to look into it. and the hon. Gentleman should also contact Ofgem.
One of our purposes in setting up and investing in the Big Energy Saving Network was to ensure that vulnerable people could obtain face-to-face advice, and organisations such as citizens advice bureaux, Age Concern and National Energy Action are funded and trained to deliver that advice.
Oral Answers to Questions
Debate between Ed Davey and Graeme Morrice(9 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text
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?
Oral Answers to Questions
Debate between Ed Davey and Graeme Morrice
Graeme Morrice (Livingston) (Lab)
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 last Question Time we have continued to see strong investment and growth in Britain’s low-carbon electricity sector. Last year, for example, renewables accounted for a record 14.8% of all electricity generated in the UK, a 28% year-on-year increase. The news that Siemens and Associated British Ports are to invest £310 million in their wind turbine factories in Hull underlines the fact that the UK is the best place in the world to invest in offshore wind. On bills, we received the competition report from Ofgem and the competition authorities and strongly support the proposed market investigation reference. On climate change, we received the second of three reports from the Intergovernmental Panel on Climate Change, which confirmed that climate change impacts are already occurring on all continents and across the oceans. It should now be clear to everyone that unless we take strong action on climate change, the dangers to human health, food security and the global economy will become intolerable.
Graeme Morrice
The Secretary of State recently spoke at a renewables conference in Edinburgh. He correctly highlighted that, with a third of the support for renewable energy going to Scotland, which has less than a tenth of the population, consumers in all parts of the UK contribute to, and benefit from, Scotland’s renewable energy potential. Does he agree that such pooling and sharing of energy potential and resources, rather than Scotland leaving the UK, is the best way of getting the most cost-effective low-carbon energy for my constituents and his?
Mr Davey
I am delighted to say that I could not agree more. The hon. Gentleman is right that the single energy market across Great Britain is a source of benefit for all British citizens, ensuring that we have cheaper and more secure energy and enabling us to go green much more effectively. Rather than being independent, our energy systems are interdependent. We are better together.
Oral Answers to Questions
Debate between Ed Davey and Graeme Morrice(11 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Davey
I am grateful for my hon. Friend’s question. We do not use directly much gas from Russia, but we are happy to explore that potential. It is in the interests of this country’s energy security that we have a diverse supply of gas. I do not have the exact figures for the middle east, but of the gas that is imported in this country, about 40% comes from there. I am not sure what proportion of the total gas that is consumed comes from the middle east.
Graeme Morrice (Livingston) (Lab)
2. What steps he is taking to encourage energy companies to deliver green deal finance through small and medium-sized enterprises.
Oral Answers to Questions
Debate between Ed Davey and Graeme Morrice
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
The draft Energy Bill focuses on encouraging greater investment and competition in the energy market as we make the transition to a low carbon future. The provisions in the Bill are about removing barriers to entry and allowing all forms of low carbon generation to come forward and compete on a level playing field. In addition to the provisions in the draft Bill, Ofgem has consulted on liquidity proposals and the Government have issued a call for evidence regarding the availability of long-term contracts for independent generators.
Graeme Morrice
I thank the Minister for his answer. A report by the Institute for Public Policy Research, a respected think-tank, shows that if the energy market was more competitive, efficiency savings alone would knock £70 a year off the average energy bill. So why will the Government not get behind Labour’s plan to break up the dominance of the big six by requiring them to sell power into a pool? That would allow new businesses to enter the market, increase competition and drive down energy bills for families and businesses.
Mr Davey
Because Labour’s plan would not work. The critical factor for independent generators—the new competitors in the current and future markets—is liquidity in the futures market, not in the day-ahead market. Liquidity in the day-ahead market has increased significantly, and the pool proposal that the right hon. Member for Don Valley (Caroline Flint) has made would be about the day-ahead market. So we have already sorted that problem, and Ofgem is focusing on managing auctions for the futures markets, which is where the competition issue is.
Graeme Morrice (Livingston) (Lab)
T5. What steps is the Secretary of State taking to ensure that energy bill standing charges do not unfairly hit the fuel poor and other low-income consumers, especially pensioners?
Mr Davey
The hon. Gentleman will know that Ofgem is undertaking a retail market review that is considering standing charges. We expect its deliberations to be published in the autumn. Given that it is an independent regulator, I am sure that the hon. Gentleman will agree that I should not pre-judge its conclusions.