Annual Energy Statement

Debate between Ed Davey and Mark Lazarowicz

Thursday 6th November 2014 Commons Chamber

[Mr Davey]

My hon. Friend is absolutely right that it is important to look at all forms of renewables to see whether they can provide a cost-effective addition to our low-carbon strategy. Tidal power and especially tidal lagoon power look increasingly attractive. It is clearly up to private investors and companies to come forward with their proposals, and I very much hope they will.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

There has indeed been a lot of progress made at the European level in the recent negotiations, but there were disappointments as well, one of which was the failure to have any binding targets at any level on energy efficiency. What is the Government’s approach to that issue, and if they agree that there should be more energy efficiency measures at the European level, what steps are they taking to bring them about?

[Mr Davey]

The Government were comfortable with a non-binding target, which is the type of target that was agreed by the last Government in the 2020 deal, but, like the last Government, we were concerned about having a binding target. We believe that our existing energy efficiency policies will be able to meet a non-binding target at the European Union level of 27%, because they are very ambitious. We also believe that should there be a review of that energy efficiency target— which there will be, according to the European Council conclusions—we shall need to look again at energy efficiency as one of the lowest-cost ways of going green as we develop our policies for the fourth and fifth carbon budgets.

Oral Answers to Questions

Debate between Ed Davey and Mark Lazarowicz

Thursday 6th November 2014 Commons Chamber

[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.

--- Later in debate ---

[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.

Energy Markets Competition Assessment

Debate between Ed Davey and Mark Lazarowicz

Thursday 27th March 2014 Commons Chamber

[Mr Davey]

It is always nice to be able to agree with my hon. Friend on the odd occasion—[Interruption.] Not necessarily on everything he said—the right hon. Member for Don Valley (Caroline Flint) is very worried about that—but on his point about the Labour party and competition, I do agree.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

One of the headline findings of the market assessment in the Ofgem press release is that switching has fallen in recent years:

“There was a brief spike in late 2013 but no indication of a permanent increase.”

Indeed, there has been a substantial reduction since January this year. Given that switching has so far not really had the effect in driving down prices that the Secretary of State suggested it might, why should we expect consumers to wait for two years for the outcome of this assessment to see some action being taken to drive down prices?

[Mr Davey]

I am glad the hon. Gentleman has raised that point. Switching rates have fallen in this country primarily because of the end of doorstep selling. That method of trying to persuade people to switch was one of the reasons why switching numbers increased in the early days after privatisation. However, all Members in their constituencies will have experienced cases of doorstep mis-selling, and it was the many problems that that caused that led many people in this House and the regulator to say that it was not an acceptable way of driving competition. Doorstep selling has gone out of the picture and that has been the main cause of the reduction in switching. We have therefore had to address that and look at new, innovative ways to try to get the rate of switching going back in the right direction. That is why we are looking at simpler bills, fewer tariffs, collective switching and faster switching times. We are relentless in trying to get those switching rates back up again, and the recent evidence suggests we are on the right track.

Oral Answers to Questions

Debate between Ed Davey and Mark Lazarowicz

Thursday 28th November 2013 Commons Chamber

[Mr Davey]

My hon. Friend is absolutely right. It is not just my Department that has been involved in investing in research and development and technological innovation, vital though that is in our area. My right hon. Friend the Secretary of State for Business, Innovation and Skills has ensured investment in ultra-low emission vehicles. My right hon. Friend the Secretary of State for Transport is investing in the railways in a way that has not happened since the Victorians. We have a very proud record of investment, both in infrastructure and in innovation and technical development.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

RenewableUK published a report today on offshore wind. It recognises what the Government have done, but it also warns:

“Industry is facing a hiatus in confidence that the large scale economic rewards associated with sustained high delivery levels will be achieved.”

We have heard warnings about the Atlantic array and there are signs elsewhere that offshore wind might not get the increase in deployment that was hoped for and expected. May I ask the Secretary of State not to be complacent about the issue and recognise the real problem faced by the industry?

[Mr Davey]

I assure the hon. Gentleman that I am certainly not complacent, but I am aware of major investments that we believe will go forward, and that will reassure the industry and the supply chain. We already have the world’s largest deployment of offshore wind, and we are already recognised by Ernst and Young as the top place in the world in which to invest in offshore wind. With the Energy Bill going through the House with cross-party support, that gives a real signal to investors in offshore wind.

Annual Energy Statement

Debate between Ed Davey and Mark Lazarowicz

Thursday 31st October 2013 Commons Chamber

[Mr Davey]

The measures in the Energy Bill provide that, if an individual consumer has been done wrong by an energy company—mistreated or subjected to any other malpractice—the fine, thanks to this Government, will go to the consumer. The criminal sanctions I have referred to today would be applied for systemic anti-competitive practices or manipulation of the energy markets by an individual or company.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

One of my constituents took the Government’s advice and switched his supplier, but he found that after the initial attractive offer he was paying twice as much a month for his energy bills. He cannot switch back to his previous supplier because he is tied in to a minimum 12-month contract. He is now paying £60 a month more than he was previously. What will the Secretary of State’s proposals do for situations such as that?

[Mr Davey]

I cannot comment on the individual case or why the person decided to switch. If the hon. Gentleman’s constituent can show that he was mis-sold the switch, he can approach the regulator for redress.

Oral Answers to Questions

Debate between Ed Davey and Mark Lazarowicz

Thursday 6th June 2013 Commons Chamber

[Mr Davey]

The hon. Lady will know that during the previous Parliament, when Labour was in office, fuel poverty grew in every single year and that, according to the latest figures, it has now gone down. In many ways this is a rather odd debate. The Government commissioned Professor Hills to review how we measure fuel poverty and he has come up with proposals that have gained wide-scale acceptance. We have consulted on them and will respond shortly to that consultation. We believe that the old measurements of fuel poverty, which are still in use, need radical reform so that we can better target fuel poverty policy.

[Mark Lazarowicz]

The problem with Government measures such as putting the consumer on to the cheapest tariff—if that ever happens—is that they will not make much difference if the tariff prices themselves and energy prices are high. The main beneficiaries of the green deal are not people on low incomes, but people who will be able to take up the arrangements. What is the Secretary of State doing to help people on low incomes who face high energy bills now, particularly given the high fuel prices over the past few months?

[Mr Davey]

We have a whole range of measures. For a start, the warm home discount helps more than 2 million low-income people, including 1 million of the poorest pensioners, by taking £130 off their bill directly. Schemes such as collective switching mean that we are helping people club together to exercise power in the market to get better rates. The simplification of tariffs proposed by Ofgem will mean greater competition and choice for people. We have a whole range of measures. On energy efficiency, the energy company obligation, through the affordable warmth and carbon saving communities schemes, is helping people in fuel poverty.

Petrol Prices

Debate between Ed Davey and Mark Lazarowicz

Wednesday 15th May 2013 Commons Chamber

[Mr Davey]

My hon. Friend has been a doughty defender of motorists in north-east Scotland, making the point, with other hon. Members, that people in rural areas often depend on their car and therefore have no choice but to use it. The G20 received the report from the International Organisation of Securities Commissions in November and I believe it is being looked at carefully. The issue of price reporting agencies and price benchmarks is one that both UK and global regulators are paying much greater attention to. One might ask the question: why were they not being paid attention to before?

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

My right hon. Friend the Member for Don Valley (Caroline Flint) made the point that if this is happening in energy, there is every reason to believe that it could well apply to other commodities. What are the Government going to do, with the EU if necessary, to be proactive and to ensure that there is no price fixing in other areas of international trade? We do not want to come back in a few years’ time and wonder how we are going to compensate consumers in other fields.

[Mr Davey]

I am afraid that the hon. Gentleman is behind the times. We are already acting at both a global and a European level to support work that looks into how benchmarks and price reporting agencies operate, and to check that there is no danger of price manipulation or of rigging the markets in another way. The Government are taking this very seriously. We are working with a number of bodies, including the International Organisation of Securities Commissions, and are operating at EU and G20 level. We are very proactive on this issue.

Oral Answers to Questions

Debate between Ed Davey and Mark Lazarowicz

Thursday 14th March 2013 Commons Chamber

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

11. What steps he is taking to help households with their energy bills.

[The Secretary of State for Energy and Climate Change (Mr Edward Davey)]

We have a range of initiatives to help people with their energy bills, including tariff reforms, energy saving programmes, and additional help for those on the lowest incomes. From our proposals to help get consumers on the cheapest tariffs to the green deal, from the warm home discount to our promotion of collective switching, this Government are working to help people keep their energy bills down.

[Mr Davey]

I assure my hon. Friend that we are straining every sinew in the negotiations with EDF. He will recognise that I cannot be more explicit than that given that they are commercial negotiations. I will say, though, that we take energy security very seriously and listen to Ofgem, National Grid and others. However, we do not imagine that new nuclear power will assist in the rest of this decade, because new nuclear power stations take such a long time to build.

[Mark Lazarowicz]

We are currently going through a cold spell and, as night follows day, we know that in a few months’ time the energy companies will announce even bigger boosts in profits because people have been using more energy. Is it not time to get to a situation whereby a cold spell is not an occasion for energy companies to make even more profits but to keep prices down for consumers?

[Mr Davey]

The hon. Gentleman will know that we have taken a lot of extra powers in the Energy Bill to make sure that Ofgem’s reforms on tariffs can go through and that the energy companies cannot be allowed to drag their feet. That has been welcomed by many consumer groups. This Government have also taken action to help people on the lowest incomes. We have trebled cold weather payments, so when there is a cold snap people get the help they need when they need it.

Oral Answers to Questions

Debate between Ed Davey and Mark Lazarowicz

Thursday 31st January 2013 Commons Chamber

[Mr Davey]

I am grateful for my hon. Friend’s question. He will understand that planning issues and support for local communities and local authorities are matters for my right hon. Friend the Secretary of State for Communities and Local Government, and in my hon. Friend’s constituency for people in the Welsh Assembly Government, no doubt, but he makes a fair point. One reason why we have made the call for evidence on how local communities can benefit is to ensure that developers come forward and engage with local communities far better and in a less adversarial way than we have seen in some cases.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

Community groups in my part of Edinburgh, with which I am working, have been trying to set up an onshore wind turbine in the area. They have raised funds for a serious proposal, but have been bogged down by all sorts of bureaucratic nightmares, which in this case relate to Scottish Water and the Scottish Government. There are issues across the UK with communities that want to set up wind farms and renewable energy schemes but are not being allowed to do so. When the Minister looks at how to deal with those who oppose wind farms, will he also look at how we can support those who want community-owned wind farms to be set up in parts of the UK where they are popular?

[Mr Davey]

The hon. Gentleman is absolutely right: there are a number of communities that want to host wind farms, in places where it is appropriate to site wind farms. The Government’s whole approach is to try to work with local communities, to empower them and, with our latest call for evidence, to reach out to communities that do not want wind farms and ensure that they have more of a voice, and to enable those that do want them to proceed. That seems the right and fair way forward.

Energy Policy

Debate between Ed Davey and Mark Lazarowicz

Thursday 29th November 2012 Commons Chamber

[Mr Davey]

My hon. Friend is absolutely right: we are on track to be the greenest Government ever. Yesterday, I was at the launch of the green investment bank, which is just one example, in Edinburgh.

My hon. Friend will be pleased to know that the Minister, my hon. Friend the Member for South Holland and The Deepings (Mr Hayes), is meeting Eggborough representatives today. I cannot comment ahead of that meeting, but I believe that Eggborough and other power plants will like our proposals.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

The Secretary of State mentioned the Doha negotiations. What are the Government’s specific objectives —I do not mean just getting agreement—for those negotiations? Which members of the ministerial team will represent the UK there?

[Mr Davey]

I am grateful for the hon. Gentleman’s question. I will be attending the Doha negotiations, along with the Minister of State, Department of Energy and Climate Change, my right hon. Friend the Member for Bexhill and Battle (Gregory Barker). On our objectives, we have been arguing for a balanced package. In the pre-COP discussions in Seoul, we argued that the European Union and other members of the Kyoto protocol need to commit to a second period and that we need the long-term co-operative action negotiations to come to an end, and in return we need a work plan to take us from now until 2015 so that we can implement the international, legally binding treaty promised at Durban. In addition, we want ambitious proposals to come from other countries on climate change finance and we would like to see more mitigation measures.

Just before this statement, I was at Clarence house with His Royal Highness the Prince of Wales attending a meeting on forests. We have made an announcement today of the use of UK climate change finance money to support new forest projects, which I believe will help the climate change talks and show that this Government have an ambitious agenda.

Gas Market Fraud

Debate between Ed Davey and Mark Lazarowicz

Tuesday 13th November 2012 Commons Chamber

[Mr Davey]

My hon. Friend asks a pertinent question. It goes back to the question asked by the right hon. Member for Wolverhampton South East (Mr McFadden). The Wheatley review suggested that we had more work to do in this area—a view that is, I think, held around the world. As I said to the right hon. Gentleman, the International Organisation of Securities Commissions has a broad level taskforce looking at this issue, seeing whether we need to do more on the different indices, benchmarks and price reporting agencies. The EU also has a consultation out at the moment. My hon. Friend is right that we need to look at this in the round, learn the lessons of LIBOR and other indices that might have been manipulated and ensure that we apply those lessons to other markets, too.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

The Secretary of State is absolutely right to say that lessons should be applied to other markets, but can we not have more urgency in the investigation? We do not want a long-running international investigation; we want to see action taken now, and in other markets as well, to ensure that the consumer is not being ripped off as they apparently have been in this area and in the financial services sector, too.

[Mr Davey]

Action is being taken. I refer the hon. Gentleman to the consultation put out by the European Commission. It has also been suggested that ESMA—the European Securities and Markets Authority—should take interim measures. I have to tell him that not just domestic regulators but international regulators are taking a broader look, which is the correct thing to do.