Oral Answers to Questions

Debate between Ed Davey and Robert Smith

Thursday 6th November 2014 Commons Chamber

[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.

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[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.

Annual Energy Statement

Debate between Ed Davey and Robert Smith

Thursday 6th November 2014 Commons Chamber

[Mr Davey]

The hon. Lady had a distinguished career working for Citizens Advice, which has been a real champion on this point. Its latest campaign on prepayment meters is something we are looking at seriously, and we are grateful to Citizens Advice for its evidence and research. Longer term, the introduction of smart meters will be important, because they will reduce the higher differential costs that prepayment meter users face, which is one of the reasons I called on the obligated suppliers to move further and faster to roll out smart meters for prepayment meter users. That is part of the solution, but no doubt we need to look at other issues as well.

[Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)]

The deal in the EU on climate change shows the benefit of engagement and co-operation. How optimistic is the Secretary of State that that can be taken forward to Paris? In particular, does he draw any optimism from the fact that the Chinese are expanding renewables, experimenting with carbon capture and storage and also introducing pilot emissions trading schemes?

[Mr Davey]

I am grateful to my hon. Friend for his question. Engaging in Europe over a period of time, building relationships and building trust, is critical if we are going to argue for British interests. The green growth group, which this Government set up in Europe to bring Ministers together, was critical in securing that deal. The green growth group will continue to help the European Union to lead at this level in the climate change talks ahead of us.

My hon. Friend is right to point to the action that China is taking. Indeed, I am more optimistic about a good climate deal in Paris 2015 than I have ever been, not just because of the EU deal but because of the actions being taken by President Obama in the United States and by the Chinese Administration and, indeed, the leadership that I believe Prime Minister Narendra Modi is showing in India.

Energy Bills

Debate between Ed Davey and Robert Smith

Monday 2nd December 2013 Commons Chamber

[Mr Davey]

I was quoting the leader of the hon. Lady’s party when I talked about not alarming people; I was making it clear that he said one thing when he was in government and changed his mind in opposition. The hon. Lady, like many of her hon. Friends, failed to welcome the announcement of an average of £50 off household energy bills; she should welcome it, and welcome the fact that this Government, through our tough competition policies, are taking on the big six that Labour created.

[Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)]

I welcome the positive response to the Select Committee on Energy and Climate Change’s recommendation that some of the costs of the levies be transferred to general taxation, as a fairer way of funding those levies. What is being done to assist people in switching, and to ensure that they realise that that is now meant to be simpler, and the best way for them to get the best deal?

[Mr Davey]

I am grateful for my hon. Friend’s welcome. He is quite right: we looked at what the Select Committee said on those issues, and considered it carefully. He is also right to say that switching is a really important part of the way to help people, because there are some good deals out there. In the annual energy statement, I talked about our ambition to improve and make switching easier, and we are already working with he industry to bring about quicker switching.

Annual Energy Statement

Debate between Ed Davey and Robert Smith

Thursday 31st October 2013 Commons Chamber

[Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)]

I am delighted to welcome the fact that the Government support the Energy and Climate Change Committee’s call for a competition review and to press Ofgem on greater implementation of BDO’s recommendations on transparency. Will the Secretary of State confirm that the market reforms will end the exploitation of the inertia on the part of customers on existing tariffs, which leaves them languishing on uncompetitive tariffs?

[Mr Davey]

I thank my hon. Friend and the other members of the Committee, whose reports and their grilling of energy company executives have played a very important role and have showed the role that this House can play in holding those companies to account. Our competition reforms are aimed at helping people and preventing them from being stranded. That is what Ofgem’s reforms will do, but the Labour party does not support them, because it is so critical of Ofgem. I assure my hon. Friend that our aim is always to help the fuel-poor.

Petrol Prices

Debate between Ed Davey and Robert Smith

Wednesday 15th May 2013 Commons Chamber

[Mr Davey]

I found out about it late last night. We do not know on what evidence the Commission decided to launch the raids. Apparently, there were suspicions that companies had been giving a price reporting agency false information about prices in the market. We need to know more about what information it had. The question is whether the UK competition authorities had similar information. To date, my understanding is that they did not.

[Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)]

I remind the House of my entry in the Register of Members’ Financial Interests. The hard-pressed motorists of the north-east of Scotland—for whom a car is an essential, not a luxury—will want to be confident that they are paying the best price possible for their fuel at the pump. To that end, I welcome my right hon. Friend’s commitment to help the European Commission and to encourage the companies to co-operate fully with the inquiry. Will he take forward to the Commission the need to co-operate with the G20 if there is any evidence that the alleged price fixing extends beyond EU borders?

[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?

Energy Bill

Debate between Ed Davey and Robert Smith

Wednesday 19th December 2012 Commons Chamber

[Mr Davey]

The right hon. Lady knows that I am very sympathetic to that argument. We will come to that argument and debate many times, not just today, but no doubt throughout the passage of the Bill.

[Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)]

Does my right hon. Friend agree that in order to ensure the investment that the hon. Member for Na h-Eileanan an Iar (Mr MacNeil) described, it is crucial that we get this Bill through, with its contracts for difference and its market reform? To do that, the Bill has to receive a Second Reading, so the best thing that hon. Members on both sides of the House can do is reject the reasoned amendment, which would delay any movement towards getting this new Bill through.

[Mr Davey]

My hon. Friend is absolutely right. Targets are important—they have a role to play—but we need practical measures. We need market reform. If we are to stimulate the investment in low carbon that our country needs, we need the Bill, contracts for difference and all.

Energy Policy

Debate between Ed Davey and Robert Smith

Thursday 29th November 2012 Commons Chamber

[Mr Davey]

First, we want to give the benefits of switching to everybody, not just to pensioners. Hard-working families are struggling, and we want to ensure that they get the benefits as well. As for the Prime Minister’s commitment to get people on to the cheapest tariffs, we are delivering that. Ofgem’s retail market review of the four core tariffs will ensure that people who are on stranded or dead tariffs will automatically be switched to the lowest tariff, given their preferences. I would have thought that the Opposition wanted to ensure that people are on the lowest tariff, because it will bring them big savings and ensure that their preferences —whether on payment or other things—are recognised. That is the best of both worlds.

[Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)]

The Secretary of State mentioned the important role that he sees gas still playing in the transition to the low-carbon economy. Will he give me an assurance that the record licensing round that he has just announced is an indication of the Government’s continued commitment to maximising the remaining potential of our North sea assets?

[Mr Davey]

Yes, I can give my hon. Friend that assurance. Sometimes the debate is characterised as a choice between gas and renewables, but we need both. That is particularly important as coal-fired power stations go off line. The gas power stations that replace them will help to cut our carbon emissions. It is absolutely right for our country’s energy security and prosperity that we maximise the potential of the North sea and, indeed, the other offshore fields, particularly those west of Shetland, and we will do that.

Gas Market Fraud

Debate between Ed Davey and Robert Smith

Tuesday 13th November 2012 Commons Chamber

[Mr Davey]

I am not aware of any such information. The first time I learned from the regulatory authorities about these allegations was on Friday afternoon, as I said in my statement. I have to say to the hon. Gentleman that this Government are taking a lot of action to help consumers with their electricity and gas bills, including through the warm home discount, which is helping 2 million of our most vulnerable citizens and taking £130 directly off the bills of 1 million of the lowest-income pensioners. We also have the green deal and the energy Bill, which will drive competition and ensure that we have competitive retail and wholesale energy markets.

[Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)]

As Energy Action Scotland—a fuel poverty charity of which I am an honorary vice-president—has pointed out, our constituents are facing bills that have gone up on the basis of the wholesale market being a major contributor. They need to have confidence in the wholesale market. My right hon. Friend says that we cannot yet see the impact of these specific allegations, but does he acknowledge that it is important for the market that investors and consumers can put their trust in proper regulation?

[Mr Davey]

I could not agree more with my hon. Friend. It is absolutely critical that markets are fair, because British consumers deserve fair markets. In my previous ministerial role at the Department for Business, Innovation and Skills, I was charged with reviewing competition law. I was responsible for a lot of the reforms in the Enterprise and Regulatory Reform Bill, because I believe that we need to ensure that our markets are working properly and in the public interest.

Oral Answers to Questions

Debate between Ed Davey and Robert Smith

Thursday 17th May 2012 Commons Chamber

[Mr Davey]

I think the hon. Gentleman is mixing up the green deal with the action that we are taking to help people with their consumer bills. The warm home discount, which targets the 600,000 poorest pensioners, is one of the most effective ways of providing that help. Under the scheme proposed by Labour, some of the wealthiest pensioners would get the discounts, and I am afraid that that shows that it is no longer the party of the many.

[Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)]

I very much welcome the move to ensure that the market works as efficiently as possible, so that consumers pay no more than is necessary. Should we not make it clear to consumers, however, given the amount of investment that needs to be made in our energy infrastructure, that future generations will have to pay a higher price to ensure that we can keep the lights on in a low-carbon way?

[Mr Davey]

My hon. Friend is right to say that we face a big investment challenge in this country. That is why, in the Gracious Speech, Her Majesty announced that we would be legislating for electricity market reforms to bring forward that investment, but at the lowest possible cost.