Oral Answers to Questions
Debate between John Baron and Chris Huhne(12 years, 4 months ago)
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Chris Huhne
One key thing with the energy-intensive industries is that it is crucial to help those that will be most affected because of electricity intensity and their competitive position in terms of trade. We will set out the full details of that in the consultation.
Mr John Baron (Basildon and Billericay) (Con)
The Minister will be aware that one recommendation of the billing stakeholder group was that energy suppliers should send a tailored communication to customers, detailing in pounds, shillings and pence how much they could save by transferring to that company’s cheapest standard direct debit tariff in time for this winter. Two suppliers, Scottish Power and npower, have complied; four have not. Will the Minister now look at bringing those four into line?
Chris Huhne
First, I pay tribute to my hon. Friend for his work on the issue, because it is crucial that people are provided with clear and specific advice on what they can do. He is absolutely right to draw attention to the two large energy companies that have already complied, and yes, indeed, we are bringing pressure to bear to ensure that all the others follow.
Annual Energy Statement
Debate between John Baron and Chris Huhne(12 years, 5 months ago)
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Chris Huhne
CCS is a catch-all for a substantial number of different types of technology designed to do the same thing: take the carbon out of the process of the combustion of fossil fuels. I disagree about gas versus coal, as I think gas, along with coal, will play a very important part in world supply for a long time, and there will be substantial CCS markets in both of them. It is important that the UK is in the lead in that.
Mr John Baron (Basildon and Billericay) (Con)
The Government support the three recommendations of the billing stakeholder group, which I chaired at the Government’s behest, but there is strong evidence that one of those key recommendations is being ignored by the energy suppliers: the requirement that they contact each of their customers informing them on whether they are on the company’s cheapest standard direct-debit tariff. What are the Government going to do to put this right?
Chris Huhne
First, I want to pay tribute to the hon. Gentleman for his efforts in this area. We raised this point with the big six at the consumer energy summit, and my understanding is that they are in the process of notifying their customers. Perhaps not all those letters have gone out yet, but one of the commitments was that customers were going to be notified when there was a cheaper tariff they could move to online.
Energy Bill [Lords]
Debate between John Baron and Chris Huhne(12 years, 7 months ago)
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Chris Huhne
I am grateful to the hon. Gentleman for his intervention. The bulk of the Bill is about energy efficiency and energy saving, which means that we will need fewer types of electricity generation of all descriptions, including windmills. I disagree with him, as I think that windmills are beautiful and we should have a lot more of them. They provide the most economical form of renewable energy, and I trust that he will come up with ideas for many more windmills in and around his constituency.
There are provisions in the Bill for a new energy company obligation, or ECO, which is critical for delivering carbon savings in homes that are hard to treat. It will protect the most vulnerable groups and those on the lowest incomes, focusing on households that cannot afford to heat their homes adequately. The provisions relating to the private rental sector are a significant step forward. They are designed to increase efficiency to protect tenants in some of the worst housing and to boost overall carbon savings.
The Bill contains a number of provisions relating to energy markets and infrastructure. It ensures that I will have sufficient information to publish an assessment of future electricity capacity requirements, and that I have a duty to do so. That sits alongside the much more significant package of reforms covered in the electricity market reform White Paper. To improve security of supply, the Bill contains powers that, if taken, will give incentives to gas providers to continue to supply their customers, should Britain suffer its first gas supply emergency. Through this Bill, we will be able to de-designate areas of our continental shelf—a small but important amendment to the existing legal situation. Should negotiations between industry players over access to infrastructure in the North sea break down, the Bill gives us the ability to intervene and work to find a resolution, so that our energy security will not suffer.
The Bill contains powers to ensure that the interests of consumers are paramount. For example, we have taken powers to oblige suppliers to specify whether a cheaper tariff is available.
Mr Baron
On that issue, may I congratulate the Secretary of State and the Government on accepting the recommendations of the billing stakeholder group and, indeed, the need for a letter, where appropriate, provided that it is supported by a campaign by Which? and others, to make consumers aware of the cheapest tariffs? However, does he share my view, and that of the Minister of State, Department of Energy and Climate Change, my hon. Friend the Member for Bexhill and Battle (Gregory Barker), that Ofgem should publish its findings from the consultation on the retail market review before Christmas this year?
Chris Huhne
I am grateful to my hon. Friend for his intervention. The ministerial team is pressing Ofgem to move further and faster as quickly as possible on all of this, and I very much hope that it will be able to come forward with conclusions before Christmas. Clearly we are then getting into the period before the highest energy bills, and it is important that consumers should have access to that information and to those potential safeguards. I will certainly be pressing Ofgem to do that.
These measures are accompanied by a number of minor yet vital provisions in the Bill that we need to make to secure our supply of low-carbon energy, and I am grateful to the House and to Members in the other place for taking the time to scrutinise and contribute to the Bill. It has a substantial measure of support across the House, despite the differences that we have had. I certainly pay tribute to Opposition Members. This is one of those cases where success has many parents and, as we all know, failure is an orphan. I hope that bodes well for the success of the Bill when it comes to improving dramatically our energy efficiency.
We have here the keys that will unlock the door that stands in the way of an energy efficient and energy secure Britain, and I commend the Bill to the House.
Energy Bill [Lords]
Debate between John Baron and Chris Huhne
Chris Huhne
The hon. Gentleman can take it from me, as a former journalist on The Guardian, that he should not always believe everything he reads. The Government will make our announcement on the question of the fourth carbon budget in due course.
Building the next generation of power plants will take time and money. If we are to cut our carbon emissions and keep the lights on, we must act now. The cheapest way of closing the gap between supply and demand is to reduce the amount of energy used.
Mr John Baron (Basildon and Billericay) (Con)
The Government are rightly concerned about fuel poverty and whether customers are paying too much for their energy—a situation not helped by a myriad of tariffs and complex energy bills. As my right hon. Friend’s fellow Ministers know, I have submitted simple proposals to his Department that would oblige energy companies to show customers how much they would save if they were on that company’s cheapest standard tariff, based on the customer’s actual usage, rather than a generic or average usage. Other Ministers have been supportive. Will he be?
Chris Huhne
I am grateful to my hon. Friend, and I know that he has been very active in promoting that cause. I thank him for the way in which he has been championing that change, which will help to increase consumers’ control of their energy bills, and I very much hope that he will continue to do so. I can certainly say—for myself and the whole ministerial team—that we are supportive of his work and the ideas that he has brought forward; we see a lot of merit in them. I would want to consult more before introducing detailed legislation, but we very much welcome the thrust of that work.
Annual Energy Statement
Debate between John Baron and Chris Huhne
Chris Huhne
As the hon. Lady will know, government is a collective business. Large numbers of people were involved in the decision on Sheffield Forgemasters. At the Department, we were certainly kept informed.
Mr John Baron (Basildon and Billericay) (Con)
I welcome the statement, but does my right hon. Friend appreciate that 4,000 different tariffs cause understandable confusion among consumers? Under pressure, the previous Government promised that annual statements would include information on the cheapest tariffs so that consumers could more easily see whether they were paying too much for their energy. Are this Government going to continue with that promise? If so, has the Secretary of State considered including cheapest-tariff information on monthly bills? An annual statement discriminates against active switchers.
Chris Huhne
I am grateful to my hon. Friend for that question. He is absolutely right; one of the most powerful instruments in the toolbox is the unleashing of competition as effectively as possible. Competition is ineffective if there is not a clear commitment to information and understanding on the part of consumers. We will bring forward proposals in the energy Bill later this year to make sure that consumers are properly informed. We will take account of the time scale that my hon. Friend has proposed.
Energy and Environment, Food and Rural Affairs
Debate between John Baron and Chris Huhne(13 years, 11 months ago)
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Chris Huhne
I should make a little progress, because answering one intervention and then moving straight into dealing with another without even delivering a few of the sentences in my prepared text would be—[Interruption.] I am sure that Labour Members were trying to help me, and I am very grateful.
The steps that we need to take do not relate just to the supply and demand of energy; our energy infrastructure is in urgent need of new investment. Much of our national grid was built during the 1950s and 1960s, when consumers were passive and electricity came from predictable, large-scale sources. We need to move to a 21st century system where supplies come from a range of sources—from large to small scale, and from the predictable to the intermittent—and consumers adjust their consumption much more flexibly. Achieving our objectives is not just about having the right regulatory framework; we must act urgently to improve the availability of finance in support of the UK’s transition to a low-carbon economy. That is why we will create a green investment bank to unlock private capital and provide individuals with opportunities to invest in the infrastructure needed to support the new green economy. The energy Bill announced in the Gracious Speech is a key part of our programme to deliver a low-carbon future, demonstrating that we are ready to make the difficult decisions and to take swift action to put the right legislative framework in place. The Bill will deliver a framework that will transform the provision of energy efficiency in the UK by enabling a “pay as you save” approach.
Mr John Baron (Basildon and Billericay) (Con)
The Secretary of State might be aware that in order to reduce domestic energy bills and fuel poverty, and to cut through the confusion caused by having about 4,000 different tariffs, a number of hon. Members campaigned on the issue of obliging energy companies to inform their customers on each bill whether they were on the cheapest tariff and, if not, how to transfer to that tariff. The previous Government compromised by suggesting that that information would be put on an annual statement. The coalition agreement does not make it clear whether that will remain a firm commitment from our side. Will the Secretary of State clarify the situation for the House?
Chris Huhne
I am grateful to my honourable colleague for that question. The coalition agreement states very clearly that the fundamental objective is as he has described, and the Department will examine the best way in which we can deliver it, taking account of the administrative costs.
We know that many people want to take steps to make their homes more energy efficient, but the up-front cost can be prohibitive and there can be uncertainty about the results of measures. Our green deal will enable householders to benefit from energy efficiency and to repay the cost of the work over time, through savings on their energy bills.