Oral Answers to Questions

Julie Elliott Excerpts

Thursday 16th January 2014 Commons Chamber

[Mr Davey]

I think my hon. Friend is referring to the one issue over which the Prime Minister said to the Liaison Committee there is a difference between the two coalition parties. The £125 figure that he quotes is from the Conservative party’s website. The figure from the Committee on Climate Change on the cost of the decarbonisation target is six times less. What that shows is that we need a debate on the decarbonisation target and what the actual costs will be.

[Julie Elliott (Sunderland Central) (Lab)]

The Secretary of State said last December that his Government would reduce the average household bill next year by £50, but three of the big six energy companies are not passing on the reduction to fixed-price tariff customers. Will he confirm that for some of those customers the measures he announced will not take a single penny off their energy bills?

[Mr Davey]

We negotiated a deal with the big six in which they agreed to deliver a £50 average bill reduction, and that is what we expect. We were clear at the time that it was an average bill reduction, because it is impossible to ensure that it goes to every single customer. Our analysis shows that they have largely complied already, and the House can be assured that we will not let up the pressure.

[Julie Elliott]

So that means there are customers who will not receive a single penny off their bills. Is it not a fact that average energy bills are still at least £60 more this winter than last winter? Why will the Secretary of State not admit that he and his Government are doing nothing to stop the big six energy companies raising prices?

[Mr Davey]

First, every customer will get something off their bills because of the rebate that we are putting through related to renewable and social costs, so it is not true that some people will not see any reduction. Furthermore, when the hon. Lady and her colleagues talk about the big six, they forget to mention that Labour created the big six. It was when Labour messed up the reforms of the energy markets in 2001 and abolished the pool in a bad way that we saw consolidation and the big six. We are now fixing that problem.

--- Later in debate ---

[Michael Fallon]

I will certainly commit to supporting renewable technologies and a mix of renewable technologies. My hon. Friend will have seen that we have confirmed the strike price for tidal and wave power in the final electricity market reform delivery plan that we published in December.

[Julie Elliott (Sunderland Central) (Lab)]

Investment in low-carbon energy has halved under this Government, costing jobs and threatening our energy security. Does the Minister agree that the two best things that the Government could do to improve their woeful investment record is to set a 2030 power sector decarbonisation target and stop the internal Government rows that are creating uncertainty and killing confidence?

[Michael Fallon]

I must tell the hon. Lady that this country has more offshore wind than any other country in the world. We have seen half a dozen large offshore wind farms commissioned and operating, and another four are under construction this year. We are leading the way in the deployment of renewable technologies, and those renewables contributed around 15% of our electricity in the third quarter of last year.