Draft Electricity and Gas (Energy Company Obligation) Order 2022

Debate between Katherine Fletcher and Greg Hands

Monday 18th July 2022 General Committees

[Greg Hands]

Sometimes, when we are making a reform, it is not always obvious where that reform process will lead. Let us bear in mind that there was a big consultation and we wanted to hear from suppliers and consumer groups, so we obviously wanted to look closely at the responses to the consultation. I have already mentioned the consultation in response to the point of the hon. Member for Kilmarnock and Loudoun; we want a GB-wide scheme. It was right and proper to wait for the responses to the consultation before laying out our reform measures.

[Katherine Fletcher (South Ribble) (Con)]

I promise to be brief. Part of the technical consultation that the Minister has alluded to for solid walls is really important. Is there a major gain in preventing the latent heat of evaporation by putting a PVA coating on the outside of walls? Do we have to lose space from inside homes that may already be small to provide initial internal insulation? Does he agree that it was important to take time to ensure that the industry and different providers could work out how to get the most bang for their buck to move it forward?

Oral Answers to Questions

Debate between Katherine Fletcher and Greg Hands

Tuesday 12th July 2022 Commons Chamber

[Greg Hands]

As the hon. Gentleman knows, we reflected on this issue in an earlier question. The Government are providing support for those who are off the gas grid. For example, those who pay an electricity bill will qualify for the £400 reduction this year. We have also put £1.1 billion into the home upgrade grant, on top of the £2.5 billion already deployed, to make sure vulnerable households, which could well include some of his constituents, are able to profit from the energy measures being put forward by the Government. His question on the price cap is a reasonable question to put. The information I have directly from the trade body UKIFDA—the UK and Ireland Fuel Distributors Association—is that a price cap would be extremely difficult for its members, the people in the retail market for heating oil, because it becomes very difficult for a small business to hedge. However, it is something I discuss with MPs, the industry and the trade body regularly to see what more can be done, and the situation is under constant review.

[Katherine Fletcher]

One thing we can do to bring energy prices down is have an absolutely massive expansion of renewable offshore energy, whether that is tidal or wind. Last week, I met National Grid, which will use Penwortham on the Ribble estuary coast as the point to onshore a lot of the electricity that helps to get our fuel bills down. Does the Minister welcome the fact that National Grid has seen the opportunity of Penwortham, and does he agree that we just need to make sure that the environment and the natural Ribble estuary are protected as the cables and the energy come forward?

[Greg Hands]

I thank my hon. Friend for her question and her constant very good and strong engagement on behalf of her Ribble valley constituents. Renewable energy is, of course, part of the solution. That is why we announced the allocation round for the latest auction of renewable energy last week. It was the most successful ever, with 10.8 GW of renewable energy coming to this country through the contracts for difference mechanism. It has been a huge success, and I welcome my hon. Friend’s interest.