Energy: Costs

Lord Willoughby de Broke Excerpts

Tuesday 16th October 2012 Lords Chamber

[Baroness Verma]

I thank my noble friend for affording me the opportunity to show our commitment in helping low-income and vulnerable households to keep their homes warm at an affordable cost. We have in place a strong package of measures to help the most vulnerable through the Warm Home discount scheme, which I have mentioned, which will help 2 million households receive support during 2012-13. This will include more than 1 million of the poorest pensioners, who will receive an automatic discount of £130 off their electricity bills by December this year.

[Lord Willoughby de Broke]

My Lords, would not the simple way to reduce consumers’ electricity costs be to stop paying huge subsidies to wind farms? The cost of those subsidies falls directly on to the consumer, particularly, as the noble Lord, Lord Teverson, mentioned, those in fuel poverty.

[Baroness Verma]

My Lords, this country needs a mix of different energy sources. Wind happens to be one of them and is carbon free. However, we recognise that we need to look at all sources and the subsidies we are providing to them, and we have taken it upon ourselves to reduce wind subsidies by 10 per cent.