Oral Answers to Questions

Matthew Pennycook Excerpts

Tuesday 16th June 2020 Commons Chamber

[Kwasi Kwarteng]

I am grateful to my hon. Friend for that question. New nuclear obviously has an important part to play in reducing greenhouse gas emissions. We are investing in new nuclear. On Wylfa, I am afraid, I cannot comment on the merits of the site, given that the Secretary of State is currently considering a development consent application. That said, there are a number of potentially good sites around the entire United Kingdom.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

The COP26 summit, now rescheduled for November 2021, will be a critical moment in a fight against runaway global heating. We all have a stake in ensuring that it is a success. Building momentum for that summit and establishing our credibility as its host is dependent on demonstrable leadership at home. In that regard, does the Minister agree that there is a strong case for publishing our nationally determined contribution before the end of 2020, and an arguable case for basing that NDC on a significantly enhanced 2030 target that puts us on the path to achieving net zero?

[Kwasi Kwarteng]

My right hon. Friend the Secretary of State is, of course, president of the COP26. He is committed to publishing very rigorous and ambitious targets for ourselves. As I responded to my hon. Friend the Member for Ynys Môn (Virginia Crosbie), we are second to none in our commitment—our legislation—in terms of dealing with climate change. We have legislation that is very clear and sets the path.

Net Zero Emissions Target

Matthew Pennycook Excerpts

Wednesday 12th June 2019 Commons Chamber

[Greg Clark]

We have followed the advice of the Committee on Climate Change and our plans for net zero cover the whole economy, including international aviation and shipping. We await the committee’s advice on how to legislate. One opportunity that our hosting the COP would bring forward is the ability to accelerate international agreements. I hope the hon. Gentleman would welcome that.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

I join others in welcoming the legislation, but does the Secretary of State genuinely believe that the machinery of government is currently organised in such a way as to facilitate the type of ambitious policy response that we will need in this Parliament in order for the target to have credibility? He will know that we used to have a clean growth inter-ministerial group, but no such body now exists. Does he agree that, given the scale and pace of the transition required, we will almost certainly need to make changes to the institutional architecture of government to co-ordinate and drive progress across all Departments?

[Greg Clark]

The hon. Gentleman is absolutely right that we should have the best arrangement. In fact, that inter-ministerial group does exist, and my hon. Friend the Minister for Energy and Clean Growth chaired its most recent meeting just last week. The hon. Gentleman should reflect on the creation of my Department, which brought together the responsibilities for business and industry with energy and climate change, because that is a recognition that if we want, as we must, to take action to achieve the targets, we must make sure that the economy is run and companies operate in a way that supports that action. It is a practical example of just the kind of thinking and acting that the hon. Gentleman advocates.

Oral Answers to Questions

Matthew Pennycook Excerpts

Tuesday 11th June 2019 Commons Chamber

[Greg Clark]

My hon. Friend makes an excellent point on behalf of one of the sunnier parts of the country. The public sector energy efficiency loans scheme is open to public bodies so that they are able to invest in just that technology. I will ensure that he has the full details of that scheme, which might also interest the hon. Member for Ynys Môn (Albert Owen), given his question.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

T4. The International Development Secretary recently said that he wants to double the UK’s current £1.1 billion commitment to the UN green climate fund. As the UK is yet to do so, will the Minister who has temporary responsibility for our engagement with the UN climate talks assure us today that it is the Government’s intention to commit additional money to the fund?

[The Minister for Energy and Clean Growth (Chris Skidmore)]

Obviously, any decision on future funds will be made within the spending review, but I can absolutely say that it is vital that we work cross-departmentally to look at how we can harness all the resources of Government towards tackling climate change. The Secretary of State for International Development has made that commitment personally, and I can double down on that commitment to ensure that we tackle climate change in the poorest countries in the world.

Climate Change Policy

Matthew Pennycook Excerpts

Tuesday 23rd April 2019 Commons Chamber

[Claire Perry]

That is an incredibly important point. In fact, we should be really proud of the way we spend funding. We are trying not only to ensure that we fund adaptation and mitigation, but to invest in projects that help other countries leapfrog some of the things we have done—for example, relying on a coal-based energy system. From Brazil, where we are supporting reforestation, to renewables in Africa, our projects are really making a difference. They are providing employment, they are providing skills and they are ensuring that we have that just transition that the hon. Gentleman mentioned.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

I join others in acknowledging the progress made under successive Governments, but the truth is that, unless the status of emissions reduction is raised in this Government, and the UK’s response to climate crisis is driven vigorously from the centre so that all Departments are forced to act, we will continue to fall short. With that in mind, how well prepared does the Minister think the institutions of Government are for the scale and pace of the transition required?

[Claire Perry]

I think that part of the challenge, but also part of the opportunity, is that this has to be a cross-Government process. We simply cannot sit and make policy around transport emissions without thinking about infrastructure. We cannot talk about energy without thinking about planning systems. There is therefore absolutely fundamental cross-Government agreement on this, as well as, hopefully, cross-party agreement. It is telling that, when we agreed to put forward our COP bid, which involves a not insubstantial cost, that was done with complete Cabinet unanimity, because everybody recognises the importance of this issue and how fundamentally every part of our economy has to change.

Climate Action and Extinction Rebellion

Matthew Pennycook Excerpts

Tuesday 23rd April 2019 Commons Chamber

[Claire Perry]

By working together, we can solve the biggest challenge humanity has ever faced. It will be difficult, but it is doable. In doing so, we will create jobs and prosperity for the next generation.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

The Minister will know that over half of the UK’s planned carbon reduction is tied up in some way or another with EU regulations and that EU agencies are key to enforcement. Assuming that the Government’s new office for environmental protection is ever established, will it have a climate change enforcement remit? If not, why not?

Heat Networks: Greenwich and Woolwich

Matthew Pennycook Excerpts

Tuesday 19th February 2019 Westminster Hall

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

I beg to move,

That this House has considered heat networks in Greenwich and Woolwich.

It is a pleasure to serve under your chairmanship, Mr Davies. I am grateful to the Minister for responding to the debate and for previously finding time in her busy diary to discuss the issue with me.

This is not the first time that I have expressed concerns about systemic problems in the UK heat network sector and I suspect it will not be the last. In the comparatively short time that I have been a Member of the House, I have raised the issue on numerous occasions and I have repeatedly made the case for statutory regulation of heat networks, particularly those that supply domestic customers.

For a long time, it felt as if those of us calling for greater protection for heat network customers were making no headway. When asked, former Energy Ministers would nod sympathetically and politely explain that statutory regulation was not appropriate and risked strangling an emerging industry in red tape. When I turned to the Competition and Markets Authority a few years back and made the simple request that it open an area of investigation into the industry, I was told that it had no plans to do so.

Thankfully, the situation has changed. The CMA was persuaded to carry out a detailed market study into heat networks and it published a final report in July that made several sensible recommendations. Ministers have now accepted the need to introduce a regulatory framework for the sector.

Of course, that is welcome, but it provides little comfort to heat network customers who are not getting a fair deal and for whom every month that passes without effective protections being put in place means continued poor service and expensive bills. That should concern us all deeply, and I know it concerns the Minister, not only because of the Government’s avowed aim to keep customer bills as low as possible, but because of the possibility of the widespread loss of consumer confidence in heat networks, which would make it harder for the UK to decarbonise heat and reduce overall greenhouse gas emissions.

As the Minister is aware, if the UK is to meet its future emissions reduction targets, we have to do more to decarbonise heat. The Committee on Climate Change estimates that about 18% of UK heat will need to come from heat networks by 2050 if the UK is to meet those targets cost-effectively. From a consumer protection and an environmental perspective, we cannot allow the benefits of heat networks to be tainted as a result of our failure to address promptly the flaws in the sector before it grows significantly over the next decade.

My purpose in securing the debate is to highlight the impact of the current absence of a regulatory framework on heat network customers in my constituency, to make the case for the urgent introduction of statutory regulation, and to urge the Minister to give some thought to what might be done in the interim to protect the minority of customers at the sharp end of industry practice.

For many customers, heat networks offer an efficient supply of heat and hot water at prices close to or lower than other sources of supply such as gas and electricity, with comparable service standards. It is not in dispute, however, that a significant minority of heat network customers are being badly let down. In London, as the Minister knows, the number of heat networks is growing rapidly, partly because developers are incentivised by London’s planning framework to install onsite systems, and partly because their use makes a huge amount of sense given the density of new build developments in the capital.

In my constituency, every large new build development, of which there are a great many each year, invariably includes a communal gas boiler, a combined heat and power engine, or a biomass boiler. That should be something to celebrate, and it would be, were it not for the fact that many of those networks and their operators are badly failing those who have no choice but to be served by them.

Since my election in 2015, not a month has gone by in which at least one constituent, served by one of the at least 13 communal heating schemes in my constituency, has not written to me with a complaint. Those served by privately operated schemes are at a much greater risk of poorer outcomes in terms of price and service, which, along with other factors that are specific to London or more prevalent there, explains why so many heat network customers in constituencies such as mine are suffering.

I will touch briefly on the three main drivers of the problem. First, while the London planning framework deliberately incentivises the installation of heat networks, more general planning requirements often lead to the installation of poor quality infrastructure or systems that are inherently expensive to operate. The situation is exacerbated by the lack of enforceable technical standards. The result is that communal heating systems are prone to failure and cost consumers more than they should.

Secondly, there is a very real problem with the choice of heat network operators. In my constituency, this issue relates almost exclusively to new build developments, so there is no existing body of residents to put pressure on the building owner to provide a customer-focused heat supply. In the absence of consumer pressure of that kind, the developers, which have no long-term interest in a site, have almost no stake in which operator they award a contract to. If the anecdotes I have heard from those involved in the local property market are to be believed, the selection of an operator is more often than not determined by which commits to giving the developer the largest up-front capital contribution to offset the capital costs incurred in having to install the network.

Even developers that have a long-term interest in the site complain to me that they have a limited choice of who could operate the network. The result is that developers invariably turn to one of the small number of large, established suppliers, or one of the growing number of much smaller, less established operators, both of which can be problematic.

Thirdly, heat networks are natural monopolies. They require a relatively large up-front capital expenditure. When a contract is awarded to an operator, it tends to last for decades. The operators for most of the communal heating systems in my constituency have contracts lasting for more than two decades. Some last for 30 or even 35 years. There are, of course, good suppliers out there, but if the group of customers has no freedom to switch to an alternative heating system until the mid-2030s or even 2040s, there is little or no competitive pressure to offer reasonable prices, a reliable supply and a high quality of service.

In my experience, the result is that the majority of heat network operators are totally unresponsive to their customers. The large operators seem not to care particularly about what amounts to a very small part of their business model, and many of the smaller operators are—to put it bluntly—a law unto themselves, because they do not even have to worry about the reputational impact of providing a poor service.

The combination of those three factors on a significant minority of heat network customers is well documented. A minority of privately owned heat network schemes offer extremely poor value for money. Even allowing for the fact that heat charges cannot be directly compared with standard gas and electricity prices, the tariffs levied on some of those customers cannot be justified. Moreover, unit prices and average bills vary significantly between schemes. I have seen evidence of discrepancies in charging between customers on the same scheme and in the same development, and significant month-by-month variation for individual customers when it comes to standing charges, which are supposed to be set annually.

There is a lack of transparency in billing for many heat network customers. Over the years, I have been sent many examples, and the vast majority of the bills are barely penetrable. Is it any wonder that most customers do not feel able to challenge their supplier on cost, prices and services? I suspect that a number of heat network operators prefer it that way, because it reduces the pressure on them to provide reliable, value-for-money heat.

Those problems are exacerbated by the fact that heat network customers do not have the same regulated consumer protections as domestic gas and electricity customers. It is true that some communal heating schemes are registered with the Heat Trust, but there is no requirement for individual heat network operators to register themselves with the trust or to register all their schemes. As a result, the Heat Trust provides only limited protection to consumers, and operators can pick and choose which of their heat network schemes they wish to be held accountable for and which they do not.

To illustrate what that perfect storm means for individual customers served by privately operated schemes in London, let me take a concrete example from my constituency. There are many that I could choose from, from the E.ON-run scheme at New Capital quay in Greenwich to the Evinox-run scheme at Wick tower in Woolwich. I will focus on the most recent case that has been brought to my attention: a scheme operated by a company called Vital Energi in a development called the Movement in central Greenwich.

The 530-unit development was constructed in 2015, and after—one hopes—an open, competitive tendering process, the operator was awarded a decades-long contract to operate the onsite communal heating system. Residents of Bellville house, the main block on the development, recently wrote to me en masse with a series of complaints relating to heat and hot water outages, a lack of transparency in billing, misinformation from their supplier and dire customer service. All those areas of concern are echoed in the findings of the CMA’s final report. However, their main grievance was the price hike that Vital Energi landed them with on 1 October last year. Not only did the operator increase the standing charge and what is itemised in the bills as “Separate capital replacement 1” and “capital replacement 2” charges—whatever that might mean—but the unit charge was increased by a staggering 96%.

As the Member of Parliament, I have no way of ascertaining whether the operator had valid grounds for that price hike, or whether Vital Energi simply priced in an exorbitant profit. The problem, however, is that residents of Bellville house and the rest of the development cannot submit a complaint to the ombudsman for it to adjudicate on the matter because Vital Energi has chosen not to register the scheme with the Heat Trust. Vital Energi has registered a scheme in Bristol, but for some reason has chosen not to cover the scheme on the Movement development, so residents have no protection other than the limited protection afforded to them by the Heat Network (Metering and Billing) Regulations 2014 and general consumer protection and competition law.

The hundreds of residents on that one Greenwich development are not alone; thousands of heat network customers in my constituency face similar problems and are not getting a fair deal, undoubtedly with tens of thousands more across the country. Their ranks swell with every high-density new build development constructed in my constituency, across London and in other parts of the country in urban areas.

I would be grateful if the Minister addressed two specific questions in her response. First, how long will it be before heat networks are regulated? The Department welcomed the recommendations in the CMA’s final report and made it clear that it intends to consult on more detailed policy proposals later this year, with any subsequent legislation to follow as parliamentary time allows. I appreciate that policy needs careful preparation and that any legislation required cannot be rushed, but any heat network customers watching our proceedings today will be forgiven for worrying that they will still be without effective protection for years to come. I know that the Minister will do everything she can within Government to address their concerns, but will she provide more detail with regard to the outlines of the regulatory framework that the Department believes is necessary and, more importantly, the estimated timeline for implementation?

Secondly, what, if anything, can be done in the short term, before a new regulatory framework is established, to give heat network customers greater protection? For example, will the Department do more to persuade and, if need be, cajole suppliers and operators to ensure that all of their heat networks are registered with the Heat Trust? Will Ministers write to operators such as Vital Energi to make it clear that they are expected to register each of their schemes with the trust? Such a step would not be a panacea, but it would at least ensure that all customers received minimum service standards and had access, if they felt it necessary, to the energy ombudsman. Will the Minister touch on that and on what steps might be taken to protect customers in the here and now, before the introduction of a regulatory framework?

The Minister knows what the problem is, she knows what needs to change and I know that she is doing her best to push the process along, but I urge her to redouble her efforts. Heat network customers are not getting a fair deal now, and are being ripped off in many cases. They are not being well served and cannot wait another year, or possibly two years, for those protections to be introduced.

Heat Networks Regulation

Matthew Pennycook Excerpts

Wednesday 28th November 2018 Westminster Hall

[Janet Daby (Lewisham East) (Lab)]

I beg to move,

That this House has considered regulation of heat networks.

It is a pleasure to serve under your chairmanship, Mr Pritchard. I am pleased to have secured a debate on this issue, which is of great importance to residents of Catford Green in my constituency, as well as those living at three other sites in Lewisham borough and dozens of others across London, the south-east and the south-west.

District heating networks power entire estates by sending hot water and steam via insulated pipes from a central generator, instead of a boiler being installed in each home. There are around 14,000 heat networks in the UK, serving an estimated 450,000 customers and providing around 2% of heat demand in UK buildings. Types of heat network vary widely, from local authority and other not-for-profit schemes to private networks. Their use is increasing more rapidly in London, where developments are required to be carbon neutral.

Such systems, which are often fuelled by natural gas or biomass, could provide part of the answer to a lower carbon domestic energy mix, for which we should continue to strive. However, their potential benefits are completely undermined by fundamental consumer rights issues. Unlike other domestic energy services, these systems are not regulated. As a result, residents pay over the odds for their energy, have few ways to track or control their usage and no opportunity to switch to a cheaper tariff or provider. I am here to address that problem on behalf of my constituents. Regulation for district heating systems must be brought into line with electricity and gas to provide residents with adequate protection.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

I congratulate my hon. Friend on securing this important debate. Like her, I have thousands of constituents locked into those schemes who are paying over the odds and have no means of effective redress. The Competition and Markets Authority recommended in its report in July that the Government regulate this sector by statutory regulation, as my hon. Friend suggests. Does she agree that the Government must act to legislate for that statutory regulation, rather than allow months or even years to roll on while customers are not handed a fair deal?

[Janet Daby]

I agree that the Government need to readdress this issue and make regulations—I will speak about that later.

I was elected to the House in June. One of my first pieces of casework was from a resident representing a group of public and private tenants in a relatively new block of flats that is served by a district heating network. The tenants’ main concern was the unsustainably high cost and wild unpredictability of the bills they received. I understand that those are often up to triple the average.

One constituent told me:

“My hot water bill for July 2018 was £97.07—and this is just hot water”.

He wrote that his bills

“range from £29 to £97 each month. I haven’t used the heating since the spring, as I live on my own and I use hot water sparingly.”

The amount he describes having to pay is very high, given his needs. Because of the communal nature of the supply, there is no real way for residents to monitor their usage, which means they often receive unexpectedly large bills.

People who live in buildings with district heating systems tend to be locked into long contracts with their suppliers. The term of my constituents’ contract is 25 years, following which it will be retendered. Those customers do not enjoy the same benefits as gas and electricity customers, for whom it is now easier to switch supplier to find the best deal. With no motivation for suppliers to compete, the monopoly becomes further entrenched, and it is residents who lose out.

There appears to be a lack of transparency and information about district heating systems. My constituents contend that they were not explicitly made aware until the day they moved in that their building was heated by such a system. They kindly provided me with a copy of their lease. Although numerous clauses provide legal support for the implementation of the system, at no point has there been a sufficient attempt to clarify what it actually is, how their homes are heated or the terms to which they are subject. The housing developer contends that it made efforts to tell residents as they moved in, but it seems to me that a more substantive intervention needs to be made, earlier and in good faith. At the very least, there was an omission, which needs to be corrected immediately; at most, there was a deliberate attempt to obfuscate. Of course, aligning the regulations with those for gas and electricity would resolve the problem.

Following pressure from consumer groups, the Heat Trust was set up in 2015. It remains the closest thing to a regulator the sector has. It aims to support common standards for the quality and customer service that heat suppliers provide their customers, and it gives customers access to the energy ombudsman for complaints. However, a closer look reveals a different picture. Membership of the Heat Trust is completely voluntary, meaning schemes that do not want to join are under no obligation to do so. Although the trust is managed by a not-for-profit organisation, its board is made up almost entirely of developers, suppliers and supporting services. There is no clear consumer representation. It appears that the Heat Trust is not fit for purpose. If the Government continue to rely on it, they will allow a system that systematically disadvantages residents to develop unchecked.

My constituent put it best when he described the “hidden” but very real consequences of the district heating monopoly on residents. For those lucky enough to own their home and have a good job, it is a significant financial inconvenience and may be a hindrance when they come to sell their home. However, for social housing tenants who receive universal credit, people holding down several part-time jobs or those who just run a tight household budget, it poses a much more fundamental problem, which threatens to destabilise lives. Such a monopoly, with its punitive impact on residents, represents the sort of injustice I thought we had done away with years ago.

That lack of fairness was recognised by the Competition and Markets Authority, which published a report on the industry in July. My hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook), who has eight of these systems in his constituency, had called for that, and I am grateful for his support. Among other things, the CMA recommended that the Government should introduce consumer protection for all heat network customers so they get the same protection as customers in the gas and electricity sectors; address low transparency so customers know they are on a heat network and there are clear agreements or contracts between customers and heat network operators; ensure that customers are aware what they are paying for, which is often unclear; and protect customers from poorly designed, built and operated heat networks by preventing developers from using cheaper options, which end up being paid for by the customer over the long term, to meet planning regulations.

I understand that the Minister and his Department are developing a heat networks market framework, which will form the Government’s response to the CMA review. I see no reason why the Government should continue to allow an industry that they hope will grow and support our green ambitions to develop with built-in disadvantages for consumers, and I see no reason why a double standard should continue to exist between residents using district heating systems and those who heat their homes with electricity and gas. I urge the Minister to adopt the recommendations in the CMA report, regulate these systems properly, require a culture of transparency, and give consumers the protections that have long been standard for other domestic heating fuels. Only then will we realise the full benefits that these systems can provide.

--- Later in debate ---

[Richard Harrington]

I thank my hon. Friend for his intervention. I agree with him. It seems to me that legislation is exactly what is needed. In my three years as a Minister, I have learned that it is easy to talk about legislation, but it is all in the detail. We have to make sure that it does exactly what my hon. Friend the Member for Central Suffolk and North Ipswich (Dr Poulter) mentioned, which is to protect consumers, but at the same time provide a basis for the industry to expand. As I said, for decarbonisation and for many things, the structure can be a really good one for consumers.

[Matthew Pennycook]

I agree with the Minister. At the moment, technology and confidence in it is being put at risk by the fact that consumers on many schemes—not all—are not getting a good deal. Would the Minister give us a sense of the timeline that the Department is thinking about for legislation and providing that extra protection? I have been campaigning for more than three years, ever since I was elected, and my constituents are not willing to wait another year or two years until that protection is brought in.

[Richard Harrington]

I fully accept the hon. Gentleman’s point. I wish I could wave a magic wand and say that it is going to be done the week after next. It is in the pipeline; I can assure him of that. It would be wrong of us to jump into something without giving it considerable thought. I fully accept his frustration and that of his constituents, and that is paramount. To him and the hon. Member for Lewisham East, that may sound like I am waffling and prevaricating, but it is just how it is. I would be very happy to meet them in the early part of next year to discuss progress, if that would help. The Department is not putting this on the back burner or anything like that. I give them that undertaking.

I believe that heat networks, if done properly, represent a significant opportunity to upgrade part of the whole UK energy infrastructure and seize the opportunity for British business that the technology presents. Heat accounts for about a third of UK carbon emissions. We have to cut our emissions to meet our carbon reduction targets. Heat and heat networks can play a critical role in this. We have made considerable progress generally through renewable heat incentives and energy company obligations, which have provided an incentive for heat networks to install lower carbon heat sources. The investment of £320 million in heat network projects, which is a mixture of grants and loans, is to be encouraged. Again, we have to ensure that where the Government are providing that support, adequate consumer protection measures are in place by requiring projects to demonstrate Heat Trust or equivalent standards when operational.

There are many heat network suppliers that provide strong consumer protections, such as Energetik, established by Enfield Council to provide better value, reliable and environmentally-friendly energy. I hope that the service charter that Energetik provides to its customers sets out clearly the minimum standards of service they can expect, what measures they provide to those vulnerable customers needing extra help and how they can be contacted should something go wrong.

We have worked closely with industry and consumer groups to support, through funding and guidance, the development of the UK-wide Heat Trust scheme, which is an independent consumer protection scheme designed specifically for customers. It draws on the terms of service offered to gas and electricity consumers. That said, I reiterate the comments made by the hon. Member for Greenwich and Woolwich. I agree with him that it is a voluntary scheme and does not protect all customers. I accept the assertion made by the hon. Member for Lewisham East that it does not protect all consumers, which I am sure is correct. However, I do not think it is all bad; I think it has been an improvement as well.

Where sites are registered with the Heat Trust, such as the Catford Green development in the constituency of the hon. Member for Lewisham East, they are not offered protections on pricing and contracts. Although we can learn some things from the work of the Heat Trust, that does not remove the need for further action. That is particularly the case as heat networks often operate as natural monopolies and customers can be contracted for very lengthy periods of up to 25 years, as the hon. Lady said. We want to ensure that heat network consumers are able to make informed choices about whether a property on a heat network is right for them, and to feel confident that if issues relating to their heating systems arise, they have recourse and there is a way to redress them.

The role of Government is to ensure that we are providing clean and secure energy at an affordable price to the consumer. We need a long-term market framework that places consumers at its heart, that still delivers sustained investment in the sector and maximises the potential economic and environmental benefits of heat networks. I hope that I have outlined a number of measures that the Government have already put in place and I hope that industry, consumer groups and all interested stakeholders will work closely with us as we develop our plans for further interventions.

Question put and agreed to.

Oral Answers to Questions

Matthew Pennycook Excerpts

Tuesday 1st May 2018 Commons Chamber

[Andrew Griffiths]

The hon. Gentleman makes a very valid point. We want the prompt payment code to be fit for purpose and for it to do what it says on the tin. That is why I am in discussions on the prompt payment code and why the Chancellor said in the spring statement that we would consult on late payments. He wanted to end the scourge of late payments, because this is so important for small businesses up and down the country.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

15. What recent assessment he has made of the potential merits of statutory regulation of the district heating sector.

[The Minister for Energy and Clean Growth (Claire Perry)]

A formal assessment has not yet been made, but the hon. Gentleman and I have exchanged correspondence on this important issue. It is vital that we create a market framework that works to deliver the benefits of energy cost reduction and carbon reduction from these networks but that protects consumers. I know he has a passionate interest in this, given the eight networks already operating in his constituency.

[Matthew Pennycook]

Not a month goes by in which I do not receive scores of emails from desperate constituents who are paying over the odds and are ill served by district heating networks. They are not getting a fair deal and cannot afford to wait for the Competition and Markets Authority’s partial market study to report. For their sake, I urge the Minister to give serious consideration to introducing statutory regulation now. Will she meet me to discuss the issue?

[Claire Perry]

I am always happy to meet the hon. Gentleman, as he knows. It is interesting, because on average consumers are paying less and have the same level of satisfaction as they have with other heating options. Well designed and well regulated frameworks can really deliver a benefit for consumers, which is why we are investing more than £300 million, but the hon. Gentleman and I should get together to discuss his constituents’ particular concerns.

Clean Growth Strategy

Matthew Pennycook Excerpts

Thursday 12th October 2017 Commons Chamber

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

If we had succinct questions, we might get succinct answers. “No” would have been helpful.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

The strategy rightly supports the continuing roll-out of district heating across the country. May I impress on the Minister the real risk that the environmental benefits of the technology will be overshadowed by systemic problems in the industry? There are scores of such schemes in my constituency and many more in the pipeline. In each and every case, constituents are convinced that they are not getting a fair deal on tariff pricing, standing charges, transparency on consumption and billing, and system performance. The situation cries out for effective statutory regulation. As the Minister takes the strategy forward, will she bear that issue in mind, so that we can win the confidence of consumers as the industry expands?

[Claire Perry]

Most certainly.

Fuel Poverty

Matthew Pennycook Excerpts

Tuesday 21st March 2017 Commons Chamber

[Mr Hurd]

I listened very carefully to the hon. Lady, but the bottom line is that this is a devolved matter. I am more than happy to discuss the fuel poverty strategy with counterparts in Northern Ireland, but it is categorically a devolved matter.

I was talking about partnerships, and I am glad that the House has filled up a little—when we started it was a little bare—because I am looking forward to hearing from hon. Members about their experience of what is happening with partnerships in their constituencies, including what is and is not working, and more widely about what is going on in their constituencies to help bring about change to support households that need support.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

The Minister is talking about partnership at the local level. A huge variety of organisations in Greenwich and Woolwich are working on this very issue, not least South East London Community Energy. Is the Department giving any thought to how such organisations can link up with local authorities to avoid the fragmentation that can exist at the local level, and ensure they work in partnership to target people who need their help the most?

[Mr Hurd]

I am very sincere in what I say about partnerships—when I was the Minister for Civil Society, it was absolutely core to our approach—so we are very keen to get good information about what is working and what is not working with partnerships, because they are easy to talk about, but they are actually quite hard to implement in practice. We are doing some work with local authorities, but the hon. Gentleman has made an important point about the sharing of knowledge and information so that we can get a better understanding of what works. Some of this stuff is quite complex in relation to breaking down the social barriers to people accepting help when it is offered.