Mike Crockart
Main Page: Mike Crockart (Liberal Democrat - Edinburgh West)(11 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mike Crockart
I am merely astounded by the nationalists’ interest in the renewables obligation for 2017, given that they hope that Scotland will be independent by that point.
Mr Davey
My hon. Friend makes a very good point. Perhaps the nationalists have given up before the referendum has even started.
It has been pointed out to me that my constituency neighbour and good friend, the hon. Member for Richmond Park (Zac Goldsmith), wishes to intervene, and, given his knowledge on this subject, I would like to take his intervention.
Mike Crockart (Edinburgh West) (LD)
It would be difficult enough to cover this matter in six minutes, Mr Deputy Speaker, but in five minutes it is virtually impossible. I will canter through my speech as quickly as I can.
The Energy Bill represents the most complete and complex reform of the energy market to date, reflecting the Government’s ambition to be at the forefront of a green revolution. It sets out a series of steps that will change our energy footprint and our energy future, shaping our energy sources for the foreseeable future.
I never miss an opportunity to mention the green investment bank, and this is one such opportunity. The green investment bank, which opened for business last week, is leading the way in establishing the UK as a leader in low-carbon technologies and positioning us as a nation with a modern, energy-efficient economy capable of attracting investment and creating jobs while reducing emissions and bringing down energy bills. Those are fundamental changes to the way our economy is driven, but we also need to drive a change in the way people view energy and use it.
Energy saving is the quickest and cheapest way to cut carbon emissions and so should be at the heart of electricity market reform. To quote the Energy and Climate Change Committee’s report:
“Demand-side measures… are potentially the cheapest methods of decarbonising our electricity system… reducing overall demand”.
I welcome the Government’s move to consult on measures to reduce demand for electricity but urge that we clarify our ambition in that area, because without a clear target we are immediately on the back foot.
In business it is often said that what gets measured is what gets done. The Government’s analysis shows that demand for electricity could be cut by 40% by 2030, but the current policies will achieve only 15% of that demand reduction potential, and that is based on DECC official figures. The figures also show that, at 119 TWh, the residential sector made the largest contribution to the UK’s overall electricity demand of 328 TWh in 2010, so it is essential that we work with energy providers to maximise the potential for residential demand reduction.
The green deal is a step, or rather a leap, in the right direction. Allowing homeowners and businesses to pay for energy efficiency improvements over time through their electricity bills should see a greater take-up of efficiency measures. I hope that we will soon hear an announcement about green investment bank funds being available to finance the green deal.
As was acknowledged in a written ministerial statement today, smart meters are the best tool we have in energy reduction. They have the potential to give customers accurate, real-time information about how much energy they are using and how much it costs. In my constituency, British Gas has already installed 837 smart meters. With the average home saving 5% through the use of a smart meter, that is a potential saving of £54,405 in one constituency alone. It is essential that smart meters have the capacity for real-time management as well as the ability to record the energy that is fed back into the distribution network from co-generation sources, such as wind turbines and solar panels.
Small businesses could also benefit from that. However, the Federation of Small Businesses has raised concerns that under current proposals small businesses could face paying their energy supplier to access their energy consumption data. As the helpful FSB briefing paper states:
“This will seriously undermine the credibility of the programme as well as limiting its potential economic and environmental benefits.”
I agree. If we add to that the sharp practices of some energy companies in relation to the renewal of small business contracts, it could act as a significant brake on progress in that area.
Measures announced by the Government to ensure that consumers get the best deals on their energy prices reflect our determination to tackle rising energy bills, and I am pleased that we have taken action to help people with the cost of heating their homes. Which? has stated that 82% of consumers list the cost of energy and fuel as a top financial concern. The major way to deal with that, of course, is to open the energy market to more independent providers. At present, it is difficult for small players to enter the sector, so I hope that measures in the Bill will help deal with that.
We have a unique opportunity to reform our energy market and state our ambition, but setting a decarbonisation target is as much about stating our ambition for a green future as it is about delivering the kind of certainty that industry requires. Although targets already exist under different legislation, they are economy-wide. I believe that it would be beneficial to set sector-specific reduction targets, and not just in the energy sector, but in aviation and shipping. I am disappointed that today’s ministerial statement failed to do that and has moved the decision to 2016.
The Bill is a once-in-a-generation opportunity to decarbonise and ensure a more competitive green sector in the future. I hope that the points I have raised today will prove helpful in raising areas in which an already very strong Bill can be improved further.