(10 years, 8 months ago)
Commons ChamberI certainly intend to do that, but I think the hon. Gentleman is being a little unfair. I have already mentioned the most important point of the speech, which is that we have asked Ofgem to consider the matter raised by my hon. Friends the Members for Harlow and for Chatham and Aylesford, and Members across the House, as part of the new competition test that was brought forward by the Prime Minister towards the end of last year. That will have real teeth and will report within a matter of months, if not weeks. We expect that in the near future, and Ofgem will be tasked to do it.
I am grateful to my hon. Friend the Member for Harlow (Robert Halfon) for securing this debate. I agree with the Minister that it is welcome that Ofgem will look into this matter and at competition, but Government policy is clearly to encourage switching. Will he address the point raised by the hon. Member for Liverpool, West Derby (Stephen Twigg) about energy companies charging people who want to move from a prepayment meter to a more ordinary tariff, and the outrageous variation in costs that can involve? One of my constituents was quoted between zero and £200 to have a prepayment meter removed. Does that not show that the system is not functioning properly as a competitive market, which is something Ofgem ought to investigate?
My hon. Friend is right and it is to his credit that he raises an issue that invariably afflicts the poorest and most vulnerable customers. In most cases, however, those on a prepayment meter can switch to a supplier that will not charge them for coming off it. Even if they are on a prepayment meter, they can still switch supplier.
It is important that we do not become carried away with the idea that the only response to getting a better deal for consumers is for Government to intervene with a one-size-fits-all solution. We saw what the result of over-regulation was under 13 years of Labour. Ham-fisted over-regulation does not actually benefit the consumer—it created the big six. We saw real choice for the consumer collapse under the previous Government through ham-fisted inappropriate regulation. The real interests of consumers will be served by a renaissance in competition. Relighting the fires of competition under this market will create real competition between energy companies.
I am glad to tell the House that since the coalition came to power we have seen movement back the other way, correcting the downward slide towards an oligopoly that we saw under the previous Labour Government. We are seeing new entrants to the market and unprecedented switching. In the last two months of 2013, an unprecedented number of customers switched their suppliers, hitting the companies that penalise customers where it hurts. People voted with their wallets and moved to get a better deal. This Government stand for empowered consumers—not just a lucky few, but everyone. We do not want a return to a nationalised industry; we want fair regulation for a fair energy sector.
(10 years, 11 months ago)
Commons ChamberT4. A great deal of information is available to help our constituents save money on their energy bills by switching, fixing or insulating their homes, but it can be a challenge to ensure that the right information reaches those who need it most. Will the Minister commend local business Worcester Bosch for sponsoring a free information pack for my constituents in Worcester?
I certainly commend not only Worcester Bosch but the work my hon. Friend does in his constituency with the public and the fuel-poor, and particularly in getting that information to them. Last month, my right hon. Friend the Secretary of State wrote to all Members of the House and asked them to share with their constituents a guide developed by our Department, in conjunction with charities such as Age UK and National Energy Action, which explains how householders can cut their energy bills and where they can go for help this winter. There is help on offer.
(11 years, 7 months ago)
Commons Chamber8. What recent progress he has made on the roll-out of the green deal.
The green deal went live, on time, on Monday 28 January. The Government’s “Green Deal With It” communications campaign was launched the same day. By the end of February, according to the official statistics, 1,803 assessments had been carried out.
I am grateful to the Minister for that answer. Major employers in Worcester, such as Wolseley, npower and Worcester Bosch, are looking forward to participating in the green deal, but the latter warned that for the programme to reach its full potential more ordinary installers need to be given the chance to sell it. What steps are the Government taking to reach out to installers and ensure that they have a chance to play a part in rolling out the green deal?
A whole range of installers will be absolutely vital, and I was delighted to see that Wolseley has said that it is seeing strong demand not only for its products, but for adviser training, as it is a trainer. For small and medium-sized enterprises, we are waiving all fees and oversight costs for the first two years. We are hosting a range of networking events with the Federation of Small Businesses, the British Chambers of Commerce and the CBI, and we are co-hosting eco roadshows with Energy UK. We are also committing money to training assessors and installers, and there is more to come.
(12 years, 8 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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The proposal we have presented today means that we are indeed putting solar energy on a sustainable footing. What we are not going to do is give up trying to save the consumer £1.5 billion, which is what it would cost if our appeal to the Supreme Court did not succeed. We think that it is right to stand up for hard-pressed consumers, and we do not think it is right to over-inflate rewards for the few people who receive unnecessarily high rewards of 43p.
Green technology leaders such as Worcester Bosch in my constituency will welcome the increased transparency and certainty and the increase in eligibility, but they will particularly welcome the increase in support for combined heat and power. Does the Minister agree that given the continuing prevalence of gas central heating in this country, CHP is a key technology in encouraging microgeneration, and will he do everything in his power to support it?
Absolutely. We are very pleased that as a result of our reforms we shall be able to increase the tariff for micro CHP. So far there has been relatively little deployment of such exciting technologies, but I hope that the industry will now grasp the opportunity with both hands and that we shall see a greatly increased uptake.
6. What assessment he has made of the likely effect on investment in green jobs and technologies of the green deal and renewable heat incentive schemes.
We estimate that the green deal could drive up to £20 billion of investment by 2020 and support more than 125,000 jobs across the supply chain. In addition, by 2020 the renewable heat incentive scheme should lead to up to £7.5 billion of new capital investment in heat technologies and potentially support 150,000 manufacturing, supply chain and installer jobs, not least in Worcester Bosch in my hon. Friend’s constituency.
Following the welcome decision of the regional growth fund to approve investments of almost £18 million in the Worcester technology park project, the one remaining hurdle for the creation of thousands of new green jobs in Worcester is the approval of the board of Bosch. What message would the Minister send to that board and to other overseas investors about Britain’s commitment to green growth and jobs?
My hon. Friend is a real champion of green growth, and I can tell him unequivocally that, although we have set an ambitious carbon budget, under this coalition decarbonisation must not mean deindustrialisation—far from it. We are committed to creating a framework for more advanced manufacturing jobs to power green growth and to make Britain once again a workshop of the world.
(13 years, 7 months ago)
Commons ChamberI assure the hon. Gentleman that the domestic launch is not being delayed at all. The only difference is that at the same time as we launch the industrial scheme this year, we will launch the renewable heat premium. The premium will reach more consumers in the first year than the ordinary tariff under the original model was anticipated to reach. I assure him that the premium will add to the scheme, not detract from it.
T6. Recent announcements, including that on the premium, have been welcomed warmly by Worcester, Bosch Group, which employs more than 1,000 people in Worcester. It wants the domestic roll-out of the scheme to succeed, and feels that the key to that is winning over installers. Will the Minister update the House on his plans to engage with installers, and will he visit the training centre with me, where more than 10,000 installers are trained each year?
My hon. Friend is absolutely right that installation is key, particularly for such new, innovative technologies, which are not all as tried and tested as we would like. We are working closely with installers. My officials meet regularly with firms and liaise closely with the industry. I would be delighted to accept my hon. Friend’s invitation and see it for myself.