Thursday Volume 589 18 December 2014 No. 83 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Thursday 18 December 2014 £5·00 © Parliamentary Copyright House of Commons 2014 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 1533 18 DECEMBER 2014 1534 link with heating oil? We should be focusing on driving House of Commons down the cost of home-grown energy, particularly clean energy. Thursday 18 December 2014 Amber Rudd: As always, my right hon. Friend makes an important point. Renewable electricity is essential, The House met at half-past Nine o’clock and I hope his Christmas tree lights burn even brighter this year, because 15% of that will indeed be from renewable energy, which is twice as much as under the PRAYERS last Government. [MR SPEAKER in the Chair] Dr Alan Whitehead (Southampton, Test) (Lab): At a recent conference, a Treasury official, when asked about the levy control framework, said: “A priority for the next Government is to review what should Oral Answers to Questions happen after 2021.” He also said that he would hope to get clarity early in the next Parliament about what should happen, rather towards the end of it, and that: ENERGY AND CLIMATE CHANGE “We shouldn’t sprint towards a cliff edge.” Is that the Minister’s position on the levy control framework, The Secretary of State was asked— or is she sitting there doing nothing about it? UK Energy Sources (Subsidy) Amber Rudd: The hon. Gentleman will be aware that those decisions are largely for the next Government. 1. Douglas Carswell (Clacton) (UKIP): What steps However, the levy control framework is an important his Department plans to take to reduce the overall part of controlling our expenditure. It is a classic example subsidy to UK energy sources. [906708] of the competence under this Government, as opposed to the chaos under the last, who had no levy control The Parliamentary Under-Secretary of State for Energy framework at all. and Climate Change (Amber Rudd): The Government recognise the hon. Gentlemen’s point regarding the Kerry McCarthy (Bristol East) (Lab): The Prime impact on taxpayers and consumers of Government Minister said at the Liaison Committee this week that support for renewable and low-carbon energy. However, his party would scrap subsidies for onshore wind after Government policies are also aimed at reducing bills. 2015 and he did not expect any more to be erected Without Government policies, particularly on energy without subsidy, but onshore wind is one of the cheapest efficiency, bills would overall be on average around forms of green energy. Does the Minister not agree that £90 higher this year. an essential part of trying to reduce energy bills is having onshore wind as part of the mix? Douglas Carswell: Yesterday the Prime Minister confirmed that he is happy to see the levy control Amber Rudd: Onshore wind has been an important framework increase to £371 per year per household by part of the mix and, of course, we have more onshore 2020. At a time of falling oil prices and at a time when wind in this country than in the rest of the world, so I the shale gas revolution holds out the tantalising prospect think that it may be time for us to spend our scarce of cheap energy, is not the Department carrying on resources on other types of renewables to ensure the subsidising windmills unnecessarily, and are we not best return for taxpayers. making policy on the basis of outdated assumptions that need to revised? Caroline Flint (Don Valley) (Lab): One of the technologies we provide support to is carbon capture and storage. Is Amber Rudd: We recognise the importance of keeping the Minister aware that UKIP is opposed to carbon bills down for consumers, particularly when times are capture and storage? It has described it as “expensive, difficult, but this Government’s initiatives are to help difficult and pointless”. Does she agree with me that reduce bills and our support for renewables is UKIP’s policy would mean that there is no long-term unquestionable. We feel it is essential to have some future at all for any of Britain’s coal mines or coal-fired subsidy to get renewables going. I note that the hon. power stations? Gentleman is a big supporter of solar. Those costs have come down and our support has consequently come Amber Rudd: I share the right hon. Lady’s views on down. We expect it to reach grid parity by 2020. We are this. Carbon capture and storage is indeed an important optimistic that wind farms are also beginning to come part of our energy mix and an important part of down in cost, and we have seen a 10% reduction in the supporting all energy sources in this country. support for them very recently. Gregory Barker (Bexhill and Battle) (Con): Does my Energy Bills hon. Friend agree that linking oil prices to energy, and particularly heating bills, is nonsense given that we do 2. Mr Alan Reid (Argyll and Bute) (LD): What recent not have any oil generation to speak of that generates steps he has taken to help households with energy bills. electricity here in the UK—there is only maybe a tenuous [906709] 1535 Oral Answers18 DECEMBER 2014 Oral Answers 1536 6. Nia Griffith (Llanelli) (Lab): What steps he is authorities. That is a policy that the last Government—and taking to help households with energy bills. [906716] the present Leader of the Opposition when he was doing my job—failed to pursue. 9. Andy Sawford (Corby) (Lab/Co-op): What steps he is taking to help households with energy bills. [906719] Andy Sawford: Does the Secretary of State share my concern about the annual fuel poverty statistics report, 14. Kate Green (Stretford and Urmston) (Lab): What which shows that the fuel poverty gap—the difference steps he is taking to help households with energy bills. between people’s bills and what they can afford—has [906724] grown to £480 in 2014? That is a shockingly worrying statistic, and the real story behind it is being told in the 15. Grahame M. Morris (Easington) (Lab): What homes in our communities. Does he agree that it is now steps he is taking to help households with energy bills. time to back Labour’s energy market reforms? [906725] Mr Davey: Fuel poverty needs to be tackled thoroughly, The Secretary of State for Energy and Climate Change which is why we are bringing forward ambitious fuel (Mr Edward Davey): Mr Speaker, with permission I will poverty targets and a new fuel poverty strategy.Opposition answer this question with questions 3, 7, 10, 15 and 16. Members should note that fuel poverty has actually There are three main ways in which we help people fallen under this Government, whereas it rose under the with their energy bills: first, with money, to help vulnerable last Government. That suggests that we should not be customers with their energy bills with policies like the taking advice on energy policy from the Labour party. winter fuel payment, the warm home discount and cold weather payments; secondly, by helping people save Kate Green: Households with a disabled member energy and so cut their bills with policies like energy have high fuel poverty levels, but working-age disabled efficiency, product regulations, the energy company people are not always able to access warm home discount obligation and the green deal; and, thirdly, by making schemes. In bringing forward a fuel poverty strategy, our energy markets more competitive, where our reforms what will the Secretary of State do to ensure that that have seen the market share of smaller independent vulnerable group is protected? companies grow from less than 1% in 2010 to 10% today, enabling people to save hundreds of pounds on Mr Davey: We have a whole panoply of measures to their bills by switching supplier. help vulnerable people, as I set out in my original answer. Some of the wider policies that we are Mr Reid rose— implementing, particularly those relating to competition, are helping people across the board. We are in discussions Mr Speaker: Order. The Secretary of State may have with other Government Departments, particularly the been reading from an old list. It is important to have an Department for Work and Pensions, in relation to the updated list, and he ought to be able to look to people point that the hon. Lady has raised. to provide him with an updated list. This is very unsatisfactory. The grouping is with 6, 9, 14 and 15. We really must get these things right. Grahame M. Morris: It is not just heating oil prices that have fallen. Wholesale gas and electricity prices Mr Reid: The price of oil has been coming down have fallen significantly in the past year, yet consumers quite dramatically in recent weeks. This opens up the have seen little reduction in their bills. Does the Secretary prospect of lower prices, particularly for people who of State now regret voting against Labour’s motion on live off the gas grid. What is he doing to ensure that 18 June, which would have given powers to the regulator companies selling to those consumers bring their prices to ensure that when wholesale costs fell, the reductions down to help them with their heating bills this winter? were passed on to the consumer? Mr Davey: First, Mr Speaker, I apologise for not Mr Davey: It is interesting to look at the history of getting the list of questions right.