Fuel Poverty (Rural Britain) - 7th July 2010

Here are the climate-related sections of speeches by MPs during the Commons debate Fuel Poverty (Rural Britain).

Full text: https://hansard.parliament.uk/Commons/2010-07-07/debates/10070753000001/FuelPovertyRuralBritain

Dr Coffey

My hon. Friend is right. The issue is particularly prevalent in rural areas, where prices have meant that less work can be done with the available grant. One of my constituents suggested that I promote a private Member’s Bill on making sustainable energy more local, and I hope that the Government will address that point by absorbing elements of that idea in their thinking on any future schemes.

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Albert Owen (Ynys Môn) (Lab)

I congratulate the hon. Member for Suffolk Coastal (Dr Coffey) on initiating this very important debate. It is also timely, given the election of a new Government. I have already been in correspondence with the Department of Energy and Climate Change and I shall come to that in a moment.

In the very helpful reply that I received from the Minister of State, Department of Energy and Climate Change, the hon. Member for Wealden (Charles Hendry), he said that he recognised that more needed to be done. One option that he came up with was a further roll-out of energy efficiency measures. I disagree with the hon. Member for West Aberdeenshire and Kincardine (Sir Robert Smith), who said that we have been concentrating just on price. Huge amounts of money have been invested in energy efficiency measures. In my constituency, most of the houses have been done, and to a very high standard, but the price is the issue.

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Albert Owen

I am asking for a breakdown from suppliers to show exactly the amount of bulk gas that they get at wholesale prices and what they pay for it. Some of the electricity companies, and the companies that supply gas and electricity, are now more open and transparent, and they are gaining from that—greater transparency is in the interests of the suppliers, as well as the consumer. The Committee of Selection is meeting today, and as a member of the new Select Committee on Energy and Climate Change, I will push for greater transparency so that we can see exactly the link between wholesale and retail prices. That is an important move forward, which would benefit consumers, particularly in rural areas, and I would welcome it. The Government should be encouraged to work with the consumer watchdog to bring about greater transparency.

I know that a number of Members want to speak in the debate, and I do not want to detain them, but I have concentrated on off-mains gas areas because they are being hit particularly hard, and we need to look again at extending the network; indeed, hon. Members in previous Parliaments raised the issue. The irony is that although my constituency is on the periphery, I am promoting the concept of an energy island because we have energy generation in the area. We have a nuclear power station and wind farms, and we welcome both because they generate employment and contribute to the United Kingdom’s energy security. We also have projects that are looking at tidal energy, so we are well positioned to provide the new renewable energy that the Energy Minister told me was a way forward. However, although the Wylfa power station in my constituency supplies more than 30% of energy in Wales, some people living in close proximity to it pay some of the highest prices in Wales for their energy because they do not have the opportunity to use the gas network and they do not have the same choice as many people in non-rural and urban areas of the United Kingdom.

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Tim Farron (Liberal Democrat)

There are great opportunities in rural communities—to build on something that the hon. Member for Ynys Môn said—for the provision of renewable energy resources, which can be enormously beneficial to the wider country in tackling climate change and creating energy security, which has also been mentioned. However, there is also an economic benefit to the struggling communities that are served.

The trust is not looking for handouts, particularly at this time, but I ask the Minister to make it clear that the green investment bank announced by the Chancellor will be able to provide loan finance for such charitable trusts, and that those trusts will be able to qualify in their bid for feed-in tariffs. That community project could be replicated across rural Britain, as long as there are clear signs of active, practical encouragement from the Government. The same applies to anaerobic digestion. I hope that the Government will back anaerobic digester start-ups in rural communities as a way to generate income and green energy from waste.

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Mr Mike Weir (Angus) (SNP)

Consumers who are off the gas network face particular problems. A typical gas bill is now rising to around £1,000 a year, but it has been estimated that those who are off-grid face bills of about £1,700 a year. That is a significant difference. I refer hon. Members to the table in the report on fuel poverty produced just before the general election by the Select Committee on Energy and Climate Change. It relates only to England, but it shows the extent of the problem of cost between different fuel sources.

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Mr Weir

The hon. Gentleman makes an excellent point, but there are other pressures, not least climate change, against the extension of the use of gas. The Government are only now considering the decarbonisation of the gas supply and generation from gas. Many issues arise in connection with that.

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Mr Williams

Last December, a consultation on fuel poverty in rural areas was initiated by the Commission for Rural Communities—I do not know what my English colleagues would say, but some of us regret the loss of that commission because it has been an independent voice offering strong messages for those of us elsewhere. Its interim report offered some key points to consider. Some 50% of the UK’s carbon emissions from housing come from hard-to-treat homes—off-gas, solid and non-traditional wall construction, high-rise or properties without a fillable loft or cavity. That is a huge proportion of the households that many of use represent. As we have heard, many of those hard-to-treat homes are in rural areas, and there is a clear need to take action to reduce emissions, tackle climate change, and reduce bills. In 2005, the figures got worse. Some 14.6% of households in villages and hamlets were living in fuel poverty compared with a national average of 7%. That is the background to the huge challenge facing the Minister.

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Emily Thornberry (Labour)

However, there are times when Government leadership is necessary and when the market will not solve a problem. Climate change, for example, is, in itself, the ultimate failure of the market economy. There are times when we need to intervene. Furthermore, the effectiveness of Government intervention must be measured and quantified, so that we can account to the public for the spending of their money.

We have heard from the Secretary of State for Energy and Climate Change that he did not have any Government targets for the creation of green jobs and that he did not want to borrow our targets, for fear of seeming to copy the Soviet Union’s Gosplan. However, that judgment is wrong. I urge the ministerial team to reconsider their attitude to targets. In relation to fuel poverty, my first question to the Minister is this: will the coalition keep our 2016 fuel poverty target? If it will not do so, how many people do the Government intend to lift out of fuel poverty by any of their schemes, in either rural or urban areas?

Throughout my contribution, I will put a number of questions to the Minister. I asked some of them in a debate last week and during the somewhat rushed winding-up speeches, the Minister of State, Department of Energy and Climate Change, the hon. Member for Wealden (Charles Hendry), overlooked many of them; I am sure that he did so unintentionally. Therefore, I thought that it might be helpful if I numbered my questions today, for ease of reference.

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Emily Thornberry (Labour)

Ninthly, how are the pay-as-you-save pilots established under the previous Government going? Will they run their course and inform the Government’s plans or not? Is the green deal just our pay-as-you-save scheme with a different name, as commentators have said? Tenthly, will the Minister clear up the confusion over whether there will be any form of Government subsidy for the green deal? Will it impose any cost on the public purse? We have had contradictory statements from the Minister of State, Department for Communities and Local Government, the right hon. Member for Tunbridge Wells (Greg Clark), and the Minister of State, Department of Energy and Climate Change, the hon. Member for Wealden, this year. Eleventhly, will the amount available per household be £6,500 or up to £6,500? Twelfthly, will it be more for harder-to-heat homes? In the debate last week, the Minister in the Chamber today told us, with characteristic enthusiasm, about the potential deal with companies such as Tesco, B&Q and Marks & Spencer on the green deal. What will companies get out of this? That was question 13. How confident is he that the private sector will see it as a good proposition?

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