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Energy Bill

We do need more gas storage, and the hon. Lady, as a member of the Select Committee, has expertise in these matters. The reason why we are worried about the proposal that she recommends—we will shortly respond to the recommendations of the Wicks review, which looked at some of these issues—is the danger that it could take the pressure off the companies in terms of what they need to do to build more gas storage. If we substitute our judgment in these matters for their judgment about what is necessary, the danger is that we increase costs to consumers and inhibit future plans for gas storage. The third issue is the question of vulnerable consumers, which is very important to hon. Members. As well as strengthening general powers of regulation, the Energy Bill will do more for vulnerable consumers. We need to help those most in need through higher incomes, energy efficiency and prices. That is why we have introduced and increased the winter fuel payment and brought in higher cold weather payments. Since 2002, 6 million homes have received loft or cavity wall insulation, and we are on the way to loft and cavity wall insulation for all houses where it can work by 2015. But we need to go further. Today we are announcing pay-as-you-save pilots in five parts of the country to test out a comprehensive, whole-house approach to energy efficiency, supported by finance, as is necessary to make it happen. This is on the way to whole-house refurbishment, beyond loft and cavity wall improvements, for 7 million homes by 2020 and all by 2030. This will help save money for consumers. But we also need action on tariffs. The current voluntary agreement on social assistance with energy companies has already helped more than 1 million customer accounts. However, the powers in the Bill will mean that rather than a voluntary agreement, there is a compulsory money-off energy deal for vulnerable customers. We will increase the total amount of help, up from the level of £150 million in the final year of the current voluntary agreement. We want the new system to ensure that older, poorer pensioners in particular receive assistance with their energy bills and we will set out more detailed plans in the coming weeks.