---

Energy Bill

I regret allowing the right hon. Gentleman to deliver such a poor response. The difference between us is a lack of ambition. Every household in the country could benefit from energy efficiency improvements, but the limit of his ambition is to treat 500 homes. How can he introduce a Bill with such poor potential for success? Let me address the third aspect of the Bill—the changes that it makes to the regulation of gas and electricity markets. We support in principle the clarification of Ofgem's objective and the clear role that is being given to enhancing energy security and pursuing our low-carbon obligations. We also support the extension of the time limit in which Ofgem can impose penalties for breaches of licence conditions. However, we need to be clear about the respective roles of the Government and the regulator. Ministers should make policy decisions and the regulator should execute them. The changes are necessary in so far as they allow Ofgem to implement decisions that are made or promoted by Ministers on grounds such as energy security. However, in the past 12 years—and for the past 15 Energy Ministers—there has been a policy vacuum, the solution to which should not be to look to unelected bodies to proliferate policy. Instead, they should implement policy that has been determined by Ministers. I hope that that is what the Secretary of State has in mind with these changes. Once again, the other two elements in this part of the Bill are simply enabling clauses, and they fail to grasp the urgency of the situation. A year ago, I told the Secretary of State that he should ask for an immediate Competition Commission investigation into the relationship between wholesale and retail energy prices. Initially, his response—I think it was last November, but he will correct me if I am wrong—was to summon the energy companies in to growl at them in some fierce way, but he has proved to be a paper tiger, because nothing has happened and he has done absolutely nothing to protect consumers' interests. Ofgem has today published a report that says that""customer bill increases have consistently outweighed cost increases"—" this is in relation to the wholesale price cost of gas—"since July 2008"." So, since July 2008, customer bill increases have consistently outweighed cost increases. On present trends, Ofgem expects customers to be losing £17 a month by September 2010, which will make a lot of difference to people's household bills. That should not come as a surprise to the Secretary of State because his own quango, Consumer Focus, told him last June that every household was then paying £74 a year too much. A swift, forensic investigation is needed to settle the matter once and for all. It is in no one's interests—neither those of the energy companies nor those of consumers—to have such a point of contention. The Secretary of State's response to an intervention from the hon. Member for Selby (Mr. Grogan) on the matter was to say that he would examine the policy options in the spring. Meanwhile, we are approaching a winter in which, if we consider the figures from last winter, people will die because they feel unable to afford to keep the heating on to get them through. The matter has an urgency that I commend to the Secretary of State. I hope that he will think again rather than raising his eyes about a problem that is very real to our constituents. Although we are, of course, content for the Bill to go into Committee, where we will try to strengthen it and remedy its deficiencies, it is a wasted opportunity. It could have taken urgent steps to keep the lights on, cut CO2 emissions and create jobs. It would then have had broad-based support. First, the Bill should include a green deal to give all households the energy efficiency improvements they need. Secondly, it should have an emissions performance standard to require all newly built electricity generation to cut emissions. Thirdly, it should include a requirement for gas storage to get us through the winter. Fourthly, it should provide for reform of the climate change levy to make it distinguish between high and low carbon sources of energy. Fifthly, it should contain measures to require energy companies to say exactly what would have been saved on a cheaper tariff had a customer had access to it, and how to switch to that tariff. Sixthly, the Bill should have real incentives to allow communities that host wind farms to reap some of the rewards. Seventhly, it should provide for action to ensure that smart meters are fitted in every home, not by 2021—the Government's plan—but by 2017 at the latest. Eighthly, it should require immediate deployment of carbon capture and storage, with a network of pipes big enough for future use, not just for the proposed demonstrations. Ninthly, it should require the national grid to extend its network out to sea to harness the offshore wind, wave and marine energy that is available there. Tenthly, it should include the opportunity for Parliament to vote on the planning statements to ensure that there can be no further hold-ups in our nuclear programme. The Secretary of State and the House could have been proud of such a measure—a Bill to keep the lights on, cut CO2 and boost the economy. Had the Secretary of State possessed such boldness and ambition, he would attract the admiration of the House and the country. Instead, it will fall to a Conservative Government to take the decisive action that Britain needs.