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To ask the Secretary of State for Energy and Climate Change what estimate his Department has made of the average saving on energy bills for households that have received measures under the Energy Company Obligation.
To ask the Secretary of State for Energy and Climate Change what estimate his Department has made of the average saving on energy bills for households that have received measures under the Energy Company Obligation.
The Department has not estimated the average savings on energy bills for households that have received measures specifically under the Energy Company Obligation. The saving on energy bills will depend on several factors including the particular measure installed, energy prices and household characteristics that affect their energy consumption.
However, more generally, DECC has estimated that households can save from around £25 to £270 or more per installation per year from installing the main insulation measures (e.g. loft, cavity and solid wall). This is based on estimated energy savings from an illustrative three bedroom semi-detached house (see 2012 Final Green Deal and ECO IA for details):
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/42984/5533-final-stage-impact-assessment-for-the-green-deal-a.pdf
To ask the Secretary of State for Energy and Climate Change what estimate he has made of how much renewables subsidies (a) added to industrial electricity bills in 2012-13 and (b) affected the wholesale price of energy.
To ask the Secretary of State for Energy and Climate Change what estimate he has made of how much renewables subsidies (a) added to industrial electricity bills in 2012-13 and (b) affected the wholesale price of energy.
In March 2013 DECC published an assessment of the impact of climate change and energy polices on electricity and gas prices and consumer bills1. The report estimated that, in 2013, support costs for renewables added around 10% to electricity bills for
energy intensive user (8% in relation to the renewables obligation (RO) and 2% in relation to the small-scale feed-in tariffs (FIT)).
Increased deployment of low-carbon generation, including renewables, which typically have low generating (and therefore operating) costs, helps to put downward pressure on wholesale electricity prices. It is not possible to split out the impact of renewable support policies on these wholesale price effects from other drivers such as, for example, the EU emissions trading scheme (ETS). However, the March 2013 report estimated that the overall wholesale price impact of all low-carbon policies was a reduction in the wholesale price faced by industry of around 30p/MWh in 2013.
The Government recognises the particular competitiveness issues faced by some industries in terms of their energy costs and has acted to mitigate the impact of energy policies on those industries. This includes the announcement, as part of the 2014 budget that the Government intends to compensate those energy-intensive industries most at risk of higher electricity prices resulting from the RO and the FIT schemes. We expect that compensation will begin in 2016-17, subject to EU state aid clearance.1 Available at:
https://www.gov.uk/government/publications/estimated-impacts-of-energy-and-climate-change-policies-on-energy-prices-and-bills
We have taken it on board that, to date, and particularly under the last Government, people who live in Park homes have had a very poor deal. We are doing two things. First, we are making the energy company obligation more applicable to people who live in Park homes, accepting that there are challenges with insulating such properties. Secondly, we are exploring whether it is possible to pay the warm home discount to people who live in such homes. We understand that they do not receive that currently because they pay their bills through the site operator.
We have taken it on board that, to date, and particularly under the last Government, people who live in Park homes have had a very poor deal. We are doing two things. First, we are making the energy company obligation more applicable to people who live in Park homes, accepting that there are challenges with insulating such properties. Secondly, we are exploring whether it is possible to pay the warm home discount to people who live in such homes. We understand that they do not receive that currently because they pay their bills through the site operator.
People who live in Park homes are often on low incomes. What will the Secretary of State do to improve their access to energy and so help to bring down their bills?
First opposition day debate (part two). Closure motion. Agreed to on question. Main question negatived on division (228 to 283).
First opposition day debate (part two). Closure motion. Agreed to on question. Main question negatived on division (228 to 283).
To ask the Secretary of State for Energy and Climate Change with reference to the answer of 10 April 2013, Official Report, column 1119W, on energy prices, what estimate his Department has made of the (a) wholesale and (b) retail cost of (i) electricity and (ii) gas in 2013.
To ask the Secretary of State for Energy and Climate Change with reference to the answer of 10 April 2013, Official Report, column 1119W, on energy prices, what estimate his Department has made of the (a) wholesale and (b) retail cost of (i) electricity and (ii) gas in 2013.
The average GB wholesale electricity price in 2013 was 4.98 pence/kWh1. For gas, it was 2.32 pence/kWh2.
These prices do not necessarily reflect the costs faced by energy suppliers, who typically buy their energy over a period of time using forward contracts—a practice known as hedging. The particular hedging strategies employed by different suppliers are commercially confidential and not known to Government.1 Source: data received by DECC from commercial price reporting companies.2 Ibid
To ask the Secretary of State for Energy and Climate Change what plans his Department has to provide assistance to people with cold-related health conditions who are struggling to pay their heating bills.
To ask the Secretary of State for Energy and Climate Change what plans his Department has to provide assistance to people with cold-related health conditions who are struggling to pay their heating bills.
The evidence is clear that living in cold homes can have a substantial range of negative health impacts. We have a strong package of policies already delivering assistance to those in need.
These include:
the Energy Company Obligation (ECO) which funds efficient boilers and insulation measures to low income and vulnerable households and is now guaranteed until at least 2017;
the Warm Home Discount scheme, which gave over 1.2 million of the lowest income pensioners £135 off their electricity bills in winter 2013-14, and supported more than 2 million households in total;
Winter Fuel and Cold Weather payments which provide support to pensioners and vulnerable low income groups; and
the Big Energy Saving Network which is providing outreach to consumers, helping them understand tariffs and switching options as well as how they could benefit from energy efficiency programmes available to them.
In July 2013 DECC published the document Fuel Poverty: a framework for future action, this stated Government's intention to continue to prioritise 'vulnerable' fuel poor households (ie those containing an elderly person, a child or someone who is long term sick or disabled) within fuel poverty policies.
We have been discussing links between fuel poverty and health with colleagues in the Department of Health, and Public Health England, at all levels, including ministerial, as part of our preparation for a new fuel poverty strategy.
To ask the Secretary of State for Energy and Climate Change with reference to the answer of 10 April 2013, Official Report, column 1119W, on energy prices, what estimate his Department has made of changes to the wholesale cost of (a) electricity and (b) gas in (i) 2013 and (ii)...
To ask the Secretary of State for Energy and Climate Change with reference to the answer of 10 April 2013, Official Report, column 1119W, on energy prices, what estimate his Department has made of changes to the wholesale cost of (a) electricity and (b) gas in (i) 2013 and (ii)...
The average GB wholesale electricity price in January 2013 was 5.00 pence/kWh. By December 2013 this had risen by 2% to 5.10 pence/kWh. The average price for January 2014 was 4.78 pence/kWh. By May 2014 this had fallen by 17% to 3.97 pence/kWh.
The average GB wholesale gas price in January 2013 was 2.28 pence/kWh. By December 2013 this had risen by 4% to 2.37 pence/kWh. The average price for January 2014 was 2.22 pence/kWh. By May 2014 this had fallen by 30% to 1.55 pence/kWh.
What steps the Government is taking to help people who live in park homes to reduce their energy bills.
What steps the Government is taking to help people who live in park homes to reduce their energy bills.
Unlike previous schemes, park homes are now eligible for the energy company obligation, and some park homes have already begun to benefit from support. Additionally, we have made it possible, since February this year, to create an energy performance certificate—an EPC—for a park home, and this lifts a key barrier to accessing green deal finance for park homes.
Unlike previous schemes, park homes are now eligible for the energy company obligation, and some park homes have already begun to benefit from support. Additionally, we have made it possible, since February this year, to create an energy performance certificate—an EPC—for a park home, and this lifts a key barrier to accessing green deal finance for park homes.
Unlike previous schemes, park homes are now eligible for the energy company obligation, and some park homes have already begun to benefit from support. Additionally, we have made it possible, since February this year, to create an energy performance certificate—an EPC—for a park home, and this lifts a key barrier to accessing green deal finance for park homes.
What steps the Government is taking to help people who live in park homes to reduce their energy bills.
The hon. Lady raises a valid point. Frankly, successive Governments have failed to act sufficiently for park home residents. Although the measures that we have taken move the agenda on, we accept that there is more to do, and we want to do more to help park home residents. Providing better information and support is part of that strategy, and we are making more information available to residents. We are looking to see what further steps we can take to help to insulate the homes of park home residents.
The hon. Lady raises a valid point. Frankly, successive Governments have failed to act sufficiently for park home residents. Although the measures that we have taken move the agenda on, we accept that there is more to do, and we want to do more to help park home residents. Providing better information and support is part of that strategy, and we are making more information available to residents. We are looking to see what further steps we can take to help to insulate the homes of park home residents.
I thank the Minister for his reply, and it is heartening to hear that some progress has been made after the very many questions that I have asked on the subject. I know that he will agree that we are talking about some very vulnerable people who are terribly exposed to energy prices. There is an imperative to get better insulation. How widespread is the publicity about this help, and has he found a way around the joint metering for electricity and water and the subsequent recharging, which often seems to add even more to their energy pricing?
I fully accept the hon. Gentleman’s point. That has made it difficult for successive Governments to reach out and act effectively to help park home residents. We are determined to try to crack this, and we are looking carefully at exactly the point he makes.
I fully accept the hon. Gentleman’s point. That has made it difficult for successive Governments to reach out and act effectively to help park home residents. We are determined to try to crack this, and we are looking carefully at exactly the point he makes.
One problem with energy in many park homes is that the supply is in the name of the operator of the site, who then sells on the energy to the tenants. One quirk of that is that under the warm home discount the name of the tenant must be on the bill, and it is not in these cases, so although these tenants would otherwise qualify, they do not in fact get the warm home discount. Will the Minister look at that and see whether there is a way around that anomaly?
This Government are absolutely determined to do more for the fuel-poor. That is why we are bringing in the first refresh of the fuel poverty strategy in over a decade and doing more and more to help the vulnerable. We do not just want a cosmetic price freeze that would chill investment; we are taking practical measures to help people this winter by reducing their bills by £50 and paying the warm home discount, with up to £135 off bills for over 2 million of the most vulnerable.
This Government are absolutely determined to do more for the fuel-poor. That is why we are bringing in the first refresh of the fuel poverty strategy in over a decade and doing more and more to help the vulnerable. We do not just want a cosmetic price freeze that would chill investment; we are taking practical measures to help people this winter by reducing their bills by £50 and paying the warm home discount, with up to £135 off bills for over 2 million of the most vulnerable.
Almost 5,000 households in my constituency are living in fuel poverty. Apart from increasing energy bills by an average of £60 this year and cutting insulation projects by 90%, what is the Secretary of State doing on this issue? Please do not refer to the green deal, which is a complete flop. My constituents want a price freeze. Why does he prefer energy company profits over people who cannot afford to heat their homes?
Unallotted opposition day debate (half day). Closure motion. Agreed to on question. Main question negatived on division (248 to 275).
Unallotted opposition day debate (half day). Closure motion. Agreed to on question. Main question negatived on division (248 to 275).
To ask the Secretary of State for Energy and Climate Change what steps he is taking to reduce the effect of rises in rural and off-grid energy bills on the cost of living.
To ask the Secretary of State for Energy and Climate Change what steps he is taking to reduce the effect of rises in rural and off-grid energy bills on the cost of living.
In addition to the £50 reduction in energy bills we have delivered, we are committed to helping the most vulnerable, including those in rural areas and off-grid. This year's Buy Oil Early campaign, coordinated by DECC, was launched by industry in September. DECC has also worked with industry and consumer representative organisations to provide guidance on forming oil buying clubs which will allow savings through bulk buying.
Making homes more energy efficient is vital in order to reduce energy bills. The Green Deal offers a way for homeowners to identify and pay for the most effective energy efficiency measures for their home, such as insulation and more efficient boilers.
Customers on a low income or in a hard-to-insulate property may be able get additional support through the energy company obligation. We are also currently consulting on changes to the energy company obligation that will drive greater delivery to off-gas households and make it easier for suppliers to deliver to rural areas.
Renewable heating systems allow off-gas grid householders to switch from more expensive fossil fuels. The launch of the domestic Renewable Heat Incentive by Easter will provide payments to homeowners and help drive the uptake of such systems.
DECC is also working to ensure the fuel poverty strategy will reflect the needs of the most severely fuel poor in off-gas grid areas when it is published later this year.
To ask the Secretary of State for Energy and Climate Change pursuant to his written statement of 11 March 2014, Official Report, columns 14-15WS, on EU Energy Council, what the evidential basis is for his statement that climate policy had had little impact on energy prices across Europe.
To ask the Secretary of State for Energy and Climate Change pursuant to his written statement of 11 March 2014, Official Report, columns 14-15WS, on EU Energy Council, what the evidential basis is for his statement that climate policy had had little impact on energy prices across Europe.
The written statement made by the Secretary of State for Energy and Climate Change, the right hon. Member for Kingston and Surbiton (Mr Davey) on 11 March 2014 was based on evidence drawn from the European Commission Staff Working Document “Energy prices and costs in Europe” and the International Energy Agency report, “World Energy Outlook 2013”.
“Energy prices and costs in Europe” indicates that increases in network costs, taxes, and levies have contributed to rises in EU energy prices. However, the report also identifies that for 22 of the 27 member states surveyed, support for renewable electricity generation accounts for less than 10% of the household electricity price. It also finds a relatively small impact of the EU ETS carbon price on electricity retail prices either for industry or households.
The International Energy Agency report, “World Energy Outlook 2013”, concludes that the recent widening of the gap between EU and US energy prices is mainly as a result of the sharp drop in wholesale gas prices in the United States due to soaring shale gas production, an increase in oil indexed gas prices in other regions, and higher spot prices for liquefied natural gas.
To ask the Secretary of State for Energy and Climate Change if he will estimate the average percentage of household expenditure spent on energy bills in (a) Coventry, (b) Coventry North East constituency, (c) the West Midlands and (d) England in each of the last five years.
To ask the Secretary of State for Energy and Climate Change if he will estimate the average percentage of household expenditure spent on energy bills in (a) Coventry, (b) Coventry North East constituency, (c) the West Midlands and (d) England in each of the last five years.
Data on household expenditure is only available at Government Office Region level. The following table shows the average proportion of household expenditure on energy bills in the West Midlands and England.
| Average
percentage of household expenditure on energy
bills | ||
| West
Midlands | England | |
| 2007-09 | 4.4 | 4.0 |
| 2010-12 | 5.0 | 4.4 |
These figures include expenditure on electricity, gas and other household fuels, but exclude expenditure on petrol and diesel. They are based on data from the Living Costs and Food Survey, which is run by the Office for National Statistics. Due to the small number of households in each region within the survey, results are averaged across a three year period. The latest data available is for the period 2010-12.
To ask the Secretary of State for Energy and Climate Change what steps he has taken to investigate higher charges for non-direct debit domestic customers of energy utility companies.
To ask the Secretary of State for Energy and Climate Change what steps he has taken to investigate higher charges for non-direct debit domestic customers of energy utility companies.
Energy companies are required under the terms of their licence to ensure any differences in charges to consumers, between different payment methods, reflect the costs to the supplier that particular form of payment.
Ofgem are looking at payment differentials, including higher charges for customers who choose not to pay by direct debit in the competition assessment, which will be published this spring.
What steps he has taken to investigate the practice of energy companies having higher charges for non-direct debit customers.
What steps he has taken to investigate the practice of energy companies having higher charges for non-direct debit customers.
Energy companies are required under the terms of their licence to ensure that any differences in charges to consumers between different payment methods reflect only the differing costs to the supplier of that particular form of payment. Ofgem is looking at payment differentials, including higher charges for customers who choose not to pay by direct debit, in its competition assessment, which will be published this spring.
Energy companies are required under the terms of their licence to ensure that any differences in charges to consumers between different payment methods reflect only the differing costs to the supplier of that particular form of payment. Ofgem is looking at payment differentials, including higher charges for customers who choose not to pay by direct debit, in its competition assessment, which will be published this spring.
Energy companies are required under the terms of their licence to ensure that any differences in charges to consumers between different payment methods reflect only the differing costs to the supplier of that particular form of payment. Ofgem is looking at payment differentials, including higher charges for customers who choose not to pay by direct debit, in its competition assessment, which will be published this spring.
What steps he has taken to investigate the practice of energy companies having higher charges for non-direct debit customers.
I am grateful to my hon. Friend for raising this important issue. The coalition is absolutely committed to improving access to financial services for the vulnerable, particularly the fuel-poor. As recommended by the Parliamentary Commission on Banking Standards, the Government are seeking a voluntary industry agreement on renewed minimum standards for basic bank accounts. In addition, we have committed nearly £2 million over this year to develop the big energy saving network to ensure that the most vulnerable are getting the best deals they can.
I am grateful to my hon. Friend for raising this important issue. The coalition is absolutely committed to improving access to financial services for the vulnerable, particularly the fuel-poor. As recommended by the Parliamentary Commission on Banking Standards, the Government are seeking a voluntary industry agreement on renewed minimum standards for basic bank accounts. In addition, we have committed nearly £2 million over this year to develop the big energy saving network to ensure that the most vulnerable are getting the best deals they can.
About 1 million people do not have a bank account. What steps are the Government taking to help those who do not have a bank account and therefore find it impossible to pay by direct debit?