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Answering member
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Chris Huhne
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Huhne, Chris (78)
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I am sure that Mr Speaker is aware of Yorkshire's unilateral declaration of independence, which allows twinning arrangements to be entered into between towns in Yorkshire and towns elsewhere in the country.
The hon. Gentleman made a serious point about energy costs. I assure him that we are doing more than was done under the Government whom he supported for 13 years to make this market as competitive as possible. We have just had the Ofgem retail review and its proposals to simplify the tariffs dramatically to make things much easier for consumers. We have introduced a clear limit on the period in which the energy companies have to switch people over. We are doing everything we can to make this a competitive market, at both the retail end and the wholesale end. That is the best guarantee for every consumer in this country, be they in Huddersfield or Stoke-on-Trent, that they will get the best possible deal.
I am sure that Mr Speaker is aware of Yorkshire's unilateral declaration of independence, which allows twinning arrangements to be entered into between towns in Yorkshire and towns elsewhere in the country.
The hon. Gentleman made a serious point about energy costs. I assure him that we are doing more than was done under the Government whom he supported for 13 years to make this market as competitive as possible. We have just had the Ofgem retail review and its proposals to simplify the tariffs dramatically to make things much easier for consumers. We have introduced a clear limit on the period in which the energy companies have to switch people over. We are doing everything we can to make this a competitive market, at both the retail end and the wholesale end. That is the best guarantee for every consumer in this country, be they in Huddersfield or Stoke-on-Trent, that they will get the best possible deal.
Answered by
Chris Huhne
(Liberal Democrat)
Asked by
Barry Sheerman
(Labour)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
The Minister may not know that Huddersfield has a twinning arrangement with Stoke-on-Trent and that we work very closely together. People in Huddersfield, like the people in Dorset and Stoke-on-Trent, are sick to death with the cost of energy. They want a more visible, muscular effort from this Government to take on the energy companies, many of which are foreign-owned, and make them do their job.
Subjects
Energy; Prices
Date
1 December 2011
Reference
536 c1069
Chamber / Committee
House of Commons chamber
House
House of Commons
I simply do not agree with the hon. Gentleman, who argues that consumers will lose out from the measure. If we had not acted quickly to deal with cost overruns in the sector, not only would we not have been able to provide a sustainable future for those who are employed and have businesses in it, but we would have added so substantially to consumer bills that the impact on many other businesses right across the country, through reduced consumer spending, would have been substantial.
I simply do not agree with the hon. Gentleman, who argues that consumers will lose out from the measure. If we had not acted quickly to deal with cost overruns in the sector, not only would we not have been able to provide a sustainable future for those who are employed and have businesses in it, but we would have added so substantially to consumer bills that the impact on many other businesses right across the country, through reduced consumer spending, would have been substantial.
Answered by
Chris Huhne
(Liberal Democrat)
Asked by
Bill Esterson
(Labour)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
Is it not the case that energy companies will benefit from pricing at the expense of companies such as Energy Outlet, in Formby in my constituency, which has lost business due to the cuts in support for solar energy, and that consumers will also lose out due to the change that the Secretary of State has made at short notice?
Subjects
Energy; Prices
Date
1 December 2011
Reference
536 c1065-6
Chamber / Committee
House of Commons chamber
House
House of Commons
First, I pay tribute to my hon. Friend for his work on the issue, because it is crucial that people are provided with clear and specific advice on what they can do. He is absolutely right to draw attention to the two large energy companies that have already complied, and yes, indeed, we are bringing pressure to bear to ensure that all the others follow.
First, I pay tribute to my hon. Friend for his work on the issue, because it is crucial that people are provided with clear and specific advice on what they can do. He is absolutely right to draw attention to the two large energy companies that have already complied, and yes, indeed, we are bringing pressure to bear to ensure that all the others follow.
Answered by
Chris Huhne
(Liberal Democrat)
Asked by
John Baron
(Conservative)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
The Minister will be aware that one recommendation of the billing stakeholder group was that energy suppliers should send a tailored communication to customers, detailing in pounds, shillings and pence how much they could save by transferring to that company's cheapest standard direct debit tariff in time for this winter. Two suppliers, Scottish Power and npower, have complied,; four have not. Will the Minister now look at bringing those four into line?
Subjects
Energy; Prices
Date
1 December 2011
Reference
536 c1065
Chamber / Committee
House of Commons chamber
House
House of Commons
One of the key issues is that people who do not have online access should be able to get sources of advice that enable them to take advantage of cheaper tariffs. That may be people who are elderly or not necessarily able to get online, and one of the things that we are attempting to do is to encourage charities in the sector and organisations such as Citizens Advice to provide help when it is not forthcoming from family members. They are also a very important way in which the elderly can be helped to move on to cheaper tariffs, however, and I know that a lot of family members do take the time to ensure that elderly members of the family get cheap tariffs.
One of the key issues is that people who do not have online access should be able to get sources of advice that enable them to take advantage of cheaper tariffs. That may be people who are elderly or not necessarily able to get online, and one of the things that we are attempting to do is to encourage charities in the sector and organisations such as Citizens Advice to provide help when it is not forthcoming from family members. They are also a very important way in which the elderly can be helped to move on to cheaper tariffs, however, and I know that a lot of family members do take the time to ensure that elderly members of the family get cheap tariffs.
Answered by
Chris Huhne
(Liberal Democrat)
Asked by
Simon Wright
(Liberal Democrat)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
I thank the Secretary of State for his response. I am concerned about the extent of savings that are offered to the internet savvy and subsidised by offline customers. Given the digital divide, with many of the poorest households and older customers not having internet access, what action is he taking to ensure that everyone pays a reasonable price for their energy?
Subjects
Energy; Prices
Date
1 December 2011
Reference
536 c1064-5
Chamber / Committee
House of Commons chamber
House
House of Commons
I am delighted to say, Mr Speaker, that I do have the answer to this question.
On 23 November, DECC published its updated assessment of the impact of energy and climate change policies on energy prices and bills. The latest estimates show that the average household dual fuel bill is currently 2% higher than it would have been if energy and climate change policies were not introduced. By 2020, these policies will mean that the average household dual fuel bill will be 7% lower than it would have been in the same year in the absence of our policies.
I am delighted to say, Mr Speaker, that I do have the answer to this question.
On 23 November, DECC published its updated assessment of the impact of energy and climate change policies on energy prices and bills. The latest estimates show that the average household dual fuel bill is currently 2% higher than it would have been if energy and climate change policies were not introduced. By 2020, these policies will mean that the average household dual fuel bill will be 7% lower than it would have been in the same year in the absence of our policies.
Answered by
Chris Huhne
(Liberal Democrat)
Asked by
Annette Brooke
(Liberal Democrat)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
What recent assessment he has made of the effects of Government policy on household energy bills.
Subjects
Energy; Prices
Date
1 December 2011
Reference
536 c1068
Chamber / Committee
House of Commons chamber
House
House of Commons
I am sorry, Mr Speaker, but I do not have the answer to the question.
... Thank you, Mr Speaker. I was under the impression that the question had been withdrawn, but I am happy to answer my hon. Friend.
We have had a number of discussions with energy companies, most recently the energy summit, in which we discussed the whole issue of consumer pricing.
I am sorry, Mr Speaker, but I do not have the answer to the question.
... Thank you, Mr Speaker. I was under the impression that the question had been withdrawn, but I am happy to answer my hon. Friend.
We have had a number of discussions with energy companies, most recently the energy summit, in which we discussed the whole issue of consumer pricing.
Answered by
Chris Huhne
(Liberal Democrat)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
Subjects
Energy; Prices
Date
1 December 2011
Reference
536 c1064
Chamber / Committee
House of Commons chamber
House
House of Commons
That is an interesting thought and I would certainly be interested to see more from the hon. Gentleman about this issue. I can see practical difficulties, given that warmth comes from so many different sources. For example, people who are off-gas grid and are reliant on heating oil may have substantially different problems from those who are on-gas grid and are able to avail themselves of a number of things. I would certainly be prepared to look at the idea if the hon. Gentleman put something on paper and sent it over.
That is an interesting thought and I would certainly be interested to see more from the hon. Gentleman about this issue. I can see practical difficulties, given that warmth comes from so many different sources. For example, people who are off-gas grid and are reliant on heating oil may have substantially different problems from those who are on-gas grid and are able to avail themselves of a number of things. I would certainly be prepared to look at the idea if the hon. Gentleman put something on paper and sent it over.
Answered by
Chris Huhne
(Liberal Democrat)
Asked by
Mark Durkan
(Social Democratic & Labour Party)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
Will the Secretary of State work with colleagues to establish a cost of warmth index, which could usefully inform the work of his Department, the Department for Work and Pensions, the Treasury and Parliament?
Subjects
Energy; Prices
Date
1 December 2011
Reference
536 c1069
Chamber / Committee
House of Commons chamber
House
House of Commons
I am grateful to my hon. Friend for that question. As a long-standing campaigner for people who live in park homes, she knows that they are far too often overlooked in schemes that benefit people who live in substantial and ordinary properties. It is crucial that we have the dialogue that she asks for to ensure that we help those people as far as we can. There are obviously practical issues that we need to address. We will try to get to the bottom of this.
I am grateful to my hon. Friend for that question. As a long-standing campaigner for people who live in park homes, she knows that they are far too often overlooked in schemes that benefit people who live in substantial and ordinary properties. It is crucial that we have the dialogue that she asks for to ensure that we help those people as far as we can. There are obviously practical issues that we need to address. We will try to get to the bottom of this.
Answered by
Chris Huhne
(Liberal Democrat)
Asked by
Annette Brooke
(Liberal Democrat)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
I thank the Secretary of State for that answer. Would he be prepared to work with the Department for Communities and Local Government to see how the benefits of the discount schemes for people on low incomes could be extended to park homes, where the site owner is likely to buy in bulk and then resell, perhaps at quite a high price? To help the very vulnerable people in park homes, could there be a specific campaign to tell park home owners that they are eligible for the green deal?
Subjects
Energy; Prices
Date
1 December 2011
Reference
536 c1068
Chamber / Committee
House of Commons chamber
House
House of Commons
One key thing with the energy-intensive industries is that it is crucial to help those that will be most affected because of electricity intensity and their competitive position in terms of trade. We will set out the full details of that in the consultation.
One key thing with the energy-intensive industries is that it is crucial to help those that will be most affected because of electricity intensity and their competitive position in terms of trade. We will set out the full details of that in the consultation.
Answered by
Chris Huhne
(Liberal Democrat)
Asked by
Tristram Hunt
(Labour)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
Energy pricing affects our industrial competitiveness, so although I welcome the Government's steps in the autumn statement on energy-intensive industries, I note the real concern in the ceramics sector that such steps will do nothing to assist it. Will we see further announcements in the coming weeks for industries such as ceramics, particularly on capital allowances?
Subjects
Energy; Prices
Date
1 December 2011
Reference
536 c1065
Chamber / Committee
House of Commons chamber
House
House of Commons
What recent discussions he has had with major energy companies on their pricing policies.
What recent discussions he has had with major energy companies on their pricing policies.
Asked by
Simon Wright
(Liberal Democrat)
Answered by
Chris Huhne
(Liberal Democrat)
Answering body
Department of Energy and Climate Change
Oral questions - Lead
Status
Answered
Tabled on
28 November 2011
For answer on
1 December 2011
Answered on
1 December 2011
I am sorry, Mr Speaker, but I do not have the answer to the question.
... Thank you, Mr Speaker. I was under the impression that the question had been withdrawn, but I am happy to answer my hon. Friend.
We have had a number of discussions with energy companies, most recently the energy summit, in which we discussed the whole issue of consumer pricing.
Subjects
Energy; Prices
Date
1 December 2011
Reference
83961; 536 c1064
Chamber / Committee
House of Commons chamber
House
House of Commons
What recent assessment he has made of the effects of Government policy on household energy bills.
What recent assessment he has made of the effects of Government policy on household energy bills.
Asked by
Annette Brooke
(Liberal Democrat)
Answered by
Chris Huhne
(Liberal Democrat)
Answering body
Department of Energy and Climate Change
Oral questions - Lead
Status
Answered
Tabled on
28 November 2011
For answer on
1 December 2011
Answered on
1 December 2011
I am delighted to say, Mr Speaker, that I do have the answer to this question.
On 23 November, DECC published its updated assessment of the impact of energy and climate change policies on energy prices and bills. The latest estimates show that the average household dual fuel bill is currently 2% higher than it would have been if energy and climate change policies were not introduced. By 2020, these policies will mean that the average household dual fuel bill will be 7% lower than it would have been in the same year in the absence of our policies.
Subjects
Energy; Prices
Date
1 December 2011
Reference
83966; 536 c1068
Chamber / Committee
House of Commons chamber
House
House of Commons
Energy tariffs are a matter for Ofgem. It has put in place rules to prevent unfair price differentials such as those between different payment methods and has reported on the effectiveness of those changes. It has found that prepayment meter customers now pay on average about £20 less than standard credit customers for their gas and electricity. It has also found that direct debit customers now pay on average £70 less than others, which falls within the £88 indicative cost difference between providing direct debit accounts and other types of agreement.
Energy tariffs are a matter for Ofgem. It has put in place rules to prevent unfair price differentials such as those between different payment methods and has reported on the effectiveness of those changes. It has found that prepayment meter customers now pay on average about £20 less than standard credit customers for their gas and electricity. It has also found that direct debit customers now pay on average £70 less than others, which falls within the £88 indicative cost difference between providing direct debit accounts and other types of agreement.
Answered by
Chris Huhne
(Liberal Democrat)
Asked by
Stephen Metcalfe
(Conservative)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
Following on from the comments of my hon. Friend the Member for Wells (Tessa Munt), with energy prices at an all-time high, many low-income families are opting to convert to prepayment meters for their gas and electricity supply. However, according to Consumer Focus that can cost up to £195 extra per year. Will the Secretary of State consider introducing regulation of the market to ensure that low-income families pay the same regardless of whether their payment method is by prepayment meters, direct debit or quarterly bills?
Subjects
Billing; Energy; Prices
Date
20 October 2011
Reference
533 c1053
Chamber / Committee
House of Commons chamber
House
House of Commons
I thank the hon. Gentleman for his question. I am delighted, as I am sure he is, at the thoroughness of the interim report by Professor John Hills, which I commissioned. I do not think that winter fuel payments are the best way of dealing with this problem, partly because they are not targeted. The warm home discount does target a two-thirds increase in the discounts on this particularly vulnerable group. That will have an effect this winter, despite the substantial increases in prices that the hon. Gentleman points out.
I thank the hon. Gentleman for his question. I am delighted, as I am sure he is, at the thoroughness of the interim report by Professor John Hills, which I commissioned. I do not think that winter fuel payments are the best way of dealing with this problem, partly because they are not targeted. The warm home discount does target a two-thirds increase in the discounts on this particularly vulnerable group. That will have an effect this winter, despite the substantial increases in prices that the hon. Gentleman points out.
Answered by
Chris Huhne
(Liberal Democrat)
Asked by
Tony Lloyd
(Labour)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
Professor John Hills's review revealed that at least 2,700 people die every winter because they cannot afford to heat their homes. With energy prices significantly up in real terms this year and last year, and with winter fuel payments down in real terms this year and last year, what guarantees can Ministers give that that death rate will not increase?
Subjects
Energy; Prices
Date
20 October 2011
Reference
533 c1054
Chamber / Committee
House of Commons chamber
House
House of Commons
The clear advice that I have received is that, legally, we will have to legislate to ensure that redress is available for energy consumers—but I am happy to look at any evidence that the right hon. Lady has to the contrary, and if we can move further and faster, clearly we will. However, our advice at present is that we will need new legislation, and it is a matter of great regret to me that the Labour Government did not implement that.
The clear advice that I have received is that, legally, we will have to legislate to ensure that redress is available for energy consumers—but I am happy to look at any evidence that the right hon. Lady has to the contrary, and if we can move further and faster, clearly we will. However, our advice at present is that we will need new legislation, and it is a matter of great regret to me that the Labour Government did not implement that.
Answered by
Chris Huhne
(Liberal Democrat)
Asked by
Caroline Flint
(Labour)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
The Labour Opposition day motion, which the Secretary of State supported yesterday, calls on the Government"““to investigate mis-selling and ensure consumers are compensated””."
He seems to believe that that can apply only to future mis-selling, but examples such as payment protection insurance and lawyers charging additional fees to coal health claimants prove that that is not the case. Will he back our demand for an urgent inquiry into mis-selling, with redress for those who have already suffered?
Subjects
Billing; Energy; Prices
Date
20 October 2011
Reference
533 c1053
Chamber / Committee
House of Commons chamber
House
House of Commons
I am grateful to the hon. Gentleman for that question. We came away from the energy summit not just having made representations to the energy companies but with a list of specific actions that will help, including, for example, the 4 million letters that will be sent out to vulnerable groups on access to energy saving. We were determined to secure all those points as a result of the energy summit, and we did.
I am grateful to the hon. Gentleman for that question. We came away from the energy summit not just having made representations to the energy companies but with a list of specific actions that will help, including, for example, the 4 million letters that will be sent out to vulnerable groups on access to energy saving. We were determined to secure all those points as a result of the energy summit, and we did.
Answered by
Chris Huhne
(Liberal Democrat)
Asked by
Derek Twigg
(Labour)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
An increasing number of my constituents are telling me that they are not just anxious but frightened about whether they will be able to pay their winter fuel bills. I ask the Minister not what the regulator or the companies have done but what specific representations the Minister or the Prime Minister made to the six big energy companies about keeping the cost of energy down or freezing it? If he cannot give me the details today, will he write to me and set that out?
Subjects
Energy; Prices
Date
20 October 2011
Reference
533 c1055
Chamber / Committee
House of Commons chamber
House
House of Commons
The green deal scheme is specifically for insulation, but the renewable heat incentive scheme is available precisely to provide alternatives to oil-fired boilers in off-gas-grid areas, for example. I understand that some of the offers are very attractive here and now. We have some support for residential schemes, and they will be expanded when we have assessed the pilots next year.
The green deal scheme is specifically for insulation, but the renewable heat incentive scheme is available precisely to provide alternatives to oil-fired boilers in off-gas-grid areas, for example. I understand that some of the offers are very attractive here and now. We have some support for residential schemes, and they will be expanded when we have assessed the pilots next year.
Answered by
Chris Huhne
(Liberal Democrat)
Asked by
Tessa Munt
(Liberal Democrat)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
I have a number of constituents in very rural areas who are off-gas and have wood-burning stoves that can be connected to radiator systems. They are deliberately avoiding the installation of oil-fired boilers because of the high cost of heating oil and the local availability of wood. If someone in that position were to install a radiator heating system powered by their existing wood burner, would it be eligible for funding under the green deal scheme?
Subjects
Energy; Prices
Date
20 October 2011
Reference
533 c1057
Chamber / Committee
House of Commons chamber
House
House of Commons
I am grateful for that question. The VAT regime and its complexities are a mystery to many of us who have studied it over the years. It is full of oddities. Of course, that is not just a matter for the Treasury, because the VAT that can be levied is subject to EU rules, too. The question of particular anomalies arises not just at a British level but at European level.
I am grateful for that question. The VAT regime and its complexities are a mystery to many of us who have studied it over the years. It is full of oddities. Of course, that is not just a matter for the Treasury, because the VAT that can be levied is subject to EU rules, too. The question of particular anomalies arises not just at a British level but at European level.
Answered by
Chris Huhne
(Liberal Democrat)
Asked by
Bill Esterson
(Labour)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
Installing insulation attracts a 5% reduced VAT rate, and so do installing central heating and hot water system controls, but installing an energy-efficient boiler attracts the 20% standard rate. Is the Secretary of State talking to Treasury colleagues about this, and the need for a 5% rate on all building repair, maintenance and improvement works for energy efficiency projects that are eligible under the green deal?
Subjects
Energy; Prices
Date
20 October 2011
Reference
533 c1056
Chamber / Committee
House of Commons chamber
House
House of Commons
I am particularly keen on this area, as I was on the UN Secretary-General's advisory group on finance that recommended that it should go forward and that the G20 should look at it. We are having continuing discussions, and I am very hopeful that this is one of the most fruitful areas in which we can raise climate finance for developing countries.
I am particularly keen on this area, as I was on the UN Secretary-General's advisory group on finance that recommended that it should go forward and that the G20 should look at it. We are having continuing discussions, and I am very hopeful that this is one of the most fruitful areas in which we can raise climate finance for developing countries.
Answered by
Chris Huhne
(Liberal Democrat)
Asked by
Caroline Lucas
(Green Party)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
Analysis commissioned by G20 Finance Ministers shows that applying a carbon price to international transport fuels will both reduce emissions and generate billions of pounds for climate finance for developing countries. What assessment has the Secretary of State made of that report, and what discussions is he having with ministerial colleagues about agreeing a UK position on it in advance of the Durban climate conference?
Subjects
Energy; Prices
Date
20 October 2011
Reference
533 c1056-7
Chamber / Committee
House of Commons chamber
House
House of Commons
The UK low-carbon and environmental sector is growing strongly, despite the disappointing recovery. It employs about 910,000 people, and this could reach more than 1 million by 2015—[Interruption.]
... You are absolutely right, Mr Speaker.
We have negotiated a voluntary agreement with suppliers to provide consumers with a prompt on their bills to cheaper deals this winter, and an additional communication to their customers who pay by cash or cheque to let them know how much they could save by moving to the cheapest direct debit tariff. There is also a commitment from suppliers to assess the impact of the prompt on bills and to improve it in the light of this evidence.
The UK low-carbon and environmental sector is growing strongly, despite the disappointing recovery. It employs about 910,000 people, and this could reach more than 1 million by 2015—[Interruption.]
... You are absolutely right, Mr Speaker.
We have negotiated a voluntary agreement with suppliers to provide consumers with a prompt on their bills to cheaper deals this winter, and an additional communication to their customers who pay by cash or cheque to let them know how much they could save by moving to the cheapest direct debit tariff. There is also a commitment from suppliers to assess the impact of the prompt on bills and to improve it in the light of this evidence.
Answered by
Chris Huhne
(Liberal Democrat)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
Subjects
Energy; Prices
Date
20 October 2011
Reference
533 c1042-3
Chamber / Committee
House of Commons chamber
House
House of Commons
The key issue with doorstep selling is whether the companies believe that they can control the work forces who are doing it. If they do not believe that the safeguards are adequate and that they face a reputational risk, that is a commercial matter for them to decide on.
The key issue with doorstep selling is whether the companies believe that they can control the work forces who are doing it. If they do not believe that the safeguards are adequate and that they face a reputational risk, that is a commercial matter for them to decide on.
Answered by
Chris Huhne
(Liberal Democrat)
Asked by
Barry Gardiner
(Labour)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
Last week the Secretary of State wrote to me explaining that he believed that doorstep selling was a useful method for the big six in the industry to encourage people to a better tariff. Given that two days ago RWE npower became the fourth of the big six to give up the practice, does he not see some irony in the fact that the organisations that he was supposed to be castigating are way ahead of him?
Subjects
Energy; Prices
Date
20 October 2011
Reference
533 c1043
Chamber / Committee
House of Commons chamber
House
House of Commons