T1. If he will make a statement on his departmental responsibilities. (901983)
The Energy Bill received Royal Assent on 18 December and is now the Energy Act 2013. I have published the electricity market reform delivery plan, which sets out updated contract terms and strike prices alongside wider reforms to the electricity market that could unlock additional investments of about £40 billion in renewable electricity generation projects up to 2010. Renewables investment is increasing fast, with renewable electricity generation more than doubling since the coalition came to power. This is a clean, green record that we are proud of.
Nearly 6,000 households are living in fuel poverty in Croydon North and, according to the Government’s own figures, the gap between their bills and what they can afford has grown to almost £500. Given that their energy bills will go up by another £60 this winter, does not this show why nothing less than a price freeze and action to stop these companies overcharging again afterwards will do?
First, fuel poverty got worse under the previous Government and has been coming down under this Government; secondly, we are changing the way in which we measure fuel poverty so that we can better target the people in deepest fuel poverty; thirdly, the energy price freeze would be worse for consumers because prices would end up going up; and fourthly, later this year we will publish the first fuel poverty strategy for over a decade, and it will really address the problems that the hon. Gentleman has raised.
T2. The potential value of shale gas to our economy and to communities up and down our country is immense. Will my right hon. Friend therefore join me in congratulating the Government on having headed off the attempts by the European Union to regulate this sector? Does he agree that our success in heading off that attempt is very much due to the fact that we have among the safest regulation in this sector of any country in the world? (901985)
I am grateful for my hon. Friend’s question, because I was very much involved in those discussions with the European Commission and European colleagues. The House needs to be clear that the European Commission is talking about something that we proposed—namely, publishing guidance about how existing European directives on things such as emissions, water and mining should apply to the new shale oil and gas industry. It is also worth noting that our regulations, which we have updated and ensured are fit for purpose, are the strongest in the world.
T3. When I met three businesses in Wrexham last Friday, they told me that the green deal was not working for them or for consumers. Will the Minister confirm that 99% of applications for the green deal do not proceed to completion? (901986)
Certainly not; I do not recognise that figure at all. In fact, new research published today says that over 80% of people who have a green deal assessment are extremely satisfied with it, and only 5% of those who have an assessment—over 117,000 have been undertaken so far—do not go on to install some of the measures that it recommends. We are not only assessing but implementing, and Labour Members need to get over it.
We need a little brevity to get through topical questions.
T6. I was interested to see that the Prime Minister confirmed this week that people living near shale gas sites would enjoy an additional financial benefit. Ministers have confirmed the principle that that should be available to those who live near large-scale onshore wind and large-scale onshore solar array projects. Can the Minister confirm that people who live near such projects will definitely, and on every occasion, enjoy that benefit? (901989)
Yes. What has been proposed for shale gas is exactly the same as what will apply for large-scale wind farms and large-scale solar farms. Local authorities will be able to enjoy the benefits of 100% business rate retention, and it is only right that local people should therefore get some of the benefit.
T4. Last year, the number of additional winter deaths in the north-east hit a 10-year high. Many vulnerable people living in my constituency would have benefited from having better insulated homes, but since the introduction of the Government’s energy company obligation the number of households having insulation installed has fallen by 90%. How does the Minister explain this shocking step backwards? (901987)
We take the issue of winter deaths very seriously. If the hon. Lady looks at the numbers, she will see that, over a decade and a half or more, they have fluctuated. In fact, the largest amount of winter deaths we have known in the past decade and a half was under the previous Government. We need to have a sober, mature debate on how we tackle winter death, which is a very serious problem that needs to be dealt with through the health service, housing, and so on. The changes we made to ECO before Christmas are very good news for people in fuel poverty, because we have not only kept the amount of ECO that goes towards dealing with fuel poverty but extended it for two more years.
A number of homes in Clacton and Jaywick have been insulated under the “Insulating Jaywick” scheme using ECO funding, but I am told that the funding is no longer available, work has stopped and many local people who thought they had signed up to the scheme have been left rather disappointed. Will the Minister please meet me to discuss whether any funding may be available and from what source?
I would be very happy to meet my hon. Friend. The message we have tried to give this morning is that the ECO scheme has actually been extended, rather than shortened, and the number of people who will be helped by ECO has grown as a result of the package that has been announced. I would be very happy to discuss specifics with my hon. Friend.
T5. May I say, as a humanist and on behalf of the humanist society in this place, that we respect the work that Paul Goggins did and the way in which he was inspired by his faith? His passing is greatly mourned by all his humanist colleagues.Has the Minister visited Sellafield recently to see the wonderful work going on to get rid of the legacy waste from the Windscale nuclear weapons programme? Is he aware that the 10,000 highly skilled workers there are going to lose their jobs as a result of the plan to shut down the reprocessing plant? Will he meet the workers when they come to this place to address the all-party group on nuclear energy? (901988)
I would be very happy to meet the hon. Gentleman and, indeed, a delegation from that group when they come down to this place. He will know about the significant investment that has gone into Sellafield through the Nuclear Decommissioning Authority. Obviously, we want to see what prospects there are for continuing that work.
In order to reassure constituents of mine who are concerned about fracking for shale gas, will my right hon. Friend please set out the range of licences and regulatory approvals any company will have to have in place before it can extract shale gas?
The regulatory road map we published in December makes it clear that any developer must have a licence from the Department; planning permission from the local minerals authority; the necessary permits from the Environment Agency; authorisation from the Health and Safety Executive that its method of fracturing is safe and poses no threat to the environment; and, finally, consent from my Department to proceed.
T7. In the light of the Government’s announcements this week on shale gas, will the Minister give an update on his Department’s current plans for harnessing energy from the Severn estuary? (901991)
As I said earlier in response to my hon. Friend the Member for Truro and Falmouth (Sarah Newton), we published the final strike prices for both tidal and wave in December. We continue to take an interest in that particular project, which, of course, has to be commercially sustainable. I am sure that those behind the project are aware of what they have to do to bring it to the market.
Last week a constituent came to my surgery complaining of being bombarded with Government literature urging him to apply for the warm home discount and quoting the Secretary of State assuring the Select Committee that it was available to all pensioners, but, because my constituent is in sheltered accommodation and pays his energy bills via his housing association, he has been told that he does not qualify. Is the Secretary of State aware of this anomaly and is anything being done about it?
I am grateful for my hon. Friend’s question. There are one or two anomalies with the way in which the warm home discount works. We are looking at how we can tackle that, not least in our approach to the fuel poverty strategy, which will be published later this spring.
T8. As Électricité de France has just agreed a strike price for nuclear-generated electricity in France of £38 per MWh, why have the Government agreed to pay nearly three times that price—£92 per MWh—to Électricité de France and guaranteed to index link that price for the next 35 years? (901992)
I think the hon. Gentleman is referring to the statement by the chairman of INEOS, who claims he has made this particular arrangement. Clearly, we do not know the details of the contract, but I would be very interested to know them. I challenge INEOS: if it wants to sell cheap electricity to the UK, we would be very happy for it to come on to our markets. However, I do not think that this is a case of comparing apples with apples, as I am sure the hon. Gentleman is well aware.
The offshore wind industry has seen some significant setbacks of late. What is the Government’s strategy now—are they effectively writing it off and looking to other renewable technologies to meet targets, or do they still want to exploit it, and if so, will they conduct a lessons-learned exercise?
I can tell my hon. Friend that there is no need for a lessons-learned exercise, because the offshore wind industry is in very healthy form. Of course, one or two projects will not go ahead—that may be for geological reasons, such as the one off the north Devon coast—but that is nothing to do with our regime. Some offshore wind projects will not get contracts for difference, but that is because we are going for the best value-for-money projects.
The good news is that we have more installed offshore wind capacity in this country than in any other country. According to independent analysis, we are the best place to come and invest in offshore wind. When we announce those who have won the go-early CfDs in March, I am very confident that more offshore wind will come forward.
The emission level of coal is roughly 820g of CO2 per kWh, and the emission level of natural gas is roughly 430g of CO2 per kWh. Will the Minister say what he expects the emission level of shale gas to be?
We have published a study by the chief scientist at the Department on the likely emission level of shale gas. Let me take this opportunity to tell the House that we have of course now signed on the first carbon capture and storage project at Drax, which I hope that the hon. Gentleman will welcome. We hope to follow that with the second CCS project in Scotland very shortly.
Will my right hon. Friend welcome the decision of Chevron this week to allocate at least 75% of the work for the Alder field development in the North sea to companies in the UK supply chain? Will he congratulate his officials in DECC’s office in Aberdeen on how they have worked tirelessly to achieve that outcome, which is a huge boost of confidence in the UK supply chain and will be worth many tens of millions of pounds?
I am grateful to my hon. Friend for raising that issue. I will certainly congratulate my officials in the Aberdeen office, who do tremendous work both for the oil and gas industry directly and in helping the supply chain. The industrial strategy that my right hon. Friend the Secretary of State for Business, Innovation and Skills and I published last year has made a big difference in saying to those in the oil and gas supply chain that we want them to contract with British fabricators and other British companies.
Finally, I pay tribute to my hon. Friend for leading the all-party group set up under the industrial strategy to create better communications with the supply chain and to make it clear to international companies that they should consider using British companies as part of their projects.
As a Bristol MP, I have had many e-mails over the past few weeks about the use of Government subsidies to support building power stations to burn trees, such as the Helius Energy power station in Avonmouth. Will the Minister give me his assessment of the environmental impact of burning trees for power?
The hon. Lady raises the issue of biomass. We are, indeed, trying to promote biomass in this country, but we have made sure that there is a cap on new dedicated biomass. We want to focus on coal stations that are converting to biomass, because that will mean a much better carbon gain. We have also published the strictest sustainability criteria for biomass in the world. We believe that biomass has a role to play in the transition to a green economy, but we realise that we need to take account of sustainability concerns as well.
This morning, a report was launched by the foundation industries, which are the core of our economy. Some of them, such as the steel, cement and glass industries, use enormous amounts of energy. They have made it clear that if they are to remain competitive, energy prices should not be out of kilter with those of their competitors. Will the Secretary of State work with his colleagues in the Department for Business, Innovation and Skills to ensure that these industries are attended to?
I assure my hon. Friend that I am working with my colleagues in BIS. After this Question Time, I am meeting our right hon. Friend the Secretary of State to discuss this very matter.