Live Energy and Climate Change Questions House of Commons

Pursglove and his question hs about British Steel. -- Tom Pursglove THE

SPEAKER: Order. Questions to the Secretary of State for Energy and

Climate change. Mr Steve Dotble Thank you Mr Speaker. Questhon .

Minster, Leadsom will he. Hdar, hear.

Thank you, Mr Speaker, if you will allow me can I take the opportunity

to congratulate my right honourable friend the new Home Secretary on her

new appointment and also, of course our new Prime Minister, the former

Home Secretary, I wish them great success and I would like to welcome

the honourable gentlemen to his place. This is the first tile we

have had an exchange over the despatch box and to wish thd

honourable lady the member for Wigan and the honourable member for

Southampton good luck in thdir future, I have enjoyed our

exchanges. Due to our geology, deep geothermal power is likely to make a

small contribution to electricity supply, however Cornwall is one

where r area where the technology can work and I'm pleased it is part

of the devolution deal for corn without. Geothermal height has more

potential and we are funding studies.

Thank you, Mr speaker, I th`nk the minister for that response. Deep

geothermal has a great benefit of being a base load energy sotrce

which isn't reliant on weather conditions and as the minister

points out Cornwall is one place where great protension for

geothermal alies and as she is aware a scheme is being developed at the

Eden Project at my condition constituencicy. Can I invitd the

minister to visit and see the potential of geothermal devdlopment

in Cornwall. Well I'm grateful to my honourable friend, nothing would

please me more than a nice holiday in Cornwall right now. I am very

pleased it hear the EGS energy and Eden Project is grossing well and as

he no knows the project has the potential to produce power for about

4,000 homes and to make an opportunity contribution to the

local community. Thank you. When it comes to renewspaperables, when you

look at the index, the UK is falling from the 7th most attractivd country

to the 13th most attractive country. Following breaks that will get

worse. What is the minister doing to reverse that trend?

Well, actually, think according to blomburg new energy finance, the UK

has been the fourth highest invest in clean energy globally for the

past five years. Over half the total investment in the EU in 2014

occurred in the UK. We have a very proud record and we are acttally set

to exceed our own target for generating renewable energy by 020,

a proud achievement for this country. Iceland has a fant`stic

football team a free trade `greement of its own with China and is outside

the European Union. It is also the world's leader in geothermal energy,

are we drawing on Iceland's expertise to develop this industry

in our own country? Well, if he is referring to the task force for the

interconnect with Iceland I'm a huge fan of that and there will be a

statement shortly about the progress. He will be aware that has

been carried out between thd looeders of the UK and Icel`nd I r

and I seriously hope we will be able to make gross in all sorts of by

lateral energy Dells in the future. -- deals.

Officials in my department leet regularly with developers to make

clear the response we place on sourcing UK contented, Incltding

steel in infrastructure projects. For example, EDS say they expect a

large proportion of the stedl for Hinkley point C, source bid their

supply chain will come from UK companies.

I'm grateful to the minister for that answer. As she will know, the

Corby steel works plays a vhtal role in manufacturing steel tubes which

can be used for fracking purposes. Would she agree with me, th`t it is

really important, wherever people we use British Steel, not just because

it supports the industry and the job that is it provides but also because

the quality of the project `nd safety of the projuct is superior

than foreign competitors. I completely agree with my

honourable friend. I have h`d a number of meetings to discuss this

point. I can say in their 2014 report, getting ready for UK scale

gas, Ernst Young said there would be significant benefits for jobs and

growth from a successful UK shale industry, including a were dct jd

need for over ?2 billion wodfrt steel. -- a projected need.

Specific national innovation centre in my constituency relies on funding

to use Tata British steel to use buildings which are decashenised and

lowers energy bills and helps the UK to achieve its carbon dere duks

targets. Will the minister report specifics to develop British steel

and replace anything that m`y be loss as a result of Brexit. What I

can say to the honourable l`dy, my department has been working closely

with BIS to see how we can help Port Talbot with energy costs and made

announcements on how we can re-Dawes the impact of carbon policids on the

steel works in part Talbot. -- reduce. And we'll continue to look

ator further ways to do that, including nor jif intensive areas

around the courted can reduce electricity costs by change the way

they generate power. Would my honourable friend `gree

that it is the no just in the UK that British steel can be used in

energy infrastructure project but around the world. Last week on a

visit to the democratic reptblic of Cogne goe why the International

Development Committee, we s`w the way in which Britain is leading in

helping to provide energy infrastructure in that country? Yes,

my honourable friend is exactly right and a good example, I think of

my own efforts to improve the use of UK steel is in talking with the

offshore wind industry council and urging them to do more to project UK

content and for the UK as one of the biggest deemployers of offshore

wind, to it da, once we start building export markets we can

certainly hope that British steel will former a part of that dxport.

The minister will be aware that the two Loire Earth steel plants in

Scotland including Clyde brhdge in my constituency will be heavily

involved if the supply of ttrbine casings for tidal wind projdcts and

tubular steel structures for offshore wind turbines. A

renewspaperable industry can provide a huge market for steel produced in

Britain and this represents a huge opportunity for British bushnesses.

Will the minister commit to revisiting the Government's approach

to the subsidy of such renewables? In terms of the subsidies for

renewables, I think we have set out very clear that it is important that

we balance the needs of consumers to keep the costs down, with the needs

of new technologies to be subsidised, in order to deploy and

keep the costs down. Where offshore wind is concerned, we have been very

clear, we have seen huge potential for the cost trajectory to go down,

already the offshore wind industry hassing a targeted 50% UK content, I

am certainly encouraged to be more ambitious which would include the

use of British steel. . Thank you, Hinkley point hs

expected to be one of the l`rgest construction projects this country

has ever seen and will requhre more than 200,000 tonnes of steel. Does

my honourable friend agree this provides a huge opportunity for the

British steel industry? Yes, I would expand that opportunity to hnclude

right ate cross the UK supply chain and Government is working whth the

industry to develop a demand model which thatly Will provide a

capability and capacity picture for the UK against the demand and part

of that aim is to identify the forward requirements for colponents

that will include steel. So we are working closely with new nuclear

developers to create that m`y have chain right across UK busindsses.

Number 3. Well, the Government welcomds the

CMA's final recommendations which are another accept towards the

competitive and executiveendrgy McEt that works for all consumers,

but it is key that it is also the responsibility for energy stppliers

to take action in response to the CMA's recommendation and we are

meeting all of the big 6 to urge them to do so.

Can I congratulate my honourable friend for answering all thd

questions during the course of this morning. Does my honourable friend -

and I wish her the best of luck in anything that may happen later

does my honourable friend agree that it is only by having greater

competition in the market, that we can drive down price, espechally for

those living in fuel povertx? Well, my honourable friend hs

absolutely right, and I doin viet any of my honourable friends on the

front bench to jump up and take one of these questions, should they wish

to do so. You are doing a great job. I'm quite used to being the laster

person on the battlefield. H know my place. The Government has t`ken a

great deal of action to boost competition and make switchhng

easier for all consumers and we have absolutely recognised vulnerable

consumers need additional hdlp to engage with the energy markdt. So to

help address it, we have provided about ?3 million over the p`st three

years to fund face -to-face support through the big energy saving

network as well as a further ?1 million for under iffing for this

winter and ?1.5 million of funding for a programme administered by

National Energy Action over the next two years, a top priority for my

department The deputy Leader of the House has other important

responsibilities and she knows she has those. As far as the men sitting

there, they all look fine, simply nodding in the appropriate place,

they are doing the right thhng. I thank the Minister for her

replies. With the CMA final report, it has been characterised as blaming

the sticky customers that they haven't switched and condonhng

penalties on those sticky ctstomers if they continue not to switch, does

she agree with that analysis? I also enjoyed the chocolate raisins. What

I have to say that customers an expensive standard tariffs could

save ?325 by switching to the cheapest fixed deal. I don't think

they are blaming consumers, they are recognising there is a slight

unlimited and inertia to swhtching. We are trying to urge peopld to

switch and between January `nd March this year, almost 2 million energy

accounts were switched and over half of those were moving to new

suppliers. The kind of push to switch is happening and we `re

getting progress. We want to help consumers get a price that hs better

to them, that is in stark contrast to those opposite to talk about

capacity markets and scare ly constituents into worrying hf they

can pay their bill or not. Ly honourable friend is exactlx right,

all too often, people fail to recognise that the energy try limit

insists on keeping the lights on, keeping the bills down and dat

carbonised in. He is absolutely right, the capacity market hs there

to ensure supply, that is the payment we make to keep the lights

on. I would like to echo thd remarks about the now Home Secretarx, I am

glad the Minister is here otherwise these questions may have bedn more

rhetorical than usual. In tdrms of the report, the prime ministers said

in 2012, former prime ministers sorry, said he would ensure

customers would be on the lowest tariff, four years since thdn. An

extensive report and recommdndations that are a little underwhelling in

their scope. Does the Minister think this will be enough to ensure that

energy customers get the best deal possible. It is a very fair

question. It was a detailed piece of research that the CMA has c`rried

out. We committed to implemdnting the recommendations as soon as

possible but we also made it clear that if we don't see change, we will

take further steps. He is rhght we will implement the recommendations

and we will see costs come down and competition go up and better

remedies for those on prepaxment meters and we will also be `lert to

other opportunities to get the cost down for consumers. I am gl`d the

Minister says the government will be vigilant on this matter. Thd report

said that 70% of customers were on the most expensive standard variable

tariff, would she set a target for reducing that so we know wh`t

success looks like and determine whether the further action hs

required? I think as I have just explained, we don't want to set a

specific target. What we ard doing, successfully, is providing support

to organisations who are gohng on to help people to switch. I love the

idea that for anyone out thdre listening to this, if you w`nt to

help your grandparents or your neighbour or whoever it might be who

may not have the confidence to switch, help them switch. You could

save them several hundred pounds. We need to persuade people of the

advantages of switching rather than setting targets and blaming them

when they are not met. Mr Speaker, I would like to pay tribute to the

Right Honourable Lady for H`stings and dry and congratulate her on her

appointment as Home Secretary, the Department paid -- played an

important role in the clans agreement and while only two weeks

ago, some might suspect she might be more likely to be standing `t the

dispatch box, in this place we are beginning to learn to expect the

unexpected. She was always courteous and often helpful in her exchanges

and we wish her well in her new role. The CMA report says that in

the last five years, the big energy companies have been overcharging

customers why more than ?4,657, 00 every single day. Can the Mhnister

name any other swindle of stch it nor must magnitude where thd

government would simply say it is the customer's fault. -- enormous

magnitude saying they should have switched to another provider? I am

grateful to the honourable gentleman for his ingestion, I completely

reviewed the government says it is the customer's fault. We support the

recommendations, they are m`king huge changes and we are rolling out

smart meters and simpler rules coming in. In active consumdrs will

be enabled to which to buy new suppliers with cheaper deals. There

will be improved accuracy of quotes, a whole range of remedies bding

undertaken. There is in no sense in action on the part of this

government. The honourable lady said she would be meeting with the

industry and the big six. The government's own figures st`te that

2.38 million households livhng in fuel poverty. Her apartment could

today take action to force, not to talk to but to force energy

companies to pass on changes in wholesale prices immediatelx to

customers through tariff structures. Customers would benefit dirdctly

from the drop in wholesale prices, why is she failing to do so? I think

that just shows the honourable gentleman does not really understand

how the energy market works. His own side's proposal to cap fuel prices

to consumers, energy bills, was a grave mistake. We have seen

wholesale prices come down `nd all consumers have benefited from that.

I say again, this government is absolutely committed to getting

bills down for consumers at every opportunity and into implemdnting

the significant reforms and looking at what else is available to be

done. Number for Mr Speaker. With permission, I will answer this

question and number six togdther. The UK climate change commitments

are grounded in the UK 2008 climate change act. It commits us to a

reduction in emissions of 80% by 2050 from 1990 levels. Our

membership of the EU has no impact on our commitment to this act, as he

will have seen on the fifth carbon budget two weeks ago. I thank her

for her answer but the commhttee the climate change says tackling climate

change will be more difficult outside of the European Union. The

vote to leave does not give the government mandate to underline the

global transition, will it laintain the commitment to the 2020 clean

energy target which was agrded as part of the EU energy package? What

I can say to the honourable gentleman is that the UK is a world

leader in tackling climate change. The 2008 climate change act is a UK

act that we are absolutely committed to. We are outperforming ag`inst our

electricity renewables targdt by 2020 and we remain committed to

that. Can the Minister say what impact on the cost of energx in this

country will be from leaving the EU? In my own view, the issues for

energy are that leaving the EU will not make a difference to thd innate

cost or the challenges to the energy sector. Most of the transactions we

have for electricity generation are home-grown. There is a glob`l market

for gas. We have very good connections with European and

non-European countries an interconnection with whom wd will

continue to make commercial arrangements that will be to the

advantage both of the UK and of those partners in energy. I

congratulate my right honourable friend on her appointment and her

ability to do the work of four ministers with such panache. She

will know that normally, economists disagree about everything btt one of

the few things they are agrded about is the best way to achieve `n

objective like that set by the climate change act is through the

price. If you set subordinate targets, that inevitably me`ns that

you achieve it by a less efficient and more costly route. When we leave

the EU, will we be able to scrap unnecessary targets while

maintaining that final targdt and thereby reduce the cost to consumers

of reducing emissions by 80$ by 2050? My right honourable friend is

exactly right to point out the importance of keeping costs down

while we decarbonise. We have always made it clear that every opportunity

to do that at the lowest cost to consumers will be taken and it is my

view that leaving the EU will allow us to do that to a greater dxtent

than in the past. Since 1990, the UK has decreased emissions by ` third

more than the EU average, wd have set a target for 2030 which is

likely to be a double decre`se compared to that of the EU `nd

Paris. We will know logger be a will to influence to make more progress

in this area? I am completely clear, European countries remain otr

friends and great allies. Wd will continue to work with them. In

leaving the European Union, it doesn't mean we are leaving Europe

by any sense whatsoever. It is my expectation and anticipation that we

remain closely aligned on global issues such as climate change. We

will continue to play a leading role in the world's attempts to tackle

this great threat. Number fhve Mr Speaker? At the heart of our energy

strategy is the need to encourage new investment in the UK endrgy

system. My department will continue to take action to deliver sdcure,

affordable and clean energy for hard-working families and

businesses. This work is already underway since the referendtm, we

have accepted the committee for climate change on carbon budget

five. We have updated the c`rbon market auction and the allocation

round will go ahead later this year. The UK's failure to attract interest

from the energy sector has `lready undermined energy security for

generations to come. The Brdxit vote has led to further insecurity, how

will the Minister ensure endrgy future? I completely don't recognise

what the honourable lady is saying about our failure to attract

international investment, it is clearly not the case. In offshore

wind, we are attracting a htge amount of investment. We have the

very successful turbine blade plant created, we have done energx,

various different international developers putting in bids `nd

building new offshore wind hn the UK. Onshore wind has been a huge

success story, 99% of solar installations have taken pl`ce since

2010. I earlier gave statistics about our share of the investment

going into renewables, I just don't recognise what the honourable lady

is saying? I congratulate mx honourable friend by confounding the

doom mongers in this. Can I ask her if she would agree with me that

Marrakesh in November will be a wonderful opportunity for the UK to

showcase world beating edge in renewables technology and otr

industrial base? I couldn't agree with him more. He is exactlx right,

the UK is leading in both the deployment of renewables and getting

the cost of that technology down through our policies. In our

commitment to the car bombers in and tackling change and showing the rest

of the world how much we want to lead in this area and we will

continue to do so. Policy f`vouring small modular Reactor technology and

manufacturing opportunities that the UK are equally important. In the

constituency I serve, it is the ideal site for this and adv`nced

reactor technology, does thd Minister not agree that the safety

assessment should move forw`rd with greater focus on a realistic short

list of organisations? I agree with the honourable lady that we need to

move forward with this. The UK Government recognises the

possibilities with small re`ctors. We have an ambitious nuclear

research programme that includes the competition she mentions. Wd have

made a commitment to publishing and S M R delivery road map in the

autumn to clarify the UK pl`ns for addressing the issues she addresses,

regulatory approvals and thd skills issues.

Question # 7. With permission I will answer this question and qudstion

number 8 together. The west bay to deliver lower energy bills for

businesses and households is to have a robust and competitive endrgy

market. There are now over 40 energy suppliers in the domestic rdtail

energy market, up from 13 in 20 0. And independent suppliers now have

over 1% of the dual fuel market competition is improving but we are

not complacent and we are working forward to implementing the

recommendations from the CM@'s final report. As a method of controlling

their energy costs, Semex, who operate a large cement flant my

constituency have adopted an alternative fuel deprived from

household waste which has the benefit of making use of material

that would otherwise go to landfill and is a great example of the

circular economy. I wonder hf my honourable friend could say what

steps she could do to encourage other energy intensive industries to

consider the use of alternative fuels. Can I say, I really welcome

this initiative in my honourable friend's constituency. My ddpartment

is working closely with BIS, as well as with the nor gin tensive

industrial sectors themselvds, including the cement sector in ways

in which companies can reduce their emissions while still maint`ining

competitiveness and the use of alternative fuels is an important

part of this. What steps dods the minister plan it take to improve the

effectiveness of the energy supply mark tote help small and large

businesses expand, both in Wiltshire and the country? The CMA has said

that the energy sector for larger businesses is competitive btt they

have put forward some strong and sound remedies for micro-businesses,

to improve such things as preventing automatic rolovers, without the

consent of the business, to improve online quotations, and other

remedies that actually will improve competition and the service

available to micro-businessds. The Government has guaranteed an

electricity price b three thmes the wholesale price of electrichty, to

EDF, to build a nuclear white elephant at hidgely point C, can the

minister explain how on earth that will benefit consumers wherd whether

business or households in rdducing energy bills. I'm sure the

honourable gentleman knows, that at the moment we bet get about 16% ever

of our electricity every dax from nuclear and he will also know that

those plants are all due to be retired at least by the end of the

2020s and, therefore, new ndw clear form, the core part of how we

replace our electricity supplies going forward. Hingely is a good

deal for consumers. -- hat-trickily. Of course the mark to market costs

change according to wholesale prices but the price of electricitx coming

out of hingely by mid-2020s is guaranteed. Stress important for

that certainty. This Governlent doesn't take the view that we'll

just see what happens. What we have to do is to plan for the future

Why? Because electricity security is not negotiable.

Northern Ireland's households and businesses face the highest

electricity bills in the whole of the UK. Businesses still face some

of the highest for joy costs in you were yoo. Minister, can I ask what

discussions you have had, or have had the opportunity to have for the

minister in the Department of Trade enterprise and industry to dnsure

everything is going Dobb ton drive the costs down for Northern Ireland

customers? Of course, the honourable gentleman is right tow raisd this

issue. What I can tell him hs that my department and others medt

frequently with Northern Irdland ministers, to make sure that all of

the benefits that can be passed on to Northern Ireland consumers are

being done. And I welcome hhs contribution to the debate. You look

surprised. I was listed for 9. THE SPEAKER: Can we be clear thhs. Could

be a first. Is this a questhon upon which the honourable gentlelan does

not which to give the House the benefit of his ear? Mr Speaker, I'm

always happy to abade by yotr ruling. Very well. # He needn't

worry. -- abide.

One year ago, Dful EC's esthmate for the total lifetime cost for the

nuclear power station at Hinkley C was ?14 billion. Recently that

estimate was revised to 37 billion pounds.

-- DEC. It has been said that hingely C is

unlikely to go ahead. So dods this mean now that the minister doesn't

have to worry about justifyhng the extra ?23 billion cost to the

Treasury, or does she feel she doesn't need to explain the

additional burden upon tax players. Splendid. Minister. I think the

honourable gentleman possibly is misunderstanding. The cost of the

project hasn't changed. The difference is, because of wholesale

prices and because there is a fixed price agreed for consumers,

therefore, as forecasted and as current wholesale prices ch`nge so

will the difference between the fixed price and the wholesale price.

So, to be clear, the cost of the project has not changed. It remains

a good deal for consumers. The honourable gentleman is chuntering

at me from his sedentary position. Let's be clear. We cannot jtst wait

and see. You have to make investment decisions and stick by them. You

cannot simply magic electricity out of thin air. You need to invest

make decisions and be committed to them. Number 9. Mr Speaker.

With permission, Mr Speaker, I will answer this question and qudstion 21

together. Good progress has been made to date on the rollout of smart

metres, with over 3.6 million metres installed across the countrx. And

there is evidence that thesd consumers are already saving energy.

Research by British Gas shows that smart metre customers have reduced

their energy consumption by an average of around 3% for both gas

and electricity. # Thank you, Mr Speaker. Can H thank

my honourable friend for her answer. Having recently installed a smart

metre. Oh. I can confirm it is a very tseful

nool managing energy consumption. Will my honourable friend join me in

encouraging my constituents to contact their energy supplidr and

explore how these useful gadgets can actually save them some mondy. Yes,

I can also tell my honourable friend that very useful if you go `way for

the weekend as a parent and you suddenly see your electricity use

going up dramatically, you know the kids are up to something. So, yes,

he is exactly right. We need to encourage consumers to have smart

metres installed in their homes to make sure they can enjoy thd

benefits that he has. So, I do encourage his constituents `nd all

of our constituents to find out more about the benefits of smart metres,

or to request an installation or to visit the smart energy GB wdbsite.

Thank you, Mr Speaker. Many of my vulnerable constituents werd on

pre-payment metres and the smart energy metres present a terrific

opportunity for them to get better value for money. Will my honourable

friend agree with me that slart metres have a terrific role to play

with the pre-payment customdrs. Hear, hear. My honourable friend is

exactly right that smart metering will transform the experience for

pre-payment customers, topphng up pre-payment metres should bdcome as

easy as topping up a mobile phone and I welcome the fact that a number

of energy suppliers are alrdady offering or trialing pay-as,you go

services for their customers. Can I welcome the Secretary of State

to her new post. She has done some very good work, apart from ly

disappointment with her views on Brexit, but could I urge her today

to think again about smart letering being rolled out to every home in

the country and could I remhnd her, also, the research and innovation

behind smart metering was p`rtly because university cooperathon

across Europe. Already contracts have been withdrawn from Brhtish

universities because we are going out on Brexit. Well, I'm very soary

to disappoint the honourabld gentleman. I'm not actually in a new

post. I'm in my old post. Sdcondly, I don't recognise any damagd to our

smart metering rollout as a result, as he points out of contracts not

being awarded to universitids. I don't - I haven't seen any dvidence

of that. And thirdly, I would say to him, that it is our continudd plan

that all households and bushnesses should be offered a smart mdtre by

2020. Could the minister confirm today

whether or not her department is to be abolished? And if so, who is

going to take forward the work inborough groes on smart metres at

Cabinet level? Well, he'll have to wait and see. But what I can tell

him is that the commitment to our energy, to smart metres, to all of

our policies, will remain as strong as ever Smart metres can reduce our

energy usage but there are 34,9 0 excess winter deaths last ydar and a

Panorama investigation reve`led over 9,000 of those were directlx related

to living in cold and poorlx 46 insulated homes. So will thd

Secretary of State explain why there has been an 80% drop in the

installation of major energx efficiency measures in Brithsh homes

over the last four years, and will she agree to have urgent talks about

Lord Adonis to ensure that dnergy efficiency is a top prioritx for the

national infrastructure comlission? I agree with him, that fuel poverty

in this country has to be t`ckled. It is an absolute priority for my

department. He may be aware that we have launched our consultathon on

eco- to ensure that we refocus it on the fuel poor and we do everything

we can to ensure warmer homds. Number 10. Number 10.

Thank you, Mr Speaker. I'm happy to tell my honour`ble

friend that switching was at a four-year high in 2015, with 6.

million electricity and gas switchers across the UK, an increase

of around 15% from 2014. 2 lillion further gas and electricity switches

has already already taken place between January and March of this

year, with 52% of these customers moving to new suppliers. I thank the

minister for that response. Account minister confirm that the Government

is specifically ensuring th`t those who are in most need or fin`ncially

challenged, such as in my constituent of Eastleigh, or across

the UK, who are in need of lower energy bills are benefitting from an

efficient and easier switchhng regime? Yes, I can assure mx

honourable friend that the Government is acting to do just

that. In fact customers on dxpensive standard tariffs could save ?it 325

by switching to the cheapest fixed deal, which is why we continue to

encourage customers to switch through our big energy savings

network initiative. Most tariffs remain absolutdly

incomprehensible to compare. This particularly affects my most

vulnerable constituents, thd elderly, the disabled, thosd with

mental health issues. What leasures will the minister take to

specifically support the most vulnerable?

She is exactly right. This hs a very important area. And I can rditerate

over the last three years the big energy saving network has rdached

around 350,000 vulnerable consumers, helping them to reduce their bills

by switching. And last year we ran a very successful, national TV and

press advertising campaign, Power to Switch, where more than 38 lillion

was saved by 130,000 households switching energy supplier. We

continue to support good organisations like the Citizens

Advice Bureau who often host these initiatives, who actual lie work

face-to-face with vulnerabld consumers to help them in the

process of switching. I do trge people who are struggling whth fuel

bills to give it a try T re`lly is not too difficult.

Number -- to give it a try. Number 11, Mr Speaker.

With permission, Mr Speaker, I will answer this question and qudstion 13

together. The UK's system of carbon budgets provides the long-tdrm

certainty that businesses nded to invest in our low carbon economy. As

my honourable friend will bd aware, the Government announced last month

that he will accept the Comlittee on Climate Change's advice on the level

of the fifth carbon budget, an announcement that has been widely

welcomed by the business opportunity.

Can I thank the minister for that answer and ask her to updatd the

House on what steps the Govdrnment will take to involve investors and

businesses in the preparation of its emission reduction plan? Well, as he

would expect, we are alreadx busy working on that plan, with other

government departments, with businesses, consumers and chvil

society. So, for example, wd are already in discussion with the CBI,

the #58dersgate Group and energy UK amongst others to arrange specific

stakeholder events, ensuring our emissions reduction plan is built

from the ground up with a r`nge of input from stakeholders.

What assurances can the mintte you -- Minister give that there was

support the domestic nuclear fuel industry and a low carbon ftture?

Nuclear power is a vital part of our work to build a vital and sdcure

clean energy system to keep the lights on in the years ahead. His

consistency -- stitcher Runcie has a crucial role to play, providing the

rods that powered the nucle`r fleet as well as that of his local

constituency. With permission Mr Speaker I will answer this puestion,

16 and 20 together. The govdrnment has engaged extensively with

investors stating a clear mdssage that the UK remains open for

business. I am very clear that the UK is an attractive environlent for

investment in energy and my department will continue to use take

the steps needed to deliver affordable and clean energy for

families and businesses across the UK. As one former leadership

contender to another, can I commiserate with her over the events

of the last week and wish hdr well in the reshuffle today? The

manufacturers organisation said that the decision to cancel the carbon

capture and storage situation had damaged investor confidence in the

industry and we have also hdard from one company who had invested in wind

energy in Yorkshire says thd referendum means they face ` whole

new set of unanswered questhons what steps is she taking to bring

confidence to investors in low carbon industries? In fact, they

have recommitted to their investment in Hull which is great for that

area. I have had a meeting ` few days ago, it seems like a ydar but

it was a few days ago, with the offshore wind industry Council. I

talked to them about their confidence in investment. They all

remain committed to the UK. We have EDF who have come out and

reconfirmed their commitment to the UK. An CTF, as I have said lany

times, we remain committed to what our future strategy will be, the

fact the competition did not make the cut incomes of taxpayer value

for money at the last spendhng round does not mean we are ruling out CC

S, we think it plays an important role in our decarbonisation

strategy. It has created widespread insecurity in the market and the

wider economy, there are a range of possible opportunities in Brexit

negotiations, each leading to regulatory options for Brit`in with

the EU with implications for the investment trade in energy, what

steps as the department takdn to guarantee that overseas invdstment

is protected whatever the ottcome is? What I can say to the honourable

lady is that there are huge opportunities that I believd will be

seen in leaving the European Union. As is always the case in thd United

Kingdom, we take great steps to ensure business confidence `nd to

ensure that investors will be able to use our very sound contr`ct law

and investor base to continte to fruition with their projects. I am

sure the Minister would agrde with us that the EU exit boat has caused

uncertainty and this new and unexpected government with the paint

still giant will want to boost investment and development hn the

energy sector. Can the Minister say how the government will cre`te

incentives for investment and boost consumer confidence? My concern

about investor confidence ldd to a significant move on my own part to

make sure we had certainty hn the UK. I certainly think the ndw

government will be absolutely keen to ensure investors that it remains

a strong place to invest. Ntmber 14, Mr Speaker. The most effecthve way

for energy consumers to makd sure they are on the best value tariff is

to make sure they shop around. I encourage consumers to engage in the

market and make use of the Ofgem price comparison website av`ilable.

We have made it simpler and easier to switch supplier and we are

working with Ofgem to removd two reliable next day switching. Many

people remain unaware of how easy it is to switch energy suppliers and

save money, what actions ard her department making to encour`ge

people to switch suppliers? He is right we need to ensure that people

are aware not only of the bdnefits of switching but how easy it is to

do. We are taking steps to raise awareness through the big energy

saving network, big energy saving week and the power to switch

campaign. We are working to improve the switching process for ctstomers,

launching the energy switch guarantee last month to givd

consumers confidence to switch. And working to deliver next day

switching. Question number 07 Mr Speaker. With permission, I will

answer 17 and 19 together. Our top priority is to make sure falilies

and businesses have secure dnergy supplies. And that the National Grid

has the right tools in placd to manage the system. Energy sdcurity

has been strengthened by reforms to the capacity market including

holding an auction this comhng winter for delivery in 2017,18. As a

promoter of the act in 2009, I am interested in energy supply in

winter, will she do all she can to encourage investment in new gas

generation? The capacity market is the best way to make sure wd have

the infrastructure to cope with unexpected demand leaks. We are

committed to more capacity `nd buying it sooner. New build capacity

is eligible for 15 year agrdements providing a secure revenue stream

and encouraging new gas infrastructure. Yesterday I launched

a new all-party group for m`rine energy. To promote the fant`stic

potential from the to mulch or a energy, whether tidal streal always.

Does the Right Honourable friend agree that when the review comes out

the government should respond as fast and positively as posshble to

make us a world leader in what could be one of the greatest sources of

energy in the world? We recognise the potential of tidal lagoons in

the UK which is why we commhssioned this review. We are committdd to

providing clean and affordable and secure energy we can rely on now and

in the future. This review will report in the autumn and help us

determine what role tidal l`goons can play in it. Finally, nulber 22.

There are strong protection for sensitive areas already provided at

the existing regimes. These regulations ban fracking in national

parks, areas of outstanding natural beauty and other sensitive `reas to

a depth 100 metres. After the consultation on 28th of Jund,

fracking will not be omitted from wells drilled at the surfacd of the

most valuable areas including sites of special scientific interdst. I am

grateful for the Minister's response. Licences have been granted

in areas of green belt and nature compensate -- conservation status in

my constituency. Can the Secretary of State assure me that at, the

Minister, to protect green belt sites? I can reassure my honourable

friend that the report will consider sensitive areas. It will prdvent

drills at the service of national parks, areas of outstanding natural

beauty, Royal Heritage sites and sites of special scientific

interest, ensuring 2000 sitds. As things stand Mr Speaker, I `m

delighted that the honourable gentleman opposite and myself are

able to take forward the very enormous, as we have heard, job

that the Department of Energy and Climate Change has to-do. I am sure

there will be further announcements later on that we are all looking

forward to hearing. I worryhngly have a very split constituency, what

progress can be made to enstre that all cars imported to this country

actually meet our rigorous dmission standards? I can absolutely assure

my honourable friend that the Department for Transport ard looking

closely at emissions in the area of transport and vehicles. There will

be further measures brought forward this autumn looking at how we can

meet the increasingly stringent requirements for emissions. In the

UK, there are 23,000 businesses with solar panels on the roof, if

proposals in business rates go ahead, these companies, instead of

paying ?8 per kilowatt could pay between 43 and ?61 from next April.

Up until last week, her dep`rtment did not even know about this. Will

she find out white officials have been sleeping on the job and speak

to the Minister to get this mess sorted out? I am absolutely not

aware that we were sleeping on the job. I will certainly, if the

honourable gentleman wants le to, we will look into it but we ard

certainly not asleep on the job I have never known my honourable

friend to sleep on the job `nd I wish her well. On the northside of

the rumours, power station has closed down and on the south side we

have the blight of a new wind farm being built. Can right honotrable

friend reassure my constitudnts that the scientifically signific`nt

marshes would not be lighted if fracking goes ahead? We havd more

than 50 years of drilling experience in the UK and one of the best

records in the world for economic development while protecting our

environment. All onshore oil and gas projects including shale gas are

part of a system that addresses traffic movement, noise levdls and

so on, new development must be appropriate for the location. It

takes into account the effect on health, natural environment, General

amenity and any adverse effdcts from pollution. I do hope that I can

reassure my honourable friend that his constituency will be protected.

The lagoon project is hugelx important, not just for Swansea in

south Wales but potentially similar projects. When will the Minhster

have news of the Independent report and what is the timetable for that

decision? She will be aware that Charles Hendry was appointed to look

in the whole case of tidal lagoons and what contribution they could

make to our future security in energy. Importantly, the cost of it.

That report will be later this year, I cannot but a specific timd on it

but we are acting on it as fast as we possibly can. What assessment has

my honourable friend on the assessment of Hinkley point

following the result of the EU referendum? Good progress continues

to be made, having visited the site at Hinkley point myself a fdw months

ago, it was apparent that a huge amount of work is already going on.

As my honourable friend will housing, EDF have renewed their

commitment to the project following the result of the referendul on 23rd

of June. Does the Minister `gree that the scrapping of the Ddpartment

of Energy and Climate Changd can only be taken as a signal that the

new government attaches less significance to these important

issues? I absolutely don't `gree. The assumption that you havd to have

a Department for something hn order to be able to meet its objectives is

not one I would agree with `t all. I have just been sent to report from

Southend-on-Sea citizens advice bureau calling for a fair ddal for

prepayment meter users. Thex seem to be getting a second-class sdrvice.

Given they are the most vulnerable people, would buy it -- with my

honourable friend see that her department helps them. Prep`yment

meter customers get a raw ddal with far less choice of tariffs `nd

suppliers than customers who pay by other methods. That is why we are

supporting the recommendations to make it easier for prepayment meter

customers to switch energy supplier and a safeguard tariff cap for these

customers until competition in this segment of the market improves

significantly. Can I also whsh the honourable lady well in the

reshuffle, we worked closelx together on early interventhon

policy and I know how committed she is to that area of policy. One of my

constituency recently attended surgery over a protracted ddalings

with her energy supplier, elpower, who continually failed her `nd made

a huge error resulting in a very large overpayment. Since my

intervention, they have apologised and offered ?150 in convers`tion.

This has been going on sincd 20 3. Can the Minister assure me `nd the

house that these energy companies will treat customers fairly and with

respect and agree with me that they should be held fully to account I

completely agree with the honourable lady, she isn't Zack Lee Wrhght

Energy suppliers must behavd properly to their customers. We see

too many complaints, not a good enough surface and that has to

change. Can I congratulate my honourable

friend for fielding the questions in the last hour and also for the

manner which she has conducted herself in the last week, where I

believe she has done herself a great deal of credit and I add my voice to

those wishing her well later today. Willing to the historic of the

British people leaving the TK. The UK has control over VAT one of the

ways we could help households with high energy bills is to cut VAT on

energy would. The minister support that? Well, I'm grateful to my

honourable friend, and to ptll collective responsibilities a once

again taken effects I would like to reassure him that VAT is of course a

matter for the Treasury. But I do agree with my honourable frhend on

the need to reduce the numbdr of households and fuel poverty which is

why we are consulting on proposals to know cows more of the endrgy

company obligation on those most in need and we have laid regul`tion

that is will see continued support for more than 2 million households

through the warm home discotnt. In the minister's remarks, she

suggested there has been no loss of confidence in investment in clean

energies as a result of the vote to leave the EU. Would she then like to

explain why a Swedish firm `re reviewing their investment hn the

UK, ?5.5 billion of investmdnt in off-shore wind is at risk.

I think what I made clear is that there is continued, enorm wrus

investment coming into the TK, from offshore and on-shore investors I'm

in the aware of the particular point she's raising but I can tell her the

UK remains a very attractivd place to invest. And this Governmdnt is

doing everything it can to lake sure we get even more overseas investment

in our energy infrastructurd. Thank you, Mr speaker, what steps is

my honourable friend taking to ensure the effectiveness of the

capacity mechanism in bringhng forward new gas-fired areas, such as

in the Carrington site? Well, the capacity market is incredibly

important for ensuring secure energy supplies and what we've recdntly

done is announced we are gohng to be bringing forward an earlier auction

for 2017/18, and securing more capacity early and what we hope is

that that will enable us to get over this short-term issue where

wholesale prices are so low that the viability of power stations is at

risk and by having that cap`city mechanism firmly imbedded in our

energy supply, we believe wd will be bringing forward new, attractive gas

investment through longer-tdrm contracts which will be to the

benefit of the UK energy consumerment

On the subject of the capachty auctions, the minister will be aware

that the Government has madd an investment that the capacitx auction

this winter could put ?36 on customer bills. Bearing in

maintained she has talked about keeping bills down today, how does

she think that's going to affect customer bills? Our central

assessment is that the impact on bills could be up to ?28. However,

our impact assessment also shows that in the events we did something,

that further power station closures could add a further ?46 to consumer

bills so. We believe this is good value for consumers and it provides

the energy security that we all rely on.

What opportunities does my honourable friend see, both of

inward investment but also selling our services abroad as a result of

breaking free from the shackles of the EU? Well, I personally believe

there will be huge opportunhties. I think we now have the chancd to

negotiate free trade deals with the rest of the world. We have the

opportunity to determine policies for energy, without the need to

constantly look for EU statd aid. I think the opportunities for the

future are enormous and I look forward to being able to promote UK

PLC in the world. ! THE SPEAKER: Order, busindss

question, Mr Paul Flynn. Will the Leader of the Housd give us

the business for next week? The Leader of the House, Mr Chris

Grayling. Mr Speaker, the btsiness for next week on mopped 18th July

we'll have a debate on the lotion