Member News
The House of Commons environment, food and rural affairs committee on January 14 held its final hearing in its inquiry into 'Energy efficiency and fuel poverty'.
The following witnesses were invited to speak:
- Joan Ruddock MP, parliamentary under-secretary of state, Department of Energy and Climate Change
- Chris Lee, deputy director of climate and energy, Department of Energy and Climate Change
The session commenced with the chairman Michael Jack (Con, Fylde) asking why, if the government has done such a great deal to reduce fuel poverty, it was still coming under such huge attack?
Ruddock commented that millions of people in the UK have been brought out of fuel poverty at the same time as millions have been thrust straight back in, largely due to global trends in rising fuel prices. This situation, she exclaimed, was ''entirely unavoidable''.
But Jack commented that, whilst the government might not have been able to control fuel prices, it is still responsible for administering energy inefficient housing as a measure to reduce fuel poverty.
Ruddock said that the quality of the UK's housing stock, in terms of its energy efficiency, was not getting worse. She explained that the major factor in dictating the resurgence of fuel poverty was rising global energy prices.
Ruddock commented that 2010 targets for reducing fuel poverty were being scuppered by energy price increases. But she noted that a comprehensive review into the issue of fuel poverty and energy efficiency was being conducted to ensure the realisation of 2016 targets.
Ruddock stated that there was an aspiration that, by June 2009, some initial findings would be reported on.
Ruddock went on to stipulate the sizeable action which the government had taken to tackle fuel poverty - through social welfare packages and housing stock initiatives.
She referred to the increased contributions offered by the government, as of September 2008, to the Warm Front Scheme. The government is also increasing the winter fuel payments, which it had effectively trebled, she added.
Ruddock asserted that the government was being very ''bold'' in the amount of money it was making available to social packages, in light of economic circumstances.
Lynne Jones (Lab, Birmingham Selly Oak) probed the minister on evidence which had been submitted to the committee, calling for the national housing stock to be raised to an SAP (energy efficiency) rating of 81 to engage the issue of fuel poverty. She asked the minister to justify the apparent distance between this recommendation and the Warm Front Program's built-in target of obtaining a SAP rating of 65.
Ruddock commented that a national SAP rating of 81 was unrealistic. She said, according to 2006 housing survey figures, as many as 41 per cent of the housing stock had a rating of between 39 and 54. Only 7 per cent had a rating of 69 or higher, she stated.
Ruddock also suggested that it would cost £7,500 for every household, £25bn nationally, to raise the UK to an across the board SAP 81 rating.
Jones asked the minister to comment on methods which could be introduced to ensure that any trend in falling energy prices could be passed onto customers by energy companies.
Ruddock stated that a "robust" dialogue with the energy companies was being made. She said the government had stressed that lessening wholesale prices should be passed onto consumers.
On mandatory social tariffs, Ruddock argued that she, personally, did not consider them the right move to guarantee enforcement.
The committee then discussed whether or not Ofgem are capable of monitoring the energy companies effectively.
Ruddock said that the government had made clear that either Ofgem "sorts it or we will legislate". She claimed that Ofgem's recent probe into the energy industry was a credible method by which to monitor.
Ruddock also confirmed that the government was presently against a windfall tax.
She said the energy companies are playing their part in terms of contributions to social programmes. Furthermore, she added, a windfall tax would be the domain of the Treasury. Ruddock also emphasised the sizeable costs imposed upon energy companies by having to commit to investment in renewable energy.
Geoffrey Cox (Con, Torridge and West Devon) discussed the issue of his constituents who are unable to take advantage of the Warm Front Scheme because they cannot make the necessary top-up payments to meet its eligibility requirements.
Ruddock commented that this would form part of her comprehensive review into tackling fuel poverty and energy efficiency problems.
The committee also covered the subject of private firms being contracted by the government to provide heating installations under the Warm Front Scheme. Cox alluded to cases in which customers were actually able to locate cheaper private contractors than the government-sponsored firms. Cox stated that the entire Warm Front Scheme needed a comprehensive review.
David Drew (Lab, Stroud) also asked whether or not the Warm Front Scheme is too centralised and whether it should take better account of local market rates in sourcing government-sponsored contractors.
Lynne Jones asked the minister to comment upon the statistic that only 12 per cent of winter fuel payment recipients are technically fuel poor.
Ruddock accepted the statistic but said that the system was principally installed to instil confidence amongst pensioners and older people. It should not be seen purely in terms of addressing 'fuel poor' consumers.
Jones suggested that winter fuel payments should be withdrawn from higher rate taxpayers who are clearly not facing fuel poverty, to free-up investment for other areas.
Jack asked the minister to ensure that scrutiny into the £2bn pot of money for winter fuel payments would be part of her comprehensive review.
Ruddock said that she would do this but that decisions over benefit payments would ultimately reside with the Department for Work and Pensions.
Drew raised the issue of making the response towards fuel poverty more streamlined through better inter-departmental coordination.
Jack also raised the suggestion that there should be more frequent meetings between different department ministers with an interest in energy-related issues.
Ruddock alluded to the inter-ministerial group which was already in operation but she admitted that it only meets from "time to time". Ruddock said she is looking into making meetings more frequent.
The committee also discussed the need to treat properties which are off the gas grid.
Ruddock stated that this niche of consumers has been identified as being vulnerable. She said the government is looking into ground-sourced heating pumps, thermal solar and air-sourced heating pumps as alternatives for people who are not on the grid and throttled by high oil prices.
Ruddock stated that three consultations, part of her extensive review into fuel poverty and energy efficiency policy, would hopefully be released next month.
Dods Parliamentary Communications Ltd