Oral Answers to Questions — Business, Enterprise and Regulatory Reform – in the House of Commons at 10:30 am on 28 February 2008.
Robert Smith
Shadow Deputy Leader of the House of Commons
10:30,
28 February 2008
What estimate he has made of the effects on the number of households in Fuel Poverty of the changes in energy prices in the winter of 2007-08.
Malcolm Wicks
Minister of State (Energy), Department for Business, Enterprise & Regulatory Reform
After years of progress, rising energy prices during the 2007-08 winter will result in upward pressures on the numbers in Fuel Poverty. Of course, the numbers will also be affected by increases in incomes and energy efficiency. The most recent estimate that we have produced for the number of households in fuel poverty is for 2005, when there were 2.5 million fuel poor households in the UK. Figures for 2006 will be available later this year.
Robert Smith
Shadow Deputy Leader of the House of Commons
Does the Minister accept that his answer about the increase in Fuel Poverty this winter suggests that the Government rely too much on cheap fuel as a means of tackling the problem? Should not they consider improving Warm Front and Warm Deal to ensure that more households are permanently taken out of fuel poverty? To that end, has he considered the windfalls from VAT on energy and from the European emissions trading scheme for generators?
Malcolm Wicks
Minister of State (Energy), Department for Business, Enterprise & Regulatory Reform
The hon. Gentleman knows that those are matters for the Treasury and the Chancellor of the exchequer, not me. After the years of progress, with better housing standards and energy efficiency measures, which have helped some 2 million households, and social security measures, including winter fuel payments, rising energy costs are knocking us off course. Of course, I recognise that and we looking hard at what can be done. As I said earlier, we are discussing with companies their obligations in the difficult circumstances that we face.
David Chaytor
Labour, Bury North
Is not part of the solution to the problem the increasing use of rising tariffs, whereby the price of each unit of electricity increases with consumption? That makes things easier for low-income households, rewards households that have invested in energy efficiency measures and generally improves understanding of the imperative to reduce CO2 emissions. What possible argument can there be against requiring all suppliers to structure their tariffs on the rising tariff basis?
Malcolm Wicks
Minister of State (Energy), Department for Business, Enterprise & Regulatory Reform
I am sure that people will consider that suggestion. Moving forward, the Government are committed by, I think, 2014 to building only zero-carbon housing. That is crucial. We are also considering the possibility that in future the supply company, instead of incentivising householders to use more gas and electricity, will incentivise them to use less, by reducing demand. That puts another premium on energy efficiency and renewables. We are looking hard at all such issues, and my hon. Friend raises an important question.
A household is said to be in fuel poverty when its members cannot afford to keep adequately warm at reasonable cost, given their income.
A household is said to be in fuel poverty when its members cannot afford to keep adequately warm at reasonable cost, given their income.
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