Energy Bill

The two drivers of energy policy have traditionally been security of supply and the challenge of climate change, but there is a third important pillar, which is affordability. In reality, the liberalised energy market has served us well. In comparative terms, energy costs in the United Kingdom are still relatively low. But all householders are facing increases in their bills, in some cases by as much as 29 per cent., which has real implications for the Government's target of eradicating fuel poverty by 2010. There are four million households in difficulty at the moment, and every 1 per cent. rise in energy prices adds roughly another 40,000 to the number. There lies a real challenge, and the Government need to think about it. It is not just a question of a commitment; there is a legal requirement to meet that target. One of the things that could be done is to increase the Warm Front contribution. Secondly, fuel poverty should be treated as a social issue. A great deal of information is held on the number of people who are vulnerable, which needs to be shared with the energy companies. It is also clear that many who are entitled to help are not getting it. With regard to social policy, we need to ensure that we take those fairly simple measures. In the Chamber today, and in future, there will be a debate about social tariffs. Some energy companies are performing well. Energy companies are offering £56 million in support this year, but the situation is diffuse and confusing, and we need to revisit it. I am glad that the Secretary of State has told us that the idea of legislation on a compulsory tariff is still under review. I say to the Minister for Employment Relations and Postal Affairs that this matter will be pursued vigorously during the passage of the Bill. It has been made clear, particularly by the right hon. Member for Fylde (Mr. Jack), that smart metering can have an important effect on fuel poverty. There is plenty in the Bill about meters, but there is no provision at all about smart meters, despite the fact that the Government are committed to introduce them. The last energy White Paper included that commitment, and the Prime Minister has recently reinforced it. It is a big task: 45 million meters have to be changed. A successful pilot scheme is going on now.