Energy Bill

My hon. Friend missed my resolution not to be mean to the Liberal Democrats today. I was slightly mean earlier, but I think that I got away with it. We are not aware of approaches or technologies that would allow for quite the sort of approach suggested, but I will make further inquiries. The hon. Member for Northavon (Steve Webb) wondered why, technically, it could not be possible. I wondered at one stage whether it could mean that at one time we all got our electricity from one company and half an hour later we got it from another company. We have heard about different niche markets, but I am not sure what the market implications of that might be. However, it is an interesting idea and I will consider it further. Hon. Members have talked about our approach, and I have noticed that ““dithering”” seems to be a favourite word in the Opposition's political vocabulary. I do not recognise that. Since the energy White Paper, we have undertaken a consultation and published a significant body of impact assessment work. We have tabled an amendment to the Bill, which we are discussing, and we have already announced our intention to move forward for medium-sized businesses. I make no apology for considering the cost-effectiveness of the measure as well as the benefits. I therefore hope that hon. Members will feel able to support the Government new clause and will not press theirs to a vote. New clause 16, in the name of the hon. Member for Wealden, seeks to increase transparency for consumers by requiring energy suppliers to specify on a consumer's bill the amount of carbon dioxide that has been emitted in the production of the energy attributed to that bill. As the problem of climate change is now a global one, we all—consumers, business and Government—have a role to play. Indeed, much of today's debate is about how we enable the citizen to become more active in tackling global warming; it is a feature of the next debate, too. A key element of our strategy to tackle climate change is promoting energy efficiency and crucially, as part of that, engaging the individual. Important examples of the Government's work are the ““Act on CO2”” campaign by the Department for Environment, Food and Rural Affairs and the fact that two thirds of the estimated savings in the 2007 energy White Paper were as a result of energy efficiency measures. However, we must continue to take action to help consumers to understand the choices that they can make about using cleaner energy and reducing the energy they use. I support the notions behind new clause 16, but I shall resist it because it would duplicate existing statutory requirements that achieve the same outcome. It might be helpful if we consider this in two parts—electricity and gas—as they are covered by different statutory requirements. Looking first at electricity, in transposing the electricity directive 2003/54/EC the Government laid the Electricity (Fuel Mix Disclosure) Regulations 2005. I am sure that hon. Members remember those quite intimately. Those regulations inserted a new condition into electricity supply licences requiring suppliers to provide information on or with the consumer's energy bill, and in promotional materials, about the environmental impact of the electricity supplied in terms of carbon dioxide emissions. I hope that hon. Members will therefore accept that the requirement for suppliers to provide the specified information in relation to electricity is already accounted for. Turning to carbon dioxide emissions from gas, the issue is somewhat different. Carbon emissions from electricity supplied should result in greater awareness of the relative carbon intensity of different generating technologies, which in turn might potentially incentivise switching among consumers. However, information on carbon emissions from gas supplied would not have the same effect, because gas supplied will have the same carbon emissions regardless of who supplies it—that is, 0.185 kg of CO2 per kilowatt hour of gas consumed. The information could incentivise more efficient use of energy by consumers. However, there is already a statutory requirement that has the same effect—the requirement for energy suppliers to provide historical information on consumers' bills to help them to understand how much energy they have used. Since we published the energy White Paper last year, the six major energy suppliers have included historical energy usage data on all consumers' bills. That shows consumers, in graphical form, the amount of energy that they have used compared with the same period in the previous year—something that the hon. Member for Angus (Mr. Weir) might study at his leisure. I am pleased to confirm to the House that having laid the Electricity and Gas (Billing) Regulations 2008 before Parliament earlier this year, we are in the process of cementing that voluntary arrangement in statute. Provisions in those regulations, alongside requirements under the 2005 regulations, mean that I am confident that we have the right statutory requirements on suppliers to enable increased consumer awareness and to incentivise action at an individual level. Having said that, I listened with great care to the case put again by the hon. Member for Wealden following our discussions in Committee. I have thought through the issues and, notwithstanding my confidence in what I have just said, I wonder whether we should be doing more. I do not think that we need to do more in the Bill, but I would like to discuss these issues with the supply companies to see whether the material that we get in our bills deals with the issues that the hon. Gentleman has raised so well. I rather suspect that we can go further in a cost-effective way, not by trying to itemise CO2 for every constituency, but by sending the consumer general material about carbon emissions, and perhaps reminding them that, as we tackle carbon emissions, extra costs will be incurred through such things as the renewables obligation. Given what I have said, I am not sure that we are in the right place. We could go further in voluntary agreements, and we will take into account the way in which the hon. Member for Wealden has spoken to his new clause, as I am sure will the supply companies. Having said that, I hope that the hon. Gentleman will consider not pressing the motion, which we have discussed thoroughly, to a Division. Question put and agreed to. Clause read a Second time, and added to the Bill.