My Lords, I start by thanking the noble Lord, Lord Whitty, although I disagree with absolutely everything that he said. In case I go into a coughing fit, I will just say now, while I am not coughing, that I will write to him if I do not reach some of the answers to the questions that he asked.
In the view of the Government, these measures achieve all the objectives that the noble Lord has highlighted them as not achieving. The noble Lord compared Warm Front in 2010-11 with Affordable Warmth. Warm Front did deliver, but it delivered less for the same amount of money: 80,000 houses from a budget of £366 million, whereas ECO Affordable Warmth is expected to deliver 160,00 households up to 2017, for £350 million a year. You cannot always compare like for like, because we are offering different tools. The same applies to CERT and CESP compared to ECO. We in this Government are looking at measures that are harder to deliver. CERT offered LED lights as part of the bigger drive to increase energy efficiency, but these were short-term fixes. We are trying to offer longer-term measures such as solid wall insulation, replacement of boilers and other measures like that.
I agree with the noble Lord, Lord Whitty, that we need to look at this in the long term. We have some of the most energy-inefficient housing stock in Europe, so rather than address the issue by using short-term fixes, we need to adopt a more holistic approach by considering what measures we can put in place alongside the smart meter programme, which the noble Lord rightly pointed to in his remarks. The foundation phase is currently under way and the rollout will begin to take place from next year. Smart meters will empower individuals to reduce energy costs because they will have more control over their energy consumption. However, the focus has to be on ensuring that low-income
and vulnerable households are reached and helped first. The fact that we are extending ECO to 2017 and that 620,000 households will receive at least one measure assures us that we are meeting the needs of those households about which the noble Lord and I are both genuinely concerned.
The noble Lord also asked how we can be sure that the energy companies are going to pass on the full value of the savings to their customers. The companies have confirmed publicly that they will pass on the savings, and we have made it easier for consumers to be able to switch between different companies if they do not deliver. From a base of six companies, I believe that we now have 19 new independent companies on the scene. Choice and competition are now in place, and ultimately it will be competition that drives down costs, alongside companies being more receptive to consumer needs.
The noble Lord talked about uncertainty in the sectors that deliver these measures. Actually, the fact that they know they are going to be working on these ECO measures until 2017 means that they have another two years in which to deliver. Ultimately, as a responsible Government, we have to listen. When people say that they are concerned about energy prices, we have to respond to that. That is why any responsible Government would review what they are doing in order to make sure in particular that those who are finding it hardest to meet the costs are helped the most. The way we have undertaken to put this order in place means that we are doing exactly that.
I do not want to encourage political point scoring here, but at least we have come forward with a constructive approach. The noble Lord’s colleagues in the other place have been talking about energy price freezes. As we know, and as the energy companies are telling us, energy price freezes actually raise prices both before and after the freeze, while keeping the price level for two years. That will not encourage certainty in the sector; it will just make things very uncertain for consumers. We must not protest that these measures do not go far enough, rather we should encourage a review to see how well they are working. The fact is that we are now addressing vulnerable people in rural areas as well as low-income households, which shows that the Government have taken very seriously the points raised by the noble Lord.
The noble Lord also talked about the private rented sector. I think that he is aware that we carried out a consultation which closed on 2 September. We are now going through the responses we received, and once they have been considered, the Government will publish their view. That response will be available to the noble Lord and others. I will have to read Hansard carefully to ensure that I have answered the many questions put by the noble Lord. However, I thank him because I know that we genuinely share a desire to ensure that we address people’s anxieties about high bills in a very responsible and sensible manner. I believe that the order goes some way to achieving that and I commend it to the Committee.