Energy Bill

I admire the hon. Gentleman's characteristic ingenuity in inserting a question about the transport of wind turbines into a Third Reading debate. I look forward to hearing from him—even if it is too late for the purposes of the Bill—about what more can be done about that important issue. The Bill contains a number of important provisions. The most important involves carbon capture and storage, and the levy to fund it. It should be emphasised that, by common consent, we now have the most environmentally ambitious coal conditions in the world, and I hope that we are nearing a growing consensus on conditions for new coal-fired power stations. It is important to send the message about investment in those stations. Our framework is important not just because of the objective that carbon capture and storage should be ready for commercial deployment in 2020, but because of the demand. As my hon. Friend the Minister pointed out, no other country has produced the formulation that a substantial proportion of any new coal-fired power station must involve carbon capture and storage. We will not allow building of unabated coal-fired stations. I thank all Members, and indeed members of the wider community who take an interest in these important matters, for their campaigns. The Bill represents a milestone in that regard, and it also represents a milestone because of the consumer levy. It will add 2 to 3 per cent. to bills in 2020—we should be up front about that—but it is the right thing to do if we are make the environmental progress needed in the power sector, and also to guarantee our energy security. We know that in today's world, the best form of energy security is low-carbon energy security, and we know that carbon capture and storage represents the only way we can achieve that in relation to coal. The first and most important part of the Bill from Labour's point of view relates to the CCS incentive. However, we are aware that the low-carbon transition involves costs, and it is important for us to take all the action we can to protect consumers from those costs. There have been significant advances recently, such as those for people on prepayment meters; a number of Members have raised that matter in the House. A year ago, people on prepayment meters paid £41 more for their energy than standard credit customers; today that differential has, effectively, been eliminated. There is much more to do, however, so the Bill makes a series of changes in a number of areas, including reform of the regulator's powers, sending a message to the regulator about the role of competition, but also including proactive work by the regulator. There is also the market power licence condition, to try to ensure greater fairness for consumers. Another of the changes—that to do with the information that must be given to customers—was debated on Report. That, too, has been a campaigning issue for Members. It is right that proper information should be provided to consumers. As has been said, either that will be done by Ofgem or it will have to be done by Government. We are sending out a clear message. This suite of new powers is very important. It significantly strengthens the ability of the regulator to ensure that the costs of energy are fair to all consumers. Another aspect of the Bill that should be highlighted is the action on fuel poverty. A lot has been done on that, but at a time of higher energy prices, there are much greater upward pressures in respect of fuel poverty. We have taken action on incomes, prices and energy efficiency, but again, there is more to do. I should mention one important change. We have turned a voluntary commitment by the energy companies—negotiated by my predecessor in this policy area—to provide help for vulnerable consumers, into a compulsory or mandatory commitment. I suspect this power to provide a mandatory commitment to ensure fairness for the most vulnerable consumers will become more important as the years go by. We have set out a trajectory for the amount of money that will be spent under this power: in 2013-14 the total will be £300 million. If I may hazard a prediction, I think that future Governments will find that this power becomes more important. It constitutes a redistribution to the poorest consumers, and it sits alongside other measures that we take to protect vulnerable consumers, such as the winter fuel payment. It is an important recognition that, at a time when the transition to low carbon imposes costs on consumers, we must do all we can to protect the vulnerable. It is a very important change, which will stand the test of time, and I hope it will be welcomed by all Members. There have also been amendments to the Bill clarifying that mandatory price support could provide help other than direct financial benefits. It is a short Bill, but it puts in place important measures in respect of the transition to low carbon. The CCS levy delivers an unprecedented amount of investment, not just in Britain but around the world, into CCS, which is a crucial technology for the future. The strengthening of the powers of the regulator is essential moving forward, as we face upward pressures on prices. There is also specific support for the most vulnerable. I have no doubt that in the remainder of the debate Members will say that lots of other measures should have been included in the Bill. That is, at least, what the Opposition said on Second Reading, but we can never tell whether there will be consistency. What is clear, however, is that this Bill takes important steps forward. The task now is to send the Bill to the other place and to get the legislation on to the statute book, because the task is urgent and we all must ensure that we make speedy progress. I hope all Members will support the Bill. I think it makes important progress. We always welcome consensus on these issues, and I commend the Bill to the House.