Mr.
O'Brien: There are issues in terms of how the price of
boilers and of fitting them has risen. We are looking at some of the
pressures in the markets, because we are concerned about the demand
being placed on some of those who fit the boilers and about the prices
that they are charging to fit
them. Some
energy companies are also concerned that we do not just pump a lot of
money in without getting the result—what the Americans would
call the bang for the buck. We want to examine some of the issues
relating to the Warm Front market to ensure that we do not just put
money in suddenly and see it go to fitters who go around and stick
these things in. We need to ensure that the benefits go to the
consumer. My hon. Friend is right to say that we need to look at the
issue
carefully. Finally,
I say again that proposals are coming forward from various companies to
increase storage. They have provided us with reassurance that they will
be increasing storage by the middle part of the next decade. As the
hon. Member for Wealden will know, increasing storage is not easy and is
costly, and a lot of investment is required to create storage capacity.
So, that will not happen overnight, but the Government want to ensure
that these projects come forward and that we have the additional
storage in due
course. We
depend on a market and on companies responding to the pressures in that
market, but at the same time we want to ensure that, as part of the
overall objective of my Department and the Government, we get the
correct combination of affordable energy that does not damage the
environment and is secure. Ensuring that we have security and
sufficient rough—sufficient gas storage—is part of that
equation. Question
put and agreed
to. Resolved, That
the Committee has considered European Union Document No. 10824/08,
Commission Communication on Facing the Challenge of Higher Oil Prices;
and welcomes the Government’s support for appropriate action at
the European level, where this would be effective in furthering energy
efficiency, security of supply and the development of a liberalised
energy market within the Union, and the Government’s own
response to higher oil prices, in particular the Global Energy
Initiative. Committee
rose at eighteen minutes past Six
o’clock.
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