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5 Jan 2010 : Column 312W—continued
Energy: Housing
Robert Neill: To ask the Secretary of State for Energy and Climate Change with reference to the answer of 19 October 2009, Official Report, column 1297W, on council tax: energy, if he will place in the Library a copy of each representation that the Energy Saving Trust has made to his Department on (a) council tax and energy efficiency and (b) controls on the sale or rent of homes which have a poor energy efficiency rating. [308664]
Joan Ruddock: A copy of each representation that the Energy Saving Trust has made to DECC concerning questions A and B will be placed in the Libraries of the House.
Feed-in Tariffs
Gregory Barker: To ask the Secretary of State for Energy and Climate Change what assessment he has made of the likely effect of his Department's proposed feed-in-tariffs scheme on the development of the UK's renewable industry sector. [307973]
Mr. Kidney: Effects of the Feed-in Tariffs (FITs) scheme have been identified in the impact assessment published on July 15 2009:
This includes an assessment of the expected level of uptake under the lead FITs scenario (approximately 8TWh electricity in 2020 and approximately 870,000 installations by 2020).
The introduction of FITs should significantly increase the scale and scope of the GB market for small-scale renewable energy technologies and ancillary products compared to the status quo. UK manufacturing firms and product installers will benefit directly from this increase in demand. An increase in the uptake of certain technologies, such as small wind, where the UK has a manufacturing base, will create a particularly positive impact on job creation. Installations will also require maintenance and servicing which may have a positive impact on jobs. Overall, FITs are expected to boost business and employment opportunities in developing and deploying renewable energy technologies. These impacts have not been quantified.
Gregory Barker: To ask the Secretary of State for Energy and Climate Change what assessment he has made of the likely effect of his Department's proposed feed-in-tariffs scheme on (a) energy sector competition and (b) supplier diversity by (i) 2020 and (ii) 2030. [307974]
Mr. Kidney: The impact on small electricity suppliers has been taken into account during policy development in order that they are not disproportionately impacted. Furthermore, the introduction of feed-in-tariffs should significantly increase the scale and scope of the GB market for small-scale renewable energy technologies and ancillary products. UK manufacturing firms will benefit directly from this increase in demand, and market growth should increase competition effects, encouraging innovation, driving down prices and enhancing the global competitiveness of UK firms.
No assessment has been made of the effect of feed-in-tariffs on supplier diversity.
Gregory Barker: To ask the Secretary of State for Energy and Climate Change when the interim metering arrangements will be in place for installations claiming feed-in-tariffs prior to the roll-out of smart meters. [307975]
Mr. Kidney: We will be publishing decisions relating to the design of the FITs scheme in early 2010. This will include metering arrangements from the start of the scheme.
Gregory Barker:
To ask the Secretary of State for Energy and Climate Change what consultative meetings he has had with (a) representatives of the
renewables industry and (b) energy supply companies to discuss his Department's proposed feed-in-tariffs scheme. [307976]
Mr. Kidney: My right hon. Friend the Secretary of State regularly meets with representatives of the renewable industry and the energy supply companies to discuss the Department's business.
Gregory Barker: To ask the Secretary of State for Energy and Climate Change what estimate he has made of the likely TWh levels of power from sub-5MW renewables supported by his Department's proposed Feed-in-Tariffs scheme produced in 2020 under the (a) 10 per cent. return on investment (ROI) scenario, (b) eight per cent. ROI scenario and (c) lead scenario. [307977]
Mr. Kidney: The feed-in-tariffs impact assessment included analysis on an 8 per cent. ROI scenario and a proposed lead scenario. Estimated TWh in 2020 were 10TWh and 8TWh respectively. A 10 per cent. ROI scenario was not modelled as part of the impact assessment. However, information on a 10 per cent. ROI scenario can be found in the element energy quantitative report (page 67) that accompanied the consultation document:
Gregory Barker: To ask the Secretary of State for Energy and Climate Change what estimate his Department has made of electricity prices in 2020, excluding the cost of his Department's proposed feed-in-tariffs scheme. [307978]
Mr. Kidney: Analysis for the low carbon transition plan estimates that the electricity price in 2020, excluding the proposed feed-in-tariffs scheme, to be around £161/MWh for the domestic sector (including VAT) and £127/MWh for medium industrial consumers.
Gregory Barker: To ask the Secretary of State for Energy and Climate Change what levels of (a) commercial sector and (b) energy service companies sector investment his Department estimates will be made under its proposed feed-in-tariffs scheme. [307979]
Mr. Kidney: Under the feed-in tariffs proposal that was consulted on in the summer, the number of installations deployed by the commercial sector is estimated to be approximately 55,000 by 2020 (as set out in the impact assessment:
No estimates have been made for investment by energy service companies.
Gregory Barker: To ask the Secretary of State for Energy and Climate Change what 2020 standard electricity price assumption Element Energy were asked to use for his Department's proposed feed-in-tariffs scheme modelling; and what the rationale was for this price assumption. [307980]
Mr. Kidney: Electricity price assumptions used for the feed-in-tariffs (FITs) analysis are set out in the renewable energy strategy (RES) analytical annex which can be found at:
Consistent electricity price assumptions were used to model all policies covered by the RES, including FITs.
The following figures are taken from the various electricity price tables in the RES analytical annex:
| Electricity 2020 p/kWh (2008 levels) | Domestic retail price | Commercial/ service price | Industrial price | Variable element (social cost) domestic | Variable element (social cost) commercial | Variable element (social cost) industrial |
Gregory Barker: To ask the Secretary of State for Energy and Climate Change whether his Department has used a range of standard electricity price scenarios in the Element Energy model for his Department's proposed feed-in-tariffs scheme; and what range of price assumptions has been used to 2020. [307981]
Mr. Kidney: Electricity price assumptions used for the feed-in tariffs (FITs) analysis are set out in the Renewable Energy Strategy (RES) analytical annex which can be found at:
The analytical annex contains electricity price forecasts under the headings 'Low energy demand', 'Timely investment, moderate demand', 'High demand, producers' market power', and 'High demand, significant supply constraints'.
A number of electricity price scenarios were assessed and presented in the FITs impact assessment at:
Gregory Barker: To ask the Secretary of State for Energy and Climate Change what estimate he has made of the likely differential cost to domestic consumers under his Department's proposed feed-in tariffs scheme in (a) 2015 and (b) 2020 under a 10 per cent. return on investment scenario, if the modelling includes future electricity price scenarios consistent with the trajectory of electricity price increases over the last 10 years. [307982]
Mr. Kidney: No estimate has been made of the impact of feed-in tariffs on domestic electricity bills under a 10 per cent. ROI scenario.
Gregory Barker: To ask the Secretary of State for Energy and Climate Change what his estimate is of the likely differential cost to domestic consumers under his Department's proposed feed-in tariffs scheme in (a) 2015 and (b) 2020 under a 10 per cent. return on investment scenario if the modelling includes future electricity price scenarios consistent with Ofgem's price projections, including the 60 per cent. increase by 2020 scenario. [307983]
Mr. Kidney: No estimate has been made of the impact of feed-in tariffs on domestic electricity bills under a 10 per cent. ROI scenario.
Gregory Barker: To ask the Secretary of State for Energy and Climate Change what assessment he has made of the financial effects upon participants in the Carbon Reduction Commitment of participation in his Department's proposed feed-in tariffs scheme. [307984]
Joan Ruddock: There are no financial implications (in terms of additional rewards or penalties) for participants in the Carbon Reduction Commitment who invest under DECC's proposed feed-in tariffs scheme. All electricity consumed by organisations captured by the CRC Energy Efficiency Scheme will generally be treated as grid average, and organisations shall report emissions accordingly, except in cases where an organisation generates renewable electricity and does not claim subsidies through renewables obligations certificates or feed-in tariffs. In this special case there are effectively no emissions associated with the use of this electricity under the CRC scheme.
Gregory Barker: To ask the Secretary of State for Energy and Climate Change what assessment has been made of the effect of the Carbon Reduction Commitment (Energy Efficiency Scheme) on the large public and commercial sector take-up of renewables under his Department's proposed feed-in tariffs scheme. [307986]
Joan Ruddock: The CRC was always intended as an energy efficiency scheme and therefore incentivises energy efficiency and is neutral on the generation of energy. The CRC should be neutral in effect on the take up of renewable generation. CRC does not provide additional incentives beyond the renewables obligation on suppliers or the new feed-in tariff (FIT) scheme but is intended to sit alongside those policies and be complementary to them. The CRC is therefore neutral with respect to the uptake of the FIT scheme. The intended combination of these policies is to deliver both improved energy efficiency and a decarbonised electricity supply.
Gregory Barker:
To ask the Secretary of State for Energy and Climate Change what the inflation treatment will be of payments under his Department's
proposed feed-in tariffs in relation to (a) the production tariff paid for all energy generated and (b) the export bonus where a minimum floor price of 5p kWh is proposed for power exported to the grid. [307987]
Mr. Kidney: Final decisions about inflation treatment have not been taken. Decisions will be published in the Government's response to the feed-in tariffs consultation.
Gregory Barker: To ask the Secretary of State for Energy and Climate Change what the tax treatment of income under his Department's proposed feed-in tariffs scheme is for the (a) domestic sector, (b) commercial sector and (c) public sector. [307988]
Sarah McCarthy-Fry: have been asked to reply.
As the Chancellor of the Exchequer announced at the 2009 pre-Budget report, households who use renewable technology to generate electricity mainly for their own use will not be subject to income tax on feed-in tariffs. Normal tax rules will apply in all other instances including for the commercial and public sector.
Fuel Poverty
Mr. Amess: To ask the Secretary of State for Energy and Climate Change what definition his Department uses of the term fuel poverty; what changes to this definition there have been since 1997; whether he plans to change the current definition; and if he will make a statement. [308163]
Mr. Kidney: The Warm Homes and Energy Conservation Act 2000 defines a fuel poor person as one living on a lower income in a home which cannot be kept warm at reasonable cost.
The most widely accepted definition of a fuel poor household is one which needs to spend more than 10 per cent. of its net income to heat its home to an adequate standard of warmth (usually 21 degrees for the main living area, and 18 degrees for other occupied rooms).
There are no plans to review the definition of fuel poverty.
Mr. Amess: To ask the Secretary of State for Energy and Climate Change how many families were in fuel poverty in each region in each of the last two years. [308164]
Mr. Kidney: Fuel poverty is measured at household level rather than on a family basis.
The Department's latest estimates for fuel poverty are for 2007, available online at:
The following table provides the number of households in fuel poverty for each English region in 2006 and 2007:
| Number of households in fuel poverty | ||
| Thousand | ||
| Government office region | 2006 | 2007 |
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