§ 2. Dr. Kim HowellsTo ask the Secretary of State for Energy if he will give the amounts allocated to encourage improvements in energy efficiency among industrial and domestic electricity and gas customers in 1991–92.
§ The Secretary of State for Energy (Mr. John Wakeham)Public expenditure on energy efficiency benefiting such customers will total over £1 billion in 1991–92. Expenditure by supply utilities is a matter for these companies.
§ Dr. HowellsIt is not just a matter for the utilities, because, of course, energy efficiency is important to all of us. Is it not the case that when the Government privatised the electricity and gas companies they created not a range of companies which could induce real competition for the benefit of customers and the environment but large companies with near monopoly supply status which are not in the least interested in energy efficiency? They are interested in maximising profits from sales of electricity and gas. That cannot be good for the environment.
§ Mr. WakehamThat is not a fair analysis of the position. A great deal of competition is available to the whole range of industrial customers which was not available before. At the end of the transitional arrangement there will be competition throughout the whole of the industry.
I am sure that the hon. Gentleman will welcome the suggestion of the Office of Gas Supply that an E factor should be introduced into the gas tariff formula to fund cost-effective investment in energy efficiency. We shall await with interest further developments in that, as well as Professor Littlechild's intiative in publishing a consultation document on energy efficiency in the electricity industry. We shall follow that with great interest.
§ Mr. DickensDoes my right hon. Friend agree that the Government have increased the budget of the Energy Efficiency Office to £59 million? Is not that a massive 40 per cent. increase in the money that we give to that office? Does not that show a total commitment to the preservation of energy?
§ Mr. WakehamYes, indeed. Further increases are planned for 1993–94 and for 1994–95. By and large, energy efficiency is profitable for the user of electricity. Therefore, many of the Government's intiatives using those funds suggest ways in which energy consumers can save energy.
Mr. Alan W. WilliamsWhy does not the Government give the regulator the power to direct electricity-generating companies to use their massive profits to invest in home insulation and to improve the energy efficiency of industry?
§ Mr. WakehamThe regulator, whose task has been laid down by Parliament, is perfectly entitled to come to me if he thinks that his powers are not enough. He does not share the hon. Gentleman's view that he should have further powers to achieve his objectives.