HC Deb 07 May 2002 vol 385 cc38-40W
Sue Doughty

To ask the Chancellor of the Exchequer what steps are being taken to develop economic instruments which may be used to improve household energy efficiency; and if he will make a statement. [53717]

Mr. Boateng

The Government are considering ways in which economic instruments may be used to improve household energy efficiency, consistent with their objective of eliminating fuel poverty and not introducing new taxes on household energy. This work is being taken forward in the context of the Government's work to develop a White Paper on energy, following the publication of the Cabinet Office performance and innovation unit's report "The Energy Review" in February.

Sue Doughty

To ask the Chancellor of the Exchequer (1) what the total cost to the Treasury(a) has been at the outset of its introduction and (b) is projected to be in the next three years of the enhanced capital allowances for investments in energy saving technologies introduced in April 2001; [53736]

(2) what the total cost to the Treasury (a) has been at the outset of its introduction and (b) is projected in the next three years of the enhanced capital allowances for investments in (i) heat pumps, (ii) radiant and warm air heaters, (iii) solar heaters, (iv) energy efficient refrigerator equipment, (v) compressor equipment and (vi) energy-saving technology investments in assets for leasing. [53715]

Mr. Boateng

Actual costs of the enhanced capital allowances scheme introduced in April 2001 are not yet available. Estimates were published in the FSBR 2001, Appendix A2, p150. Estimates of the annual costs of extending the scheme to include the further energy-saving technologies from April 2002 are, from 2002–03, £5 million, £15 million, £20 million, with the majority of these costs attributed to refrigeration cabinets, heat pumps, and compressor equipment. These figures exclude the costs of extending the entire scheme to assets for leasing from April 2002: these are estimated to be, from 2002–03, £15 million, £20 million, £15 million. All costs are rounded to the nearest £5 million.

Mr. Stunell

To ask the Chancellor of the Exchequer, pursuant to the answer of 23 April 2002,Official Report, columns 127–28W, if he will make a statement on (a) the management and (b) the funding of the targeted programme of support measures for business investing in energy-saving technologies and practices. [53067]

Mr. Meacher

I have been asked to reply.(a) The Carbon Trust, an independent body grant funded by my Department and the devolved Administrations, will recycle climate change levy funds to industry through a range of programme activity designed to accelerate the take up of cost-effective low-carbon technologies and measures to the non-domestic sector.

The Carbon Trust will shortly take over the management of the enhanced capital allowance scheme, which enables businesses to claim 100 per cent. first year capital allowances on investments in energy saving equipment.

In addition, the Carbon Trust is developing a Low Carbon Innovation Programme that will support new and emerging low-carbon technologies. The Carbon Trust will also take over management of the non-domestic part of the Government's Energy Efficiency Best Practice programme, which provides energy-efficiency advice and information to organisations in the public and private sectors.

(b) The Carbon Trust is funded by my Department and the devolved Administrations from recycled climate change levy receipts and the Government's Energy Efficiency Best Practice Programme. This is expected to be up to £50 million a year for this year and next, subject to relevant parliamentary approvals.

The enhanced capital allowance scheme is funded from recycled climate change levy receipts and is worth an estimated £200 million in its first two years (2001–02 and 2002–03), depending on take-up.