Downing Street Says

Asked about discussions with the energy companies and direct cash assistance, the Prime Minister s Spokesman (PMS) replied that the position was set out clearly by the Prime Minister in his speech yesterday. The focus of the discussions with the energy companies was on how we could reduce people bills not simply for one year, but every year. The most effective way of doing that was by focusing on energy efficiency measures. In relation to cash payments, the Government had already announced an increase in winter fuel payment in the Budget worth 575million for this year which had not yet been paid, so those were still to come.

Asked to clarify the point on gimmicks , the PMS replied that as the Prime Minister was saying yesterday, the most effective way of reducing people s bills every year in the long term was through energy efficiency measures and particularly focusing support for energy efficiency measures on low to middle income families. That was the issues we were currently discussing with the energy companies.

Asked if therefore we were never asking for a voucher scheme, the PMS replied that these were private discussions that we had had with the energy companies, and we were not going to discuss the specifics of that. But as the Prime Minister had said, the most effective way of reducing people s energy bills on a sustainable basis was through improved energy efficiency.

Put that the Prime Minister must have felt there was a case for them, the PMS replied that we were not going to get into the specifics of the discussions with the energy companies. We had already increased winter fuel payments for this year which had not actually yet been paid.

Asked if the Prime Minister was confident that this insulation drive would satisfy Labour MPs and backbenchers who had been calling for much more upfront action, the PMS replied that the thing that mattered was helping people on low to middle incomes reduce their fuel bills on a sustainable basis, and that was what we were focusing on.

Asked if that would be quick enough for people this winter, the PMS replied that as he had said, in relation to this winter we had already increased winter fuel payments by 575million in the Budget, and those payments had not yet been made.

Asked about a windfall tax, the PMS replied that the position on the windfall tax remained as we had said consistently, that we want to work in a constructive and cooperative way with the energy companies, but of course all options remained on the table.

Asked to clarify that an energy efficiency package would not have a practical effect this winter due to the time it takes to make those improvements, the PMS replied that we had already provided support for energy efficiency measures in the past, we wanted to build on that and we were working with the energy companies to do that. But in relation to this year we had increased the payments. The package had not been finalised yet or announced, so it was best to wait to see the detail in the announcement before dealing with these questions.

Put that the Budget was before the huge hike in oil prices and that it looked like we were putting it off and people were just being told that they just needed a bit of loft insulation, and asked if we accepted that hopes had been raised and then dashed, the PMS replied that he did not understand why the questioner was being dismissive of just a bit of loft insulation this was the most effective and sustainable way to reduce energy bills in the long term. We had already provided help for people to insulate their homes better so they can reduce their fuel bills, and it was our intention to provide further support working with the energy companies going forward.

Asked what sort of percentage savings someone could make by having insulation, the PMS replied that he was sure DEFRA could provide figures.

Asked to respond to the claim that the Prime Minister took on the energy firms and lost, the PMS replied that we were in continuing discussions with the energy firms about a package of measures that we were planning to introduce in order to help people reduce their fuel bills.

Put that we pre-empted that package by saying that it would not include a particular item, the PMS replied that the Prime Minister yesterday set out that we want to help people reduce their fuel bills not just for one year, but every year. And the most effective way of doing that was by increasing support for energy efficiency measures.

Put that we therefore had not ruled out possible cash help, the PMS replied that we had already increased cash support for this year in the winter fuel payments. The Prime Minister was clear yesterday that the focus of our efforts to support people was on helping them reduce their bills every year.

Asked if the Prime Minister was personally involved in any of these discussions, and were we looking at a system of grants, the PMS replied that we had a well established regulatory mechanism for energy companies in this country through Ofgem, and the Prime Minister was not personally involved people would not expect him to be. The discussions were led by the Department for Business.

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» Friday, September 5, 2008

Energy

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