Mr Mark Durkan, MP, MLA
Chairperson
Committee for Enterprise, Trade and Investment
To ALL MLA’s
24 June 2008
Committee for Enterprise, Trade and Investment Motion
‘Rising Energy Prices’
The following Committee Motion is scheduled for debate in the Assembly on Monday 30 June at 4.00pm (indicative time) for up to 2 hours, the terms of the Motion are as follow:
That this Assembly notes with concern, that rising energy costs are hitting families in Northern Ireland harder than in the rest of the UK; and calls on the Executive:
(i) to give further priority to measures to promote energy efficiency and combat fuel poverty;
(ii) to drive a coordinated energy policy to diversify our energy supplies, reduce our reliance on fossil fuels, increase competition in our energy market and harness the full potential of renewable energy;
(iii) to cooperate with other Governments, including through the British Irish Council, to develop a longer-term energy strategy for these islands; and
(iv) to urge the UK Government to re-direct the windfall vat revenue from higher energy bills to be used to mitigate the escalation of fuel poverty in Northern Ireland.
The Committee agreed to prepare an ‘Information Brief’ to be made available to all Members of the Assembly in advance of the debate.
The Committee received a substantial amount of evidence in relation to this important issue from a number of key stakeholders. All documents received by the Committee, in relation to this issue, have been compiled into an ‘Information Brief’ for Members and can be found at the Committee website.
Section 1 contains a background paper from Research and Library Services examining the potential impact of recent energy price increases, through the particular lens of fuel poverty.
Section 2 contains evidence from the Utility Regulator, the Department of Enterprise, Trade and Investment, the Utilities Sector and the CBI on the reasons for rising energy prices. The evidence highlights that Northern Ireland is a heavy carbon based economy (oil based) and that increasing wholesale gas, oil, coal electricity and carbon prices are now subject to a greater degree of influence from global markets. Much of the evidence focuses on the need for a co-ordinated energy policy that promotes energy efficiency, diversifies our energy supplies and harnesses the full potential of renewable energy. The Gas industry, while acknowledging that gas is not the complete answer to Northern Ireland’s energy mix, offers a medium-term opportunity to eliminate a significant proportion of oil and coal consumption, while contributing to deliver against the 25% CO2 target within the Programme for Government.
Section 3 provides evidence from the Consumer Council and Save the Children on the impact rising energy costs is having on fuel poverty. The Consumer Council’s evidence reveals that half of the fuel poor are under 60 years of age and 23% of these have children. Fuel poverty in Northern Ireland is double the GB average and triple that in England.
Section 4 provides evidence from the Consumer Council on the case for using windfall VAT revenue to mitigate against fuel price increases. The research reveals that the difference in revenue between 2007-08 and 2008-09 is an increase of £10.6 million.
Finally, an index of the Committee Information brief and the Assembly Research and Library paper is attached for ease of reference. A full copy of the Information Brief has also been deposited in the Assembly Library.
I look forward to a meaningful and informative debate in the Assembly on this very important and pressing matter.
Yours sincerely