5. Statement by the Minister for Environment, Energy and Rural Affairs: The Warm Homes Programme

Part of the debate – in the Senedd at 4:55 pm on 19 February 2019.

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Photo of Joyce Watson Joyce Watson Labour 4:55, 19 February 2019

I thank you, Minister, for your statement today, and it is clear that the numbers of people living in fuel poverty remain stubbornly high. It's also distressing that we see this alongside a rise in food banks, a rise in homelessness, and it's simply a symptom of the last decade of austerity. My fear is that Brexit will make things much, much worse. As things stand, around 5 per cent of UK electricity and up to 12 per cent of our gas is imported from the EU, so any import tariffs or barriers would push up costs, and customers would, as always, pick up that bill. The trade association for the British energy industry, Energy UK, has also warned that household bills are likely to rise as a result of uncertainty over whether Britain will remain in the EU emissions trading system, and there are other pressing uncertainties too. For example, the four power cables that connect Britain to the continent are scheduled to be joined by eight more in the near future. Will that project fall through, and if it does, what cost will that be to the consumer? As Lord Teverson, chair of the EU Energy and Environment Sub-Committee said, after Brexit,

'There will be a divergence and we will not be integrated. What that means is energy trading becomes less efficient and retail prices will go up'.

We've seen again today what was once glibly dismissed as 'project fear' being realised throughout the UK car industry and the devastating impact that's had on those communities, but what's the cost of Brexit to Wales's booming energy sector, particularly the key operators at Milford Haven?

On a final point, you talked about energy performance certificates, or EPCs, in relation to the Welsh housing conditions survey. Many of my constituents are off-grid and they use solid fuel or liquid gas, and that, of course, is much more expensive. But EPC is based on running costs, and as such is not a reliable measure of energy efficiency for those particular areas. I appreciate the EPC structure is a matter for the UK Government, but could I ask you to take up that issue with your counterpart in Westminster and to look at what the Welsh Government can do to redress what is a fundamental unfairness?