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LETTER FROM EUROPE
MAY 2007

GILES CHICHESTER CONSERVATIVE MEP
for the South West of England
and Gibraltar

If we really mean business about tackling climate change by reducing the carbon dioxide (CO2) emissions that are widely but not universally believed to be causing global warming, we need to be doing things. Not all of them will be popular or easy but I believe they must meet the simple test that they make sense even if it turned out the changes in climate are due to causes and forces outside man’s control. I have a little list of questions and suggestions.

Recently, I looked at my own energy utility bills in a new light. At present the first units consumed are charged at a higher rate than the ones above a certain number determined by the energy company. This makes business sense to encourage people to buy more by making the marginal price lower. Actually I don’t suppose many people think too much about it as we take the supply of electricity or gas pretty much for granted.

But if we want to encourage people to use energy more efficiently or even use less then would it not make sense to reverse that price structure to make the first units consumed less expensive than the extra, marginal units? That would give us a better incentive to use only the energy we needed and not waste any leaving lights or heating on in rooms we aren’t using, for example. It would also help those suffering from fuel poverty. If such a change led to as much as 5% savings that would be a big achievement, a big change in habits and a significant cut in emissions. Even 2-3% would be worth having. Why don’t we do it?

Technology exists to help us understand, measure and control our domestic energy consumption. If we know how much we use at different times of day and the effect of all the different machines we run off electricity or gas we might change our habits to use less expensive off-peak power (provided the energy companies start offering more flexible tariffs). The technology is called smart metering although there are all sorts of variations. One advantage would be remote reading to save those quarterly visits to read the meter and cut out estimated bills. The Italians have a form of smart metering, why don’t we switch to it as a matter of urgency?

While I am on the subject of domestic energy supply and ways of achieving economies and efficiencies, let me point to  a ludicrous piece of inconsistency in taxation policy brought about by the present government. Domestic gas and electricity bills are subject to VAT at the rate of 5% while the standard rate is 17 ½%. I know we would all prefer lower rates or even a zero rate of tax but how much incentive to save energy do they provide? Why not raise this tax in steps to the standard rate and use the proceeds to provide grants to encourage people to invest in all the different ways of achieving energy efficiency such as insulation and better control systems? Why not start a virtuous circle?

Much has been made recently of the carbon footprint of aviation and proposals to tax it or the people who use it to encourage savings. I have a vested interest to declare in that I fly most weeks in the year going to and from parliamentary meetings in Brussels and Strasbourg or somewhere else occasionally. By all means propose taxes to encourage efficiency and savings but let’s not kid ourselves we will make much impact on climate change. According to a recent European Commission study, aviation accounts for 1 ½% of CO2 emissions. Let’s keep a sense of perspective and proportionality about this.

Aviation needs to get more efficient and cut emissions for sure but in which transport sector do most emissions occur? 52.8% come from road transport, according to that same study so that is where we should be looking to make efficiencies. There is a proposal from the European Commission to set CO2 emissions from passenger cars at much lower levels by 2012. The industry is not thrilled because the targets and timescale are very challenging. But it is doable provided people are willing to buy the new models. Emissions are defined in grams of CO2 emitted per kilometre driven. Today the range of emissions is from 350g/km from real gas guzzlers down to just over 100g/km for latest model small economy cars. The EU proposed standard for 2008 is 140g/km and for 2012 it is 120g/km.

Most cars fall between the extremes but figures I have seen suggest that 1 million new cars out of 12 million sold in 2004 could meet the 120g/km standard and 3.5 million were inside the 140g/km level. Of course this assumes all sorts of conditions are met such as servicing and speed levels but it shows that it is possible. In fact, I have heard it said that our existing Kyoto targets for emissions reduction could be easily met by renewing the motor fleet with new more efficient models. Well that is not doable overnight but in 5-10 years it would be possible as we replace worn out old cars.

And something similar is the case for domestic appliances. Old fridges, washing machines, freezers and the like all use significantly more energy than the latest models. In the same way, it isn’t reasonable to expect to change everything overnight but very little incremental gain will make a difference. However, we have a habit of using more and more gadgets so despite efficiency gains from machinery and technology our overall consumption of energy in Europe has been rising 0.8% every year. Which is why we need smart technology to show us what we are using and a re-structured pricing and taxation regime to encourage efficiency and economy. Many hands can make light work!
 

Comment

 Not so long ago canvassing on behalf of our candidates could be a rather interesting if deflating experience. Nowadays it is more fun and encouraging judging by my own experience around the region during the run-up to the local elections. Click here for photos.

I would like to commend our candidates for their hard work, to congratulate the winners and commiserate with those less successful. Local councillors are the unsung heros of the Party yet living proof of the revival in Conservative fortunes.

To take control of nine councils in the region and made a net gain of 181 seats, by my rough count, is a very good result for us and a considerable achievement on top of previous years’ gains. David Cameron can take great encouragement.

Nationally the story has mainly seemed to be about gains from Labour and the Scottish situation yet to me the most satisfying outcome has been the LibDem reverses in the South West. Congratulations to Bournemouth, North Devon and Torbay for straight Conservative gains from LibDem control. But to lose control in Carrick and Restormel as well as a net loss of 55 seats in the South West is also significant for the LibDems .

Finally I must congratulate Plymouth Conservatives for regaining control from Labour. A good omen.
 

Promoted and Published by Giles Chichester MEP, Longridge, West Hill, Ottery St Mary, Devon EX11 1UX

       Tel: 01404 851106 Fax 01404 850752 Email: giles@gileschichestermep.org.uk www.gileschichestermep.org.uk