Lord Vinson
To ask Her Majesty’s Government how their programme implementing the European Union Renewables Directive takes into account the existing level of fuel poverty and the likely effect on employment in British industry.
The Parliamentary Under-Secretary of State, Department of Energy and Climate Change (Lord Marland)
My Lords, ensuring that we deliver 15 per cent renewable energy will bring benefits to the UK. By 2020, it will reduce the UK’s carbon emissions, contribute to our future energy security and create outstanding opportunities for the UK economy, with the potential to create 500,000 jobs. There will be other impacts, which will in some cases bring higher consumer energy bills. We are committed to helping households in fuel poverty and we will continue to look at ways in which we can make further progress towards meeting our fuel poverty goals.
Lord Vinson
I thank the Minister for his considered reply and the sagacity that he is bringing to his department. Does he not agree that, nevertheless, the Government have signed up to an EU carbon saving scheme that has very damaging unintended consequences, which are already contributing to the 4.6 million households now in fuel poverty and which will create ever rising unemployment as our fuel-intensive industries are taxed into uncompetitiveness? Even the Guardian calls the wind power feed-in tariff crazy. As energy is the lifeblood of our society, could not our new Government look again to find better ways of achieving the same ends—but by a less costly, more rational and possibly slower route than blindly following a wholly inappropriate EU commitment, which, if fully implemented, will bring immense harm to our economy? That is no joke.
Lord Marland
I have been called many things, but “sagacious” is a new one for me; I am extremely indebted to my noble friend for calling me that. Whether we like it or not, we are legally bound by the EU renewable energy target of 15 per cent and this Government are not interested in breaking the law. Fuel poverty has increased because fuel prices went up by 80 per cent between 2004 and 2008. Yes, increasing our renewables will increase electricity bill prices by about £10 per year, but that is a small price to pay when you consider that fuel prices have gone up by 80 per cent.
Lord Kinnock
If the Government are so keen on combating climate change and enhancing the use of renewable energy in this country, as well as trying to moderate fuel bills for people throughout the country, why the devil have they today announced the cancellation of the Severn barrage, which could renewably provide at least 5 per cent of the country’s energy needs? It is the stupidest thing that this Government have done, although I am certain that there will be more to come.
Lord Marland
That criticism is a bit rich coming from the noble Lord’s Benches. The fact is that the Severn estuary barrage would cost £30 billion. As I think we were told when we took over government, there is no money. The barrage does not represent good value for taxpayers; we have made this judgment based on what is good value for taxpayers.
Lord Redesdale
My Lords, given that in four years’ time it is projected that we will import 80 per cent of our gas to fuel our houses and our power stations, would not the development of anaerobic digestion be a major resource? It could also bring about 20,000 jobs. I must declare an interest as chairman of the Anaerobic Digestion and Biogas Association—and I challenge any noble Lord to say that after a few drinks.
Lord Marland
My noble friend’s expertise is well known and we welcome his commitment to anaerobic digestion, which is fundamental to our reaching our renewables targets by 2020. We anticipate that 3 to 7 per cent will come from anaerobic digestion, with the noble Lord’s strong support and the use of sewage to get there, and we welcome his comments.
Baroness Smith of Basildon
My Lords, yesterday’s announcement by the Secretary of State on energy policy was a great disappointment to those of us who support and want to invest in renewable energy. Not only is the Severn barrage not backed, as we have heard, but there were only passing references to carbon capture and storage and to wind power and there was no reference to government commitment, support or funding. We would have appreciated and welcomed a Statement to this House also. I appreciate that there is another day before the final CSR announcement, but will the Minister confirm whether his department has won the battle with the Treasury and that the green investment bank will be only for low-carbon projects and not for general infrastructure? Given the Prime Minister’s comment that this is the greenest Government ever, will the Minister confirm that there will be no reduction in the amounts confirmed by the last Labour Government?
Lord Marland
I welcome the noble Baroness to her new role, although I am not sure that I welcome the question, and I look forward to working constructively with her. As I have said many times in this House, the delivery of energy supply goes across many Governments and has a long period of development. Decisions that we make now will have fundamental relevance to Governments in five, 10 and 15 years. As for spending, I am sure that the noble Baroness will understand that I will not commit anything until after tomorrow, when I will be able to bring joyous news, I hope, on the subject.
Lord Palmer
My Lords, should fuel poverty payments not be stopped for those who are paying 40 per cent tax and instead allocated to those who are in desperate need of cold weather payments and fuel poverty payments?
Lord Marland
That is not really a matter for my department; it is a matter for the Treasury. There is no doubt that, under the last Government, fuel poverty went up from 4 million to 4.6 million households and, as I said, fuel prices went up by 80 per cent. This is a serious problem, which brings hardship to a lot of homes. We have a very significant problem reversing that trend.