Oral Answers to Questions
Debate between Baroness Clark of Kilwinning and Lord Barker of Battle
Katy Clark (North Ayrshire and Arran) (Lab)
T8. The number of excess winter deaths more than doubled in Ayrshire and Arran last year. Earlier the Minister referred to influenza, but my constituents are increasingly coming to tell me that they have to choose between eating and heating, particularly those in receipt of benefit cuts, sanctions and other difficult financial circumstances. Does the Minister accept that the cost of energy is a major factor in people turning off their heating and in that increase in deaths?
Gregory Barker
We absolutely get the importance of ensuring that people are able to afford the energy they need. Nobody should have to make a choice between heating and eating, and anybody concerned about that should call the energy saving advice service on 0300 123 1234. As we are so concerned about the cost of energy, the Government are determined to do their part to ensure that bills are kept as low as possible. That is why we are looking at the regressive levies that Labour put on energy bills.
Climate Change Act
Debate between Baroness Clark of Kilwinning and Lord Barker of Battle(11 years, 3 months ago)
Westminster HallRead Full debate Read Hansard Text
Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Gregory Barker
Of course we have to be careful about the costs levied on industry, wherever those costs come from. My hon. Friend’s argument would hold more water, however, were it not for the fact that Germany, Europe’s manufacturing powerhouse, has increased its share of the global market in manufactured goods every single year since the beginning of the century—it has massively increased its global market share—and is at the same time the largest European producer of renewable energy. Germany produces far more renewable energy than the UK, and has paid more for it, because it was an early adopter.
Katy Clark (in the Chair)
I remind the Minister that he will get the opportunity to respond at the end of the debate. This is supposed to be the time for Back Benchers. I also remind all Members that interventions are supposed to be brief. Every intervention so far has been lengthy, so perhaps any further ones could be shorter.
Gregory Barker
I have little time left, so I am afraid I will not give way.
We will ensure that we drive the negotiations to the most successful possible outcome in 2015. The hon. Member for Liverpool, Wavertree (Luciana Berger) alluded to the 2008 Act. She can be proud of the leadership shown by the previous Government on that Act. I was involved as a Front Bench spokesperson and served on the Committee that considered the measure. She mounted a sensible defence of the strong weight of science behind the arguments and pointed out the massive trend in global investment. China anticipates spending $450 billion on renewable energy, dwarfing our expenditure.
I must take issue with one figure; the hon. Member for Blackley and Broughton (Graham Stringer) said that climate change policy would add one-quarter of a trillion pounds to our projected energy spend. The widely accepted figures from the Department of Energy and Climate Change show that, taking everything into account, we will have to spend something in the region of £110 billion in total over the next decade on energy measures. I do not recognise that quarter of a trillion figure. We must bear in mind the fact that the £110 billion investment will not only help us to prepare for a low-carbon energy economy, but pay for energy efficiency measures, which I hope hon. Members support whatever their views on global warning. Energy efficiency is the surest way to help the fuel poor. There is no good excuse for wasting energy, however it is generated. We should be ever mindful of the need to drive energy efficiency as a way not only of reducing carbon emissions or helping people to cut their fuel bills, but increasing the economic competitiveness of UK plc. The Government have put a greater emphasis on energy efficiency than any of their predecessors.
It is not true to say that it is climate costs that are driving up energy bills. In the past three years, the biggest single rising cost on energy bills for consumers, who are worried about the cost of living, has been the rising price of wholesale gas. We are committed to ensuring that we have a resilient energy economy, helping consumers and—
Oral Answers to Questions
Debate between Baroness Clark of Kilwinning and Lord Barker of Battle
Gregory Barker
As my hon. Friend knows, I am a keen champion of UK-wide marine energy. Under this coalition, we have opened a marine energy park in the south-west, and also in the waters off the north of Scotland. It is vital that we develop the marine resource right the way around the British Isles. However, I take on board the point raised by my hon. Friend, who is a big champion of marine energy in the south-west, and I will be happy to meet him to discuss it further.
Katy Clark (North Ayrshire and Arran) (Lab)
Why does research by Bloomberg New Energy Finance show that investment in renewables has more than halved since this Government came to power?
Gregory Barker
Actually, as I said, an unprecedented sum of over £29 billion has been invested in renewables since the coalition came to power. As my right hon. Friend the Secretary of State said, there has been a slight tailing off in recent months, but that is to be expected, just as we expect a real acceleration once the strike price is announced and the Energy Bill is enacted.
Energy Bill
Debate between Baroness Clark of Kilwinning and Lord Barker of Battle
Katy Clark
I am extremely interested in what the Minister is saying. Is not one of the problems, however, that we do not have the infrastructure to do what he suggests? A few weeks ago, the Isle of Arran, in my constituency, was without electricity for a week. Even if it had its own generators, the substation is one-way traffic, and I understand that it would need a smart grid to use any energy created on the island. How will the Energy Bill help that island?
Gregory Barker
We are already embarked on a massive programme of grid renewal. The National Grid has published at length its proposals for how to roll it out. Obviously it cannot be done overnight, but we have made it clear that we are looking to build, with billions of pounds of investment, overwhelmingly from the private sector, a completely new grid that will do exactly as the hon. Lady says and permit a new relationship—a two-way, more equal one—between the consumer and the producer, and allow for the adoption of these diffuse new technologies. She is right that while the old grid is still there, there are certain barriers, but wherever possible and wherever it makes economic sense, we are keen to work with local communities and district network operators to help them overcome those barriers and to see what can be done within a reasonable economic cost. She is right that there are still barriers, but my Department is working proactively to try to overcome them.
I hope that the House appreciates that I am sympathetic to the intention behind amendment 47 to create a green power auction market—bringing onboard these disruptive new entrants is the key aim. GPAM is a means to an end, however, rather than an end itself. No one solution is inherently good; what matters is what it can deliver, and there are several ways of delivering the agreed outcome while navigating in slightly different directions. Our concerns stem from the fact that GPAM is effectively a fixed feed-in tariff, as it provides the generator with a guaranteed price for all the power it generates. As a result, the generator would have no incentive to manage its imbalance risks, as these would be taken away from it, which could work out more expensively for the consumer.
Although I welcome and fully appreciate the aims of GPAM, we have to be careful, despite having all the right motives, not to create an expensive, long-term solution to what might turn out to be a short-term problem. CFDs will undoubtedly improve conditions, which I know have been challenging, in the market for power purchase agreements, enabling independent renewables projects to get off the ground much more easily. They should not only help the smaller independents out there now and doing a great job, but attract—I hope—new entrepreneurs into the market. Although I have issues with GPAM, therefore, I want to make it clear to the House that I am not complacent and am not saying that we have all the answers.
I fully recognise that there is an issue at stake, which the GPAM amendment endeavours to address, but the route-to-market issue is complex. It is such a technical issue that we perhaps cannot do justice to it in a debate on the Floor of the House. However, it is an issue that my officials, with all their skill and expertise, are absolutely committed to tackling. At a political level, I am personally committed to finding a solution to it, albeit a solution that must be workable and not lead to greater costs for consumers.
Oral Answers to Questions
Debate between Baroness Clark of Kilwinning and Lord Barker of Battle
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
The coalition Government are absolutely committed to achieving substantial cuts in carbon from our electricity sector by 2030; that is entirely consistent with the targets set out in the Climate Change Act 2008. We have also announced that we will take a power to set a legally binding decarbonisation target for the electricity sector specifically as a Government amendment to the Energy Bill.
Katy Clark
I am grateful to hear that, and I very much hope that the target we set will be the right one to ensure that we meet our commitments to cut emissions by 2050, because it is very clear that we need a target. Will the Minister say what he believes that will be?
Gregory Barker
We will ensure that if we take such a power, it will be to enable us to meet our climate change commitments. The important thing is to see any power in the context of setting the overall carbon budget for the period 2028 to 2032 and beyond.
Solar Power (Feed-in Tariff)
Debate between Baroness Clark of Kilwinning and Lord Barker of Battle
Katy Clark (North Ayrshire and Arran) (Lab)
I am grateful for the opportunity to pay tribute to Alan Simpson, the former Labour MP who tabled the amendment that led to the legislation on FITs. I am sad that the present Administration have succumbed to the lobbying power of the big six energy companies by taking the first step in the erosion of FITs in this country. Government Members have mentioned Germany, which has a strong FITs system, and its tariffs led to far lower energy prices than we have in this country. FITs are about where the power is, and one of their impacts is to transfer power from the energy companies to individuals—to the consumer—and to communities. That is why I am sad that the Government have introduced these proposals.
Gregory Barker
On a very important point of fact, energy prices in Germany are not lower. The cost of electricity to the German consumer is significantly higher and, importantly, 45% of the consumer’s bill there is made up through levies and policy impacts as a result of renewables legislation.
Katy Clark
As the Minister will be aware, energy prices in Germany are at the levels they were in 2008, which is a very different situation from the one we are in. Opposition spokespeople have already spoken about the bills that individuals and businesses have to face under this Government.
The Government are rushing to introduce their proposal, which will cause havoc for all the reasons outlined by many Opposition Members and, indeed, by some Government Members, because they chose to put a ceiling on the solar FIT budget. That was not the position under the previous Government. Will Ministers explain whether they have looked at surpluses in other renewable energy budgets, and ask the Treasury if they can use those budgets to ensure that more money is available for solar, given the runaway success of the scheme?
Oral Answers to Questions
Debate between Baroness Clark of Kilwinning and Lord Barker of Battle
Gregory Barker
The hon. Lady is absolutely right. There are opportunities for green growth and innovation right across the economy, and a lot that we can do in the water sector in particular. However, that is a matter for the Department for Environment, Food and Rural Affairs, which is looking carefully at how we develop the green deal. Indeed, it is possible that we could see a similar programme offered in due course—perhaps a blue deal—to ensure that water-saving measures are funded in the same way. However, she is absolutely spot-on in realising the huge potential that exists.
Katy Clark (North Ayrshire and Arran) (Lab)
T7. Has there been any discussion about the geographic spread of carbon capture and storage demonstration projects? The Minister will be aware that there are a number of proposals in Scotland. Is it possible that two or even three of them might be allowed to go ahead?