Energy Price Freeze
Debate between Lord Barker of Battle and Ian Swales
Gregory Barker
If that is the point that the right hon. Lady was trying to make, I accept that, but what Government Members heard was her dismissing £100 as not a great deal of money. We know that for hard-working people it is a great deal of money.
That is why we acted quickly to slash the over-generous subsidies that we inherited from the Labour party for solar and other technologies. The Labour party opposed those cuts. While we have been standing up for consumers, Labour has been sitting down with vested interests.
This debate has been dominated by the systematic demolition of Labour’s price freeze con. However, the most effective critique comes not from MPs, but from the smaller, independent generators that are keen to break into the market dominated by the big six and created by Labour. It is those new entrants that can provide real consumer choice again. They are entrepreneurs who want to compete for the business of our constituents with better prices, better offers and better service.
Ian Swales (Redcar) (LD)
Does the Minister think that the Opposition’s policy will make it more or less likely that the three independent power producers who want to build power stations in my constituency will invest?
Gregory Barker
The political risk and regulatory uncertainty that the Labour party is introducing into the energy sector is already raising the cost of capital. God forbid it was to form a Government—that would be a hammer blow to investment in the energy sector, a hammer blow to jobs and a hammer blow to consumer prices. It would spell long-term decline for the energy sector.
Labour’s lurch back to the 1970s would entrench the big six. Our vision for the UK energy market is one of fierce competition, dynamic new entrants and a far more decentralised, innovation-rich economy. Thanks to exciting new technologies, commercial, industrial, public sector, community and home generation are taking off all over the country. Although I disagree with many of the points made by the hon. Member for Brighton, Pavilion, I share her enthusiasm for community energy, which is really growing legs under this Government.
Energy Market Reform
Debate between Lord Barker of Battle and Ian Swales
Ian Swales (Redcar) (LD)
I want to discuss the part of the motion that talks about
“allowing new businesses to enter the market”.
I would have used the word “encouraging” rather than “allowing”, but I support that section and the Government’s efforts in that direction. Last week, in Seoul, South Korea, a deal was signed by the Minister of State, Foreign and Commonwealth Office, my right hon. Friend the Member for East Devon (Mr Swire), the British ambassador to South Korea, and the chief executives of Korean South-East Power, Daewoo Securities and Eco-Frontier. The deal was signed with the UK company MGT Power to build a new 300 MW biomass power station at Teesport in my constituency, at an estimated cost of £500 million. The deal is being announced today, and the whole House should welcome the investment by ambitious Korean companies in the UK energy sector.
Last week, the House debated the Infrastructure (Financial Assistance) Bill. The support it provides will, no doubt, aid investment by new players, and it represents another move by this Government to encourage new projects. The measures were rightly supported by the whole House.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
May I just tell the House that I returned last night from Korea, having been there for the PRECOP—pre-conference of the parties—talks? I wish to pay tribute to my hon. Friend’s role, as the constituency Member of Parliament, in helping to attract some substantial and welcome investment.
Ian Swales
I thank the Minister for that approbation. Such investment is all good news, but to encourage new investors, especially green investors, we need clarity of policy, simplicity of policy and, above all, certainty of policy over the long term. Any arrangements made must be grandfathered over the period of a project. I wish to say a bit more about green investment, because one of the key features for investors is political risk. Gyrations in policy have seriously damaged the nascent biofuels industry in the past decade, and we must remember that policy can emerge independently in both Westminster and Brussels. Without giving too much encouragement to hon. Members sitting behind me, I believe that we must sometimes stop the change and the conflicting policies emerging from over the water—we are dealing with one such policy on biofuels right now.
Oral Answers to Questions
Debate between Lord Barker of Battle and Ian Swales
Ian Swales (Redcar) (LD)
9. If he will take steps to ensure that the renewable heat incentive does not make UK energy-intensive industries internationally uncompetitive.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
As announced in the spending review, the RHI will now be funded from Government spending and not from a levy on bills, so we do not believe that there will be any negative impact on the competitiveness of UK energy-intensive industries. On the contrary, the RHI will offer a great opportunity for energy-intensive industries to gain financially.
Ian Swales
The deal for Sahaviriya Steel Industries, a Thai company, to buy Redcar steelworks is likely to be completed within a few weeks. Will the Minister meet representatives of that company to reassure them about the future carbon and energy policy for their industry?
Gregory Barker
I know that my hon. Friend is working extremely hard on this issue. I would be delighted to meet him and the potential purchasers to see what we can do to help to secure those important jobs.