Oral Answers to Questions
Debate between Lord Barker of Battle and Jessica Morden
Jessica Morden (Newport East) (Lab)
17. If his Department will undertake an impact assessment of the effect of the carbon floor price mechanism on the competitiveness of energy-intensive industries.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
An assessment of the impacts of the carbon price floor on energy intensive industries is given in HMRC’s tax information and impact note, published alongside the Budget. Electricity bills for an average energy-intensive business are estimated to increase by 2% and 6% in 2013 and 2016 respectively as a result of the carbon price floor. However, in the late 2020s electricity bills will be between 2% and 5% lower than would otherwise have been the case.
Jessica Morden
Will the Minister outline what specific issues the Government are considering to prevent energy-intensive industries, such as the steel industry in my constituency, from being disadvantaged in comparison with their global competitors by policies such as the carbon price floor?
Gregory Barker
As the hon. Lady knows, we are meeting not just the steel manufacturers, such as those in her constituency, but a range of energy-intensive industries. I will be meeting the chief executives of several before the House rises for the recess. We are considering a range of measures in conjunction with the Treasury and the Department for Business, Innovation and Skills, and in the autumn we will announce the result of that collaboration.
Oral Answers to Questions
Debate between Lord Barker of Battle and Jessica Morden
Jessica Morden (Newport East) (Lab)
19. What plans his Department has to generate tidal energy from the River Severn.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
Following a two-year feasibility study, the Government concluded that there was not a strong case for public investment in a Severn tidal power scheme in the immediate term. However, that does not preclude a privately financed scheme coming forward in the meantime, and we are actively talking to developers about their plans for various tidal energy schemes in the Severn.
Jessica Morden
The Government have decided against the Severn barrage, but it is important that we do not lose the impetus to harness tidal power in the Severn. Will the Minister give more detail on any discussions he has had with the Welsh Assembly Government on alternative plans? How far advanced are they?
Gregory Barker
I cannot give details of commercially confidential discussions, but we are encouraging developers to come forward with a range of proposals and looking to be as helpful as we can. The primary barrier to the previous proposal was the £34 billion cost, which in the current circumstances just did not seem feasible. However, we are trying to create a constructive framework for other, private proposals, and I would be happy to discuss the matter in more detail with the hon. Lady.