Energy: Gas
Debate between Lord Ezra and Lord Marland
The Parliamentary Under-Secretary of State, Department of Energy and Climate Change (Lord Marland)
My Lords, eight minutes seems like a long time. The UK enjoys a domestic gas supply and extensive import infrastructure and storage. The Government have given Ofgem new powers to strengthen the commercial incentives for the gas market participants to meet their contractual supply obligations. We have also asked Ofgem to report on the need for further measures to improve gas security.
Lord Ezra
My Lords, it seems clear from the draft energy Bill that over the next few years, before new nuclear and fossil fuel plants with carbon capture and storage come into operation, we shall be increasingly dependent on gas supplies, as the Minister stated, particularly imports as our own resources from the North Sea diminish. Does the Minister agree that in those circumstances and in view of the fact that a number of major countries have indicated their intention to reduce their nuclear power generation, which will increase pressure on gas supplies, it is particularly urgent that we take additional measures to safeguard our supplies, given that rather seriously developing situation?
Lord Marland
I totally agree, although I am not sure I agree that there is a seriously developing situation. We now have 240 years of gas supply throughout the world, which is extremely encouraging. What is more, that gas supply is very liberally scattered across countries such as Mozambique, which has just discovered gas, and Algeria, which has discovered more shale gas, as has America. I do not hold with the last point made by the expert noble Lord.
However, clearly this is no time for complacency and this may be an opportunity for me to say that we have 150% of LNG capacity in this country above demand. We are increasing the amount of storage by 20%. We still have just under 50% of our own supply. We have had unprecedented demand for our new round of licences. So the situation is not as gloomy as the noble Lord indicated.
Fuel Poverty
Debate between Lord Ezra and Lord Marland(12 years, 9 months ago)
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The Parliamentary Under-Secretary of State, Department of Energy and Climate Change (Lord Marland)
My Lords, the coalition is committed to helping people, especially in low-income vulnerable households, to heat their homes more affordably. The Government commissioned Professor John Hills to carry out an independent review of the fuel poverty target and definition in the context of ensuring that available resources are focused where they will be most effective in tackling the problems underlying fuel poverty. Professor Hills published his interim report on 19 October, and a final report will be published shortly.
Lord Ezra
My Lords, bearing in mind that some 5 million homes, over 20 per cent of all the homes in Britain, are in fuel poverty as presently defined, can the Minister indicate the annual rate at which homes are currently being taken out of fuel poverty? Secondly, do the Government remain committed to the objective of eliminating fuel poverty by all reasonably practical means by 2016, as laid down in the Warm Homes and Energy Conservation Act 2000?
Lord Marland
It is very good to see the noble Lord in his place. Of course, his position on this is very well recognised, having been what I was brought up to know as “King Coal”. I am grateful that he should ask such important questions.
Clearly, since 2005, fuel poverty in the UK has gone up from 2.5 million homes to 5 million now. This is a very serious problem with which all of us wish to grapple, particularly in these times of economic difficulty. The Government are committed to that. I do not want to pre-judge Professor Hills’ report, but we initiated it and we look forward to it.
On the noble Lord’s second point, of course we are committed to reducing fuel poverty to nothing. In an ideal world, we would be doing it now. We have reworked the definition, which I think is fundamental. However, until we get the report we will not be able to comment much further on that.
Energy: Carbon Capture and Storage
Debate between Lord Ezra and Lord Marland
The Parliamentary Under-Secretary of State, Department of Energy and Climate Change (Lord Marland)
My Lords, the prospects for carbon capture and storage in the UK are good. We have six other applicants in the European new entrants’ reserve 300 competition. Through FEED, we have developed substantial practical guidance on the delivery of CCS projects. We will launch a streamlined selection process for future CCS projects as soon as possible and expand on our plans in the next eight weeks. I can confirm that the £1 billion remains available for this.
Lord Ezra
My Lords, while it is regrettable that the Longannet project has been withdrawn, it is satisfactory to note that these other projects are coming forward and, in particular, that the Government will speed up the selection process. Would the Minister agree that a successful demonstration of carbon capture and storage on a commercial scale could not only reduce carbon emissions but also lead to the creation of many new jobs and substantial overseas earnings?
Lord Marland
My Lords, it is difficult to disagree with any single word that the noble Lord, Lord Ezra, said. He is obviously a leading expert in the field. It is gratifying to hear him make a statement like this and be so supportive of the Government’s plans.
Energy: Gas Supplies
Debate between Lord Ezra and Lord Marland(13 years, 1 month ago)
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The Parliamentary Under-Secretary of State, Department of Energy and Climate Change (Lord Marland)
My Lords, National Grid published its Winter Outlook 2011/12 report on 11 October. Its assessment of UK gas security of supply for the coming winter is broadly benign, with lower domestic production being offset by the expectation of more imports, especially of liquid natural gas. The Government will work closely with National Grid and the energy industry to monitor the ongoing energy supply situation during the winter months ahead. We will also be publishing the statutory security of supply report together with an assessment of the security of supply risk in the gas market later this autumn.
Lord Ezra
My Lords, I thank my noble friend for that reassuring reply. Nevertheless, things can go wrong, so what is the Government’s policy on gas storage capacity? Our current capacity is now well below that of continental countries, has fallen back in the past year and is the one big reassurance we could have if supplies should be interrupted during critical winter periods? In the longer term, when will our demand for gas, 60 per cent of which now has to be imported, be reduced so that we are less reliant on the vagaries of the import market?
Lord Marland
Let me continue in the spirit of bonhomie and welcome the noble Lord’s return—