Nuclear Power: Emissions

Debate between Lord Howell of Guildford and Lord Duncan of Springbank

Tuesday 14th January 2020 Lords Chamber

[Lord Duncan of Springbank]

We must expedite these developments. The nuclear sector deal which the Government have invested in is worth £200 million. Its purpose is to reduce significantly the costs of the replication of these new developments, and the regulated asset base should be a new model for us to make sure that there is value for money as well. Nuclear will be a vital part, I believe, of the ongoing energy mix in this country.

[Lord Howell of Guildford (Con)]

My Lords, I wonder whether my noble friend’s brief really reflects the full position. After all, Hinkley is now £3 billion over budget and delayed by a year or two, Wylfa has been suspended, Moorside has been abandoned, and the Chinese and French are struggling to raise finance for Sizewell C. It is not a very good picture. Should we not be focusing rather more on prospects for small modular reactors, which can be built much more quickly, and perhaps more cheaply, and might make an even bigger contribution when it comes to global climate change, which is the real problem?

[Lord Duncan of Springbank]

My noble friend is, of course, absolutely correct. If we get to the stage where Hinkley comes online according to its timetable in 2025, it will in due course supply 7% of our electricity needs. However, the reality is that small modular reactors are vital. That is why we have invested £18 million in development thus far—£18 million that is matched by the private sector. This may well be how we can move forward a whole new generation of nuclear electricity generation.

Brexit: Workers’ Rights

Debate between Lord Howell of Guildford and Lord Duncan of Springbank

Tuesday 29th October 2019 Lords Chamber

[Lord Duncan of Springbank]

All the rights that we have accrued as a member of the EU are retained from EU law into our corpus of domestic law. That is the best place for them to be set out. Any changes to that, including any that a future Government may wish to make, must be made with the permission of the other place and this place, using voting procedures in the normal way. There shall be no diminution of the rights of workers as a consequence of this.

[Lord Howell of Guildford (Con)]

My Lords, is not one difficulty with this whole debate that some people are confusing the modernisation of rights, benefits and workers’ conditions and protections with lower standards? Is it not a fact that we now have a modern economy, 83% of which is services, and that workpeople face entirely new conditions that require much more detailed attention? A great deal of the EU legislation of the past, which was well intentioned, was conceived in the age of very big business—and largely by big business—and an age of steam and steel that no longer exists. Is there not a new situation which lively, caring economies should be addressing much more vigorously?

[Lord Duncan of Springbank]

My noble friend makes an important point, which I will answer in two ways, if I may. First, in this country, we have very much a service-based economy. In making rules and laws that affect workers, we can tailor them carefully to the needs of the people of this country. My noble friend also made a point about the situation with regard to the laws and rights that exist in the EU at present. As I recall, for many decades the Benches opposite opposed almost every aspect of what was going on inside the EU, because they felt that it was servicing big business rather than individual workers. We must make sure that our laws are fit for our people.

Gas Tariffs Code (Amendment) (EU Exit) Regulations 2019

Debate between Lord Howell of Guildford and Lord Duncan of Springbank

Thursday 26th September 2019 Lords Chamber

[Lord Duncan of Springbank]

Let me be very specific: it is the policy of this Government to remain part of the internal energy market. The policy has not changed—for the same reasons, in truth, that applied before. They still apply today.

I will write with a specific answer to the question about petroleum reserves, which might be helpful. It is important to stress that it is government policy to ensure that the reserves are adequate for every eventuality. They must be stress tested necessarily through the challenges that Brexit represents. It is not our ambition to in any way put at risk what those reserves mean for the functioning of the wider energy situation in the United Kingdom. I also stress that we are—primarily in gas, certainly—dependent on imports from outwith the EU as a whole, although not primarily from Russia.

[Lord Howell of Guildford]

We are talking about gas and not oil reserves. That means gas storage. As we know, our own gas storage system is not all that reliable and has within recent memory gone down quite severely, with devastating effects on short-term gas prices. Are we planning any further storage projects of the kind we have had in the past, or to replace the Rough storage facility in the North Sea as a result of moving into the Brexit situation?

[Lord Duncan of Springbank]

I do not believe that the Brexit situation changes the dynamic of how we approach the wider question of gas storage. We need to make sure that the storage is adequate for any—in fact, every—eventuality. Brexit itself has not changed the policy on that. It will be our intention to ensure that it is not only adequate but able to anticipate whatever challenges come ahead. We will remain committed to that end.

Nuclear Power Stations

Debate between Lord Howell of Guildford and Lord Duncan of Springbank

Monday 9th September 2019 Lords Chamber

[Lord Duncan of Springbank]

The noble Baroness raises issues about climate change, which I will address head-on. The Office for Nuclear Regulation must not only anticipate but mitigate any potential problems that might occur, which will include not only sea level rise but sea temperature rise. In every instance, it must put forward robust strategies to ensure that at all points nuclear safety is paramount.

[Lord Howell of Guildford (Con)]

My Lords, is not the conundrum here that, while higher global temperatures may affect nuclear power, nuclear power itself can make a major contribution to combating global warming by producing massive amounts of low-carbon electricity? Can my noble friend give us an assurance that in doing so, costs can be kept down, particularly in relation to Hinkley Point, as they are rising rapidly? Could he make sure that we have a proper debate on this whole subject when we come back, as things are not going very well at present?

[Lord Duncan of Springbank]

My noble friend is of course absolutely correct that nuclear power itself is a means of reducing carbon emissions, and it will remain part of our electricity generation mix—necessarily so, as it is already 20% at present. When Hinkley Point comes online it will represent 7% of the overall electricity generated in the entire United Kingdom. It is therefore important that we are able to ensure that nuclear remains a component part of our offering and our energy reduction. It is also important to recognise that one of the conditions of the nuclear strategy which we have put forward—the £200 million fund—is that there is a significant reduction in the cost of the production of nuclear energy. That will represent a 20% reduction overall, which must be part of that strategy. We are alert to these issues. Again, the time is right for a proper debate on the wider questions, which I suspect my noble friend would have raised had we had more time.