Oral Answers to Questions

Lord Lilley Excerpts

Thursday 11th February 2016 Commons Chamber

[Andrea Leadsom]

As I said to the hon. Gentleman, we are looking at it. It is not something that we would introduce just on the back of a fag packet; it requires careful consultation and consideration. He will appreciate, alongside all the other priorities, that a subsidy-free CfD is not cost-free or risk-free to the bill consumer, and we are absolutely determined to ensure that we keep the costs down for consumers in his constituency as well as right across the UK.

[Mr Peter Lilley (Hitchin and Harpenden) (Con)]

Does my hon. Friend recognise, when she comes to introduce a subsidy-free contract for difference, that it will be subsidy free only if the price reflects the value of the electricity, and the value of the electricity depends on the time that it is produced, where it is produced and how reliably it is produced? Therefore, variable renewable electricity is worth much less than regular supplies from ordinary power stations.

[Andrea Leadsom]

My right hon. Friend points out exactly correctly that there are limitations to intermittent renewables technologies, and that there are costs associated with ensuring energy security when we become over-reliant on renewables. That is an absolute case in point. On the subsidy-free CfD, he is also right that we must take into account all the various costs. We are looking at the matter very closely. I am not making any promises here, but, alongside other subsidies and other CfDs, we are looking carefully at the proposition.