EU: Energy Infrastructure (EUC Report)

Lord Maclennan of Rogart Excerpts

Monday 29th July 2013 Grand Committee

[Lord Maclennan of Rogart]

My Lords, I begin by declaring an interest as chairman of a start-up marine power company. The report could scarcely have been more timely. I thank the noble Lord, Lord Carter, for his very skilful chairing of the committee and all those who gave evidence, much of which pointed in similar directions.

There is no subject at the moment that is more worthy of considered attention than energy policy. We have heard the carbon problems, the security of supply and the problem of potential fuel poverty described as a trilemma, and the European Union does not seem to be making the best fist of those challenges. Part of that is due to the relatively recent focusing on these issues. Energy policy was not an original competence of the Union, despite the coal and steel community having been the original organisation. Even since the treaty of Lisbon, with shared competences, it has also been guaranteed that member countries would be free to choose what fuels they wished.

On top of that very difficult issue, we have had a number of, frankly, shocking surprises that have impacted upon a number of member countries of the EU and led to sharp changes of direction. I think, for example, of the Fukushima explosion and what that did to the Federal Republic of Germany, with which we could have maintained a much closer dialogue if it had not stood its policy virtually on its head, in so far as it has moved towards abandoning nuclear power and rid itself of any commitment to carbon capture and storage. If the European Union considers this to be such an important issue, it ought seriously to contemplate the development of institutional means of ensuring that discussion takes place before these national decisions are taken, which can be very disruptive of collective decision-making.

The one thing that was absolutely clear, from almost all those who gave evidence to our committee about the necessary investment in the infrastructure and in technologies, was that the European Union should endeavour to have a clear, predictable and lasting policy. Up to 2020, maybe we will achieve what has been forecast and struggled for, and it is encouraging that the Commission has indicated its support for a plan up to 2030. However, Governments involved in this process are inevitably reactive to what is going on on the ground and what the temporary obsessions of their electorates may be. This is not a recommendation of the committee, but we really ought to consider having a continuing standing committee of the Council to exchange views and keep each member country closely up to date with the movements of opinion that are occurring in each member country. Coming together to the Council for a short period of time has never seemed to me to be an ideal way for such a powerful body to prepare for the decisions that need to be taken. I strongly advocate the establishment of such a body. The Commission cannot do this on its own. We have seen how national Governments have switched position and made life extraordinarily difficult.

I endorse what the chairman of our committee has said, and I was very glad to follow the noble Lord, Lord Whitty, not one word of whose contribution I disagreed with, so I do not need to repeat these matters. However, I am quite clear that even during the time when we were considering fracking and shale, the emphasis switched, even in this country, from scepticism about its relevance to our future to some kind of optimism about it overcoming our problems. I confess that I see no reason to believe that that will be the outcome on that front, but the point that it illustrates is how susceptible countries are to being blown off course.

In this area of policy we need to have steadiness of purpose, clarity of vision and close co-operation with all these other countries with which we are interconnected and whose supplies may vary, as they do, from one country to another. We should be using these differences to supplement our tools and to formulate a scheme that will enable us to go forward, not only to ensure our own security of supply, cost control and carbon control but to influence the global picture. From time to time we have been able to do so, but it is clear that Europe cannot do that effectively unless it speaks with a single voice. That lay beyond the inquiry in which we engaged ourselves, but to my mind it is none the less of critical importance.