Oral Answers to Questions

Debate between Lord Watson of Wyre Forest and Chris Huhne

Thursday 16th December 2010 Commons Chamber

[Mr Tom Watson (West Bromwich East) (Lab)]

I am very concerned about what I have heard in the Chamber this morning. Hon. Members have said that there is a shortage in the supply of oil, that their constituents are going cold, and that schools and hospitals are losing out. We obviously have an oil supply crisis. The Minister of State, the hon. Member for Wealden (Charles Hendry), says that he wants suppliers to ration their oil, but will the Secretary of State take personal command of this situation, call in the oil supply companies and sort this out?

[Chris Huhne]

I have complete confidence in the Minister of State, my hon. Friend the Member for Wealden (Charles Hendry), who has responsibility for energy. He has been absolutely hands on in dealing with that matter and has kept me informed. I believe that the measures he is taking are absolutely appropriate, but we are watching the situation day by day to ensure that the heating oil supplies are there.

Electricity Market Reform

Debate between Lord Watson of Wyre Forest and Chris Huhne

Thursday 16th December 2010 Commons Chamber

[Chris Huhne]

My hon. Friend and I have had discussions on the specifics of biomass power stations, and I hope that some of the announcements that the Department has made, for example about bringing forward the review of the incentives for that type of plant, will help. We have also been able to issue some letters of comfort to different investors to try to ensure that they do not have problems with financing projects. I want to minimise the uncertainty that inevitably exists in changing from one regime to another, and make these investments happen as quickly as possible.

[Mr Tom Watson (West Bromwich East) (Lab)]

The Secretary of State mentioned volatile oil markets. These reforms will impact on the domestic oil sector in the UK. Can he tell me what he thinks the impact will be, and in doing so, can he tell me what measures he is taking in the next 72 hours to deal with the Christmas oil crisis?

[Chris Huhne]

I take it that when the hon. Gentleman says “the domestic oil sector,” he means the offshore oil and gas sector in its entirety. The prices for that sector are clearly set in a global market, so what we do, although it will be very significant in the electricity sector within the UK, will have a marginal impact on the overall global demand for oil and gas, and therefore on the prospects for our own domestic offshore oil and gas sector.

In the last 72 hours we have been trying to ensure that drivers can work longer—that they can get heating oil to homes that need it. The Energy Minister has been in constant discussions, looking at any way in which we can ensure that those who need heating oil and are currently short of that oil get it. That is essential. In those discussions, my hon. Friend has been informed about suppliers attempting to ensure that people do not have too much, so that there is enough to go round for everyone.