Amber Rudd
Main Page: Amber Rudd (Independent - Hastings and Rye)
Douglas Carswell (Clacton) (UKIP)
1. What steps his Department plans to take to reduce the overall subsidy to UK energy sources.
The Parliamentary Under-Secretary of State for Energy and Climate Change (Amber Rudd)
The Government recognise the hon. Gentlemen’s point regarding the impact on taxpayers and consumers of Government support for renewable and low-carbon energy. However, Government policies are also aimed at reducing bills. Without Government policies, particularly on energy efficiency, bills would overall be on average around £90 higher this year.
Douglas Carswell
Yesterday the Prime Minister confirmed that he is happy to see the levy control framework increase to £371 per year per household by 2020. At a time of falling oil prices and at a time when the shale gas revolution holds out the tantalising prospect of cheap energy, is not the Department carrying on subsidising windmills unnecessarily, and are we not making policy on the basis of outdated assumptions that need to revised?
Amber Rudd
We recognise the importance of keeping bills down for consumers, particularly when times are difficult, but this Government’s initiatives are to help reduce bills and our support for renewables is unquestionable. We feel it is essential to have some subsidy to get renewables going. I note that the hon. Gentleman is a big supporter of solar. Those costs have come down and our support has consequently come down. We expect it to reach grid parity by 2020. We are optimistic that wind farms are also beginning to come down in cost, and we have seen a 10% reduction in the support for them very recently.
Gregory Barker (Bexhill and Battle) (Con)
Does my hon. Friend agree that linking oil prices to energy, and particularly heating bills, is nonsense given that we do not have any oil generation to speak of that generates electricity here in the UK—there is only maybe a tenuous link with heating oil? We should be focusing on driving down the cost of home-grown energy, particularly clean energy.
Amber Rudd
As always, my right hon. Friend makes an important point. Renewable electricity is essential, and I hope his Christmas tree lights burn even brighter this year, because 15% of that will indeed be from renewable energy, which is twice as much as under the last Government.
Dr Alan Whitehead (Southampton, Test) (Lab)
At a recent conference, a Treasury official, when asked about the levy control framework, said:
“A priority for the next Government is to review what should happen after 2021.”
He also said that he would hope to get clarity early in the next Parliament about what should happen, rather than towards the end of it, and that:
“We shouldn’t sprint towards a cliff edge.”
Is that the Minister’s position on the levy control framework, or is she sitting there doing nothing about it?
Amber Rudd
The hon. Gentleman will be aware that those decisions are largely for the next Government. However, the levy control framework is an important part of controlling our expenditure. It is a classic example of the competence under this Government, as opposed to the chaos under the last, who had no levy control framework at all.
Kerry McCarthy (Bristol East) (Lab)
The Prime Minister said at the Liaison Committee this week that his party would scrap subsidies for onshore wind after 2015 and he did not expect any more to be erected without subsidy, but onshore wind is one of the cheapest forms of green energy. Does the Minister not agree that an essential part of trying to reduce energy bills is having onshore wind as part of the mix?
Amber Rudd
Onshore wind has been an important part of the mix and, of course, we have more onshore wind in this country than in the rest of the world, so I think that it may be time for us to spend our scarce resources on other types of renewables to ensure the best return for taxpayers.
Caroline Flint (Don Valley) (Lab)
One of the technologies we provide support to is carbon capture and storage. Is the Minister aware that UKIP is opposed to carbon capture and storage? It has described it as “expensive, difficult and pointless”. Does she agree with me that UKIP’s policy would mean that there is no long-term future at all for any of Britain’s coal mines or coal-fired power stations?
Amber Rudd
I share the right hon. Lady’s views on this. Carbon capture and storage is indeed an important part of our energy mix and an important part of supporting all energy sources in this country.
Mr Alan Reid (Argyll and Bute) (LD)
2. What recent steps he has taken to help households with energy bills.
Kevin Brennan (Cardiff West) (Lab)
19. What recent assessment he has made of the potential of tidal power as an energy source.
The Parliamentary Under-Secretary of State for Energy and Climate Change (Amber Rudd)
Tidal energy offers huge potential. Tidal lagoons alone could provide for up to 8% of the UK’s energy needs. To help with progress of tidal deployment, as part of the autumn statement, we announced a commitment to starting closer discussions with Tidal Lagoons Ltd to establish potential at Swansea bay. In addition, we have made a number of studies of UK tidal potential.
Mr Speaker
I call Tom Harris. Sorry, I meant Mr David Jones. There is a similarity.
Mr Jones
Others have remarked upon it, Mr Speaker. It is good news that the Government are in discussions with the proposed developers of the Swansea tidal lagoon. Does my hon. Friend agree that proposals for a much larger lagoon at Colwyn bay also merit serious consideration? Does she also agree that a chain of lagoons along the west coast could make a huge contribution to British energy security?
Amber Rudd
I thank my right hon. Friend for that question. As he rightly says, tidal power provides a huge opportunity for the UK. My Department has started to explore the potential for a future lagoon programme and is aware of proposals for the tidal lagoons at Colwyn bay. Any such scheme will need to demonstrate strong evidence of value for money, economic benefits, energy saving and environmental impact mitigation before the Government could take a view on its potential, but I share his enthusiasm.
Kevin Brennan
May I say merry Christmas to everyone, Mr Speaker? That should help climate change because I do not have to send out cards now. How are the Government’s talks on the Swansea tidal lagoon, which were announced during the autumn statement, progressing? As part of the studies that the Government are undertaking, are they working with the Welsh Government to look at proposals for a possible tidal lagoon, again on a larger scale, between Cardiff and Newport?
Amber Rudd
May I also exchange Christmas greetings with the hon. Gentleman? We are doing our best to progress with the Swansea bay tidal lagoon. He will be aware that there is only so much the Government can say at this stage, because there are other issues to consider. We will continue to keep an open mind to as many opportunities as possible, as long as we can reassure ourselves that there are clear economic benefits.
Jeremy Lefroy (Stafford) (Con)
7. What progress his Department has made on the energy companies obligation initiative.
The Parliamentary Under-Secretary of State for Energy and Climate Change (Amber Rudd)
The latest Department official statistics show that we are getting closer to reaching our target of delivering energy-efficiency measures to 1 million homes. As my right hon. Friend the Secretary of State has said, we have already reached 1 million measures. In addition, legislation came into force in early December to help simplify the scheme and reduce costs. This has enabled energy suppliers to cut energy bills by £30 to £35 this year. The scheme will also be extended from March 2015 to March 2017 to provide greater industry certainty and enable us to reach an additional 840,000 homes.
Jeremy Lefroy
I thank the Minister for her reply and welcome the news that the scheme will be extended to March 2017. Will she explain what is being done to make the scheme easier to understand and to access?
Amber Rudd
We are constantly reviewing ways to make the scheme easier and more accessible to people. We have different schemes that will add to its value. Some communities are working with our green deal communities fund in conjunction with the energy companies obligation to ensure that they reach and engage with people street by street. We want to have the widest reach possible, which includes not just the easiest to reach but the most vulnerable.
Nic Dakin (Scunthorpe) (Lab)
With more than 2 million people sadly still in fuel poverty, why is more than half the money being spent on this scheme going to people who are not in fuel poverty?
Amber Rudd
May I reassure the hon. Gentleman that the changes to ECO clearly did not change at all the targets to help vulnerable people. Although we made the changes to reduce the amount on the bills, we have continued to focus on vulnerable people and will continue to do so as a priority.
Andrew Gwynne (Denton and Reddish) (Lab)
Will the Minister confirm that as a result of the changes to the energy companies obligation, nearly half a million homes will not be able to receive that financial assistance to upgrade their energy units to get cheaper bills?
Amber Rudd
As I just said, the Government are absolutely committed to helping the most vulnerable. Although we reduced the charges on bills to look after consumers and taxpayers generally, we were absolutely clear that the most vulnerable people would not be affected. The section of the ECO that is dedicated to helping the most vulnerable people remains in place and continues to provide support.
Mr Mike Weir (Angus) (SNP)
8. How many licences for onshore oil and gas exploration in Scotland have been granted by his Department in the last five years.