Solar Power (Feed-in Tariff)
Debate between Andrew Bridgen and Chris Huhne(12 years, 5 months ago)
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Chris Huhne
Opposition Members are getting terribly shirty about this, but there was a link to energy efficiency and that link was abolished with the introduction of the scheme by the right hon. Member for Doncaster North, the Leader of the Opposition, when he was the Secretary of State for Energy and Climate Change in April 2010. We need to deal with that.
There are more efficient ways to clean our energy supplies and grow our green industries than using consumers’ energy bills to support one industry at well over the market rate. If we did nothing, by 2014-15 feed-in tariffs for solar PV would cost consumers about £1 billion a year. If we are to succeed in building a low-carbon economy, we must make sure that we show people that we are committed to value for money.
It is precisely because this Government are committed to a sustainable, long-term future for clean energy that we propose revising tariffs now. Encouraging a minority of companies to feast on bumper profits for six months, swallowing up the entire feed-in tariff budget for a four-year period, would be the acme of short-termism. It is worth keeping things in perspective.
Andrew Bridgen
Will the Secretary of State explain to the House what he believes the Labour Government meant when they said in a consultation document on feed-in tariffs that they did not expect to lower the tariff levels for new projects over the years? Given that, does he not detect more than a whiff of hypocrisy in the comments from the Opposition Front Bench?
Chris Huhne
My hon. Friend makes a good point. If the previous Government had bothered to find out how well-managed feed-in tariffs are run in countries such as Germany, they would have built in an automatic system which brought the tariffs down in line with the fall in costs, but they did not. The result was a massive over-compensation.
Contrary to the claims that we have heard from the Opposition, we are not shutting down an industry, which is what would happen if the money ran out. The revised tariffs will provide inflation-proofed returns for 25 years of around 5%. That remains competitive with other investment opportunities. A householder would still be able to get a 4.5% real post-tax return. This compares well, for example, with the 0.5% post-tax real return currently available through index-linked National Savings bonds.
Oral Answers to Questions
Debate between Andrew Bridgen and Chris Huhne
Chris Huhne
Mr Speaker, I think I tested your patience with the length of my previous answer to a similar question, so I will not go through the list again, but we have put in place a substantial set of measures that will allow redress, including an advice line and all the normal protections, such as the ability to go through the small claims court and to the energy ombudsman. All of those are available to consumers. I agree with the hon. Gentleman on one key point: consumer confidence in this scheme will be absolutely crucial. We do not want any repeat of the sorts of examples there were when the Labour Government in Australia introduced a similar scheme, which was indeed a cowboys’ charter.
Andrew Bridgen (North West Leicestershire) (Con)
What discussions has my right hon. Friend had with the Office of Fair Trading, which will regulate green deal providers, to ensure that credit is only offered responsibly?
Chris Huhne
The credit will be regulated under the Consumer Credit Act, but the provisions are very clear. I do not think that my officials have had direct contact with the OFT, but it of course has an important monitoring role to ensure that those rules are observed.
Oral Answers to Questions
Debate between Andrew Bridgen and Chris Huhne(13 years, 8 months ago)
Commons ChamberRead Full debate Read Hansard Text
Chris Huhne
The discussion with the Treasury will get under way later, after the comprehensive spending review. The hon. Gentleman will understand that the Treasury is otherwise engaged in a very serious mopping up of the legacy problems that we have already discussed. Later in the year, as part of the public consultation, we will go through all those issues, including the issues that impact on our EU partners.
Andrew Bridgen (North West Leicestershire) (Con)
7. Whether historical wind measurements are taken into account in determining subsidy allocation for onshore wind farms.