Andrew Percy
Main Page: Andrew Percy (Conservative - Brigg and Goole)
Caroline Flint
Let me begin by paying tribute to my hon. Friends the Member for Rutherglen and Hamilton West (Tom Greatrex) and for Liverpool, Wavertree (Luciana Berger), who, with just a fraction of the resources and staffing available to Ministers, have done a first-rate job in debating the Bill. They have not only scrutinised it, but improved it.
I also pay tribute to my hon. Friends the Members for Sunderland Central (Julie Elliott) and for Hyndburn (Graham Jones), who have provided invaluable support for those on the Opposition Front Bench; to my hon. Friends the Members for Southampton, Test (Dr Whitehead), for Brent North (Barry Gardiner), for Wansbeck (Ian Lavery) and for Ynys Môn (Albert Owen), who served on the Bill Committee; and to my hon. Friend the Member for Glasgow North West (John Robertson). They have all brought a great deal of expertise and experience to bear.
I thank the Ministers and officers in the Department. There have been some personnel changes on both fronts, but we have managed to get through the process. I thank the Secretary of State for the briefings that he facilitated with officials in his Department, as well as the Clerks and the ever-helpful staff in the Library, who have advised us on some of the finer points of detail and parliamentary procedure.
I made it clear on Second Reading that we would not oppose purely for opposition’s sake, and on that basis we have sought to find areas of agreement with the Government when that has been possible. We have supported the provisions to establish an office for nuclear regulation, as well as those relating to the Government pipeline and storage system and to offshore transmission systems.
As the Secretary of State has just said, Ministers have accepted some of our amendments, including those concerning the transparency of investment contracts and the structure of the counterparty under contracts for difference, and I welcome that. We have not yet managed to persuade them to accept amendments relating to other issues, such as carbon capture and storage, support for community energy and access to the market for independent renewable generators, but we have noted their commitment to considering our proposals, and we hope that colleagues in the other place will return to them.
The Secretary of State referred to the redress framework. We are disappointed by the rejection of amendments that would have ensured that consumers were compensated pound for pound and that compensation was paid in respect of any breach of the rules that came to light, because that has left a massive loophole. The best way of protecting consumers is not to provide a redress framework—much though we need that—but to prevent companies from ripping people off in the first place, and I am afraid that on that count the Bill falls badly short.
The Prime Minister told the House 12 times that he would force the energy companies, by law, to put everyone on the cheapest tariff, but, although the Bill consists of nearly 200 pages, not a single one of them contains legislation to put every customer on the cheapest tariff automatically, which is what the Prime Minister promised. Ultimately, unless the energy market is genuinely reformed through the wholesale side—as we have proposed—there will be nothing to prevent the energy companies from raising all their tariffs in any event.
Whenever I meet investors, the single most important thing that they tell me they want is certainty. They should gain confidence from our support for the substance of the Bill. When it comes to contracts for difference, there are clearly many important details still to be worked out, but, in principle, if CFDs are executed correctly, they should provide investors with long-term certainty, and we will therefore support them.
There are also many important details still to be worked out in regard to the capacity market, but in principle we believe that it could work, and have supported it. We also support the principle of an emissions performance standard, and welcome the commitment to reviewing it in five years’ time. However, as my hon. Friend the Member for Brent North said yesterday, we are concerned about the particular standard that the Government have chosen to adopt, and we hope that the other place will scrutinise it carefully.
That is some of the good news, but I must also be candid about where the Bill fails, and how we would seek to remedy that after the next election if it is not rectified in the other place. The Government’s stated purpose was to reform the electricity market to deliver secure, clean and affordable electricity, but there are no two ways about it: the Bill will fall short of its stated purpose unless it puts Britain’s electricity system on a pathway to decarbonisation, and unless it genuinely reforms the electricity market to make it more transparent, liquid and competitive.
We have had a full debate on decarbonisation this afternoon. I pay tribute to the hon. Member for South Suffolk (Mr Yeo) for tabling his amendment, and for the work of his Select Committee. I also pay tribute to the work of my right hon. Friend the Member for Doncaster North (Edward Miliband), who was the first leader of a main political party to commit himself to decarbonisation. The Bill does not contain a decarbonisation target because the Liberal Democrats, with a few honourable exceptions, did not have the courage to vote for it.
It is clear that the Conservative party has now set its face against decarbonisation. Its choice is to lock Britain into a high-cost, high-carbon electricity supply for decades to come, but there is still a clear majority in this House in support of decarbonisation. The Labour party supports it, and the Scottish National party, Plaid Cymru and the Green party all support it, too, and I thank colleagues from other parties who joined us in the Lobby this afternoon. With a Government majority of just 23, there is no doubt that if the Liberal Democrats—who claim to support this, who have a party policy on it, and who have a Secretary of State who says he supports it—had voted for it, this Bill would have put us on the pathway to decarbonisation.
Let us be clear about what this Bill does and does not do. It does not set a decarbonisation target; it only says the Secretary of State may set one if they so choose. The Government could have supported just changing “may” to “must”, to give an indication of more certainty in this area.
It has been said many times this afternoon that none of the major parties had support for this target in their manifestos. However, the Committee on Climate Change has only made that recommendation since the general election, and we said we would support its recommendations. We must be able to do that. Things change from one general election to another, and we must listen to that advice. The truth is that even if the Secretary of State decides to set a target, 2016 is the earliest date at which it could be set, but it could be set at any later date—2026, 2036, 2046—or not at all. There is also no specification about what the target should be, so the Secretary of State could issue an order for a target that is totally inconsistent with decarbonisation, or do nothing at all, and still have fulfilled the requirements of the Bill. We would put that right.
Caroline Flint
I enjoy many train rides from Yorkshire with the hon. Gentleman, but I will not give way to him as he has not been present all day for this debate. If he gets a chance, he can make his comments later.
Her Majesty’s Opposition are absolutely committed to decarbonisation of the power sector. The reasons for that are simple. First, the biggest driver of soaring energy bills is rising global gas prices. Cleaning up our power supply and investing in energy efficiency would lead to lower, not higher, bills. Secondly, the best way of improving our energy security is to take advantage of the natural energy sources in our own country. This is the windiest country in Europe, and when it comes to marine energy, Britain really can rule the waves, but businesses will only invest, and bring jobs and growth to this country if they see that the Government back decarbonisation. As my hon. Friend the Member for Wansbeck said, we should give confidence to those who wish to invest in carbon capture and storage and put us at the forefront of clean coal. Thirdly, if we cannot decarbonise the power sector, we will not be able to reduce the country’s carbon footprint, and if we cannot do that, we will face a future of chaotic weather, rising sea levels, flooded homes, failing harvests and drought.
If the other place is not able to rectify the omission of a decarbonisation target from this Bill, we will do so in government. Our determination to clean up the power supply is matched by our commitment to reform the energy market and to make it work in the public interest. So, on decarbonisation and fairer bills for consumers, we regret what is missing from this Bill, and make a commitment to put it right.
Investors should draw confidence, however, from the fact that there is broad cross-party support for many of the provisions in the Bill, and, on our part, there is the political will to deliver a lasting framework to bring forward investment in low-carbon electricity generation. On that basis, we will not oppose the Bill on Third Reading, but it is to be regretted that a dirty deal with the Liberal Democrats has once again blocked the path to clean energy and all the benefits it could bring.
Dan Byles
It is a pleasure finally to be speaking on Third Reading. I am a member of the Select Committee on Energy and Climate Change, which has carried out inquiries into energy market reform and pre-legislative scrutiny of the Bill, and I also sat on the Public Bill Committee, so it has been a labour of love getting here.
Although I support the Bill, I admit that I have some concerns. I am concerned about the level of complexity we are starting to pile on to our energy sector. Perhaps that is inevitable, as this is a highly complex policy area, but I sometimes feel that unintended consequences lead to another sticking plaster being put on, leading to more unintended consequences, so that a highly complex system evolves. I do not necessarily blame the DECC team for that, as this is a difficult and complex area, but I hope that as the Secretary of State introduces the secondary legislation he will bear in mind the need to try to minimise the complexity as much as possible, in keeping with the aims of the Bill.
The energy sector still faces huge challenges. As for the oft-quoted figure of £110 billion a year of infrastructure investment, I have seen a lot of estimates that put the figure much higher. Some people grossly underestimate the scale of change required in our energy sector, particularly in the argument about decarbonisation. The year 2030 is just 17 years away and at 10 minutes to 6 today, in real time, 40% of our electricity was being provided by gas and 35% was being provided by coal. That means that 75% of our electricity was being provided by gas and coal. Gas heats 83% of our homes. We will have a substantial slice of gas on the system for a long time, so we need to get on and start exploratory drilling for shale gas once again, so that we can ensure that the gas is provided from a domestic source. The Institute of Directors has told us that shale gas production could provide up to 74,000 jobs, both directly and indirectly, and up to a third of peak demand—and that is just the central scenario. We need to search for shale gas, and to accept that gas will be on the system for a long time to come.
We also need steadily to increase investment in renewables; I entirely accept that. Sometimes people throw at me that I am anti-decarbonisation—we have heard that from some Opposition Members—but I am not. We need to move to a low-carbon future, not through a rash, uncosted 2030 decarbonisation target set this year, but through the nuts and bolts of the contract for difference and the levy control framework, as the CBI has said.
Andrew Percy
One of the reasons why I was not here earlier is that colleagues from our region and I were with a Treasury Minister, trying to ensure that when the money for renewables comes on stream, British companies benefit from it. Does my hon. Friend not agree that once we get the Bill out of the way, the biggest challenge is to ensure that it is British companies, such as Tata Steel in Scunthorpe, who benefit from the additional money going into renewables?
Dan Byles
I entirely agree. This needs to be seen in a much wider context than energy; this is about jobs and investment, including inward investment.
Gas will be on the system for a long time; we need to bring forward new gas generation. We need to increase renewables on the system, and we desperately need new nuclear. There is hardly a credible scenario for a decarbonised future that does not involve new nuclear on the system. We need to incentivise generation capacity in all three. The Bill is long overdue, and I will support it this evening, because it will achieve that aim.
Andrew Percy
I was not intending to speak, but I have been moved to do so by the speech made by the hon. Member for Brighton, Pavilion (Caroline Lucas), who attempted to present those of us who oppose the decarbonisation target as in some way anti-renewable. I voted against the target not because I am anti-renewable but because I am concerned about the bills paid by those who sent me to this place and the impact of onshore wind developments in my constituency.
In the Humber, we hope to benefit from significant investment by Siemens and others in offshore wind. We all stand behind and support that, if for no other reason than it is a job creation scheme. I hope we will see British employers such as Tata—I got things slightly wrong earlier in calling it a British company—benefiting from that. We want that development and those jobs to come to the Humber. However, the attempt to paint those of us who have opposed the decarbonisation target as anti-renewable is not fair at all.
Many of my constituents work in the coal and gas sectors. A large number work in coal and gas generation and some even work in coal mining. I think about their jobs and rights when we debate our energy market. It is not yet clear how the decarbonisation target would be hit or how carbon capture and storage technology could contribute to it. In my side of the constituency, at Drax, a lot of money is going into trying to develop clean coal technology. We want that to be a success. Perhaps in a couple of years’ time, when that is scalable and deliverable, I will be in the Lobby with the hon. Lady.
Caroline Lucas
The hon. Gentleman has not been in the Chamber in the past two days, but over and again those on this side of the House who have been proposing and supporting a decarbonisation target have been able to demonstrate that it will precisely lead to lower fuel bills for consumers. It is precisely gas that is leading to higher bills. Will he not base his statements on the facts?
Andrew Percy
I have followed this debate closely both inside and outside the Chamber, and I am afraid that it has not been demonstrated at all that the target could be set up cheaply. If that were so, it would already be being done. I am concerned about the impact that such a target would have not only on bills, but on England and our countryside. I represent a constituency where people are very concerned about onshore wind turbines. The hon. Lady represents a more urban area, so perhaps she does not have to face what I have to.
Andrew Percy
No, I will not give way. There are very concerned people who feel very disempowered with respect to the planning process because of the march of onshore wind. That has to be taken into account. I am not prepared to vote for something that would say to my constituents, “Whatever your view is, it doesn’t matter. We have this target and we have to deliver on it.”
I think about the public inquiry at Saxby Wold, at which I spoke only a few weeks ago. I got a clap from local residents; it is not often that Members of Parliament get clapped by their constituents. I spoke for my constituents who said clearly that they did not want an ever-increasing march of onshore wind turbines. I also think about the residents in the towns of Winterton and Broughton and elsewhere. Just this weekend, I was informing them about the proposed development in the Ancholme valley of yet more wind turbines—an area that has already hit its 2020 targets.
So please do not present those of us who oppose the target as anti-renewable. We are pro-renewable, but we want a balance and a sensible energy policy that gives the people most affected by the changes a real voice in the process. That is why I will support the Bill. Perhaps in a year, two years or three years, we will be able to support a decarbonisation target. However, the CCS technology is not yet there and I am not prepared to say to people in my constituency who work in the industries I mentioned that they should be put out of work for a vague target that somebody has plucked out of thin air.
Question put, That the Bill be now read the Third time.