Energy Bill
Debate between Bob Stewart and Lord Barker of Battle
Gregory Barker
Both, I hope. Certainly, it would not be satisfactory if the big six became the big seven or eight. Ultimately, we need the big 60,000. We want to extend the enthusiasm for micro-generation and community generation, and scale it up so that small-scale generators, who currently cater only for their own needs, begin to have the ambition to export electricity in their areas and create community interest companies. We also want entrepreneurial companies. The sector is ripe and rich for entrepreneurs. We want to see new disruptive players coming into the market and using new technologies or offering better services. There are already some good independents in existence. I have met a number of them and they are seeing their customer numbers grow considerably. As things stand, however, there is still a long way between them and the big six.
Bob Stewart (Beckenham) (Con)
Does the Minister mean that a district such as Bromley in my constituency might have its own green power generation system, which would be designed specifically for that area and would provide for all its needs? Is that what we are going for?
Gregory Barker
That is a real possibility. A number of local authorities already have that ambition and are using a range of technologies. Woking is using gas-fired CHP, but renewable fuels such as woodchip can be used, too. Such processes can generate substantial amounts of reliable electricity, and if they are carried out locally, the heat generated can also be used constructively, with cheap affordable heat being sent into social housing and public buildings, or to private residents. This model is already starting to take shape in pioneer local authorities. The city of Nottingham has exciting plans for district heating networks on a scale not seen in this country for generations.
The irony is that this is not new technology. District heating by local generation companies is where this energy was born; it began on a distributed model. It was only in recent years that the Labour party nationalised the industry and created one big monopoly, and it was under the previous Labour Government that the number of energy companies shrank from 14 to six.
We are striving to put the “local” back into local energy provision, but we are not prescribing any one model; it could be rolled out in lots of different ways—there are exciting projects around the country, and we want to see a lot more of that—but it must be done in a way that, first and foremost, works for local people and is affordable. I return, however, to a point I made on the previous amendments: we have within our reach the opportunities to do that in a way that is not only green, but affordable—and sometimes even cheaper than the alternative.