Electricity Market Reform

Caroline Lucas Excerpts

Tuesday 12th July 2011 Commons Chamber

[Chris Huhne]

I do not accept my hon. Friend's analysis. Nick Stern has described the failure to take account of the carbon consequences of our actions as the greatest market failure of all time. Sometimes we have to incorporate the consequences of our actions for the environment into the market decision. That is what we are doing.

[Caroline Lucas (Brighton, Pavilion) (Green)]

Given that electricity market reform will lead to windfall profits for existing nuclear plant of at least £50 million a year and given the rising concerns about fuel poverty, of which the Secretary of State will be aware, will the Government introduce a windfall tax on nuclear and use the revenue to help those living in fuel poverty?

[Chris Huhne]

The hon. Lady is referring, I think, to the potential impact of the carbon price floor, which will of course begin in 2013 and then rise slowly. There will be no impact of the type that she is suggesting until its introduction. It must be considered alongside all the measures we are introducing to save energy and protect those in fuel poverty.