Charles Hendry
Main Page: Charles Hendry (Conservative - Wealden)(14 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Philip Hollobone (Kettering) (Con)
15. What progress he has made on bringing forward proposals for reform of energy markets to improve security of supply.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
I am delighted that there is so much recognition of the need to address our energy security. The Government have moved quickly to enhance our security of energy supply. We are developing a further package of measures to improve gas security. In the autumn we will be launching the most far-reaching reforms of the electricity market, which will look at the measures needed to secure investment in new capacity, and in July we introduced a new long-term regime for new grid connections.
Paul Maynard
I was pleased to hear the Minister refer to gas security given that according to some predictions 70% of our gas supply may in future be imported from overseas. Will he reassure my constituents that when proposals are made for new gas storage sites security, safety and geological hazard will not be put second to the need for more gas sites in this country?
Charles Hendry
My hon. Friend is absolutely right that we have to look at each proposed site, location by location. We have to be satisfied about the security and safety of each location, but there is no doubt that we have historically had low levels of gas storage compared with other European countries, and we are keen to address that as well as looking at issues such as long-term contracts and more pipeline interconnections, which all have an important part to play in this process.
Laura Sandys
Does Russia’s withdrawal from the energy charter treaty cause the Minister concern about the United Kingdom’s longer term energy security?
Charles Hendry
Ministers have to be much more engaged in this process than has historically been the case. We have to have Ministers who are prepared to go around the world to identify long-term contracts and to secure those agreements in the interests of our long-term energy security. We are keen to have a relationship with Russia that is active and business-based. We think Russia can enhance our security. We are also keen to work with other European countries to identify the pressure points and to find new routes to market, and we are actively engaging with our European counterparts to achieve that.
Julian Sturdy
I thank the Minister for his response. Given Yorkshire’s close proximity to the North sea and the vast amount of existing energy infrastructure across the region, are the Minister or Secretary of State pursuing any plans to develop a carbon capture scheme to prolong the life of coal-fired power stations in our area?
Charles Hendry
My hon. Friend raises an issue that is extremely important not just for Yorkshire, but for the country as a whole. We have already had significant discussions with representatives of the Yorkshire business and energy communities, and we salute the work that they are doing to identify strategic infrastructure, particularly in respect of enhanced large pipelines, which enables us to take a cluster approach. That is absolutely one of the areas that we will be looking at carefully for that type of development.
Mr Hollobone
In recent years, for the first time in our nation’s history, we have become dependent on foreign fuel imports to generate enough electricity for our country. Will the Minister consider changing the capacity payment component of the electricity price to incentivise the use of indigenous fuels in power generation?
Charles Hendry
My hon. Friend has a great knowledge of these issues. We are looking at those sorts of solutions to the problems and challenges that we face. It is critical that we find long-term, robust approaches, but in that respect, it is also important to have a mix of energy solutions within the portfolio. Fuels from our own natural resources can contribute to, and greatly enhance, our energy security.
Miss Anne Begg (Aberdeen South) (Lab)
I was pleased to hear that gas is part of the future of Britain’s energy supply, but that runs contrary to a document published by the Department in July this year, “2050 Pathways Analysis”. The document looks at UK energy demands in 2050, but gas does not feature. Will the Minister look into that and have a rethink on what role gas will play in our future energy supply?
Charles Hendry
The 2050 document looked at a range of scenarios and energy mixes. However, let me reassure the hon. Lady that the Economic Secretary to the Treasury and I were in Aberdeen on Monday to talk to the industry—I think that that was the first such meeting involving both Treasury and Energy and Climate Change Ministers—to identify the long-term investment issues that are critical for the sector. It is absolutely in the national interest to develop the best possible resource return from our assets in the North sea.
Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)
The security of our future energy supply is heavily dependent on the implementation of major energy projects. Given that the Government have abolished the Infrastructure Planning Commission, which was designed to remove planning obstacles to the implementation of such projects, can the Minister assure me that he is in conversation with his colleagues in the Department for Communities and Local Government to ensure that the successor planning regime achieves the same objective?
Charles Hendry
I can give the hon. Gentleman an absolute assurance that I am in regular contact with my ministerial colleagues in other Departments, Sir Michael Pitt of the IPC, and the industry, to ensure that the transition arrangements pose no threat to such projects. The measures that we are putting in place will be a significant enhancement of the regime, because they will reduce the risk of judicial challenge and review, and provide parliamentary and democratic accountability. That is an important element of such critical infrastructure issues.
Duncan Hames (Chippenham) (LD)
3. What outcomes his Department is seeking to achieve at the Cancun conference on the UN framework convention on climate change in December 2010.
Andrew Bridgen (North West Leicestershire) (Con)
7. Whether historical wind measurements are taken into account in determining subsidy allocation for onshore wind farms.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
Onshore wind farms can claim one renewables obligation certificate for each megawatt-hour of electricity actually generated, which focuses investment in those areas where the wind resource is strongest. It is therefore in the developers’ direct interest to study very carefully the historical wind measurements.
Andrew Bridgen
As my hon. Friend is no doubt aware, Leicestershire is one of the most inland and least windy counties in England. Will he please assure me that subsidies for wind farms will only be allocated in areas that can demonstrate that the amount of wind is sustainable and economically viable?
Charles Hendry
I can absolutely assure my hon. Friend that the way the ROC system works ensures that the greatest incentive is there to develop wind projects where the wind resource is strongest. We are absolutely committed, too, to the principle of localism for those below 50 MW and for local communities to be directly involved in these decisions and to receive a more direct benefit than was the case under the previous Government.
Mr Wayne David (Caerphilly) (Lab)
How much onshore wind generation does the Minister calculate is needed for the United Kingdom to meet its 2020 renewable energy target?
Charles Hendry
We recognise that onshore wind is one critical element of the process. We set out in the 2050 pathways, which were mentioned earlier, a number of different options. Offshore wind is going to be critical, as is biomass. We want a range of renewable technologies to come forward to help us meet the 2020 targets, and the policies that we are putting in place are designed to drive forward investment in those sectors.
Barry Gardiner (Brent North) (Lab)
8. What representations he plans to make at the October 2010 Tianjin climate change conference for amendment of the UN proposals governing emissions from land use, land use change and forestry to ensure that the managed forest emissions of developed countries are properly accounted for.
Miss Anne McIntosh (Thirsk and Malton) (Con)
13. What estimate he has made of the proportion of electricity which is generated from energy-to-waste plants; and if he will make a statement.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
Energy from waste plants can generate electricity from a wide range of different wastes. Overall, these contributed almost 8,600 GWh of electricity in 2009, equating to 2.3% of UK electricity generation.
We strongly support energy generation from waste. We are working with other Government Departments to ensure that, where possible, waste should be seen as a resource, although it remains the responsibility of local authorities and communities to decide on the best waste management arrangements in their areas.
Miss McIntosh
I thank the Minister for that reply. What are the implications for local communities of having a cheaper and more sustainable source of electricity as well as being able to dispose of difficult waste such as food waste through anaerobic digestion?
Charles Hendry
My hon. Friend raises a critical issue. In the past, we simply have not had enough joined-up thinking on this matter. We are putting in place higher penalties for landfill to discourage people from using it, but at the same time we will be supporting a range of technologies, including anaerobic digestion, which can make a significant contribution to the problem.
Peter Aldous (Waveney) (Con)
14. What steps he is taking to increase the level of private sector investment in offshore renewable energy.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
We are committed to support for renewable electricity, through the establishment of a full system of feed-in tariffs—as well as the maintenance of a banded renewables obligation, with the aim of encouraging investment. The development of marine energy parks around the British coast will help promote rapid development of the sector. We are also consulting on a new licensing regime to facilitate the connection of offshore capacity to the national grid.
Peter Aldous
The Orbis energy centre in Lowestoft is the home of many businesses at the cutting edge of the new technologies that aim to capture the economic benefits of offshore wind, wave and tidal technologies. Will the Minister accept my invitation to visit Orbis to see for himself the vital role that those companies can play in the drive towards a low-carbon economy?
Charles Hendry
My hon. Friend has already established himself as an effective and vocal advocate for those interests in his constituency. I should be delighted to visit his constituency to understand more of the work that is being done, and the pioneering approach of his local businesses.
Mr Iain Wright (Hartlepool) (Lab)
In the summer, companies from Hartlepool and Teesside joined to form Chain Reaction, a renewable energy supply chain cluster. This is a marvellous opportunity to win business, promote new technologies and ensure that the engineering and industrial base of our heartlands in the north-east have a brilliant future.
Notwithstanding the disappointing response that the Minister, the hon. Member for Bexhill and Battle (Gregory Barker) gave to my hon. Friend the Member for Ogmore (Huw Irranca-Davies), what practical and tangible support can he and his Government give to ensure that Chain Reaction, this private sector enterprise, can thrive and flourish?
Charles Hendry
One of the things that has impressed me most since I became a Minister is the wealth of activity and expertise in British business right across the country and, indeed, in the hon. Gentleman’s constituency. I repeat my offer to come and visit some of those businesses with him.
Our approach is to say that the Government have to facilitate and put in place the measures that will encourage investment, but one of the most critical things that we can do is bring down the tax and regulatory burdens on British businesses to encourage people to invest and develop their ideas. That is the main focus of the Government.
Chris White (Warwick and Leamington) (Con)
17. If he will discuss with the Secretary of State for Business, Innovation and Skills means of increasing the number of engineering courses available for those training for green jobs.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
Ofgem does not need to change licence conditions to monitor these links: it already monitors the link between wholesale and retail prices and produces a quarterly report, which is an integral part of transparency in the sector.
Alex Cunningham
Energy companies have blamed their price increases on an increase in wholesale prices. Considering that research by Which? shows that 77% of consumers are concerned about energy prices, will the Minister urge Ofgem to make a change to licence conditions to require more detailed and comparable information from energy companies to allow for effective monitoring and scrutiny, as well as fair prices?
Charles Hendry
I understand from the discussions I have had with Ofgem that it believes that it already has the right powers to do this. We must understand that one of the reasons for the pressure on prices is that, as a result of the failure to secure investment under the previous Administration, we are looking at these companies to rebuild our energy infrastructure, with £200 billion of investment over the next 10 to 15 years. There is a real energy challenge in this crisis, and we have to encourage companies to put that investment in place if we are to be able to keep the lights on in future.
Rehman Chishti (Gillingham and Rainham) (Con)
19. What steps he is taking to enable local authorities to generate electricity and sell it to the National Grid.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
Many local authorities are keen to take forward renewable energy projects. New regulations introduced on 18 August mean that local authorities can now sell electricity and can also benefit from renewable incentives such as feed-in tariffs and the renewables obligation. This new provision gives them the freedom to do that, enabling them to play their part in reducing emissions and meeting national renewable energy targets while saving money on their energy bills.
Rehman Chishti
Does my hon. Friend agree that the export tariff of 3p per kWh for households should be increased?
Charles Hendry
I am grateful to my hon. Friend for that question, which does not directly relate to local authorities, but I can say that we are looking at these rates in the totality of the comprehensive spending review. We inherited schemes from the previous Administration that were extremely generous but which were not absolutely clear as to who was going to pay for them and how they were going to be paid for. We are absolutely committed to encouraging the roll-out of renewable electricity and renewable heat, but we must study very carefully exactly how these schemes can be paid for.
Mr Mark Spencer (Sherwood) (Con)
T1. If he will make a statement on his departmental responsibilities.
Caroline Flint (Don Valley) (Lab)
I was encouraged to hear the warm words earlier about reducing our energy use, but when I contacted my energy supplier recently to acquire a smart meter, I was told that it was no longer supplying them. That was a change made following the election, brought about partly because of a lack of direction from the Government about support for smart metering. Will the Minister write to me about what representations or discussions the Government have had with energy companies about providing consumers with smart meters, and about how they intend to encourage them, so that we can take ownership of reducing our energy usage?
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
I would be more than happy to write to the right hon. Lady to set that out in more detail. Speeding up the roll-out of smart meters has been one of our priorities. We felt that the ambition of 2020 roll-out across the nation that we inherited was pathetically unambitious, and we have already managed to bring the target forward by a couple of years. We are continuing to drive the roll-out forward and consulting industry on how to put it in place most quickly. Every day, 10,000 dumb meters are installed in our homes across the country. We want to ensure that the new meters installed in our properties are fit for purpose for the needs of the 21st century.
Duncan Hames (Chippenham) (LD)
T9. I am sure that, like me, the Secretary of State will have welcomed the introduction of green energy certification, but he will also know the central role of utility broker websites in consumer decisions. Will he join me in urging those broker sites to incorporate green energy certification in the information that they provide to consumers?
Richard Graham (Gloucester) (Con)
May I encourage the Minister to visit EDF Energy, formerly British Energy, in my constituency, to hear what it is doing to manage our existing nuclear power stations, particularly the issues at Sizewell?
Charles Hendry
I have already visited several nuclear power stations in recent years and I am keen to visit others and see the work that is being done there. It is critical to understand the work that is involved in decommissioning old power plants—a key part of our Government’s programme—as well as the sort of measures that need to be put in place to encourage new investment in those important facilities.