National Policy Statements

Debate between Charles Hendry and Charlie Elphicke

Wednesday 1st December 2010 Commons Chamber

[Charles Hendry]

My hon. Friend is right to draw that to the House’s attention. As a result of one of the changes that we have made, local authorities are now allowed to sell electricity directly to the grid. Rather than merely being able to host new facilities, they can now become involved in these processes as partners. They can sell the electricity that is generated, and benefit from the feed-in tariffs or other financial packages that are available. I hope that, in difficult times, councils throughout the country will see such measures as an important potential income-earner and a way of encouraging their communities to move in a low-carbon direction. That is a critical part of Government policy.

We have said that there will be special help for the most vulnerable. The new energy company obligation will provide additional funds for those who are most in need and for homes that are hard to treat, which may need additional support. Our policy also involves the electricity market reform programme, which is a wholesale redesign of our electricity market. There is no doubt that that process, which will begin in a few weeks, is the most fundamental reform of the market for 30 years. It involves a new way of encouraging people to invest in electricity generation, and I cannot over-emphasise the importance that we attach to it. The power sector needs to lead the way when it comes to cutting carbon.

[Charlie Elphicke (Dover) (Con)]

Many of my least well-off and most vulnerable constituents fear that in five years’ time the lights may go out. What action can the Government take to deal with the backlog of infrastructure repairs?

[Charles Hendry]

I am keen to reassure my hon. Friend. A couple of years ago, the outlook was a cause for great concern. The recession reduced demand by 5% or 6%, and, although it has grown again, it has not reached its previous level. What appeared to be a serious pinch point now seems to have been pushed further out, but that does not give grounds for complacency. We all know that cold winters and, in particular, cold still days place immense demand on the system, and we need to take action to deal with that.

As much as £200 billion of new investment may be required in our electricity infrastructure. We have to rebuild it. It would have been much better for the country if more of that work had been done before 6 May, and it would have been much better had there not been a five-year moratorium on new nuclear and a delay of some years in new installations. I applaud the conversion of the last Administration, which began to put us back on track, but a number of years were lost.

--- Later in debate ---

[Andrew Percy]

rose—

[Charlie Elphicke]

rose—

[Charles Hendry]

I shall take a couple of interventions and then seek to conclude my remarks.

[Charles Hendry]

I know that both my hon. Friends have done sterling work in pushing the case for the South Humber Gateway. I would be delighted to see the planned work to get a clearer understanding of the ambition. It is typical of many of the ambitions of people who see a fantastic new opportunity emerging in the energy sector, and we are keen to encourage that. I imagine that my hon. Friend the Member for Dover (Charlie Elphicke) will make a similar plea for a visit.

[Charlie Elphicke]

I do not wish to trouble the Minister to come down to east Kent, but for the benefit of the House will he say how many power stations were brought into operation during the last Parliament? The only one that we in Kent can recall is the dirty Kingsnorth power station. On the need for more funding and the need to build infrastructure and green infrastructure, I recall that during the last Parliament not many power stations were brought on line.

[Charles Hendry]

A number of gas powered plants were brought on stream. The last nuclear power station was Sizewell in the 1990s. There has not been a new clean coal plant yet because people need to know how the carbon abatement technology will move forward. Gas has been the fuel of choice: 60% of the consented plant—12 out of 20 GW—is gas. What people want to build remains to be seen, but there is significant interest. We now need the policies to drive this forward.

I want rapidly to conclude my remarks with a few additional points—