Oral Answers to Questions

Debate between Charles Hendry and Mark Pawsey

Thursday 8th March 2012 Commons Chamber

[Charles Hendry]

We most certainly do. No one in the House has done more for collective purchasing than my right hon. Friend the new Secretary of State. This is a trend that we are very keen to encourage, as it will help consumers dramatically by enabling them to switch effectively. It will form an important part of a functioning market.

[Mark Pawsey (Rugby) (Con)]

Industries using large amounts of energy—such as Cemex, which manufactures cement in Rugby—are concerned about the relatively high energy prices here compared with other parts of the world. Will the Minister update the House on the steps being taken to ensure that the energy prices paid by British industry remain competitive?

[Charles Hendry]

My hon. Friend makes an extremely important point, which is relevant to Members on both sides of the House. What the Chancellor announced before Christmas was a package of about £250 million to support energy-intensive industries. More detail is being published this week, and there is a call for evidence so that we can see exactly what support is required for which industries.

Oral Answers to Questions

Debate between Charles Hendry and Mark Pawsey

Thursday 26th January 2012 Commons Chamber

[Mark Pawsey (Rugby) (Con)]

19. What discussions he has had with National Grid on the shutting down of wind farms during times of high wind intensity.

[The Minister of State, Department of Energy and Climate Change (Charles Hendry)]

Ministers and DECC officials have regular discussions with National Grid about the operation of the electricity network, and this has included the issue of transmission constraints, including our consultation on the transmission constraint licence condition. Reducing or increasing output of generators of all types is a normal part of National Grid’s role in balancing the network at all times. Wind is not treated any differently from any other technology in this respect.

[Mark Pawsey]

My constituents in Rugby, who face applications for wind farms, will be concerned about reports that turbines are switched off in times of high wind speeds because the current infrastructure is unable to handle the amount of electricity generated. When that happens, National Grid pays operators compensation—

[Mark Pawsey]

What steps has the Minister taken to protect consumers from that element of the increase in their electricity bills?

[Charles Hendry]

About £250 million was paid last year in constraint payments, of which only 10%— £24 million—was paid to the wind sector. The Government are reviewing the transmission constraint licence condition and trying to ensure upgrades are made in many parts of the country, so that the power generated can get where it is needed.

Oral Answers to Questions

Debate between Charles Hendry and Mark Pawsey

Thursday 20th October 2011 Commons Chamber

[Charles Hendry]

Let me begin by thanking the hon. Gentleman for the work that he is doing in the all-party group that he leads. It is extremely valuable to the whole sector. There must be a balance between moving in a low-carbon direction and ensuring that successful businesses are not driven abroad, and the measures on which we are working with BIS and the Treasury are intended to strike that balance. If those companies simply moved overseas, we lost the jobs and they continued to emit carbon in the same way, there would be no net gain for the world climate—or, indeed, the UK economy.

[Mark Pawsey (Rugby) (Con)]

I am pleased that the Minister recognises the concerns of energy-intensive industries such as those involved in packaging manufacture and CEMEX, in my constituency, which manufactures cement. CEMEX faces a £20 million bill for complying with carbon legislation, which is causing concern about the viability of its UK plant. Will the Minister do all he can to ensure that UK manufacturing industry is not placed at a competitive disadvantage?

[Charles Hendry]

Let me reassure my hon. Friend that we regularly meet representatives of industry and industry groups to ensure that we understand the full range of concerns. The work currently being done across Government is designed to ensure that we first understand where the challenges and threats are coming from, and then introduce sensible measures to protect companies of important national and strategic interest. I think that that strikes the right balance, but we are always keen to receive representations from Members on both sides of the House about specific constituency issues.