Oral Answers to Questions

Chris Heaton-Harris Excerpts

Thursday 20th October 2011 Commons Chamber

The Secretary of State was asked—

[Chris Heaton-Harris (Daventry) (Con)]

1. What recent assessment he has made of the effect of subsidies for onshore wind power on the levels of energy bills for consumers; and if he will make a statement.

[The Secretary of State for Energy and Climate Change (Chris Huhne)]

Before I begin, I should like to offer my apologies on behalf of the Minister of State, my hon. Friend the Member for Bexhill and Battle (Gregory Barker), who is unable to attend owing to pressing engagements in Cape Town. As Minister of State with responsibility for climate change, he is deputising for me at a vital meeting in advance of this year’s United Nations framework convention on climate change negotiations so that I can be here today.

Support for onshore wind through the renewables obligation is estimated to add £5 to £6 to an average household annual electricity bill of £585 in 2011. The Government recognise the need to protect hard-pressed consumers and are committed to driving down the costs of renewables, as well as realising the economic growth and new jobs that renewables projects bring.

[Chris Heaton-Harris]

I thank the Secretary of State for his answer. He is well aware that the level of subsidy granted drives the siting of wind turbines, not their efficiency, and that this drives price, meaning that consumer bills for energy produced from these things are higher than they should be. What plans does he have to amend this subsidy regime?

[Chris Huhne]

We have today announced the latest consultation on the renewables obligation. That reduces by 10% the renewables obligation certificates available for onshore wind, reflecting the fact that there have been further technological improvements that mean that the costs of this technology are coming down. I realise that my hon. Friend has a long-standing interest in this, but I caution him, particularly given his experience in the European Parliament, to recognise that under the renewables target for 2020, which is EU law, we are committed to meeting 15% of our energy from renewable sources. Onshore wind turbines are one of the cheapest renewable sources, so the fewer onshore wind turbines we have, the more expensive renewable sources we need to have instead. That is a very important factor for him to bear in mind.