Chris Huhne
Main Page: Chris Huhne (Liberal Democrat - Eastleigh)(14 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Dominic Raab (Esher and Walton) (Con)
1. What plans he has for the future of existing tariffs and subsidies in relation to renewable technologies and other sources of clean energy.
The Secretary of State for Energy and Climate Change (Chris Huhne)
We are committed to achieving our 2020 renewable energy target, which is a European Union legislative goal. The coalition programme for government commits us to the establishment of a full feed-in-tariff, with the aim of securing a significant increase in investment in renewables while maintaining a banded renewables obligation and not changing the ground rules for existing investments. We are also strongly committed to action on renewable heat.
Mr Raab
The last Government’s impact assessment on feed-in tariffs showed that domestic solar power is nine times as expensive as industrial turbines and hydro plants in producing clean energy. That means that poorer families must pay billions in their energy bills to subsidise those who can afford solar panels. How will the Secretary of State eliminate such distortions in the market for clean energy, so that we can sustain public confidence and so that our environmental policy makes wider economic sense?
Chris Huhne
Renewables are currently more expensive than fossil fuels, and, as the hon. Gentleman points out, there is a wide variation in the costs of different sources of energy. One of the things the Department must deal with is the enormous uncertainty about the development of costs in future. For example, the cost of onshore wind generation has fallen, and according to calculations that we obtained recently from our Mott MacDonald study, it is competitive with the cost of nuclear generation. As for photovoltaics—a subject that concerns the hon. Gentleman—it is true that ours is not a very sunny country and that Arizona produces about twice the yield that can be obtained anywhere in the United Kingdom, but the costs are falling by roughly 6% a year. We have to make a judgment about the uncertainties in the long run.
Albert Owen (Ynys Môn) (Lab)
Tidal energy has great potential to contribute to the meeting of our renewable obligations. A fine example is the proposed development off sunny Anglesey, my constituency, which I invite the right hon. Gentleman to visit. The industry has difficulties in securing the investment. Will the Secretary of State ensure that there is a proper level playing field of subsidies, so that young technologies such as tidal energy can develop here in the United Kingdom?
Chris Huhne
I am grateful to the hon. Gentleman for highlighting that issue. It is important for the Department to make a judgment about increased support for promising technologies at a very early stage when commercial funding is not available. The essential framework that we are applying is that as the technology becomes older, more mature and market-tested, the subsidy should be gradually removed until it can wash its own face in the marketplace.
Eric Ollerenshaw (Lancaster and Fleetwood) (Con)
In the context of tidal energy, is recent press speculation about the Severn tidal barrage correct? Might it be time to consider smaller tidal barrage schemes such as the one on the River Wyre in my constituency, which has been on the table for 20 years?
Chris Huhne
I believe that there will be an important role for tidal energy in our future energy provision. It is too early for us to make a statement about the Severn barrage, but we will do so when we have given full consideration to the findings of the study.
Edward Miliband (Doncaster North) (Lab)
I think that the Secretary of State and I agree about the importance of renewable technology and clean energy to Britain’s economic future, but does he recognise the rising concern about the possibility that, on the crucial issue of subsidies to make that economic future happen, the Government are going backwards? May I ask him in particular about the £60 million that the last Government pledged to improve port facilities? That £60 million is crucial to some of the investments announced by Siemens, GE and others. Can he confirm that it will go ahead?
Chris Huhne
The right hon. Gentleman knows that all the Government’s spending decisions are subject to the comprehensive spending review. It would not be comprehensive if they were not. Decisions will be announced on 20 October, but I can assure him that we consider it extremely important, given the enormous growth in offshore wind generation, that there is a supply chain capable of supplying that tremendously important and exciting market opportunity, and that it is based in this country. We will do what we can to ensure that that happens, given the limits to affordability.
Edward Miliband
Of course there are limits to affordability, but the last Chancellor made this a priority: he said that the £60 million investment would go ahead.
As the Secretary of State did not give me a very satisfactory answer to that question, let me test him with another. We announced four demonstration projects for clean coal technology. That should not be a worry for the Treasury, because it is funded directly by a levy passed by the House of Commons, but there have been reports this week that the projects may not go ahead. Can he scotch that speculation, and confirm that all four of them will go ahead?
Chris Huhne
I am glad that the right hon. Gentleman mentioned the last Chancellor because, of course, one of the legacies we are having to deal with in government is the fact that the last Government, of which the right hon. Gentleman was a member, identified £44 billion of expenditure cuts without a single expenditure cut specified in that total. The reality is that we have had to clear up the legacy of his Government. The reality is exactly as the former Chief Secretary to the Treasury, the right hon. Member for Birmingham, Hodge Hill (Mr Byrne), said: there is no money left. We are therefore having to make some extremely tough choices, but on carbon capture and storage I can assure the right hon. Member for Doncaster North (Edward Miliband) that the coalition agreement between the two Government parties says very clearly that there will be four CCS projects. That is an extremely important part of our low-carbon future and, of course, it is crucial in ensuring that we have a competitive advantage in these areas, because the UK has a lead in CCS technology, as we have seen from our university researchers.
Edward Miliband
I am not quite sure whether that answer was a yes or a no. The Government’s short-sightedness in cutting investments that are necessary for our economic future is a fundamental issue affecting the future of the country, and the Secretary of State and the coalition parties have to realise that there can be no credible plan for deficit reduction in this country if we do not have a credible plan for growth and jobs. When will he start fighting for the investments that are necessary in offshore wind, in clean-coal technology and in Sheffield Forgemasters, where there was the absolutely terrible decision to cut back—[Interruption.] Coalition Members groan, but there is no credible plan for deficit reduction and no credible plan for growth and jobs.
Chris Huhne
The passion of the right hon. Gentleman’s oratory reminds me that I ought to wish him luck in the forthcoming Labour leadership campaign. The reality is that we are struggling: we are struggling with the fiscal legacy that his Government left us and we are having to take some very tough decisions. It is fundamental to our national interest that we are not next in line among the countries affected by the sovereign debt crisis. I know that the right hon. Gentleman has in the past pooh-poohed that as the Greek defence, but the reality is that on the weekend after the general election in our country every single finance Minister in the European Union, including—
Mr Speaker
Order. I am grateful to the Secretary of State, but we do not need to have a Second Reading debate on the state of the economy and we are not going to do so.
Julie Hilling (Bolton West) (Lab)
4. What recent steps he has taken to ensure that energy companies provide greater assistance to vulnerable people in meeting their energy bills.
The Secretary of State for Energy and Climate Change (Chris Huhne)
I recently announced the extension of the energy companies’ carbon emissions reduction target to December 2012, which will provide a greater focus on helping low-income vulnerable households. Additionally, we expect up to 250,000 poor pensioner households to receive an £80 rebate from the six major energy supply companies through the current energy rebate scheme, and we are hard at work ensuring that a focus on fuel poverty is a key feature of the green deal.
Julie Hilling
I thank the Secretary of State for that answer. As more than one in three pensioners live in fuel poverty, will he follow Labour’s lead and ensure that all energy suppliers have a mandatory social tariff?
Chris Huhne
On the social tariff, I congratulate the right hon. Member for Doncaster North (Edward Miliband) on the powers introduced in the Energy Act 2010. We can use that important set of powers to try to alleviate these problems. The Department’s approach, most fundamentally, is to try to deal with the causes of the problem, not merely to use sticking plaster on the symptoms. The key thing is to identify those in fuel poverty and ensure that they have the energy-efficiency measures in place to make sure that they do not get into fuel poverty in future. With social price support we can help for one year, but if we get the energy-efficiency measures right, we help for ever.
Neil Parish (Tiverton and Honiton) (Con)
On the Severn barrage, the Bristol channel has the second highest rise and fall of tide in the world. Are the Government also examining tidal pools?
Emily Thornberry (Islington South and Finsbury) (Lab)
I am sure the Secretary of State agrees that if we are to move to a green economy, we have to do so in a way that is fair, so can he confirm that he is making representations to the Treasury to keep the Warm Front scheme which, as he knows, is a successful scheme that has helped 2 million of the most vulnerable fuel poor?
Chris Huhne
As the hon. Lady knows, the Warm Front scheme has played a very important part in ensuring that there has been an improvement in energy efficiency for many of the people who are most vulnerable to fuel poverty. We will ensure that there continues to be a commitment that the scheme will continue but, as she will know from previous questions, our key focus—the key instrument—in dealing with fuel poverty and energy efficiency will be the green deal. A very important part of the green deal will be tackling fuel poverty and, over time, it will gradually take on a more important role and the Warm Front scheme will take on a lesser one.
Huw Irranca-Davies (Ogmore) (Lab)
5. What recent discussions he has had on the Government’s strategy for promoting low-carbon technologies.
Neil Carmichael (Stroud) (Con)
6. What plans he has to introduce a floor price for carbon.
The Secretary of State for Energy and Climate Change (Chris Huhne)
In the Budget, Her Majesty’s Treasury and Her Majesty’s Revenue and Customs announced that the Government will publish proposals this autumn to reform the climate change levy to provide more certainty and support to the carbon price. Subject to consultation, the Government will bring forward relevant legislation in the Finance Bill 2011.
Neil Carmichael
I thank the Secretary of State for that encouraging answer because, of course, that will be a prelude to more growth and more jobs. How can we be sure that those measures will stimulate investment in green technology?
Chris Huhne
I am a great believer in the virtues of the market and of the price mechanism, and I am sure that my hon. Friend is, too. It is fairly well established that if the price of something goes up, the supply of it tends to follow. If we provide a carbon price floor, as we intend to do, we anticipate that that will send precisely the sort of price signals to suppliers that will bring forward the capacity that we need to provide us with energy security in a low-carbon way.
Dr Alan Whitehead (Southampton, Test) (Lab)
When the right hon. Gentleman has discussed the matter of a carbon floor with the Treasury, has he raised the possible intervention contingency that might be necessary for a UK carbon floor? If he has, have they directed him to talk to the EU about common border-based carbon taxes?
Chris Huhne
The discussion with the Treasury will get under way later, after the comprehensive spending review. The hon. Gentleman will understand that the Treasury is otherwise engaged in a very serious mopping up of the legacy problems that we have already discussed. Later in the year, as part of the public consultation, we will go through all those issues, including the issues that impact on our EU partners.
Andrew Bridgen (North West Leicestershire) (Con)
7. Whether historical wind measurements are taken into account in determining subsidy allocation for onshore wind farms.
Lilian Greenwood (Nottingham South) (Lab)
9. What recent steps he has taken to improve the insulation of private rented accommodation.
The Secretary of State for Energy and Climate Change (Chris Huhne)
The recently announced green deal should go a long way toward solving the problem of split incentives that has hampered progress in the private rented sector. It will remove the need for landlords to pay up-front costs for measures that they do not directly benefit from and will therefore make some real progress in this area.
Lilian Greenwood
I thank the Secretary of State for his response, but old, cold and poorly insulated is the state of many private rented properties in Nottingham South, which are home to 16,000 households, including some of the most vulnerable families in the country. Will he match Labour’s commitment to regulate landlords and so tackle these issues, or will his Government once again put the interests of private landlords above those of tenants and communities?
Chris Huhne
The hon. Lady takes her seat in the House following the distinguished contributions of her predecessor on all these issues, and I am delighted that she retains his interest in these matters. I assure her that the Government are absolutely determined to try to make progress on fuel poverty and to deal with the scandal that when we have a cold winter a large number of old and vulnerable people are pushed into an early death through lack of heat. We need to try to deal with that as fast as we can. I merely remind her that, although she is new in the House, she succeeds an MP who was here for 13 years supporting a Government who made precious little progress in this area.
The Secretary of State for Energy and Climate Change (Chris Huhne)
My Department has responsibility for managing our energy liabilities, securing our energy supply, improving our energy efficiency, leading UK action on climate change, and moving to a low-carbon economy.
Since I last answered departmental questions, we have published the first annual energy statement, overturned the law banning councils from selling renewable electricity, and launched a new search for deep geothermal energy. Together with my French and German counterparts, I have argued in favour of greater ambition in raising the EU emissions target to achieve a 30% reduction in emissions by 2020.
Mr Spencer
The Secretary of State may be aware of some anaerobic digestion schemes that have secured planning permission but are struggling to secure finance from the banking sector, so will he conduct an emergency review of feed-in tariffs from farm-based, medium-sized anaerobic digestion units?
Chris Huhne
The coalition agreement commits the Government to a huge increase in energy from waste through anaerobic digestion, and to that end we brought the industry together in a meeting on 6 July, together with colleagues from the Department for Environment, Food and Rural Affairs and the Department for Communities and Local Government, to drive the agenda forward. It is early days for the feed-in tariff scheme generally, and as we know it is a new scheme. I am fully aware of the specific problems with farm-based anaerobic digesters, which the hon. Gentleman raised, and I am commissioning further technical work in my Department to try to deal with them.
Toby Perkins (Chesterfield) (Lab)
T2. The renewable heat incentive is a particular concern for Worcester Bosch, a boiler manufacturer, and for the benefit of the Minister I should say that Worcester Bosch is a private sector company, not a local authority. It is particularly concerned about the Government’s decision to scrap the low-carbon buildings programme and to offer no commitment to the renewable heat incentive. Does he appreciate how that indecision is affecting the green jobs that Worcester Bosch and other manufacturing companies that rely on the incentive could create in order to develop a greener future and jobs?
Chris Huhne
I can assure the hon. Gentleman that I am aware of the reputation of Worcester Bosch as a good provider in that area, and I am under no risk of confusing it with town-twinning arrangements involving Worcester. We have to ensure not only that there is clarity and certainty in our regulatory framework, but that we look at value for money. As has been pointed out, in the context of the comprehensive spending review we need to review some schemes that we have inherited from the previous Government, and we will come forward with as much detail as we conceivably can as soon as that review has been completed.
Nicky Morgan (Loughborough) (Con)
T4. I noted the Secretary of State’s earlier strong commitment to drive forward carbon capture and storage technology, and Opposition Members’ rather faux outrage about the lack of public finances—as a result of the mismanagement of the economy. What assurances can he give that the programme will be delivered, and does he believe that the involvement of institutions such as the green investment bank are key to ensuring that it is delivered?
Chris Huhne
As my hon. Friend knows, that commitment is in the coalition agreement, and I merely point out that the current Chancellor of the Exchequer was of course on the negotiating side for the Conservative party in the coalition agreement, so he is as aware as everyone else of the importance of such matters as carbon capture and storage and others in driving forward a low-carbon agenda. I should like particularly to pay tribute to the Chancellor, who was, I think, the first person to put forward specifically the ideas on the green investment bank. My hon. Friend is absolutely right, and I am confident that the Government will come forward with a plan, when we have the results of the comprehensive spending review, which will make further and accelerated progress towards the low-carbon economy that we want to see.
Bridget Phillipson (Houghton and Sunderland South) (Lab)
T3. New green jobs will be crucial not just to securing our economic recovery, but to bringing growth to the economy. We are leading the way in Sunderland with the manufacture of the electric car at Nissan, but we need further support for low-carbon industries and jobs, so why are the Government cutting that support?
Chris Huhne
The hon. Lady knows that we have already made an announcement, and my right hon. Friend the Secretary of State for Transport has announced support for electric vehicles, which I hope her constituents and Nissan employees at Sunderland will welcome. That was a very unusual exception to the general rule that we have to wait for the outcome of the comprehensive spending review before we are able to announce such matters, so on that issue we have bent over backwards.
Christopher Pincher (Tamworth) (Con)
T7. We all know that these are difficult times and Departments need to make spending reductions, but what action is the Secretary of State taking to ensure that Departments, agencies and our many, many quangos continue to reduce their carbon emissions and use energy more efficiently?
Chris Huhne
I was with my ministerial colleague with responsibility for climate change policy, my hon. Friend the Member for Bexhill and Battle (Gregory Barker), at a meeting only yesterday, along with colleagues from other Departments that are directly interested in the green investment bank, to establish the scope for it, identify possible sources of funding for the capital base and ensure that we are making real progress, which I think we are.
Stuart Andrew (Pudsey) (Con)
T8. In recent years, extreme weather events have meant that Leeds city centre has been just one inch from being flooded. Given the potential threat that flooding poses to major company headquarters in the city and to the city’s economy, will my right hon. Friend agree to consider that danger when assessing the city’s proposed flood alleviation scheme? Should he wish, he would be more than welcome to see it for himself.
Chris Huhne
My hon. Friend is absolutely right to point to the increasing dangers of flash flooding in areas where, in some cases, there can actually be floods at the top of hills. Around the world over the past year there have been mudslides in China, floods in Pakistan and forest fires in Russia, and there is no doubt among the hard-nosed businesses that insure against risks that they have been attributable to climate change, which is a wake-up call. I am afraid that floods are a departmental matter for my colleague the Secretary of State for Environment, Food and Rural Affairs, but I am sure that she will take my hon. Friend’s points into account. I know that she is very aware of the dangers of flooding and the importance of flood defence.
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?
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?
Chris Huhne
I am grateful to my hon. Friend. It is very important that consumers have the information that they need when assessing their energy use, and that is very much one of our departmental objectives. We are considering every possible way to ensure that consumers are fully informed so that we have a marketplace that drives energy saving and energy efficiency. As my ministerial colleague with responsibility for energy, my hon. Friend the Member for Wealden (Charles Hendry), has just pointed out, the smart metering programme is part of that, but it is also crucial that we have a commitment to the display of energy use details.
Mr Dennis Skinner (Bolsover) (Lab)
On the question of anaerobic digestion, does the Minister understand that when planning applications for plants are made in built-up areas such as Whitwell, in my constituency, those making them know that the contents of the lorries coming from the plant will not be clean and green but will be a different colour and stink to high heaven? Will he ensure that his Department examines such plans carefully?
Andrew George (St Ives) (LD)
Community organisations and charities that invested in renewable technologies have found themselves significantly disadvantaged through unexpected changes in the feed-in tariff. Will Ministers look into that and ascertain whether charities and community organisations that found themselves with a significant shortfall could be assisted?
Chris Huhne
I am very happy to deal with any specific cases that my hon. Friend raises. I ask him to write to me, please, and I shall ensure that officials advise and that we come back to him. As a ministerial team, one of the things that we are determined to do is try to ensure that we have a framework, so that when we make an offer to provide an incentive for renewable energy, investors can rely on it. We are determined to avoid some of the criticism that has been made of our EU partners, who have changed the arrangements with retrospective effect.
Caroline Lucas (Brighton, Pavilion) (Green)
Will the Government backdate the clean energy cashback scheme and any future renewable heat incentive to ensure that those who pioneer the technology are properly rewarded and supported?
Chris Huhne
The hon. Lady makes a point that is dear to my heart, not only in the context that she raises, but in that of, for example, the feed-in tariff for wind. Unfortunately, I do not benefit from that tariff as a pioneer. I considered the issue carefully on a value-for-money basis, and I am afraid that the advice from my officials was clearly that we cannot introduce retrospection in such cases because it does not represent value for money. We are trying to introduce new schemes in future, and therefore, sadly, the only incentive and payback that people such as the hon. Lady and I will get is the warm glow of being pioneers.
Mr Charles Kennedy (Ross, Skye and Lochaber) (LD)
As the Secretary of State has been good enough in the past to speak encouragingly about the potential of the Kishorn and the Nigg former oil fabrication sites in the Scottish highlands for future offshore renewable manufacturing, and given recent developments at both, may I extend him a warm invitation on behalf of all involved to visit either or both? He is guaranteed a warm welcome.
Chris Huhne
I am grateful for my right hon. Friend’s kind invitation. I would love an opportunity to visit his constituency. Indeed, I will visit the north of Scotland and Orkney and Shetland in the next few weeks, and I intend to inform myself about the important pioneering energy developments, particularly in renewables, that are under way in the area.
Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)
A moment ago, the Minister of State, the hon. Member for Bexhill and Battle (Gregory Barker) suggested that the difference between the previous Labour Government and this Government is that the latter want to get government out of the way and let the private sector create the jobs in the green economy. Does the Secretary of the State believe that that is the appropriate approach to developing the green economy?
Chris Huhne
The hon. Gentleman knows from previous answers that I have given on the matter that any sensible Government policy has to have a balance between providing a strategic framework, which gives incentives for us to move towards the green economy, and avoiding unnecessary bureaucratic burdens on business. We prefer the approach of simplifying signals and providing market and price signals to the bureaucratic entanglement, on which, I am afraid, some of the friends of the right hon. Member for Doncaster North (Edward Miliband) were particularly keen when the Labour party was in government.
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?
Dr Alan Whitehead (Southampton, Test) (Lab)
In view of reports that the ambition of the green deal is shrinking to the extent of residual interventions in loft and wall insulation, does the Secretary of State agree that now would be a good time to review the idea that microgeneration should be outside the green deal? In view of the programmes that have already introduced stuff without cost to the taxpayer, will he now think again about putting those arrangements inside the green deal?
Chris Huhne
I am grateful to the hon. Gentleman for his question, especially given his impressive track record in this area. I can assure him that the premise of his question is incorrect. There is no scaling back of ambition on the green deal. Far from it, we are proceeding with what I believe will be a model of how to have comprehensive retrofitting of energy efficiency measures. On whether microgeneration should be incorporated in the green deal, I anticipate that providers of the green deal will want to provide microgeneration as well, precisely because of the substantial price incentives that we have introduced in order to make that happen. I do not think that it is necessary to incorporate microgeneration into the green deal, because it is an insulation package, but I have no doubt that householders—
James Wharton (Stockton South) (Con)
The House has heard much this morning about the Government’s laudable plans to give energy users more information and more detail about the energy that they are using. What progress has been made to ensure that domestic energy bills provide further detail for electricity users on the cost breakdown of the electricity that they have used?
Chris Huhne
That is a matter for Ofgem, rather than directly for the Department. We have certain powers that we can use to ensure that that is happening, but as I said earlier, it is crucial that consumers are fully informed about their options and what their bills are likely to be. We need to encourage as much informed competition as we can. In this market, as in banking, consumers are often very reluctant to switch suppliers, but if they do, it is likely to have a demonstrable impact on improving competitive pressures.