Oral Answers to Questions
Debate between Chris Huhne and Duncan Hames(13 years, 10 months ago)
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Duncan Hames (Chippenham) (LD)
We have heard how households such as those off the gas grid, of which there are many in my constituency, would benefit from the new green deal. If demand for it initially outstrips supply, how will the Secretary of State determine who should have access to it first?
Chris Huhne
My hon. Friend raises an interesting point; it is a high-class problem. Up until now the main difficulty Governments have faced is in encouraging consumers to go for energy efficiency measures, which are enormously beneficial economically. For example, the payback period for both cavity-wall insulation and loft insulation is less than 18 months, yet there are still millions of homes outstanding. I look forward to having to deal with the problem of high demand, but it is not one that has detained us greatly as yet. We want to make sure that the market takes off, and that is where we have been focusing our attention.
Electricity Market Reform
Debate between Chris Huhne and Duncan Hames
Chris Huhne
Clearly we want to have low carbon sources of supply, but I have made it clear that we are intending one of the three remaining demonstration projects on carbon capture and storage to be a gas project. Given the development of unconventional gas, there is a possibility that gas will provide a much more sustainable long-term source of supply than people had thought until recently. In those circumstances—carbon capture and storage applied to gas—gas may have a very important role in the long term, not just in the short term. Otherwise, I entirely agree. Capacity payments will be made on the basis of encouraging peaking plant, to deal with the ad break in “Coronation Street” when we all turn on our kettles, and to offset the intermittency problems that occasionally arise—the nightmare of the four or five cold still days in February when the wind turbines are not going and we need back-up capacity. The capacity payments will inevitably be made by consumers from their payments, but they will provide us with the assurance of supply that we have been proud to have in this country for a long time.
Duncan Hames (Chippenham) (LD)
There is, unfortunately, something of an uncertainty paradox, in that measures that seek to create some certainty in the market necessitate of themselves a period of uncertainty. That being the case, will the Secretary of State tell us how long energy investors will have certainty once his reforms have been implemented?
Chris Huhne
I am grateful to my hon. Friend for that question. When he reads the documentation we have tabled, he will see that we are at great pains to ensure that investors have the very clear message—not least because of recent experience in some other member states of the European Union—that the incentives that have been in place will be grandfathered. They can continue to rely on that. We shall minimise the amount of uncertainty, which is important not only to honour our past obligations but also if we want investors to believe in our future obligations. We have to be prepared to stand behind what we have said in the past, and we intend that to be the case. We will minimise the amount of uncertainty in joining up the two regimes, but we are of the view that we have to reform the electricity market to bring forward the low-carbon and secure supplies that we need.
Cancun Climate Change Conference
Debate between Chris Huhne and Duncan Hames
Chris Huhne
Every year, in the annual energy statement, we set out the impact on consumers. The last time we made that calculation, in the annual energy statement in the summer, we calculated that, assuming an oil price of $80 a barrel, which is rather less than the current price, the total increase in household bills, taking into account our other policy measures, including energy saving, would be 1%. The higher oil and gas prices are, the greater the savings. The break-even point comes at $100 a barrel, beyond which our consumers will gain from the move to a low-carbon economy and away from the fossil-fuel economy.
Duncan Hames (Chippenham) (LD)
I congratulate my right hon. Friend on seeing the negotiations through to the very end last week; it was certainly worth it. Now that the green climate fund has been agreed, how does he intend to broker international consensus on which of the options for climate finance may be taken forward to fill it?
Chris Huhne
This is going to be a pretty difficult issue—we know that from the proceedings in the advisory group on climate change financing. There are a lot of options on the table, the technical work has largely been done and we have to hope that we can make further progress over the next year. Now that we have identified a clear political will to find that finance, we have to hope that the technical means to provide it will be there, but the technical options on bunker fuels, aviation and so on are set out in the group’s report.
Oral Answers to Questions
Debate between Chris Huhne and Duncan Hames(14 years, 3 months ago)
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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.
Annual Energy Statement
Debate between Chris Huhne and Duncan Hames
Chris Huhne
The hon. Gentleman is quite right that it is absolutely essential that any private sector investment, which we aim to unlock, should have certainty and clarity. On the renewable heat incentive, the statement is clear about our commitment to renewable heat, which is absolutely essential if we are to meet our target. The hon. Gentleman has to appreciate that the country is facing an exceptionally severe fiscal crisis and that it is inevitable that we deal with these matters in the context of the spending review. However, people in the sector can take considerable comfort from my words today about renewable heat.
Duncan Hames (Chippenham) (LD)
My right hon. Friend assures us that there will be no subsidy to the nuclear industry. Today, BP has announced that it expects to spend £20 billion on the clean-up following the Gulf of Mexico oil disaster. Will he raise the limit on the exposure of nuclear operators to catastrophes to an equally demanding level?
Chris Huhne
I am grateful to my hon. Friend for that question. One of the things that we are looking at in the context of making sure that there is no public subsidy for nuclear is the contingent liability regime and ensuring that there are no holes in it. In due course, we will be able to make a statement on that.
Oral Answers to Questions
Debate between Chris Huhne and Duncan Hames
Chris Huhne
The right hon. Gentleman knows that we are very committed to ensuring that there is growth across the UK, especially in those regions where unemployment is high. That has been a focus of our activity. I do not think that the regional development agencies in their entirety are necessarily the best way of ensuring that, but we are going ahead with local economic partnerships and a range of other measures to ensure jobs and growth in the regions.
Duncan Hames (Chippenham) (LD)
T4. The Environment Agency has just failed to make a determination on a much delayed application for a 100 KW hydroelectric scheme on the weir at Avoncliff in my constituency. Will the Secretary of State meet me to discuss the energy potential of the River Avon and how we can prevent the Environment Agency from being an obstacle to making progress in the future?
Chris Huhne
I am happy to meet my hon. Friend to discuss those issues. The Environment Agency has a statutory responsibility that it has to discharge in that case and I would not want to comment on its role.
Budget Resolutions and Economic Situation
Debate between Chris Huhne and Duncan Hames(14 years, 5 months ago)
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Chris Huhne
I hope that the hon. Gentleman realises that there will be a consultation on that proposal in the autumn. I have no reason to believe that it will not be brought forward in the normal course of events with ordinary Government announcements. It is part of the coalition agreement and is widely welcomed. I believe that it was in both the Conservative and the Liberal Democrat manifestos, but not everything can be announced on day one. The overwhelming priority for this Budget has been to ensure that we can sustain growth and jobs by removing ourselves from the substantial and real risk of contagion from the financial crisis in southern Europe. That has been the overwhelming priority.
Duncan Hames (Chippenham) (LD)
Given my right hon. Friend’s comments on the need to invest in the infrastructure needed for a low-carbon energy future, will he assure me that his Department’s investments in the south-west wave hub will endure and survive the current turbulence associated with the machinery of government of its sponsor body?
Chris Huhne
I thank my hon. Friend for that question. Obviously, he knows that we will go through the comprehensive spending review in the autumn, and the normal process is to make announcements when we have been through that, but I have no reason to doubt that the Government’s commitment to the support of infant wave, tidal stream and wind technologies will continue and I am confident that there will be announcements reflecting that priority, which is in the coalition agreement.
Gulf of Mexico Oil Spill
Debate between Chris Huhne and Duncan Hames
Chris Huhne
I thank the hon. Gentleman for his question. I am certainly happy to look at the issues that he raises. It is important to have trade union oversight of these matters in cases where the companies are unionised; it provides another perspective and a guarantee to other employees that safety will be given the attention that it deserves.
Duncan Hames (Chippenham) (LD)
As with Railtrack and the Hatfield rail tragedy, is not a critical lesson from the explosion on this rig that companies who outsource environmental and safety-critical processes fail to take their responsibilities seriously when it really counts—before disaster strikes? Railtrack lost its licence to operate. What discussion will my right hon. Friend’s Department have with businesses in the energy sector to prompt them to review their corporate governance and get a grip on their direct environmental responsibilities, instead of simply spouting the rhetoric of corporate social responsibility?