Oral Answers to Questions
Debate between Clive Efford and Andrea Leadsom
Andrea Leadsom
I am grateful to the hon. Lady for her question. Obviously her constituent will be pleased to know that the subsidy from the bill payer that she has received will continue to be available to her—I think there has been some confusion about that point. For those who come later, the proposal in our consultation is for the return to investors to be in the region of about 4%, as opposed to the current level, which is significantly higher. We were required by the EU to look at the tariffs on a three-year basis and that is what we have done. We have put forward a proposal and we are looking carefully at the responses.
Clive Efford (Eltham) (Lab)
The Government’s decisions have had a devastating impact on our manufacturing industry in the UK. That flies in the face of exactly what the Government say they want to achieve in creating an industrial balance within our economy. Just like the steel industry, the Government have been found wanting.
Andrea Leadsom
We have a big and growing energy sector. We are bringing forward policy proposals to develop new sources of energy, which will mean a whole raft of new jobs and new opportunities for people, but there is always a balance to be struck. What we cannot do is permanently subsidise at the expense of the bill payer; many issues have already been raised about fuel poverty. In the end, industries need to stand on their own two feet.
Clive Efford (Eltham) (Lab)
I am grateful, Mr Speaker.
The Minister said in earlier answers that she wants the renewable energy industry to be sustainable financially and commercially successful, but at the same time the Government have taken the subsidies away at a rate that has damaged the industry, and they have not applied that policy to nuclear. Surely she can see the damage being done and the inconsistency in the Government’s approach.
Andrea Leadsom
The hon. Gentleman will realise that there is a balance to be struck. We have seen enormous bill payer-led subsidies for onshore wind, solar and other clean carbon technologies, and there is a balance to be struck: the bill payer cannot be expected to foot the bill for an unlimited period. On nuclear, private investment is going into Hinkley C. The taxpayer will not be paying anything until that produces, and the cost per megawatt hour generated of electricity will be very competitive with present clean carbon costs.