Energy Policy

David T C Davies Excerpts

Monday 25th June 2018 Commons Chamber

[Greg Clark]

The hon. Lady will know, as Chair of the Business, Energy and Industrial Strategy Committee, that the Government’s programme of renewables has resulted in the biggest reduction in the cost of the deployment of renewables that we have seen in this country, and that deployment has increased threefold. The success of that strategy is evident. I was asked by many Members, the Welsh Government and many businesses to make sure that every aspect that could contribute to a value-for-money case had been considered —the impact locally, the prospects for exports and the prospects for innovation—and it was right to do so and to leave no stone unturned. I think that that was the right approach, and when the Select Committee scrutinises the decision, I think it will regard the process as having been exhaustive and rigorous.

[David T. C. Davies (Monmouth) (Con)]

Does my right hon. Friend agree that the relentless criticism by environmental groups and Opposition Members of the £92.50 per megawatt-hour strike price for Hinkley—not least in this House a few weeks ago—has made it virtually impossible for any Government ever to agree to pay a higher strike price than £92.50, and that this project was coming in at a significantly higher price, according to the person responsible for it?

[Greg Clark]

I saw the evidence given to the Committee inquiry chaired by my hon. Friend and the hon. Member for Leeds West (Rachel Reeves). He is right that we made a commitment, in approving Hinkley Point C, that future projects had to come in at a lower price. I think it is the case that evidence to the inquiry cited a strike price on a comparable basis of not £92.50, but £150, which demonstrates the force of my hon. Friend’s point.