Ed Davey
Main Page: Ed Davey (Liberal Democrat - Kingston and Surbiton)
Mr Marcus Jones (Nuneaton) (Con)
16. What steps he is taking to ensure that nuclear power provides a significant proportion of the UK's future electricity supply.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
The Government remain committed to ensuring that conditions are right for investment in new nuclear power in the UK without public subsidy, and we have taken action to remove potential barriers. The carbon floor price and electricity market reform will provide the certainty needed for investment in low carbon generation, including nuclear. The Government are talking to NNB GenCo about the potential terms for Hinkley Point C, and earlier this week I welcomed the excellent news that Hitachi had acquired Horizon Nuclear Power.
Dr Lee
I thank the Secretary of State for his answer. Like him, I was pleased to hear about Hitachi’s investment. If Britain is to reach its low carbon targets and retain energy security in the longer term, nuclear energy remains the only credible solution. In view of the consequent need for significant investment in order to achieve that, would the Government consider investing in, say, Westinghouse, or purchasing Centrica’s share in what was British Energy, thereby reversing the remarkably short-sighted decisions of the previous Administration?
Mr Davey
I am grateful to my hon. Friend for his support. He is right to say that we need all forms of low carbon generation if we are to meet our demanding targets. I do not think that I am attracted by the idea of the state getting involved in the nationalised delivery of nuclear power. The conditions that we have set up mean that there will be a market-based approach.
Mr Jones
I congratulate my right hon. Friend and his ministerial team on encouraging the substantial investment to secure Britain’s nuclear future that Hitachi has announced only this week. Will he say a little more about what the Government are going to do to ensure that we secure as many British jobs as possible from this substantial investment?
Mr Davey
My hon. Friend is absolutely right. This is not only good news and a huge vote of confidence for the UK’s energy policy; it is also good news for British industry. Hitachi has already signed a memorandum of understanding with Rolls-Royce and Babcock, and the supply chain potential is huge, with 6,000 jobs during construction at Wylfa and Oldbury, and 1,000 permanent jobs after construction. When I announced the Hitachi decision, I also announced that we had set up the Nuclear Industry Council to enable the Government to work with the industry to maximise the potential for the supply chain in this country.
Albert Owen (Ynys Môn) (Lab)
As the Secretary of State said, the decision by Hitachi to purchase Horizon Nuclear Power is a vote of confidence in Anglesey, in north Wales and in UK plc, and I am proud to bat for all three. Will he give the House an assurance that, to make this project a reality, the Office for Nuclear Regulation will have adequate resources to assess the new technology, in order to ensure that we have safe nuclear generation as soon as is practical?
Mr Davey
I thank the hon. Gentleman for his question. I pay tribute to him, to the Government of Wales and to my right hon. Friend the Secretary of State for Wales for the important role that they have all played in this deal. I can confirm that the Office for Nuclear Regulation will have all the resources it needs to go through the generic design assessment for the advanced boiling water reactors that Hitachi is proposing.
Tim Farron (Westmorland and Lonsdale) (LD)
Does my right hon. Friend share my concern that the new nuclear build for the west coast of Cumbria seems to be tied to the storage of nuclear waste at the site? Given the recent earth tremors in west Cumbria, one of which reached nearly 4 on the Richter scale a year or so ago, does he not agree that that would be the worst geological site in the UK on which to store nuclear waste?
Mr Davey
I have to say to my hon. Friend that that is certainly not what our scientists and analysts are saying. I know that there is a debate about the geological disposal facility in west Cumbria, but I am reassured that the local authorities are going about the decision on whether to host such a GDF in a sensible and authoritative way, and I am sure that they will support the proposal, which is an important step forward for new nuclear.
Nadhim Zahawi (Stratford-on-Avon) (Con)
2. What steps he is taking to encourage early take-up of the green deal.
George Hollingbery (Meon Valley) (Con)
5. What recent assessment he has made of the role of reduction in demand in ensuring the UK’s security of energy supply in the long term.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
Following a recommendation from the Select Committee, I will shortly be publishing the Government’s energy security strategy. It will set out the Government’s framework for considering and addressing energy security, including the contribution of reduced demand. Building on that, the strategy will set the long-term direction for increasing energy efficiency, and the electricity demand reduction consultation proposes policies to unlock potential for further electricity efficiency. All three documents will be published later this year.
George Hollingbery
Will my right hon. Friend outline the balance of the investment required for the building of new energy generation capacity and for measures to reduce consumption?
Mr Davey
The key purpose of electricity market reform is to allow the market to make decisions of that sort. As the hon. Gentleman will know, my Ministers and I are extremely supportive of demand reduction and energy efficiency measures, which have a critical role to play in our energy mix, but we also need to bring in new supply. We face rising electricity demand as we electrify the transport and heating sectors in the years ahead to meet our climate change targets, even if we have the most ambitious energy efficiency policies imaginable, so we need both a supply-side and a demand-side response.
Mike Crockart (Edinburgh West) (LD)
Does the Secretary of State agree that although demand reduction is essential, demand balancing must also receive a bit more attention, and intelligent smart meters in homes would make an important contribution to that?
Mr Davey
My hon. Friend is absolutely right. Sometimes in energy debates people think there is one particular solution or technology. The truth is we need a diverse-mix balanced approach on both the demand and the supply sides, and new technologies such as smart grids and smart meters have an important role to play.
Sir Tony Baldry (Banbury) (Con)
19. How he will ensure that the forthcoming Energy Bill makes provision to enable consumers to receive the best deal on their energy.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
We have three ways to help people lower their energy bills. The first way is to help people save energy through policies such as the carbon emissions reduction target, Warm Front, the green deal and the energy company obligation. The second is to help people switch to get better deals; we will do everything we can, including through the energy Bill, to get people on to the lowest tariffs. The third is to help low-income and vulnerable households with their energy bills directly, through policies such as the warm home discount.
Claire Perry
My hon. Friend the Member for Suffolk Coastal (Dr Coffey) alluded to the fact that many of us who live in the real world—the one not inhabited by bourgeois left-wing academics—live off the grid and are reliant on sources of fuel such as heating oil; indeed, 53% of people in rural Britain rely on heating oil, I believe, as their primary fuel source. I welcome the Government’s recent support for community fuel buying schemes. Will the Minister say a little more about that? We have a very effective scheme in Wiltshire, which is saving people on average £140 a year, which is a sum not to be sneezed at.
Mr Davey
The hon. Lady is absolutely right, and she will know that I have championed collective purchasing and collective switching. People who are dependent on off-grid fuels such as heating oil have been doing an awful lot of work through heating oil clubs over a number of years. They have been trying to take on the imperfections they see in the market and get a much better deal for those communities. She is right to say that this is the way to go, and I commend her and others who support those projects.
Katy Clark
Two weeks ago, the Prime Minister said that he would make the energy companies move everyone on to the cheapest tariffs. Will the Secretary of State update the House on when and how my constituents will be moved on to the cheapest tariffs?
Mr Davey
The hon. Lady is right; we will do everything we can, including through legislating in the energy Bill, to get people on to the lowest tariffs. We are examining the retail market review that we have just had from Ofgem, which contains a number of excellent ideas, and we will be putting forward options on this issue, including legislation in the Bill.
John Robertson
The Secretary of State will know that one of my pet hates is the lack of attention paid to vulnerable people and their bills. Will he consider legislation to ensure that the energy companies actively find those people to help them rather than use mealy-mouthed words that mean absolutely nothing and then do nothing to find them?
Mr Davey
I agree with the hon. Gentleman that we need to do more to help the most vulnerable, who are facing the problems of rising electricity and gas bills. One argument that I am putting forward with collective switching is that if we can get community groups and local authorities involved in helping residents in their areas to buy energy together, they will be able to reach out to those vulnerable groups. In announcing “Cheaper Energy Together”, a £5 million competition in which local authorities and community groups can apply to set up these community switching schemes and community buying schemes, I made it clear that the only condition successful schemes had to meet was that they had to show they were helping people who are in fuel poverty—the most vulnerable in our society. I do see this as a route to helping the people whom the hon. Gentleman wants to help.
Sir Tony Baldry
Does my right hon. Friend support Ofgem’s proposals to limit each supplier to four tariffs per fuel, per meter and per payment type? Does he agree that tariff simplification, greater transparency and increased competition should be the starting points for energy market reform?
Mr Davey
My hon. Friend is right that the Ofgem package contains many attractive proposals. I am not going to say today that we agree with every one of them, but we are studying them. It is right for my Department and my Ministers to study the proposals carefully, because this is a crucial area. I reassure him that we are attracted to many of those ideas, and we will be putting forward our options for consultation and for the Bill.
Caroline Flint (Don Valley) (Lab)
Two weeks ago, the Prime Minister announced that the Government would be legislating so that energy companies have to give the lowest tariff to their customers. In our debate last week, the Secretary of State tried to clarify what the Prime Minister meant, saying that we are going to use the
“Energy Bill to ensure that the energy companies have to inform people of the best deal.”—[Official Report, 24 October 2012; Vol. 551, c. 939.]
But is he not aware that, as I pointed out last week, sections 76 and 77 of the Energy Act 2011 already give him the power to force energy companies to tell their customers about the lowest tariff? So can he explain why he is planning to introduce new legislation to bring in powers he already has?
Mr Davey
The right hon. Lady will know that I have already acted on this issue. Two months into office, I negotiated a voluntary agreement with the big six so that they would provide details of the best available tariff on people’s bills already—so I am afraid that she is behind the times again. I note that she has not commented on Ofgem’s proposals, not least because she wants to abolish Ofgem. That would be very damaging to the interests of energy consumers, both households and businesses. So I have to say to her that she needs to engage with the real debate, which is Ofgem’s proposals and our thinking.
Damian Hinds (East Hampshire) (Con)
Does my right hon. Friend agree that although having multiple price points for exactly the same product can be good for consumers, that stops being true when the poorest and most vulnerable are less able to access them and when the sheer volume, complexity and rate of change of those tariffs makes it almost impossible to make meaningful comparisons and keep up?
Mr Davey
My hon. Friend is right. Under the previous Government we had a multitude of tariffs, which became confusing and complex, but that Government failed to take action. It is good to know that Ofgem, with our support, has brought forward proposals after careful study, and we will act on them. Although it is possible to have too much simplification, which puts us in danger of reducing choice and competition, Ofgem is trying to strike the right balance and that is why we are studying its proposals so closely rather than dismissing them.
Sandra Osborne (Ayr, Carrick and Cumnock) (Lab)
When the Minister addressed 400—
Duncan Hames (Chippenham) (LD)
11. What outcome he will be seeking on climate finance at the UN climate talks in Doha in November 2012.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
At the climate talks in Doha, as part of a balanced outcome, I want to see a collective commitment from developed countries to maintain climate finance at least at Fast Start levels from 2013. We also want work on mobilising sources of finance to continue to reach the goal of jointly mobilising $100 billion a year by 2020. Finally, we will need to endorse the host country for the green climate fund.
Duncan Hames
That is indeed the goal, yet so far there is no agreement on how the funds will be raised. One option is a carbon price on emissions from international shipping, which, as the Secretary of State pointed out in a recent speech at Chatham House, are not covered by existing agreements. Will he raise the matter at the Doha talks?
Mr Davey
I raised it at the pre-COP talks in Seoul. It is a really interesting source of new climate change finance and should be explored alongside other potential revenues. It is absolutely vital that developed countries raise their ambitions in this area. We must show developing countries that we want to support them in this change and that moving to ambitious targets for reducing carbon emissions globally is possible and will not stunt growth. Green growth can go together with economic growth, whether in the developed or developing worlds, and we must support those countries.
Sheila Gilmore (Edinburgh East) (Lab)
Will the Secretary of State explain whether his energy Minister’s disdain for left-wing bourgeois academics signifies any change in the Government’s commitment to climate change science and, therefore, to seeking the necessary funding?
Mr Davey
Left-wing bourgeois academics are obviously welcome to contribute to any discussions in this House, because we want to hear from all sides. I must say that climate change scientists are not noted for their political beliefs; they do their work as scientists. They are providing the evidence that the Government, the country and, I hope, the rest of the world will act on. Their scientific results are extremely disturbing. Most recently we have seen what is happening in the Arctic, where the polar ice cap is melting faster than people had previously thought. That is what the scientists are telling us, and we should take it very seriously.
Chris White (Warwick and Leamington) (Con)
12. What steps his Department is taking to encourage new entrants to the energy market.
Andrea Leadsom (South Northamptonshire) (Con)
14. What his policy is on onshore wind farms; and if he will make a statement.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
Our policy remains the same: to support onshore wind farms. Onshore wind is good for our energy security, emissions reductions, economic growth and jobs, and it reduces pressures on consumer bills. The new wind projects to deliver the ambition of 13GW by 2020 are largely on the table. The Government are clear that those must be properly sited and must provide genuine benefits to local communities.
Andrea Leadsom
I am disappointed that the Minister, my hon. Friend the Member for South Holland and The Deepings (Mr Hayes), did not respond to my question; I have welcomed his comments in the press in recent days. Does my right hon. Friend believe that it is fair that my constituents in Helmdon, Sulgrave and Greatworth have spent two years and thousands of pounds of their own money fighting a wind farm in their area, with support from South Northamptonshire council, only to have the decision overturned on appeal? The inspector said that all their objections were very valid and upheld them, but added that national policy overruled local wishes. What steps is the Secretary of State taking to improve that unfair situation?
Mr Davey
I am sorry if I have disappointed my hon. Friend by my presence at the Dispatch Box. She will know that Ministers do not comment on particular planning applications, but I have made it absolutely clear, working with the Department for Communities and Local Government, that the planning system needs to be more responsive to local communities. I personally launched the consultation on trying to get greater community benefits for communities who host renewable sites. I hope that she will, with her experience, contribute to that consultation process, which is very important in ensuring that communities who host these sites can gain a real benefit.
Mr Speaker
I understand the temptations, but may I ask the right hon. Gentleman to face the House in answering questions, not to look backwards at the hon. Member who happens to be asking the question?
Mr Davey
My hon. Friend the energy Minister suggests that I use the word “intimately”, but I can say that we are working very closely. My hon. Friend and I—as you, Mr Speaker, requested I will face the House—may occasionally disagree on issues of substance, and I certainly did not agree with his remarks the other day, but I have to say that I really admire his style.
Caroline Flint
The Secretary of State said to the media yesterday that there has been no change to Government policy, but as we have already heard during questions, investors themselves are saying that this latest shambles is very damaging and is putting investment in new jobs and new industries at risk. The energy Minister says that wind farms are imposed on local communities, but nearly half of all planning applications get turned down. He says that wind farms affect house prices, but there is no evidence in the UK showing that that is so. He says that wind farms are too noisy, but the existing planning guidance already sets noise limits. How does the Secretary of State feel about being tricked into agreeing a review that is nothing more than a hatchet job on the British wind industry?
Mr Davey
What the right hon. Lady did not say is that in the renewables banding review that we announced in July, which was warmly welcomed across the industry, we set the support levels until 2017 and sent a very strong signal to investors in the sector. She also did not tell the House what the Prime Minister said yesterday in supporting my position that the renewables policy has not changed. The Prime Minister and the Secretary of State are at one on this. We will continue with our renewables policy; it has not been changed.
Charles Hendry (Wealden) (Con)
Is the Secretary of State aware that oil and gas-rich countries such as Norway, Saudi Arabia and Kazakhstan recognise that an integral part of their energy security is the development of their own renewable resources, including onshore wind? If it is right for them, it must be right for us as well. He has given us clarity on long-term nuclear policy, developed on both sides of the House over a number of years. Will he now continue his work to deliver exactly the same clarity for investors in other low-carbon technologies such as renewables, because vital long-term investment decisions are being made now and people need that clarity?
Mr Davey
If I may, Mr Speaker, I should like to pay tribute to the great work that my hon. Friend did at the Department in a whole range of sectors and thank him for the support he gave me. He is absolutely right that countries around the world, even those that are richer in oil and gas supplies than ours, are investing in renewable energy, and I think we should continue with that. We should make it clear that this is one of the best places in the world to invest in renewable energy.
John Robertson (Glasgow North West) (Lab)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
Since my Department’s previous Question Time, I have attended the pre-COP ministerial climate change talks in Korea. In addition, we have announced the winners of the record-breaking 27th North sea licensing round and the shortlist for our £1 billion carbon capture and storage competition. We have put in place the framework for our flagship green deal energy efficiency programme. We have welcomed the news of Hitachi’s major investment in new nuclear power stations in Britain. Energy UK has reported that energy investment in the UK is running at a 20-year high, including record investment in renewables. As you know, Mr Speaker, I intend this month to introduce the energy Bill, which will reform the electricity market, provide long-term certainty to investors, and ensure that British households and businesses enjoy affordable, secure and clean electricity supplies.
John Robertson
I thank the right hon. Gentleman for his short answer. He knows of my great support for nuclear energy and that I would like it to help to reduce our carbon emissions, but we have to respect the public’s concern about radioactive waste. What does he plan to do to ease people’s concerns in the realm of waste?
Mr Davey
I am grateful for the hon. Gentleman’s question. He will know that we have made it clear that new nuclear investors need to be responsible for the decommissioning costs and disposal of their waste. That is part of the deal—they must meet those financial obligations. In addition, as I said earlier to my hon. Friend the Member for Westmorland and Lonsdale (Tim Farron), we are working with a number of communities, particularly in west Cumbria, on a geological disposal facility.
Simon Hughes (Bermondsey and Old Southwark) (LD)
T4. Just over the bridge at the Elephant and Castle, a major regeneration scheme is under way. When the Liberal Democrats ran the council, we proposed that the scheme should have an energy centre whereby the community could generate its own energy as well as keep prices as low as possible. Will the Government commit to supporting such community initiatives, to make sure that we get the best deal in our communities, led by our communities?
Mr Davey
I could not agree more with my right hon. Friend, who has championed community energy for many years. As Secretary of State, I am determined that we promote even more ambitious polices. We will introduce a community energy strategy in the spring. We have already made a number of announcements to encourage community groups and democratic local authorities to support these types of schemes.
Caroline Flint (Don Valley) (Lab)
A year ago today, the Government announced their first round of cuts to the feed-in tariff for solar power. As instillations flatline, Ministers have clung to the line that their plans will allow 4 million homes to be solar powered, with 22 GW of solar to be installed by 2020. Will the plan for 22 GW, which was announced in April, still be the Government’s policy when they publish their renewable road map, or does he now accept that, because of his cuts, Britain will not reach that target for at least another 30 years?
Duncan Hames (Chippenham) (LD)
T5. Both the Energy and Climate Change Committee and the independent Committee on Climate Change have argued that the Government should set a carbon intensity target for the power sector. Does my right hon. Friend the Secretary of State agree with them?
Mr Davey
I am grateful for my hon. Friend’s question. I think that there is a case for a decarbonisation target for the power sector, but that is still subject to ongoing discussion in Government. We are in a coalition and we need to get Cabinet approval for a decision such as this. However, it is worth noting for the benefit of the House that it is not just the Climate Change Committee and the Select Committee that have called for a carbon limit on the power sector by 2020. More than 50 companies, third sector bodies and trade bodies recently signalled their support in an open letter. There is huge support from industry for this measure and I hope that we can win that argument in this House.
Graham Stringer (Blackley and Broughton) (Lab)
T3. Do Ministers not think that it would help the energy debate in this country if the costs of renewables were itemised separately on energy bills?
Mr Davey
The hon. Gentleman seems to suggest that there is a lack of transparency in the way in which energy costs are delivered. I have to say that I disagree with him. There are huge amounts of information about the different costs of green energy. He will know that the cost of renewables for bills is tiny and that the cost of energy efficiency schemes, such as the carbon emissions reduction target and the energy company obligation, is significantly greater. The real costs involved in and the real reason energy bills are going up are the rising price of wholesale gas on global markets and the need to invest in our distribution networks that need to be replaced. Those are the real drivers behind higher gas and electricity bills, and people who suggest otherwise should look at the facts.
Robert Halfon (Harlow) (Con)
T9. The Minister of State, Department of Energy and Climate Change, my hon. Friend the Member for South Holland and The Deepings (Mr Hayes), has been instrumental in forcing inquiries into the uncompetitiveness of the oil companies in keeping prices high at the pump. Will he also urge the Treasury to stop the 3p planned fuel duty rise in January, which will cost motorists an extra £60 a year?
Andrew Stunell (Hazel Grove) (LD)
Energy demand management must be based on reducing demand in the home. Will Ministers assure the House that they are working closely with colleagues in the Department for Communities and Local Government to ensure that building standards reflect the need to improve the performance of our homes?
Mr Davey
I can confirm exactly that. I pay tribute to my right hon. Friend for the fantastic work he has done in pursuing those policies for many years, not least as a Minister in the DCLG. He will know that the Under-Secretary of State for Communities and Local Government, my right hon. Friend the Member for Bath (Mr Foster), is continuing his excellent work.
Ian Lucas (Wrexham) (Lab)
T8. Does the Secretary of State agree that investment in onshore wind is not a matter for levity, and that his relationship with his energy Minister is not sustainable?
Mr Davey
I do agree that investment in onshore wind is a serious matter. We need to ensure that industry and investors know that the Government are committed to a long-term, stable and consistent framework. The hon. Gentleman will know that I lead on renewable energy strategy and I decide the policy, and the industry has heard that.
Neil Carmichael (Stroud) (Con)
I, too, welcome Hitachi’s expression of confidence in our nuclear industry, especially as the plans include Gloucestershire. What does the Minister think about the need to develop skills and the labour market to support that infrastructure?
Christopher Pincher (Tamworth) (Con)
Are Ministers on the Treasury Bench aware of the assertion by GE Hitachi, which is engaged in buying the Horizon consortium, that it can build fast nuclear reactors in four years, thus reducing the time to market and, potentially, the subsidy required?
Ann McKechin (Glasgow North) (Lab)
Does the Secretary of State agree that the development of carbon capture technology should be a priority for the new green investment bank?
Mr Davey
As the hon. Lady will know, the Government have already made a big commitment to carbon capture and storage, and we have announced the next stage of our £1 billion competition, with four of the original eight bidders going forward. It is not for me to set the investment priorities of the green investment bank; the purpose of it being at arm’s length from the Government is so that it can set its priorities.
Mr Graham Stuart (Beverley and Holderness) (Con)
This country accounts for 2% of global carbon emissions, and that level is falling. It is, therefore, essential that we engage with countries around the world that have larger emissions. When did a Minister from the Department of Energy and Climate Change last visit China?
Mr Davey
I will write to the hon. Gentleman with the exact dates of when a Minister from our Department last visited China. I recently met the relevant Minister from China in London, and in Seoul at the international climate change talks. We are working closely with the Chinese, and they have taken up our 2050 road map calculator for how we can plan to reduce carbon emissions in an ambitious way. Our relationship with China in that area is solid.
Helen Goodman (Bishop Auckland) (Lab)
When the Government changed the rules on feed-in tariffs, 100 jobs were lost in my constituency. What calculation has been made of the number of jobs that will be lost if, as in the view of the Minister of State, no more onshore wind turbines are to be built?