Oral Answers to Questions

Graham Stringer Excerpts

Thursday 4th September 2014 Commons Chamber

[Amber Rudd]

I thank the hon. Gentleman for that question. Of course this country’s energy mix must include renewables as well as coal. I think that my right hon. Friend the Minister for Business and Enterprise has largely answered that question already.

[Graham Stringer (Blackley and Broughton) (Lab)]

9. What steps he is taking to reduce payments to owners of wind farms that are not producing electricity.

[The Minister of State, Department of Energy and Climate Change (Matthew Hancock)]

In 2012 the Government introduced new licence conditions to prevent generators profiting unfairly from transmission constraint. That has enabled National Grid to halve the average amount paid per unit of electricity to wind farms to reduce output. In the medium term, planned network upgrades will reduce further the overall level of constraint costs.

[Graham Stringer]

On one day in August, the Government spent £2.8 million on wind farms that were not producing electricity. “Money for Nothing” might be a good pop lyric, but it is not a good policy for a Government who are short of money. The Minister of State, when he was a Back Bencher, said that payments to wind farms should be drastically cut. Would not reducing these absurd payments to zero be a good start?

[Matthew Hancock]

Constraint payments have been in place for many years, and those for renewable energy are no different from those for other types of energy. They are part of making sure that we have the right amount of power in the grid. The Government have halved the amount paid per unit of electricity, so the hon. Gentleman, rather than harping, should stand up and say, “Congratulations. Can we do some more?”

--- Later in debate ---

[Mr Davey]

We are actively involved in discussions with the European Commission on this vital state aid notification and have been meeting it over the summer. Most recently, officials met Vice-President Almunia’s team in Brussels yesterday, and I had a report yesterday evening. Those discussions are intense and, I think, very constructive.

[Graham Stringer (Blackley and Broughton) (Lab)]

T6. The Government are supporting the roll-out of smart meters that are not so smart: they cannot communicate with smartphones. When will Ministers rectify this failure of Government policy?

[Matthew Hancock]

Action is under way to ensure we get the best possible energy efficiency from both smart meters and private developments, such as smart thermostats—this summer, I installed a smart thermostat, so I can turn the electricity and heating in my home on and off from my iPhone. Getting the best cost savings for consumers as well as reducing energy demand by enhancing and embracing technology is a vital part of what we are doing.