Energy Bill [Lords]

Debate between James Heappey and James Cartlidge

Wednesday 20th April 2016 Commons Chamber

[James Cartlidge]

Absolutely. If the hon. Gentleman is willing personally to provide £10 million so that the taxpayer and electricity customers do not have to be so encumbered, I am sure that we can find a way.

We have a clear position. The Bill has not changed in respect of the fundamental decision to establish the Oil and Gas Authority. At one point on the day of Second Reading, the price of a barrel of oil was $27.70. It is now around the $40 to $44 mark, so there has been some stabilisation, but that word has to be used carefully in view of what is happening around the world. Ambrose Evans-Pritchard had an excellent piece this week on continuing stability in Kuwait, and we see today in the FT that Saudi Arabia is starting to borrow from the markets. The price may go up, or it may go down again. The key point is that the outlook is uncertain. Enacting the Bill, with this new and respected regulator, will add stability and credibility to the sector at an important time. It is not a magic wand, and it will not immediately heal the problems that undoubtedly exist in this industry, which is vital for the United Kingdom, but it is a key part of our energy policy and proposition. That is why the Bill should become law as soon as possible.

This is basically about our national interest, which has, for many decades, been tied to North sea oil and to the energy sector. That is true not only of Scotland; in the East Anglian economy, a significant amount of output and a significant number of jobs come from the oil sector. I encourage all hon. Members to support the Government on this matter. Our reasons are clear. This is about supporting the energy sector and respecting the democratic will of the people of the United Kingdom.

[James Heappey (Wells) (Con)]

I think we all hoped that the Energy Bill would by now have completed its progress through Parliament. It is a shame that it has not, especially because the closure of the renewables obligation for onshore wind was a clear manifesto commitment by the Government before the last election. That was a popular pledge, especially in my constituency, where opposition to wind farms in the Mendips and at Pilrow is widespread. It is difficult to explain to my constituents that that manifesto commitment, which the Government have a clear mandate to deliver, has not been enacted because of the intervention of the unelected Members of the other place.

That is especially true, as has been noted by a number of my hon. Friends, because the Opposition has been abetted in the House of Lords by a party that was roundly rejected in Somerset, in the south-west and across the country. Not one of its elected Members has come to this Chamber today to justify the actions of their unelected colleagues in the other place. The illiberal undemocrats have a great deal to answer for. I want to congratulate the Secretary of State and the Minister of State on their forbearance in seeing the Bill through Parliament. I understand that the other day, the Secretary of State spent some time at the Bar of the other House eyeballing those who were delaying the legislation. Sadly, they had their way, and we are here yet again to debate it.

It is important that we do not allow the closure of the renewables obligation for onshore wind to be cast as anti-green. The deployment of onshore wind has been widespread, despite strong opposition in this place—with my hon. Friend the Member for Daventry (Chris Heaton-Harris) in the vanguard—and in communities across the country. As a result of £800 million of subsidy, there are 490 operational wind farms and just under 5,000 operational turbines, so the measure is not anti-wind or anti-green.

The Government need to deliver their manifesto commitment to ensure that bill payers are not expected to foot the bill for the excessive deployment of this type of generation. Let us be clear. The Government are well on track to achieve 30% of electricity generation from renewable sources by 2020, and we should congratulate them on that. They are serious about decarbonisation and serious about security of supply, but they are also serious about keeping bills down. A line must be drawn somewhere, and the Government’s decision on the matter is, in my view, entirely reasonable.

Let us reject Lords amendment 7T and stop the onshore wind industry impeding the progress of a Bill that, principally, establishes the OGA, with all its important functions in reinvigorating the UK’s oil and gas industry, safeguarding hundreds of thousands of jobs, contributing billions to our economy and protecting an essential component of not only our energy security but, I argue, our national security. It is high time that we moved on with the Bill, and that the Lords accepted the will of this elected Chamber. It is time that we focused our energies not on onshore wind, but in using the Government’s subsidy structure as a lever to encourage the technologies, such as offshore wind and new nuclear, that we envisage will be part of our energy mix for the next 20 or 30 years.

Energy Bill [Lords]

Debate between James Heappey and James Cartlidge

Monday 18th January 2016 Commons Chamber

[James Heappey]

Be that as it may—US shale production might be about to fall—but the US has not yet started to export what it has. When it does, it will undoubtedly have a big impact on the liquefied natural gas markets both in Europe and the far east.

[James Cartlidge]

I hope that that is the case. The point I was about to make is that there is no doubt that US shale has had the single biggest impact on the falling oil price, although it is not the only factor—there are many factors. I am grateful for that because the economic impact will be huge. Many in the other place said in that debate that, because the oil price was so low and energy prices were falling, we should use the opportunity to introduce new charges for renewables or whatever. First of all, we know those prices will not be temporary. Secondly, energy prices are low but there are other, negative impacts of the energy crisis, such as loss of jobs, lack of confidence and the up and down in the stock market. In effect, falling energy prices are an automatic economic stabiliser—they relieve economic pressure and help the economy to keep growing, supporting the consumer and so on.

I support the Bill because I believe it will give stability and a future to an industry that is struggling. That is the single most important part of the Bill. I also support the measures on the renewables obligation. I look forward to going through it thoroughly in Committee.