Jeff Smith
Main Page: Jeff Smith (Labour - Manchester Withington)
Andrea Leadsom
I can absolutely look the hon. Gentleman in the eye and tell him that bringing forward the capacity market a year early—I am trying to make serious eye contact with him; I am not looking away for a moment—is absolutely in the interests of consumers. He will know that, with wholesale prices where they are at present, old plants are struggling to continue. By bringing forward the capacity market, we are giving them the certainty they need to ensure security of supply. If you like, this is an insurance policy on security of supply, and it is absolutely in the interests of consumers.
Jeff Smith (Manchester, Withington) (Lab)
6. What steps her Department is taking to increase investor confidence in the low-carbon economy.
The Secretary of State for Energy and Climate Change (Amber Rudd)
My Department is committed to providing investors with certainty, and I set out a clear vision for this Government’s energy policy last November in order to achieve just that. In the past month, we have provided certainty on the capacity market, on contracts for difference auctions over the next four years and on taxation for the UK’s oil and gas industry.
Jeff Smith
As a result of changes in Government policy, Greater Manchester Community Renewables has had to scale back its solar PV project from 20 sites to four, meaning that 16 schools have missed out on solar panels and the local economy has missed out on more than £1 million of investment. It is estimated that there are 8 MW of stalled schemes in Greater Manchester, equating to about £10 million of investment. Is this not an indication that Government policy is in fact leading to a fall in investor confidence?
Amber Rudd
I do not share the hon. Gentleman’s interpretation. In fact, we have seen increased investment this year in solar and other renewables. We have changed the subsidies on solar, so solar will go forward only where it is well sited and makes a good return for the investors. That is what we have to do as a Government, because we want to strike a balance between supporting renewables and managing consumers’ bills.
Andrea Leadsom
Yes, I can absolutely give the hon. Gentleman that assurance. Very recently, I held a roundtable meeting with players in the storage sector and heard at first hand exactly where they think the challenges lie. I can absolutely assure the hon. Gentleman that my Department is working very hard to try to ensure that we remove barriers in the easiest and quickest way possible.
Jeff Smith (Manchester, Withington) (Lab)
T1. If she will make a statement on her departmental responsibilities.
The Secretary of State for Energy and Climate Change (Amber Rudd)
Since we entered government in 2010, we have more than trebled our renewable electricity capacity. A total of £52 billion has been invested in renewables, and more than 99% of solar capacity has been installed. In 2010, renewables provided just over 7% of our electricity needs. That went up to nearly one fifth of the UK’s electricity needs in 2015, and we are on track to deliver 35% by 2020-21, exceeding our ambition of 30%.
Jeff Smith
At the last Energy and Climate Change Question Time, my hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) asked the Minister about the planned rise in VAT on solar, and she told us that the Government had “no choice” but to implement the European Court’s decision. On Monday, when the Financial Secretary was filling in for the Chancellor, he told us that they had decided not to go ahead weeks ago. Did she inadvertently mislead the House, or was she not kept informed by her colleagues in No. 10—I mean No. 11?
Amber Rudd
I think we should just welcome the outcome. It is always unwise to underestimate my right hon. Friend the Prime Minister, who achieved a great victory for VAT and for solar at the Brussels meeting just 10 days ago.