Draft Contracts for Difference (Allocation) (Amendment) Regulations 2016

Debate between Jesse Norman and Kelvin Hopkins

Monday 24th October 2016 General Committees

[Jesse Norman]

Unfortunately, there is an ambiguity in the phrase “new applicants”. The position is that £730 million is available under auctions. That money will be paid per year under the auctions. The first auction is £290 million; each contract period is 15 years long. I do not have the numbers to hand, but one can run the numbers out as to the total amount of money, in constant pounds, that will be paid out over those contracts in total and as they are announced individually. That is the position.

The hon. Gentleman asked whether there was some overspend under the levy control framework. The levy control framework, as he said, runs until 2020 and the Government are considering whether and how that framework will be extended. At that point, it will become appropriate to ask whether or not there could be any overspend. His third question was about what is included. The included technologies are offshore wind, wave and tidal stream, advanced conversion technologies— gasification and the like—anaerobic digestion, and biomass for combined heat and power. Those are the less established technologies.

Finally, I turn to the question from the hon. Member for Luton North. I am afraid he was telling such a beguiling story about the installation of solar PVs on his own property that I missed the central thrust of the question. I think he was asking whether the regulations were really focused on renewables, and I assure him that they are. There is an entirely separate framework, also known as a contract for difference, that applies to nuclear supply in the case of Hinkley. That is under a completely different scheme and is not the subject of the legislation today.

[Kelvin Hopkins]

To explain, I should say that I was expressing some disappointment that the Government had chosen to cut back on feed-in tariff support for domestic solar PV. It does not affect me, but it may have affected others and dissuaded them from investing in solar PV, which would be very disappointing.

[Jesse Norman]

I understand. I am glad that has not affected the hon. Gentleman, but he is certainly right that it has affected other people. This technology is rapidly falling in price and the sector is continuing to show its resilience in the face of the changes, so we must hope and expect that it continues to do so. The fact remains that it is separate from the subject of this debate, because it comes under the feed-in tariff regime and not under the contracts for difference regime, although I am happy to take the hon. Gentleman’s point. The key thrust of what is being said today is that the regulations are about renewables contracts for difference in these so-called “Pot 2” less established technologies, and not in nuclear.

Question put and agreed to.

Oral Answers to Questions

Debate between Jesse Norman and Kelvin Hopkins

Tuesday 1st November 2011 Commons Chamber

[Kelvin Hopkins (Luton North) (Lab)]

Next question.

[Jesse Norman (Hereford and South Herefordshire) (Con)]

7. What recent estimate he has made of the level of central Government debt.