Kelvin Hopkins
Main Page: Kelvin Hopkins (Independent - Luton North)
Mr Davey
The right hon. Lady will remember that yesterday I made it clear that we have real concerns about the energy market. That is one reason why we support the competition inquiry. I made it very clear that we are worried about the fact that when wholesale prices go up, retail prices follow them quickly, which is the rocket effect, but that when wholesale prices come down, retail prices do not come down as quickly—the feather effect. We believe that that has to be addressed. The previous Government had the same problem and they did not address it. We are addressing it.
The problem with the proposed regulation, as I told the House yesterday, is that when we look at the detail we can see that it would fail and would lead to prices going up. It is a bungee-jumping approach to energy prices and it would increase volatility and fluctuations. If the House wants a little more analysis, let me point out that a few months ago wholesale prices were coming down, yet in the past few weeks they have gone up. Are the Opposition saying that they would force energy companies to move directly with daily and weekly moves in the wholesale costs? That is surely madness.
Kelvin Hopkins (Luton North) (Lab)
8. What recent representations he has received on the proposed changes to financial support for solar PV.
Alison McGovern (Wirral South) (Lab)
9. What recent representations he has received on the proposed changes to financial support for solar PV.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
Thanks to the dramatic fall in the cost of solar and the huge level of deployment under the coalition Government, solar can now be at the forefront of the transition to the new contracts for difference support mechanism, which had support in the Division Lobby from the whole House. The detail of the changeover from the renewables obligation is crucial, so we are carefully engaging with industry during the consultation period to ensure that we get the details absolutely right.
Kelvin Hopkins
Solar PV and onshore wind are two of the cheapest large-scale renewable energy sectors. Does the Minister accept that cuts to solar, coming off the back of his party’s promise to impose an effective moratorium on onshore wind, will lead to higher energy bills?
Gregory Barker
The hon. Gentleman is somewhat misled. We are certainly not proposing cuts to solar. We are putting solar at the forefront of our transition to contracts for difference, which set out the growth path for all renewable technologies well into the next decade. We are seeing tremendous growth in solar and our ambitious solar strategy will ensure that that continues for years to come.