Oral Answers to Questions
Debate between Kerry McCarthy and Ed Davey
Kerry McCarthy (Bristol East) (Lab)
19. What recent assessment he has made of the merits of proposals for the generation of electricity from tidal lagoons.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
I am delighted that we are back on tidal power. My considered view is that tidal energy has many merits: it is clean, renewable, predictable, home-grown and secure. Tidal lagoons can be built in numerous places in the UK and have the potential to meet up to 8% of our electricity needs. Tidal lagoon costs could fall significantly in the next decade, as larger, more cost-effective projects are deployed. With tidal lagoons having the potential to last 120 years, this is a future green energy technology that I hope all parties will strongly support.—[Interruption.]
Kerry McCarthy
My hon. Friend the Member for Newport West (Paul Flynn) is claiming the credit for most of the Secretary of State’s answer. I share my hon. Friend’s enthusiasm for the prospects for tidal power in the Severn estuary. When does the Minister expect the strike price to be agreed, which will help to spur the full commercialisation of the sector? Does he share the concern of organisations such as Citizens Advice that the current strike price for tidal lagoon power is higher than that for any major green energy project to date?
Mr Davey
The negotiations with the Tidal Lagoon Power company are bilateral, so they will set the strike price over months and we cannot give an exact timetable on how long they will take. I read the CAB report, but it was not as informed as it might have been. The first tidal lagoon power plant, which will be the world’s first, is likely to be a bit more expensive, just as when the UK had the first offshore wind farm it was a bit more expensive. Unless we invest in new technologies, we will not get the costs down. We have seen the costs of solar tumble. We have seen the costs of offshore wind tumble. We have seen the costs of onshore wind tumble. That has only happened because we have invested in new technology. That is the way that Britain—a world leader—should go.
Mr Speaker
Untypically, we are ahead of time and can proceed with dispatch to Topical Questions.
Kerry McCarthy (Bristol East) (Lab)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
Since the last oral questions to the Department of Energy and Climate Change, the first auction of low-carbon contracts for difference was completed. I was able to offer contracts for 27 new renewable power plants, including 15 onshore wind farms, two offshore wind farms, and five solar farms. The auction saw onshore wind prices fall by 17%, and offshore wind farm prices by 18%. Today I will publish the first annual update to our country’s first ever community energy strategy. That shows real progress in everything from district heating policy to grid connections, and from state aid clearance for the Green Investment Bank to lend to that sector, to our new water source heat map.
As this is the final DECC oral questions of this Parliament, I thank you, Mr Speaker, my Ministers and officials, Her Majesty’s loyal Opposition, and all right hon. and hon. Members for their help and advice—most of the time. The UK is now achieving on all our energy and climate change objectives, and I believe it is leading Europe on the path to a climate change treaty in Paris this December.
Kerry McCarthy
I thank the Minister for that response. The community energy stuff will go down well in Bristol, which is European green capital of the year, as I think I have mentioned in every DECC questions. Although we welcome the measures in the Budget, what does the Secretary of State plan to do to diversify skills in the North sea towards low-carbon and renewable technologies, given that the North sea is a mostly mature basin? Does he agree that we need a long-term transition plan for places that are currently heavily reliant on the oil and gas industry?
Mr Davey
We are seeing a huge amount of activity in the North sea for offshore wind, and the beginnings for carbon capture and storage. About 18 months ago I brought together representatives from the oil and gas industry with representatives from the renewable industry working in the North sea. We need them to work together, particularly on issues such as regulation and the way infrastructure will develop. We need a longer-term plan, and we have been kicking that work off.
Oral Answers to Questions
Debate between Kerry McCarthy and Ed Davey(9 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Davey
Some energy suppliers have reduced their prices by 10%, and OVO Energy recently cut its prices by more than 10%. It is a complicated analysis and, working with the Treasury, we have looked at it in some detail. Wholesale gas costs represent about a quarter of the average bill; other costs are also changing and not all of them are going down. This is complicated, but it is right that the independent competition authorities look at this—they are specifically addressing this issue—because if there is any malpractice in the energy markets they will be able to expose it and have the teeth to tackle it.
Kerry McCarthy (Bristol East) (Lab)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
Since our last Department of Energy and Climate Change orals, we have seen significant progress for consumers on switching, energy prices and energy efficiency. Energy firms have responded to my challenge and halved the time it takes to switch, from five weeks last year to 17 days now. That is helping people to switch to get big savings on their energy bills, as the extra competition we have backed is now seeing bills being not just frozen, but cut. Figures to the end of November show that the energy companies obligation and the green deal have delivered new boilers, windows and insulation to more than 1 million homes, four months ahead of our March 2015 target. In introducing to the House today tough new regulations to require landlords to ensure that their properties meet minimum energy-efficiency standards, we aim over the next three years to help about 1 million private sector tenants enjoy lower energy bills and warmer homes.
Kerry McCarthy
The global calculator published by the Department last week found that reducing our meat consumption is essential if we are to reduce our contribution towards greenhouse gases. Everyone from the United Nations downwards has for many years been talking about the contribution of the livestock sector to global emissions. His Department has always ignored this issue, so I urge him now to take action and to tell us what he is doing to encourage people to reduce their consumption.
Nuclear Management Partners (Sellafield)
Debate between Kerry McCarthy and Ed Davey(9 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text
Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
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Mr Davey
I certainly agree with the hon. Lady that the project on the site is hugely complicated. Anyone who visits it can see that for themselves. I should tell her, however, that the prime responsibility for managing it lies with the Nuclear Decommissioning Authority. The NDA was quite rightly set up under the previous Government—with cross-party support—and we believe that it is the right model.
The NDA needs to be involved in all local decisions. It would not be very sensible for that to be managed by Ministers and officials in Whitehall—the NDA is on the front line—but it is the job of Ministers and, indeed, this House to hold the NDA to account. We do that through regular reports and through the officials who regularly work with the NDA, and the House does it through the Energy and Climate Change Committee and the Public Accounts Committee.
Kerry McCarthy (Bristol East) (Lab)
As my hon. Friend the Member for Newport West (Paul Flynn) mentioned, the French company AREVA, which is part of the NMP consortium, also has a very big interest in Hinkley Point. I know that the sites are very different, but will the Secretary of State use this opportunity to give assurances that the challenges and risks talked about today have been fully addressed at Hinkley Point?
Mr Davey
The risks are very different in all senses of the word. The new build at Hinkley Point C has already undergone huge regulatory processes. There is the time needed for the generic design assessment for a new nuclear reactor—in this case, for the EPR reactor, it took three years—and then regulatory approvals are needed for the site itself. The regulatory oversight of the new build at HPC is therefore of a very different nature. However, it is certainly extremely detailed, and I hope that that gives her the assurance she seeks.
Oral Answers to Questions
Debate between Kerry McCarthy and Ed Davey
Kerry McCarthy (Bristol East) (Lab)
Analysis by climate change scientists of pledges made by Governments at Lima shows that the world is currently at risk of experiencing about 3° C of global warming. What can be done to reduce the global ambition gap on emissions by the time of the Paris summit, so that we do not cross the 2° C threshold?
Mr Davey
The hon. Lady is right that there is a real risk that when all the countries make their pledges next year, we will be some way short of what is required to keep global temperatures below the limit of a 2° C rise, which is what scientists say we need to achieve. We are doing a lot of work, not just in this country but in Europe and beyond, to see what can be done. There are pre-2020 measures that we should focus on, because the treaty would not come into effect before then. That is one reason why, when we negotiated the EU 2030 package, the phrase “at least” 40% was important—it gave us a chance to raise our ambition levels in Europe if we can persuade others across the world to do so.
Oral Answers to Questions
Debate between Kerry McCarthy and Ed Davey(10 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Davey
I am grateful to the hon. Lady for asking me about CCS. This Government are actually leading Europe on CCS; we have the only two commercial-scale CCS projects, one of which was the only such project to get funding from Europe. It was because of the UK Government’s actions that the conclusions of the recent energy and climate change deal included CCS. Like the hon. Lady, we are a strong supporter of CCS.
Kerry McCarthy
Given the non-binding EU targets on renewables and energy efficiency, does the Secretary of State agree that the Government now need to demonstrate how we can use that flexibility to increase the UK’s low-carbon programme, especially as it is being undermined by other Departments—for example, by stripping farmers of their common agricultural policy subsidies for solar farms and by rejecting applications for onshore wind farms? What will he do to encourage the Government to support renewables?
Mr Davey
No Government in history have done more for renewables than this one. We have seen renewable electricity generation more than double; we have a much better record on this than the last Government. We have also seen renewable electricity investment more than double, with a huge pipeline of investment in renewables, including onshore, offshore, solar and tidal power.
Mr Davey
It is a little more complicated than sometimes the headlines show, because there is an effort-sharing decision that is being worked on. Some countries will take more of an effort share in reducing their carbon emissions than the 40% average and others that will take less, but I am happy to talk to my hon. Friend about that.
Kerry McCarthy (Bristol East) (Lab)
Last night, as we have heard, the planning committee in Bristol rejected an application for a controversial biomass plant. Is the Minister confident that Ofgem has sufficient powers to enforce planning conditions against wood-burning biomass plants that claim to use only waste wood but actually use virgin wood, for example by revoking their renewables obligation certificates?
Annual Energy Statement
Debate between Kerry McCarthy and Ed Davey(10 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Davey
Let me first mention that my first job in politics was working for my right hon. Friend the Member for Berwick-upon-Tweed (Sir Alan Beith)—[Interruption.] I hear a comment from a sedentary position that it was downhill all the way from there, which may be right, but it was a great privilege to work for my right hon. Friend, whom I consider to be one of the greatest parliamentarians of our time.
On my right hon. Friend’s constituency project, my officials are very much engaged with the Commission. It is a new Commission, which has contributed to a little delay, but we are trying to push forward as rapidly as possible for exactly the reasons my right hon. Friend outlined.
Kerry McCarthy (Bristol East) (Lab)
Last week, I had the pleasure of meeting Ovo Energy—an alternative supplier to the big six—which employs 550 people in Bristol. It tells me that it will pass on falls in wholesale energy prices to customers, so why can the big six not do the same?
Mr Davey
The hon. Lady is absolutely right. I think Ovo Energy has given a real boost to competition in the retail energy market—something that we have welcomed and, indeed, championed. I would say to the hon. Lady’s constituents and to those of every right hon. and hon. Member that companies such as Ovo Energy are offering good deals, although it is not the only company to do so. I urge people to look to those alternatives if their energy supplier is not reducing its tariff in line with falls in wholesale prices.
Oral Answers to Questions
Debate between Kerry McCarthy and Ed Davey(10 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Davey
I can certainly confirm that we work across Government—not just my Department and DFID but other Departments as well—to ensure that the international climate finance fund that we announced at the beginning of our time in office is wisely spent, particularly to help the poorest, most vulnerable and most exposed.
On the hon. Gentleman’s other question, we will make a capital bid to the green climate fund, but I do not think we will necessarily announce it before the UN Secretary-General’s New York summit.
Kerry McCarthy (Bristol East) (Lab)
The Chinese President has just said that he will not attend Ban Ki-moon’s summit, which follows Prime Minister Modi of India saying the same. Given the statement that the Environment Ministers of the BASIC countries—Brazil, South Africa, India and China—issued in New Delhi recently, does the Secretary of State share my concern that it looks like countries such as India and China are rowing back from their enthusiasm for pushing for an international climate agreement?
Mr Davey
No, I do not. In my visits to Beijing and Delhi I see the reverse. I see the Chinese taking climate change more seriously than they have ever done, not just in what they say at the international table but in the actions they take—massive investment in renewable energy and low-carbon energy such as nuclear—not least because of the impact of air pollution in some of their cities on the eastern border. Equally for India, I think that Prime Minister Modi will be a global leader on this issue.
Oral Answers to Questions
Debate between Kerry McCarthy and Ed Davey
Mr Davey
I do not think there is a dichotomy of policy. One of the key issues in the 2030 package that we are negotiating is reform of the EU emissions trading system to send a carbon signal that everyone had expected under the 2008 deal, which has failed to come through. It is right to proceed with this reform. I am proud that Britain is leading in Europe on the ambitious climate change package that is vital to tackle climate change.
Kerry McCarthy (Bristol East) (Lab)
I welcome the Secretary of State to Bristol tomorrow for Big Green week. I think we will be having dinner together. [Hon. Members: “Ooh!”] The shadow climate change Minister will be there, too!
While I welcome the UK’s support for more ambitious carbon targets, surely Britain cannot credibly be described as “leading in Europe” if we do not support Germany’s renewables target—of 30%, which would be binding on national states. The previous 20% target gave a huge boost to the renewables sector in this country, so I urge the Energy Secretary to think again and support Germany’s plan.
Mr Davey
I am looking forward to dinner on Friday night. I did not realise it was in my diary, so I had better confess it to my wife.
The renewables target for 2020 was a very sensible one; it was needed to bring an immature industry forward, but I do not think it is needed for 2030. What is most important for 2030 is having an ambitious greenhouse gas reduction target. That is what we need to tackle climate change, and we need to do it in a technology-neutral way, which enables carbon capture and storage, energy efficiency and all low-carbon technologies to come through. I think that is the greenest approach.
Kerry McCarthy (Bristol East) (Lab)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
In advance of our dinner tomorrow night, let me tell the House that in May, in response to the crisis in Ukraine, the G7 and the European Union re-evaluated our energy security plans and agreed a new approach that would strengthen our long-term energy security. The United Kingdom is rated the most energy secure country in the EU. To maintain this position, we are pressing forward with the diversification of our energy supplies.
In April, we announced £12 billion of investment in renewable energy projects, supporting 8,500 jobs under the final investment decisions enabling process, which is resulting in the development of offshore wind, coal-to-biomass, and dedicated biomass for combined heat and power projects.
To address short-term capacity issues, this month National Grid announced demand-side balancing reserve measures that will ensure that the risk of disruption remains at very low levels. Energy efficiency is also a key part of energy security, and in June we announced new energy efficiency funding worth £540 million over three years, including boosting cash-back offers under the green deal.
Kerry McCarthy
At Copenhagen, world leaders made commitments to the creation of a green climate fund and to mobilising $100 billion a year of climate finance by 2020. However, it is not clear how much progress has been made in securing this funding, and developing countries have said that they cannot set their emission targets until they know. Will the Minister please tell us what is going on?
Mr Davey
That is a very important question. We are one of the world leaders in promoting international climate finance, and we very much support this fund. It has taken a while to get together to finalise the arrangements. Some real progress has been made in recent weeks, at long last. We hope that countries will start pledging to the fund at United Nations Secretary-General Ban Ki-moon’s summit in November or at the UN framework convention on climate change talks in Lima in December. It is also important that we have private climate finance. Only last week, the Minister of State, my right hon. Friend the Member for Bexhill and Battle (Gregory Barker), brought together many people to ensure that there is private money to help to get to the $100 billion target.
Oral Answers to Questions
Debate between Kerry McCarthy and Ed Davey(10 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Davey
I am grateful to my hon. Friend for raising that issue. I will certainly congratulate my officials in the Aberdeen office, who do tremendous work both for the oil and gas industry directly and in helping the supply chain. The industrial strategy that my right hon. Friend the Secretary of State for Business, Innovation and Skills and I published last year has made a big difference in saying to those in the oil and gas supply chain that we want them to contract with British fabricators and other British companies.
Finally, I pay tribute to my hon. Friend for leading the all-party group set up under the industrial strategy to create better communications with the supply chain and to make it clear to international companies that they should consider using British companies as part of their projects.
Kerry McCarthy (Bristol East) (Lab)
As a Bristol MP, I have had many e-mails over the past few weeks about the use of Government subsidies to support building power stations to burn trees, such as the Helius Energy power station in Avonmouth. Will the Minister give me his assessment of the environmental impact of burning trees for power?
Mr Davey
The hon. Lady raises the issue of biomass. We are, indeed, trying to promote biomass in this country, but we have made sure that there is a cap on new dedicated biomass. We want to focus on coal stations that are converting to biomass, because that will mean a much better carbon gain. We have also published the strictest sustainability criteria for biomass in the world. We believe that biomass has a role to play in the transition to a green economy, but we realise that we need to take account of sustainability concerns as well.
Energy Bills
Debate between Kerry McCarthy and Ed Davey
Mr Davey
I disagree with the hon. Gentleman’s analysis of the impact of the nuclear deal, and actually he is disagreeing with his own Front-Bench team, who welcomed the deal. We have said in the Energy Bill and I have said at the Dispatch Box that we will be transparent. When the final investment contract is signed, which we expect to happen halfway through next year, it will be published, making it the most open and transparent nuclear deal done by any Government in history, not just in this country but across the world. He ought to welcome that.
Kerry McCarthy (Bristol East) (Lab)
My constituents will take two things away from today’s statement. One is that they will still be paying much more for their fuel this winter, and the other is that the big six energy companies, despite a 75% rise in profits last year, will still be making more money. Why does the Secretary of State expect my constituents to share the pain, but the energy companies not to share the gain?
Mr Davey
I am afraid that the hon. Lady is mixing up two things. Today, following our detailed review of Government policy costs, we can announce that on average households will see their bills fall by £50, which she ought to welcome. Our policy for the big six and other energy companies is to have fierce, robust competition. One of the best ways to ensure that energy bills come down is to enable people in the retail markets to switch and to ensure that the big six face real competition in the generating market. It is competition that will push bills down in the long term.
Oral Answers to Questions
Debate between Kerry McCarthy and Ed Davey
Kerry McCarthy (Bristol East) (Lab)
This morning, six Greenpeace activists are scaling the Shard in what has been dubbed the “ice climb”. Does the Minister think that drilling for oil in the Arctic is an essential part of meeting our future energy needs? Or does he think that, given the huge environmental concerns about drilling there, it is a price that is too high to pay?
Mr Davey
The hon. Lady will know that the six nations that make up the Arctic Council and own the land have sovereignty there—the UK is not one of them. She will know that the Select Committee produced a report on this issue—I believe that was last year—and we responded to it. We want to be part of those discussions to ensure that if anything happens, it is done in the most environmentally friendly way possible.
Hinkley Point
Debate between Kerry McCarthy and Ed Davey
Mr Davey
May I correct my hon. Friend? This year, 69% of my Department’s budget is being spent on decommissioning past nuclear power stations. That is why I, probably more than anyone else in the House, am determined that we do not make the mistakes of the past. Any strike price negotiated will take into account the costs of decommissioning and of waste disposal. It is absolutely critical that when we agree a deal with EDF or any future nuclear operator, it must do the clean-up and the decommissioning. That must be part of the agreement. The costs must be integrated, not left alone as they have been in the past.
Kerry McCarthy (Bristol East) (Lab)
I, too, visited Hinkley Point a year or so ago in response to concerns raised with me in Bristol, mostly about safety, which I accept is a separate process, but also about the impact on biodiversity and marine life in the area. When is the marine licence likely to be granted, and is anything specific holding it up?
Mr Davey
I am grateful for the hon. Lady’s question. When she reads the decision letter, she will notice that the panel and I have spent some time on those issues. Section 4 of the decision letter discusses the habitats regulations assessment, and section 5 considers the environmental impact assessment. She is right that a regulation approval from the Marine Management Organisation is outstanding, but she will also understand that it is an independent regulatory body. I believe and am told that its examination of the issue is well under way, but I cannot hold the MMO to a timetable.
Oral Answers to Questions
Debate between Kerry McCarthy and Ed Davey(11 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Davey
Only just last week we hosted, here in London, a meeting of EU member states which either have nuclear power or want to invest in it. We are working with them, not just looking for opportunities for new finance and so forth, but trying to ensure, together, that the EU understands the case for investment in low-carbon energy sources such as nuclear power.
Kerry McCarthy (Bristol East) (Lab)
In their response to the Environment Audit Committee’s report “Protecting the Arctic”, the Government said that oil drilling would be necessary in the Arctic to preserve domestic energy security and meet global demand. That was based on projections in the 2011 World Energy Outlook report. However, the 2012 report shows that projected demand can be met entirely by production from already discovered fields. Will the Government be reviewing their position in the light of that?
Oral Answers to Questions
Debate between Kerry McCarthy and Ed Davey
Mr Davey
Let me also pay tribute to the work that my hon. Friend has done for his constituents, who I know are concerned about shale gas. I can reassure him that the regulations that we already have in the United Kingdom are much stronger than those in many American states where fracking for gas has been taking place for many years. We have the regulations, controls and powers of the Environment Agency, the regulations, controls and powers of the Health and Safety Executive and the regulations, controls and powers of my own Department, so we already have a strong regulatory regime. However, if the exploration suggests that there is potential for commercial development and we move in that direction, we will keep that regime under review, and will tighten and strengthen it if necessary. Today’s announcement is about new controls to ensure that seismicity is not a problem.
Kerry McCarthy
I welcome the Secretary of State’s reassurance that environmental and safety concerns will be given a high priority, but some people fear that those whom the press have dubbed the frackheads in the Government are rushing ahead with tax incentives for shale gas exploration without taking the time to look into those concerns first. Can the right hon. Gentleman reassure me that no tax incentives will be introduced until we are 100% sure that it is safe to go ahead with fracking in this country?
Mr Davey
I do not think that anyone has described me as a frackhead. My job is to make certain that the environmental and safety controls are there, and I believe that the work that we have done, particularly on the seismicity aspect but also on other aspects, can reassure the public in that regard. I am determined to ensure that the environment is properly protected, and as Members will see if they read my statement, I have also commissioned a study of the potential impact of shale gas exploration on greenhouse gas emissions. I hope that that will reassure people on the environmental side as well.
Kerry McCarthy (Bristol East) (Lab)
Last week I met representatives from Bristol port to hear their concerns that the Severn barrage might be back on the political agenda, and the possible impact of that on their business. Will the Secretary of State tell me to what extent that issue, in particular the proposal from Wales, is being actively discussed in the Department? Is it on the political agenda again?
Mr Davey
As the hon. Lady will know, a study was done on that early in the coalition Government. It was decided that although the Government would not take the matter forward, if a private consortium wanted to put forward proposals, we would study them. At the moment we have not seen proposals that we could back with any financial regime, whether renewables obligation certificates, contracts for difference or anything similar. I know that people are looking at the issue, but as yet the Government have not taken a decision to support any particular project.
Oral Answers to Questions
Debate between Kerry McCarthy and Ed Davey(13 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Davey
I think the hon. Gentleman is referring to press reports of the speech by my right hon. Friend the Secretary of State to the GMB. I am afraid that if he reads that speech he will see that my right hon. Friend repeated the Government’s line, which has been the case since we were elected, that we wish to engage positively with trade unions. That engagement is paying dividends.
Kerry McCarthy (Bristol East) (Lab)
Does the Minister accept that it is counter-productive to create the impression that things such as maternity rights, employment protection, the minimum wage and health and safety laws are burdens on business and not essential to ensuring that companies operate in the best interests not just of their balance sheet but of their workers?
Mr Davey
I refer the hon. Lady to the consultation that we published just last month on modern workplaces. We wish to reform maternity and paternity law, which we believe will be a win-win for employees and employers. It will produce better rights for families than the previous Government provided, and provide more flexibility for employees and employers so that they can have adult conversations about how such leave should be taken.