Oral Answers to Questions

Debate between Laura Sandys and Charles Hendry

Thursday 12th July 2012 Commons Chamber

[Laura Sandys (South Thanet) (Con)]

What assessment he has made of the likely level of future global oil and gas prices.

[The Minister of State, Department of Energy and Climate Change (Charles Hendry)]

DECC publishes low, central and high projections for long-term trends in world oil and gas prices. In 2011 prices, our central scenario is for oil to rise to $130 per barrel by 2030 and for gas to rise to a high of over 80p per therm in the middle of this decade, before falling back to settle at about 70p per therm.

[Laura Sandys]

Does the Minister see a time coming when we can decouple fossil fuel prices from low-carbon production prices?

[Charles Hendry]

We are already seeing some decoupling. We have seen a decoupling of the oil price from the gas price. We are expecting to see that gas will be an important source of generation in its own right, but that it will also have a very important future in providing back-up to renewable generation, which will inevitably be intermittent in most areas.

Oral Answers to Questions

Debate between Laura Sandys and Charles Hendry

Thursday 20th October 2011 Commons Chamber

[Laura Sandys (South Thanet) (Con)]

I want to return to consumers and their costs. Will the Minister urge Ofgem to reconsider the unit as a specification? What does “a unit” mean? Could we not look at cost per bulb hour, and other things that consumers understand? That will drive behaviour change as well.

[Charles Hendry]

Let me say in response to your comment, Mr Speaker, that I like to see myself as a source of endless renewable energy. As for the point that my hon. Friend has rightly made, clarity is indeed a real issue. People are confused because they simply do not know what the term “unit” might refer to. I hope that Ofgem and the industry will try to establish what more can be done to ensure that it is absolutely clear how much energy people are using.

Oral Answers to Questions

Debate between Laura Sandys and Charles Hendry

Thursday 24th March 2011 Commons Chamber

[Charles Hendry]

That is another important point. I have asked the OFT to complete the work quickly. I want to have its report by the autumn, so that we can learn any necessary lessons and make any necessary changes before next winter in order to protect customers who are off the grid.

[Laura Sandys]

I join my hon. Friends in commending the Chancellor of the Exchequer’s announcement yesterday. Many of my constituents will be very, very pleased about it. However, will the Department, during its investigation of the market, look into the discrepancies between pump prices across the country? I do not understand why the prices in my constituency are among the highest, and I am not sure that my constituents do either.

[Charles Hendry]

The investigation relates chiefly to the domestic oil and gas market, but if there is evidence of unfair and anti-competitive practices in relation to fuel prices on forecourts, I hope that my hon. Friend will write to the OFT, and I should be grateful if she copied me into the correspondence so that I can see the evidence for myself.

Oral Answers to Questions

Debate between Laura Sandys and Charles Hendry

Thursday 16th September 2010 Commons Chamber

[Charles Hendry]

My hon. Friend is absolutely right that we have to look at each proposed site, location by location. We have to be satisfied about the security and safety of each location, but there is no doubt that we have historically had low levels of gas storage compared with other European countries, and we are keen to address that as well as looking at issues such as long-term contracts and more pipeline interconnections, which all have an important part to play in this process.

[Laura Sandys]

Does Russia’s withdrawal from the energy charter treaty cause the Minister concern about the United Kingdom’s longer term energy security?

[Charles Hendry]

Ministers have to be much more engaged in this process than has historically been the case. We have to have Ministers who are prepared to go around the world to identify long-term contracts and to secure those agreements in the interests of our long-term energy security. We are keen to have a relationship with Russia that is active and business-based. We think Russia can enhance our security. We are also keen to work with other European countries to identify the pressure points and to find new routes to market, and we are actively engaging with our European counterparts to achieve that.