Lord Barker of Battle
Main Page: Lord Barker of Battle (Conservative - Life peer)(13 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Karl Turner (Kingston upon Hull East) (Lab)
5. What recent discussions he has had with ministerial colleagues on attracting private sector investment into low-carbon technologies.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
Ministers in DECC have regular discussions with ministerial colleagues right across the coalition on new ways in which Government can attract private sector investment in low-carbon technologies. This includes discussions on the potential form and functions of Europe’s first green investment bank as part of the coalition Government’s comprehensive commitment to an ambitious green growth agenda.
Karl Turner
I am sure that the Minister will join me in congratulating the previous Labour Government on the work that they did to encourage E.ON and Siemens to invest in my constituency. Will he ensure that the Government continue that support and build on Labour’s success?
Gregory Barker
We are determined to transform the level of green growth in this country, and certainly on the level that we inherited from the last Labour Government. It is instructive that in the offshore wind industry, 80% of those huge installations, on average, were contracted and manufactured abroad under Labour. That has to change; we need the investment and supply chain here in Great Britain.
Tony Baldry (Banbury) (Con)
Will Ministers make time in their diaries to visit the Bicester eco-town project, which is a private sector-led initiative intended to be an international exemplar of how to build large-scale, low or no-carbon housing and develop large numbers of green-collar jobs?
Gregory Barker
That is a real recommendation coming from my hon. Friend, who has considerable expertise and a long-standing interest in these matters. The place he mentions sounds extremely interesting, and I hope that perhaps one day he will think of proffering an invitation to me to come and visit.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
We heard from the Secretary of State about speeding the transition to the low-carbon economy, and his Minister has reiterated the Government’s commitment. If we were to measure the Secretary of State’s success by headlines, as I am sure he is often keen to do, then we, like him, would say “A good job done.” However, we judge on actions, not words, and we have seen nothing but confusion, dither and indecision. There is no detail on the renewable heat incentive, and change is afoot on feed-in tariffs and the green investment bank. Today we hear again that there will be discussions on the green investment bank, but when will the Minister decide on it, or is the Department simply being hobbled by the Treasury?
Gregory Barker
It really is a bit rich to have lessons on banking from Labour Members, who brought the British banking sector to the very brink of ruin and the country’s finances into utter disaster. Their handling of the City was utterly catastrophic. We will bring forward, in good time, a robust new institution that will be a key part of the financial architecture of green growth, and we will take no lectures on any of this from Labour.
Meg Hillier
Well, all sound and fury signifying, so far, nothing. Let us be clear: there is talk about the new green investment bank, but no new money, and no detail, and different dates for when we will hear about it. Why? Because the announcement was made by the Secretary of State at the time of the comprehensive spending review without a deal having been pinned down with the Treasury. We are still waiting. When will we have the detail on the green investment bank and when will businesses get the certainty about investment that they need for green growth?
Gregory Barker
I tell you what—it will not take us 13 years to come up with a plan for a green investment bank. It was this Chancellor of the Exchequer who announced plans for a green investment bank, this coalition that is working on plans for it and this coalition that will bring it forward. The hon. Lady will just have to contain her excitement. She would do better to dwell on the Opposition’s abysmal record on green investment, instead of asking fatuous questions from the Dispatch Box.
Mr John Baron (Basildon and Billericay) (Con)
6. What plans he has for the inclusion of provisions on cheapest tariff information in the forthcoming Energy Bill.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
We are taking powers in the Energy Bill to require energy suppliers to provide their domestic customers with clear information about their lowest tariff. Initially, we are seeking the suppliers’ agreement to provide that information voluntarily. However, if there is no satisfactory agreement to do so by the end of the summer, we will use this power.
Mr Baron
The Minister will recognise the importance of this issue, given the recent price increases and the confusion caused by the hundreds of different tariffs. He will be aware that I submitted detailed proposals about how cheapest tariff information could be displayed on domestic bills, in consultation with the consumer magazine Which?. Will he meet me to discuss this issue further?
Gregory Barker
My hon. Friend is one of the House’s leading experts on this issue. It is complex and the answers are not easy. He has submitted information to my Department, which has been extremely valuable. We are determined to get this right and I would be delighted to meet him in the Department.
Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)
We welcome the Government’s proposals requiring energy suppliers to display the cheapest tariff information on their bills. It is a positive first step, but more needs to be done to ensure that consumers get a fair deal from their energy companies. Given that the Government are scrapping the energy watchdog Consumer Focus, which last year uncovered that one energy supplier had overcharged about 1.8 million customers, it is fair to say that the Government have a lot of work to do to be considered a champion of the consumer.
Will the Minister commit to going further? Will he examine what can be done to help vulnerable households that pay a poverty premium because they cannot access cheaper payment methods such as direct debit or because they use a pre-payment meter, to ensure that they get the best deal possible from their energy supplier?
Gregory Barker
The hon. Lady makes some valid points in a sensible way. She is right to say that we need to do a lot more to help the poorest. There is a debate about rising block tariffs, but they, too, can have perverse consequences. We are determined to simplify the tariffs system, and I would like to do that on the basis of consensus. If she would like to contribute to the thinking, I invite her to meet me and share her ideas.
David T. C. Davies (Monmouth) (Con)
8. What progress he has made on the feed-in tariff review; and if he will make a statement.
Neil Parish (Tiverton and Honiton) (Con)
14. What recent progress he has made on the feed-in tariff review; and if he will make a statement.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
The first comprehensive evidence-based review of the feed-in tariff scheme has started. It will consider all aspects of the scheme, but we will fast-track consideration of large-scale solar projects with a capacity of more than 50 kW and farm-scale anaerobic digestion projects. Above all, we want to provide a sustainable platform for ambitious growth across the range of renewable technologies, and to work collaboratively with industry to achieve that.
David T. C. Davies
I welcome the Minister’s answer. Will he assure the House that the review will ensure that there are no perverse incentives to build smaller schemes operating at a higher capacity? If he has time in his ministerial diary, he is welcome to visit Monmouthshire, where we have three excellent hydroelectric schemes up and running.
Gregory Barker
My hon. Friend makes a good point. The scheme that we inherited from the previous Government was in danger of offering perverse incentives, particularly for micro-hydro. We will use the opportunity of the comprehensive review to iron out those incentives and get the scheme absolutely right. We are keen to see an expansion of hydro, which is a great renewable source. I will certainly look to see whether I can visit my hon. Friend.
Neil Parish
I very much welcome the Minister’s comments on anaerobic digestion, because I think we can get a great deal more of it. Can he assure us that feed-in tariffs will be set at a fair rate? As we push up energy prices to the consumer, we push more people into fuel poverty. When he tapers the tariffs, will he ensure that hospitals and schools get a fair crack of the whip?
Gregory Barker
My hon. Friend makes some excellent points. We will endeavour to ensure that we are very fair in the review, and we certainly want to sustain investment in renewables in schools, hospitals and other community projects that fall above the 40 kW review level. We also need to ensure that we get value for money for consumers and that we do not offer what Labour did—an open cheque book approach to the industry.[Official Report, 1 March 2011, Vol. 524, c. 1MC.]
Dr Alan Whitehead (Southampton, Test) (Lab)
When the Secretary of State made his announcement about the feed-in tariff review on Monday, he included in it the fact that anything over 50 kW would be regarded as large photovoltaic solar, but everybody knows that anything marginally above 50 kW is not large. The effect of the review will be to eliminate a large number of schools, hospitals and other facilities from the feed-in tariff. Does the Minister accept that a mistake has been made in that calibration, and is he prepared to go back and reconsider the number to ensure that the right figure is put in place?
Gregory Barker
I think the hon. Gentleman is unduly concerned. The 50 kW level simply refers to the current legislative definition of microgeneration. It is not our intention to place draconian limits on those above 50 kW, particularly in relation to the school and hospital schemes that he mentions. However, there is a real problem with large solar fields, and that is our primary focus. Going for 50 kW allows us to settle the matter discreetly, quickly and before the summer recess.
Clive Efford (Eltham) (Lab)
Because of the confusion that the 50 kW limit has caused, should not the review be completed swiftly so that community organisations know where they stand?
Gregory Barker
The hon. Gentleman is absolutely right, and that is why we are moving very quickly indeed and expect to publish the consultation in March. There is no reason for anyone involved in the community schemes that he advocates to be unduly concerned. We are very lucky that capital costs, installation costs and financing costs have all fallen quickly, and we must ensure that the taxpayer gets good value for money.
Mr Peter Lilley (Hitchin and Harpenden) (Con)
Does my hon. Friend see any inconsistency between the position of the Secretary of State, who earlier claimed that the Government were doing their best to keep oil and energy prices down, and his support for a tariff that, according to his own costings, means that energy costs 20 times as much as when it comes from conventional sources? Will his review consider the experience of the Dutch Government, who have just scrapped a similar scheme, the German Government, who have limited entry to their scheme, and the Spanish Government, who have nearly been bankrupted by theirs?
Gregory Barker
I think I can reassure my right hon. Friend that his concerns are misplaced, and that the ministerial team is absolutely united in supporting an ambitious roll-out of renewables. The current feed-in tariff scheme for microgeneration would add something like £8 to the total energy bill of the average household by 2030, which means that it is not getting out of control in any way, shape or form. However, we have to be prudent.
Huw Irranca-Davies (Ogmore) (Lab)
Labour’s feed-in tariffs have created thousands of green jobs and real growth in the nascent microgeneration power sector, which now hang in the balance because of the Government’s panicked response to the narrow issue of solar parks. They are bringing forward an early review that throws the healthy baby out with the bathwater, jeopardising schemes for community housing, hospitals and schools. When the Secretary of State stood on the doorstep of Sharp in Wrexham a fortnight ago and announced the potential for 300 new jobs in British solar photovoltaics manufacturing, had he already made the decision to cut the legs away from under the emerging solar manufacturing and installation industry? Did he tell the managing director and the work force?
Gregory Barker
We know that the Labour party is a party of deficit deniers, who are in denial about their record. They are obviously also in denial about the potential costs of unchecked solar. We want to create a sustainable framework for long-term investment that is good for the industry. That is why we are fast-tracking the review and will improve the imperfect system that we inherited from Labour to make a much safer and securer platform for long-term green growth.
Mr Speaker
Order. We really must speed up. There is a lot to get through, and I want to serve the interests of Back-Bench Members who want to ask their questions.
Jason McCartney (Colne Valley) (Con)
10. What recent assessment he has made of the effectiveness of the feed-in tariff payments system for electricity generated by domestic solar panels.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
We want to drive forward deployment of decentralised renewables, and we are very pleased with the growth to date of solar photovoltaics supported by feed-in tariffs. However, we believe that the system can be improved and placed on a more secure and sustainable financial footing, which will be to the long-term benefit of consumers, industry and investors.
Jason McCartney
One of my constituents has contacted me because he has waited for up to three months for payments for electricity generated by domestic solar panels. Does the Minister agree that the public body that hands out those payments should speed them up?
Gregory Barker
I would be happy to look into that case, but obviously, the energy supplier and not Ofgem, the regulator, is responsible for dishing out those payments, which should be made quarterly. If my hon. Friend is aware of longer delays in Colne Valley—he is a doughty champion for his constituents—I will be happy to look into those specific cases on his behalf.
Mr Mike Weir (Angus) (SNP)
Is the Minister aware of the concerns in Scotland that the take-up of domestic solar panels through the feed-in tariff has been hampered by the unsatisfactory nature of the microgeneration certification scheme? Will he or his officials meet installers’ representatives to discuss why the Department refuses even to engage with their proposals for a scheme to meet specific Scottish needs?
Gregory Barker
I am aware of considerable unease about the MCS, which was set up by the previous Government. A number of complaints have been made to the Department, and I take them extremely seriously. I would be happy to look at the issues that the hon. Gentleman raises.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
15. What the net contribution of wind-powered electricity generation to energy supply was in the final quarter of 2010.
Dr Thérèse Coffey (Suffolk Coastal) (Con)
20. What recent steps he has taken to facilitate direct passage of the gas generated from anaerobic digestion into the national transmission system.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
The coalition is committed to a huge increase in energy from anaerobic digestion. In addition to reviewing tariffs, we are simplifying the regulatory regime for operators of AD installations. The Health and Safety Executive has been asked to assess the quality of gas that can safely be injected into the grid, and Ofgem is consulting on what measures are required to overcome barriers to biomethane injection into the gas grid.
Dr Coffey
I thank the Minister for that answer. Would he be kind enough to meet with me to discuss the case of Adnams Biogas in my constituency? Adnams Biogas was set up by Bio Group and was the first to take methane and put it straight into the grid system. National Grid is happy with that, but Ofgem now seems to have a big issue with it. It seems ridiculous that we should have to add fossil fuel gases to natural gases in order to be greener.
Gregory Barker
My hon. Friend can rightly be proud of the Adnams facility in her constituency, and she is particularly well placed to understand its potential as she has a PhD in chemistry. I would be happy to meet her to discuss how we can make it easier for more companies to connect, because we are talking about a very important technology.
Mr Philip Hollobone (Kettering) (Con)
T1. If he will make a statement on his departmental responsibilities.
Robert Halfon (Harlow) (Con)
T5. Is the Minister aware of ECCO, a not-for-profit co-operative in Harlow that recycles textiles and batteries? Will he visit ECCO with me to see this important example of the big society, and to see whether such a contribution to recycling could be rolled out across the country?
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
It is important to take a holistic approach to these green and sustainability questions. My hon. Friend is a fantastic champion of the big society in Harlow, and I would be delighted to go there with him to see what is being achieved there.
Lilian Greenwood (Nottingham South) (Lab)
As the Minister knows, the Meadows neighbourhood in Nottingham South is striving to become a low-carbon community. The three local primary schools, the community gardens and 55 local families are now benefiting from the feed-in tariff through their community-owned energy company, MOZES. Can he guarantee that his review of the feed-in tariff will not endanger its continued success?
Gregory Barker
I am delighted to answer this question, not least because I had the privilege of going to the Meadows last autumn and was very impressed with what I saw there. I can absolutely confirm that there is nothing retrospective about the feed-in tariff review. Any community, group or individual claiming the tariff will see no change in their tariff.
Stephen Mosley (City of Chester) (Con)
T6. Has my hon. Friend had any discussions on the future of the treaty of Almelo, particularly in relation to modifying it to allow British and European companies to take full advantage of the opportunities offered by China’s expanding programme of civil nuclear power?
Claire Perry (Devizes) (Con)
T7. Farmers in my Devizes constituency really welcome the inclusion of anaerobic digestion in the overall tariff and review currently taking place. That is long overdue, and an important way of reducing emissions and cutting waste from the farming industry. However, communities living close to existing or proposed sites are expressing real concerns about the possible impacts—an increase in traffic, unpleasant odours and so forth. What can be done to reassure communities and farmers that those things can co-exist in the countryside?
Gregory Barker
Obviously, the Environment Agency will continue to have oversight of such matters, but the brilliance of farm-based anaerobic digestion is that it is an on-farm solution, so it should diminish the number of road journeys that need to be made. As my hon. Friend the Energy Minister said earlier, at the heart of our proposals for an ambitious roll-out of renewables is the idea of community consent. We want a bottom-up approach, in which everyone has a chance to participate and be incentivised, rather than have things imposed from the top.
Richard Graham (Gloucester) (Con)
T9. Solar power offers a great opportunity to reduce both our carbon footprint and our household costs. Will the Minister say what his Department is doing to encourage its use in cities such as mine of Gloucester?
Gregory Barker
We recently launched “Community Energy Online”, which demonstrates to communities and local authorities the easy steps that can be taken to benefit from the range of schemes and initiatives that DECC has already launched and will launch in the future. I encourage people to look at this online initiative, which is easy to access. If my hon. Friend has any feedback about it, I would be delighted to hear it.
Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)
How does the Secretary of State intend to help the chemical and steel industries and other manufacturers of energy-intensive products, which will be less able to compete globally or even within the EU in response to his proposals for electricity market reforms and CO2 floor prices?
Sarah Newton (Truro and Falmouth) (Con)
I welcome the Minister’s recent meetings with private sector organisations in Cornwall that are working on deep geothermal and marine energy. Can the Secretary of State confirm that both those exciting technologies will be included in the review of the banding regime for renewables obligation certificates?
Gregory Barker
I am grateful for my hon. Friend’s ongoing enthusiasm and determination to fight for geothermal energy. She has made some excellent points. The ROCs banding review will examine those issues and others to ensure that the right incentives are there to drive forward the whole green economy.
Nia Griffith (Llanelli) (Lab)
May I return the Secretary of State to the question from my hon. Friend the Member for Middlesbrough South and East Cleveland (Tom Blenkinsop)? Will he agree to meet a delegation from the all-party parliamentary group for the steel and metal-related industry to discuss the effects of the carbon floor pricing proposals on high energy users such as the steel and ceramics industries?
Laura Sandys (South Thanet) (Con)
Is the Department still considering the marine energy parks project, which was proposed before the election? What is its perspective on opportunities for the marine energy sector?
Gregory Barker
We think that there is huge potential for growth in the sector, which now needs to be gripped and driven forward. There has been about a decade of talking about the issue, but no real growth. I was delighted to go to the south-west to convene the new marine energy programme board and to announce that the south-west would host the first marine energy park, consisting of a cluster of marine energy firms. I hope that that will be replicated all round the coast of Great Britain.
Albert Owen (Ynys Môn) (Lab)
Much of the new low-carbon capacity plan will require either enhanced or new transmission lines. Will the Department encourage National Grid to consider installing underground and submarine cables as well as enhancing existing pylons?