Energy Market Reform

Lord Barker of Battle Excerpts

Wednesday 24th October 2012 Commons Chamber

[Ian Swales (Redcar) (LD)]

I want to discuss the part of the motion that talks about

“allowing new businesses to enter the market”.

I would have used the word “encouraging” rather than “allowing”, but I support that section and the Government’s efforts in that direction. Last week, in Seoul, South Korea, a deal was signed by the Minister of State, Foreign and Commonwealth Office, my right hon. Friend the Member for East Devon (Mr Swire), the British ambassador to South Korea, and the chief executives of Korean South-East Power, Daewoo Securities and Eco-Frontier. The deal was signed with the UK company MGT Power to build a new 300 MW biomass power station at Teesport in my constituency, at an estimated cost of £500 million. The deal is being announced today, and the whole House should welcome the investment by ambitious Korean companies in the UK energy sector.

Last week, the House debated the Infrastructure (Financial Assistance) Bill. The support it provides will, no doubt, aid investment by new players, and it represents another move by this Government to encourage new projects. The measures were rightly supported by the whole House.

[The Minister of State, Department of Energy and Climate Change (Gregory Barker)]

May I just tell the House that I returned last night from Korea, having been there for the PRECOP—pre-conference of the parties—talks? I wish to pay tribute to my hon. Friend’s role, as the constituency Member of Parliament, in helping to attract some substantial and welcome investment.

[Ian Swales]

I thank the Minister for that approbation. Such investment is all good news, but to encourage new investors, especially green investors, we need clarity of policy, simplicity of policy and, above all, certainty of policy over the long term. Any arrangements made must be grandfathered over the period of a project. I wish to say a bit more about green investment, because one of the key features for investors is political risk. Gyrations in policy have seriously damaged the nascent biofuels industry in the past decade, and we must remember that policy can emerge independently in both Westminster and Brussels. Without giving too much encouragement to hon. Members sitting behind me, I believe that we must sometimes stop the change and the conflicting policies emerging from over the water—we are dealing with one such policy on biofuels right now.