Energy: Long-term Supply

Lord Forsyth of Drumlean Excerpts

Thursday 17th October 2013 Lords Chamber

Asked by

[Lord Forsyth of Drumlean]

To ask Her Majesty’s Government what is their estimate of the investment required over the next decade to ensure a competitive and secure energy supply for the United Kingdom.

[The Parliamentary Under-Secretary of State, Department of Energy and Climate Change (Baroness Verma) (Con)]

My Lords, the Energy Bill is currently going through your Lordships’ House. I am very grateful to all noble Lords who have made detailed contributions to the proceedings thus far. The Bill will drive £110 billion-worth of investment that is required in our electricity market between now and 2020. Our investment will not only help provide the infrastructure we need but will bring real economic growth and help support as many as 250,000 jobs in the low-carbon electricity market by 2020.

[Lord Forsyth of Drumlean (Con)]

Will my noble friend confirm that government policy and regulation costs will add 22% to the average energy bill by 2020? Will she ensure that all the highly regressive and secret levies are exposed by requiring the energy companies to itemise them on household electricity bills?

[Baroness Verma]

My Lords, my noble friend is of course right to raise the greater transparency that energy companies need to demonstrate in showing where costs are. However, the main driver behind energy price rises has been wholesale energy costs. We want a secure energy market; we need a diverse mix. We also need to meet our legal obligations, which have been set through the Climate Change Act 2008 and our globally agreed targets. We are working hard to ensure that we press energy companies to be as transparent and as open as possible with what they are putting on their energy bills.