Oral Answers to Questions

Lord Lilley Excerpts

Thursday 14th July 2016 Commons Chamber

[Andrea Leadsom]

In my view, leaving the EU will not make a difference to the innate cost of energy or the challenges for the energy sector. Most of our transactions for electricity generation are home-grown. There is a global market for gas. We have very good connections with European and non-European countries on interconnection, and we will continue to make commercial arrangements that are to the advantage of both the UK and those partners in energy.

[Mr Peter Lilley (Hitchin and Harpenden) (Con)]

I congratulate my hon. Friend on her ability to do the work of four Ministers with such panache. She will know that normally economists disagree about everything, but one of the few things they are agreed about is that the best way to achieve an objective such as that set by the Climate Change Act 2008 is through a price mechanism. However, if subordinate targets are set, that inevitably means a less efficient and more costly route. When we leave the EU, will we therefore be able to scrap unnecessary targets while maintaining that final target, and thereby reduce the cost to consumers of reducing emissions by 80% by 2050?

[Andrea Leadsom]

My right hon. Friend is right to point out the importance of keeping costs down while we decarbonise. The Department has always made it clear that every opportunity to decarbonise at the lowest cost to consumers will be taken. It is my view that leaving the EU will enable us to do that to an even greater extent than we have in the past.