Energy Policy

Lord Marlesford Excerpts

Monday 25th June 2018 Lords Chamber

[Lord Henley]

My Lords, I totally reject what the noble Baroness, Lady Humphreys, says. It would be a slap in the face to go ahead with this project and impose costs on the Welsh consumer, in terms of the extra amount that they would have to pay for their electricity, and Welsh business. I think in particular of the Port Talbot steelworks and how much more it would have to pay for the vast amount of electricity that it uses. Having looked at the figures in front of them, it would be irresponsible of a Government to go ahead with this project.

[Lord Marlesford (Con)]

My Lords, I congratulate the Government on increasing the generating margin from 5% to 10% for cold winters. That genuinely makes us feel a lot safer. My noble friend the Minister mentioned Hinkley Point several times. It is interesting that, with the remarkable fall, the price of offshore wind is now 5.75p per kilowatt hour—a figure quoted by the Minister—compared with the strike price of nuclear energy from Hinkley Point, which is 9.4p per kilowatt hour, index linked for 35 years. Does he agree that it is very difficult to justify that 63% extra cost for nuclear power? Can I ask—I declare my interest because I live near it—when the Government are expecting to announce whether Sizewell C is going ahead?

[Lord Henley]

My Lords, I cannot assist my noble friend with announcements about Sizewell C—but, as always, I shall say “in due course”. My noble friend is right to point out the costs of nuclear; that decision has been made. What we are talking about here is a potential decision to generate electricity at three times that price at a time when the cost of, for example, offshore wind had come down so dramatically. That is why we had to make that decision, and why we have made it. It is possible that for other nuclear power, in due course, if more work is done in the world of modular nuclear power stations, the cost could come down. But we have made the decision on Hinkley, and have now made the decision not to go ahead with Swansea—but we will continue to look at all possible sources of energy to make sure that we have green energy and secure energy.