New Nuclear Power
Debate between Martin Horwood and Thérèse Coffey(11 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Dr Coffey
I will not give way further on that matter. It would not surprise me if Germany is burning more coal and importing electricity from Poland in the short term.
I welcome the contracts for difference mechanism introduced by the Government. Such contracts will not be exclusive to nuclear but will include all the large-scale, low-carbon elements such as renewables and carbon capture and storage that we require for a reliable mix of energy supplies. I often refer to my constituency not simply as Suffolk Coastal but as the green coast. We have offshore wind at Greater Gabbard and at Galloper, and we will have the East Anglia offshore array. It has been suggested that those wind farms in my constituency could produce 8.2 GW for the country. If that is combined with Sizewell B and the proposed Sizewell C, it is possible that my little bit of Suffolk will generate about a quarter of the nation’s electricity needs. We are truly fizzing in that part of East Anglia.
Crucially, once the Government agree a strike price with the generator that is fair and sustainable, whatever the source of energy might be, the contract will provide stability for consumers and operators alike. The market price will be topped up when below the strike price, but when it is above that level—people do not think that that will happen, but I can see it happening—the generator will have to pay back the difference. The Library suggests that that two-way relationship is a “key advantage” of the Government’s policy. We should recognise that it means the Government can strike a fair deal that runs both ways.
The motion states that there is “new evidence” proving that CFDs amount to a subsidy, but the supposed exposés in the press in recent months are hollow claims. It has been suggested that the Government will secretly funnel money to operators, but they have been clear on their intention to publish the contracts, except where there is a need for commercially sensitive information to be kept private on a very narrow range of points. The Government do not negotiate in public when they are spending money in other areas, and we should not expect them to do so in this case.
Martin Horwood
Does the hon. Lady remember any other occasion on which the House was asked to agree to the Government committing up to £30 billion of taxpayers’ money without public scrutiny?
Dr Coffey
That figure has been mentioned several times, but I do not recognise it. My expectation is that the money is included within the Department of Energy and Climate Change budget or that it has been set aside by the Treasury. I am therefore not sure I agree with the hon. Gentleman’s point. The Government certainly do not get involve in commercial negotiations on similar matters.
Dr Coffey
I will make more progress, but I will give way to the hon. Gentleman if I have time later.
In my view, despite those claims, support for new nuclear is not about subsidy, but about stability. A stable and open regulatory regime is vital to unlocking the potential benefits that energy investment, and particularly nuclear, can bring.
The first-round consultation for Sizewell C closed yesterday in my constituency. If it goes ahead, it will be immensely important for the local economy. It is estimated that new nuclear projects such as Sizewell C could boost our gross domestic product by up to £5 billion and create more than 30,000 jobs. Those will be highly skilled, well paid and high-value jobs. For example, an electrician working in the nuclear industry can probably earn the best part of £40,000 to £50,000, if not £60,000. That is not too different from MPs’ salaries.