Oral Answers to Questions

Mary Macleod Excerpts

Thursday 10th February 2011 Commons Chamber

[Mr Speaker]

Order. We really must speed up. There is a lot to get through, and I want to serve the interests of Back-Bench Members who want to ask their questions.

[Mary Macleod (Brentford and Isleworth) (Con)]

9. What assessment he has made of the potential effects of his proposed electricity market reforms on the ability of the UK to attract investment in low-carbon generation.

[The Minister of State, Department of Energy and Climate Change (Charles Hendry)]

We estimate that by 2020, the cumulative investment needed in electricity generation, transmission and distribution will be in excess of £100 billion. We believe that the policies set out in our consultation on electricity market reform will deliver this investment and the further investment needed to meet our longer-term targets, making the UK a prime location for low-carbon energy development.

[Mary Macleod]

I am delighted that the Department of Energy and Climate Change and the Treasury have joined forces to launch the electricity market reform project. How will those proposals build the necessary confidence to invest in low-carbon options over the long term and manage the transition period to ensure that stability is maintained?

[Charles Hendry]

My hon. Friend is absolutely right to pick up one crucial element of our reforms. We must remove uncertainty, because that is one of the biggest threats to investment. We therefore propose that the current regime run alongside the new regime for a period of years, giving people a choice of which system they work to. We believe that that deals with the transitional challenges.