Michael Fallon
Main Page: Michael Fallon (Conservative - Sevenoaks)(11 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Marcus Jones (Nuneaton) (Con)
4. What progress he has made on encouraging investment in new nuclear power.
The Minister of State, Department of Energy and Climate Change (Michael Fallon)
The Government are committed to securing the right conditions for investment in new nuclear power in the UK. This is the first nuclear programme in a generation and it is progressing well, with projects to build new power plants moving forward with EDF, Horizon Nuclear Power and NuGen. Between them, those projects involve plans to develop at least 12 new reactors on five different sites.
Mr Jones
My constituents are extremely concerned about future energy prices and continuity of supply. With one fifth of UK generating capacity due to come offline within the next decade, does the Minister agree that we need to bring forward this new nuclear capacity as a matter of extreme urgency?
Michael Fallon
Yes, I do. We are living with the legacy of 13 wasted years in which absolutely nothing was done to replace our ageing nuclear stations. Under this coalition Government plans are now progressing, as I said, and we have every prospect of 12 new reactors on five separate sites.
Simon Hughes (Bermondsey and Old Southwark) (LD)
The Minister will know that I am not a convert to nuclear power, but I accept that the coalition Government have done a deal that says there will be no nuclear power that has public subsidy—so public subsidy will not be provided. How is the Government’s position reconcilable with an application for derogation from the EU rules on state aid?
Michael Fallon
My right hon. Friend the Secretary of State’s predecessor set out to this House the circumstances in which support would be offered for the new nuclear technology we are negotiating on with EDF in respect of Hinkley C. When we conclude those negotiations—which I hope we will do very shortly—we will, of course, report the details of the investment contract to the House. I also note that the party of my right hon. Friend the Member for Bermondsey and Old Southwark (Simon Hughes) is now a supporter of nuclear power.
David Mowat (Warrington South) (Con)
The Minister may be aware that when Hinkley Point C comes onstream it will produce as much electricity in a year as every single onshore and offshore wind turbine we currently have. Given that, will he assure the House that there will not be a further 10-year delay in respect of future nuclear stations?
Michael Fallon
Nuclear power is a very important part of our energy mix and of our future energy security, which makes it all the more criminal that nothing was done for the long, long period of the Labour Government to replace the nuclear stations that are coming offline in the late 2020s and 2030s.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
5. What recent assessment he has made of the competitiveness of the UK energy market.
Neil Carmichael (Stroud) (Con)
9. What steps he is taking to promote competition in European energy markets.
The Minister of State, Department of Energy and Climate Change (Michael Fallon)
The Government strongly support a competitive and better connected energy market across Europe. Increased competition can put downward pressure on energy prices in the long term and help us maintain secure supplies. We are involved in a number of areas to drive competition, including the development of EU-wide market rules, regional infrastructure initiatives and cross-border projects, including more interconnectors.
Neil Carmichael
I thank my right hon. Friend for that expansive answer. Does the Minister agree that, in contrast to Labour’s energy price con, the Government’s focus on more competition through the single market by enhancing the role of energy within that market is right?
Michael Fallon
I absolutely agree with my hon. Friend, and I could not have put it better. I shall be pursuing these issues later this afternoon in Brussels in the Commission.
Dr Alan Whitehead (Southampton, Test) (Lab)
Why have the Government failed to include interconnection with Europe as part of the capacity payment arrangements that they recently announced as part of the DECC implementation programme?
Michael Fallon
We have not ruled that out for the second stage. A number of proposals have been put to us for new interconnectors, and we are looking at each of them.
Julie Elliott (Sunderland Central) (Lab)
As a result of weak competition and ineffective regulation, electricity prices in Britain—according to the Department’s own figures—are the sixth highest in the EU15, the third highest in the G7 and almost 20% above the EU15 and G7 average. The Minister will know that energy bills are the second biggest cost that businesses face, and that ever higher prices cost jobs and deter investment. Why will he not support Labour’s policy to stop unfair price rises by freezing energy bills until January 2017, saving the average business some £1,800, and reform the energy market to reintroduce competition and rebuild trust?
Michael Fallon
I welcome the hon. Lady to her new responsibilities. I think that the prices she quoted were pre-tax rather than post-tax, but the answer is simple—to bear down on prices, we need more competition. The Labour party left us with the big six. It started with 14 retailers; we ended up with the big six. The answer is more competition, easier switching and ensuring that the most vulnerable people are placed on the lowest possible tariff.
Mr Tobias Ellwood (Bournemouth East) (Con)
10. What assessment he has made of the adequacy of support for offshore and onshore wind energy.
Andrea Leadsom (South Northamptonshire) (Con)
12. What recent assessment he has made of the adequacy of government subsidy for onshore wind farms.
The Minister of State, Department of Energy and Climate Change (Michael Fallon)
Support for onshore and offshore wind projects is provided under the renewables obligation and, from next year, under contracts for difference. Support rates take account of the costs of each technology, and are intended to be sufficient to support delivery of our renewable energy and carbon reduction targets, while minimising costs to consumers.
Mr Ellwood
I am grateful for that reply. I hope that the Minister agrees with me that Bournemouth is one of the most attractive and popular seaside resorts in Britain. Whatever one’s views, tourism is important to the town and the area, but many of my constituents are concerned about the visual impact of the proposed offshore wind farm in Poole bay. There are many questions such as how many turbines will be built, the exact locations and how high they will be. I would be grateful for a meeting with the Minister to discuss this important matter.
Michael Fallon
I am very much aware of my hon. Friend’s strong concerns about the proposal. No application has been made, but let me assure him that the visual impact and acceptability of any installation is one of the factors that would be considered by the planning inspectorate and my right hon. Friend the Secretary of State in determining any application of this kind.
Andrea Leadsom
I am grateful to my right hon. Friend for his reply on the subject of subsidies, but given that the Secretary of State for Communities and Local Government has said that current planning applications give
“insufficient weight . . . to local environmental considerations like landscape, heritage and local amenity”,—[Official Report, 10 October 2013; Vol. 568, c. 31W]—
does he agree that the subsidies provided to developers need to take account of the very real local concerns about how these things are blighting the countryside?
Michael Fallon
We have reduced the support for onshore wind projects from April this year and the draft strike prices that we have set out are reduced over time up until 2018, but the new planning policy framework makes it clear that local authorities should have policies in place to ensure that any adverse impacts, including visual impacts and cumulative impacts, are addressed satisfactorily. My right hon. Friend the Secretary of State for Communities and Local Government has made it clear that he intends now to call in more applications at appeal to ensure that the new planning practice guidance is meeting the Government’s intentions.
Sir Alan Beith (Berwick-upon-Tweed) (LD)
May I advise the Minister that while the incentives are clearly proving sufficient to encourage a number of prominent local Conservatives to apply for wind farms to be built on land in Northumberland, what concerns many of my constituents is whether landscape, which the Minister mentioned, and proximity to residences can be taken properly into account at every stage in the planning process?
Michael Fallon
Yes. I want to reassure my right hon. Friend. Planning applications in respect of onshore wind should be approved only if the impacts are acceptable to the local community. The new planning guidance from the Department for Communities and Local Government helps to deliver the balance that we expect, ensuring that proper weight is given to the visual impact, the cumulative impact and any heritage implications for particular sites.
Andrew George (St Ives) (LD)
13. What progress his Department is making towards the UK’s carbon reduction targets.
The Minister of State, Department of Energy and Climate Change (Michael Fallon)
The Government want everybody to be able to access secure and affordable fuel supplies for heating their homes. This year’s “Buy oil early” campaign was launched on 11 September to encourage consumers to stock up early and join oil-buying groups, where cost savings can be found. I will continue to work through the all-party group and the ministerial roundtable on off-gas grid issues to see what further action is required.
Guy Opperman
I thank the Minister for that answer. Our concern should particularly be for vulnerable residents caught out by sudden spring cold snaps. Does he agree that there is scope for a pilot project in Northumberland in which a consortium of oil-buying clubs, parish councils and credit unions could be funded to assist such residents?
Michael Fallon
Yes; we very much welcome the development of local initiatives that can help promote a more affordable supply of heating oil to consumers. I look forward to seeing my hon. Friend’s final proposals for a pilot project in Northumberland and will then ask my officials to consider what support might be made available to assist him in taking it forward.
Michael Fabricant (Lichfield) (Con)
15. What assessment he has made of the potential effects of proposed EU anti-dumping tariffs applicable to solar PV cells manufactured in China; and if he will make a statement.
Andrew Bridgen (North West Leicestershire) (Con)
T7. In my constituency there are two major brick-manufacturing companies. As hon. Members will know, brick making is highly energy-intensive, and I am concerned that, without action, increased energy costs will make their product potentially unaffordable to the construction industry, which is getting on with the essential task of building the homes we desperately need. What is my right hon. Friend doing to address this urgent and pressing issue?
The Minister of State, Department of Energy and Climate Change (Michael Fallon)
I will certainly look at my hon. Friend’s specific points about the brick industry. We have an energy-intensive industries support scheme and are already making payments under it. We hope to conclude further payments by the end of this month. I will certainly see what can be done to help the brick-making industry and see whether it can be included in our measures.
Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)
T5. On the question asked by my right hon. Friend the Member for Don Valley (Caroline Flint) about British Gas price rises, will the Secretary of State explain how British Gas has increased its operating profit to nearly £1.6 billion, as announced in June 2013, and yet people around the country will now see their prices rise by 8% and 10%? How can that be fair to this country’s consumers? When will the Government get a grip on this and finally do something about it?
Nigel Adams (Selby and Ainsty) (Con)
T9. Given the importance that the Minister has placed on converting coal-fired power stations to biomass, including the plans for those in Drax and Eggborough in my constituency, and also in the light of National Grid’s winter outlook report, which states that capacity reserves could be as low as 5%, will he update the House on the progress of those two strategically important projects?
Michael Fallon
We recognise the importance of biomass projects such as those in my hon. Friend’s constituency. We included draft strike prices for biomass in the prices we published at the end of June and we expect to confirm them by the end of the year. We hope that between 1 GW and 4 GW of biomass will come onstream.
Julie Hilling (Bolton West) (Lab)
T8. The Minister previously promised me that he would discuss cold alarms with the energy suppliers and let me know their response, but he has not. With people choosing between heating and eating, and with prices ridiculously high, will he please now tell me what progress he has made on cold alarms, which will alert vulnerable people and their carers when temperatures become dangerously low and prevent more unnecessary deaths this winter?
Peter Aldous (Waveney) (Con)
Will the Minister confirm that he is continuing to work with industry to agree a long-term strategy for the offshore wind sector that will secure large-scale private investment and create thousands of jobs in my constituency and other coastal constituencies?
Michael Fallon
We have an offshore wind industrial strategy, which we published earlier this summer, and I look forward to taking it forward with the Offshore Wind Industry Council, which I co-chair. Offshore wind is part of the energy mix. We have put draft strike prices out for consultation, which has now closed, and we are analysing the responses. We expect to confirm the final strike prices for offshore wind by the end of the year.
Michael Connarty (Linlithgow and East Falkirk) (Lab)
A missive from Ineos Grangemouth, which supplies 80% of the fuel for Scotland and the north of England and accounts for 10% of the gross national product of Scotland, says that the plant is
“shut and will remain shut”.
I have kept all Ministers informed through the Secretary of State for Scotland, as well as those on the Opposition Front Bench. The Secretary of State for Energy and Climate Change said earlier that he wanted people to get back to ACAS. However, he has also made it clear that supplies will still get through to Scotland by other means. The company has prepared for this and the cold shutdown of the refinery and petrochemical plant has been done deliberately. It must be urged to start up the plant again and to take the knife from the throat of the workers and the gun from the head of the Scottish people.