Michael Meacher
Main Page: Michael Meacher (Labour - Oldham West and Royton)
Mr Davey
I strongly agree with my hon. Friend. I will make two points in response to his comments. First, 7% of Britain’s electricity needs will be secured when the two reactors are working at capacity, which is expected in 2025. That is a huge bonus for our long-term plans for energy security in this country, and something that was not happening before the coalition Government came to power. Secondly, on his point about the Liberal Democrats, our party changed its policy at our recent conference in Glasgow, and I will explain to the House why we did that. The reasons are similar to those that led me to change my view. Climate change is a huge challenge for our country and for the world. Some people believe that we can combat it simply by using renewables and energy efficiency, but I do not believe that we can. I believe that it is such a serious threat to our world that all forms of low-carbon electricity need to be used. I urge environmentalists in the House to reflect on that.
Mr Michael Meacher (Oldham West and Royton) (Lab)
The strike price of £89 per megawatt-hour is twice the current market rate and more than twice what the Department of Energy and Climate Change was confidently predicting just five years ago. If that were inflation proofed over the whole 35-year period, as the Secretary of State has said, will that not end up costing taxpayers more than £200 per megawatt-hour by the end of the period? What proportion of the loan guarantee for the debt to build two £14 billion reactors is also going to be backstopped by the British taxpayer? Will not the project end up as a colossal financial disaster for the UK taxpayer?
Mr Davey
I think the right hon. Gentleman has been saying that for a number of years. He was predicting a much higher strike price, but we have a very good strike price. Let us be clear to the House, because the issue is important. EDF and its co-investors will not receive a single pound, and consumers’ bills will not be touched, until the power stations start generating. The earliest expected time for that will be in 2023—10 years’ time. I have to say to the Labour party that the world will be very different in 10 years’ time, and future electricity and energy prices will be very different. I am pleased that Labour party Front Benchers have welcomed the proposal. Clearly, they support what we have done on prices, and people will have noticed.