Electricity

Nigel Evans Excerpts

Monday 15th June 2020 Commons Chamber

[Kwasi Kwarteng]

In regard to climate change, my right hon. Friend will know that one of the big issues, or successes, that we have had in decarbonising electricity power generation has been through taking coal off the grid and having renewables. All the assessments that we have had and looked at show that an increase in interconnector capacity is part of that mix, just as nuclear is part of the mix, just as offshore wind and now onshore wind— the pot one auction—are part of the mix. All these things are part of the decarbonisation story of our power, and this is very important to us, which is why we have increased—or seek to increase—our interconnector capacity.

[Mr Deputy Speaker (Mr Nigel Evans)]

Has the Minister finished?

[Kwasi Kwarteng]

I was just anticipating further interventions. I will try to make some progress if I may. I want to turn in particular to the temporary modifications that the draft instrument seeks to make in recognition of the fact that coronavirus has made a big impact—a negative impact in some cases—on the ability of capacity providers to meet some of their obligations under the capacity market rules. The approach we are taking, in making temporary easements, is similar to that adopted to support capacity providers during the capacity market’s standstill last year, and these measures are fully accounted for in the draft legislation. As the disruptive effects of coronavirus may lead to more capacity providers facing termination of their agreements, this draft instrument will increase the time for capacity providers to appeal against notices to terminate their agreements to the Secretary of State. The legislation will also provide the Secretary of State with discretion to extend the time for capacity providers to comply with requirements in order to avoid a termination.

In conclusion, this draft instrument will ensure security of electricity supply by ensuring that the capacity market continues to comply with its state aid approval and by reducing burdens on capacity providers during the coronavirus pandemic. Furthermore, we fully believe that these changes will maintain absolute integrity and confidence in the market. On that basis, I commend the draft regulations to the House.