Energy Bill [Lords]

Debate between Pete Wishart and Andrea Leadsom

Ping Pong: House of Commons
Monday 9th May 2016 Commons Chamber

[The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)]

I beg to move, That this House disagrees with Lords amendment 7TB.

Here we are again to discuss this Bill, and in particular the delivery of our manifesto commitment to end new subsidies for onshore wind. The other place has seen fit yet again to try to overturn that manifesto commitment, and to seek to impose further costs on consumer bills, but this Chamber, and this Government, are determined not to put up with that. As I made clear on 20 April, the Government are intent on bringing forward the closure of the renewables obligation to new onshore wind in Great Britain. I therefore urge the House to support the Government’s motion to disagree with the Lords amendment.

The Government signalled their intent well before last May’s general election, so I will not repeat that evidence again. I remind the House, however, that even with cost control measures in place, our estimates show that we are on track to deliver 35% of the UK’s electricity from renewables in 2020-21, exceeding our stated ambition of 30%. That is up from 9% in 2011—quite an achievement—and we simply do not need more subsidised onshore wind. The costs for this established technology continue to fall, so it is right that we should scale back support and let the industry stand on its own two feet. The Government’s policy—a manifesto commitment—has now been agreed twice in this House, yet we now have an amendment from the other place that is similar to that previously rejected by this House, and relates to projects that did not have planning permission on 18 June last year.

[Pete Wishart (Perth and North Perthshire) (SNP)]

I am sure the Minister has seen the evidence because she will come before the Scottish Affairs Committee in the next couple of weeks, and we are currently undertaking a review and inquiry into the impact that this policy is having on the sector in Scotland. The evidence we have secured is dramatic and suggests that confidence has been sucked out of the sector. There is a lack of investment, no movement, and a sector that was growing, prospering, and delivering targets is now in real fear of being decimated by the Government’s policy. What does the Minister say to businesses in my constituency that are dependent on that sector, and whose legs have been pulled from under them?

[Andrea Leadsom]

How does the hon. Gentleman feel about the bill payers and those in fuel poverty? How does he feel about a clear commitment to achieving a certain level of renewables deployment and no further? There must be a balance, and we believe that the right balance has been struck.

The projects that this amendment would allow to access the grace period did not have planning permission as at 18 June last year. Allowing such projects to access the grace period would lead to an increase in deployment, adding more costs to consumer bills. The 18 June 2015 was set out as a clear bright line, and we have continued to maintain the importance of that as a clear cut-off date. Tampering with such an integral part of the early closure policy at such a late stage in the passage of the Bill is simply not on, and it is extremely disappointing that Opposition peers in the other place persist with an approach that will add to consumer bills. Conservative Members are on the side of the consumer. It is our duty as consumer champions to keep costs down, and that is what we will do.

Let us remember that this money comes directly from people’s bills. While Labour Members oppose measures to control costs for families and businesses and to keep bills down, we are clear that we can only expect bill payers to support low-carbon electricity if costs are controlled. If we do not take action and we let subsidies spiral, families and businesses will suffer.

The Government’s policy takes a balanced approach and we have a proven track record on renewable electricity. Last year for the first time ever, renewable sources provided more power over the year than coal, with nearly one quarter of the UK’s electricity generated by renewables. The Government remain committed to the move towards a low-carbon economy in a way that minimises costs to consumers.

This Bill is a key part of the Government’s commitment to the oil and gas industry on the UK continental shelf. At this very challenging time for the oil and gas sector, it is extremely disappointing that the persistent disagreement from the Lords on an unrelated issue is now risking timely implementation of these powers which enjoy the support of both Houses and are so crucial to the industry at this difficult time.