Oral Answers to Questions

Philip Hollobone Excerpts

Thursday 16th September 2010 Commons Chamber

[Julian Sturdy (York Outer) (Con)]

12. What progress he has made on bringing forward proposals for reform of energy markets to improve security of supply.

[Mr Philip Hollobone (Kettering) (Con)]

15. What progress he has made on bringing forward proposals for reform of energy markets to improve security of supply.

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

I am delighted that there is so much recognition of the need to address our energy security. The Government have moved quickly to enhance our security of energy supply. We are developing a further package of measures to improve gas security. In the autumn we will be launching the most far-reaching reforms of the electricity market, which will look at the measures needed to secure investment in new capacity, and in July we introduced a new long-term regime for new grid connections.

--- Later in debate ---

[Charles Hendry]

My hon. Friend raises an issue that is extremely important not just for Yorkshire, but for the country as a whole. We have already had significant discussions with representatives of the Yorkshire business and energy communities, and we salute the work that they are doing to identify strategic infrastructure, particularly in respect of enhanced large pipelines, which enables us to take a cluster approach. That is absolutely one of the areas that we will be looking at carefully for that type of development.

[Mr Hollobone]

In recent years, for the first time in our nation’s history, we have become dependent on foreign fuel imports to generate enough electricity for our country. Will the Minister consider changing the capacity payment component of the electricity price to incentivise the use of indigenous fuels in power generation?

[Charles Hendry]

My hon. Friend has a great knowledge of these issues. We are looking at those sorts of solutions to the problems and challenges that we face. It is critical that we find long-term, robust approaches, but in that respect, it is also important to have a mix of energy solutions within the portfolio. Fuels from our own natural resources can contribute to, and greatly enhance, our energy security.