Oral Answers to Questions

Simon Hughes Excerpts

Thursday 1st November 2012 Commons Chamber

[Mr Speaker]

Order. May I encourage Members to look closely at the question on the Order Paper, and to frame their supplementary questions accordingly?

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

4. What his policy is on subsidising new nuclear power stations; and if he will make a statement.

[The Minister of State, Department of Energy and Climate Change (Mr John Hayes)]

What a pleasure it is to answer energy questions for the first time, and to do so with the wind in my sails!

New nuclear power will have a vital role to play in our energy mix, alongside other low-carbon forms of generation. It must be delivered to provide value for money for consumers, and funded through the investment that will spring from our exciting market reforms.

[Simon Hughes]

May I seek absolute clarity? Given that the Liberal Democrats oppose a new generation of nuclear power stations, and given that the coalition deal was done only on the basis that there would be no public subsidy for any nuclear power, may I have an express assurance that the construction and operation of every nuclear power station in the future will receive no Government subsidy at all? Can that be made absolutely clear, so that Hitachi understands it and everyone else understands it too?

[Mr Hayes]

Let me be crystal clear, because the right hon. Gentleman is right to inquire about this. There will be no levy, no direct payment and no market support for electricity supplied or capacity provided by a private sector new nuclear operator unless similar support is provided more widely for other types of generation. I could not be clearer than that.

--- Later in debate ---

[Mr Davey]

I am grateful for the hon. Gentleman’s question. He will know that we have made it clear that new nuclear investors need to be responsible for the decommissioning costs and disposal of their waste. That is part of the deal—they must meet those financial obligations. In addition, as I said earlier to my hon. Friend the Member for Westmorland and Lonsdale (Tim Farron), we are working with a number of communities, particularly in west Cumbria, on a geological disposal facility.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

T4. Just over the bridge at the Elephant and Castle, a major regeneration scheme is under way. When the Liberal Democrats ran the council, we proposed that the scheme should have an energy centre whereby the community could generate its own energy as well as keep prices as low as possible. Will the Government commit to supporting such community initiatives, to make sure that we get the best deal in our communities, led by our communities?

[Mr Davey]

I could not agree more with my right hon. Friend, who has championed community energy for many years. As Secretary of State, I am determined that we promote even more ambitious polices. We will introduce a community energy strategy in the spring. We have already made a number of announcements to encourage community groups and democratic local authorities to support these types of schemes.