Energy Bill
Debate between Steve Brine and Tim Yeo
Mr Yeo
I frequently pass the time of day in the warmest possible terms with my right hon. Friend the Chancellor of the Exchequer when we are voting in the same Lobby, which from time to time we are.
Even the Government seek powers in the Bill as it stands to introduce a decarbonisation target, but for some reason they do not want to do so until 2016 at the earliest. The problem with the Saint Augustinian coyness and this promise of possible future chastity in the matter of greenhouse gas emissions—“but, please God, not just yet”—is that by 2016 many investment decisions will have been made. If these lock Britain into a high greenhouse gas emission future, they will either prevent us from meeting our climate change commitments or else will lead to the construction of fossil fuel generating capacity, which will subsequently have to be scrapped.
The year 2016 is also after the next general election. Delaying a decision until then creates another needless but harmful element of doubt about the Government’s true intentions. I therefore urge hon. Members on all sides of the House to support this amendment. Doing so will remove an element of uncertainty whose presence hampers investment, increases the risk of a capacity crisis and raises electricity prices unnecessarily. The amendment will not impose on the Government today any commitments that they do not already claim to embrace. Furthermore, it will not remove the need for even greater priority to be given to demand-side measures and to energy efficiency—issues that I wholly support. By itself, the amendment will not raise electricity prices in the next seven years by a single penny because the total sums spent on subsidising low-carbon electricity in the period up to 2020 has, as I have mentioned, already been capped by the levy control framework.
Steve Brine (Winchester) (Con)
I am listening to the things that the amendment will not do, but will my hon. Friend tell my constituents in Winchester and across the beautiful Hampshire downs what a decarbonised power sector will look like in my constituency and in many other constituencies by 2030?
Mr Yeo
That is quite a challenge because we cannot predict exactly which will be the most cost-effective technologies. I very much hope, incidentally, that we will move swiftly away from a situation in which the Government set the strike prices for contracts for difference on a centrally determined basis, and that they will allow different technologies to bid in an auction process so that we can be sure that we are getting the best value for money. It may well be that some technologies that we do not yet know about will offer better value than offshore wind farms, for example, which look to me as if they are going to be at the costly end of the spectrum. Even today, it is possible to see solar and an array of wind farms—I visited them in my constituency last Friday—operating. The farmer who showed me these with great pride—he was lucky enough to make his investment before the rates were cut a year and a half ago—pointed out that his sheep enjoyed sheltering under these panels and that there was some evidence to demonstrate increased productivity from the sheep as well as the generation of renewable power.
I think I have probably said enough about the Treasury’s floor price for carbon for the House to realise that I am not a supporter of it. I stress that we need to recognise that it is raising prices, adding to consumer and business bills and making British business less competitive relative to the rest of the EU, and it manages to do so in a way that does not cut carbon emissions by a single kilogram.
Without amendment 11, the Bill, whose early passage through Parliament is desperately needed for economic and security reasons as much as for environmental ones, will be needlessly weakened. I commend the amendment to the House.