Oral Answers to Questions

Steve Double Excerpts

Thursday 14th July 2016 Commons Chamber

The Secretary of State was asked—

[Steve Double (St Austell and Newquay) (Con)]

1. What assessment she has made of the potential contribution of deep geothermal as a source of renewable energy.

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

If you will allow me, Mr Speaker, may I take this opportunity to congratulate my right hon. Friend the Member for Hastings and Rye (Amber Rudd), the new Home Secretary, on her appointment, and also of course our new Prime Minister, the former Home Secretary? I wish them both great success. I also welcome the hon. Member for Brent North (Barry Gardiner) to his place; I think this is the first time we have had an exchange over the Dispatch Box. I wish the hon. Members for Wigan (Lisa Nandy) and for Southampton, Test (Dr Whitehead) very good luck in their futures, too; I have enjoyed our exchanges.

Owing to our geology, deep geothermal power is likely to make a small contribution to electricity supply. However, Cornwall is one area where the technology can work and I am pleased that this is part of the devolution deal for Cornwall. Deep geothermal heat has greater potential and we are supporting its development through the renewable heat incentive and through feasibility studies funded by the heat network delivery unit.

[Steve Double]

I thank the Minister for that response. Deep geothermal has the great benefit of being a baseload energy source that is not reliant on variable weather conditions, and, as the Minister points out, Cornwall is one place where great potential for geothermal lies. As she is aware, a scheme is being developed at the Eden project in my constituency. May I invite her to visit Cornwall to see for herself the huge potential that there is for geothermal development there?

[Andrea Leadsom]

I am grateful to my hon. Friend; nothing would please me more than a nice holiday in Cornwall right now. I am very pleased to hear that the EGS Energy and Eden project development is progressing well and, as he knows, it has the potential to produce power for about 4,000 homes and to make a very important contribution to the local community.

--- Later in debate ---

[Andrea Leadsom]

I completely agree with the hon. Lady—she is exactly right. Energy suppliers must behave properly towards their customers. There are too many complaints and not a good enough service, and that has to change.

[Steve Double (St Austell and Newquay) (Con)]

T6. I congratulate my hon. Friend on fielding all the questions over the last hour, and on the manner in which she has conducted herself over the past week. I believe that she has done herself a great deal of credit, and I add my voice to those wishing her well later today. Following the historic vote by the British people to leave the EU, the UK once again has full control over our VAT. One way we could help households across the UK with high energy bills would be to cut VAT on energy. Will the Minister support calls for such a move?

[Andrea Leadsom]

I am grateful to my hon. Friend, and to prove that collective responsibility has once again taken effect, I reassure him that VAT is a matter for the Treasury. I agree about the need to reduce the number of households in fuel poverty, which is why we are consulting on proposals to focus more of the energy company obligation on those most in need. We have laid regulations that will ensure continued support for more than 2 million households through the warm home discount.