Electricity Market Reform

Stewart Hosie Excerpts

Thursday 16th December 2010 Commons Chamber

[Stewart Hosie (Dundee East) (SNP)]

The statement was very clear: there will be new incentives, including for nuclear. That is a subsidy by any other name, and directly contradicts what the Secretary of State said on the “Today” programme in May; it contradicts what he said in his departmental debate in July, when he said that the coalition would allow new nuclear but with no public subsidy; and it contradicts what he said to his own party conference in September. So let me ask him: who does he think will feel most betrayed by this U-turn—he, his party, the coalition or the taxpayer who will undoubtedly have to pick up the tab for the folly of the new generation of nuclear power?

[Chris Huhne]

I could not be clearer than to say that there is no subsidy here which attaches to nuclear power. The subsidy attaches to low-carbon generation, and whatever the Member’s view, the reality is that nuclear power is a low-carbon energy source and the subsidy applies to low-carbon generation. Over time I want to see the technologies as they are at the moment compete, so that we can find which are the most effective at providing our consumers with low-cost electricity from low-carbon sources—and the framework will allow us to do that.