Tim Yeo
Main Page: Tim Yeo (Conservative - South Suffolk)
Mr Davey
I have to say that I do not recognise the hon. Lady’s points. If one looks at what has happened in the insulation industry, one will see that there was a boom at the end of last year as people worked hard to meet their carbon emissions reduction target obligations to avoid fines. That was the biggest boom we have seen, so the figure was likely to come down, and it would be good if the Opposition admitted that. We are taking huge measures that will transform things not just for a year, but over decades. The problem will take decades to sort out. We are putting the measures in place to do that.
Mr Speaker
Order. The hon. Gentleman came into the House 30 years ago. Question 8; we are grateful to the hon. Gentleman.
Mr Tim Yeo (South Suffolk) (Con)
8. What assessment he has made of Ofgem’s electricity capacity assessment report 2013.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
The Government welcome Ofgem’s electricity capacity assessment as an authoritative investigation into security of supply over the next five winters. We will be working closely with Ofgem and National Grid to take decisive steps to ensure that security of supply is maintained in the short, medium and long term.
Mr Yeo
It is the excitement of your Speakership, Mr Speaker.
Does my right hon. Friend agree that the quickest, cheapest and most environmentally friendly way to ensure that the lights stay on at a time when capacity margins are a bit tight is through demand-side measures? Will he explore how Smart technology could be used more effectively to extend time-of-use pricing, which would cut some of the peaks in demand and thereby reduce the need for some of the expensive new capacity that is being considered?
Michael Fallon
Of course demand-side measures have a role to play, but Ofgem will also be looking at better balancing the system as a whole, using some of the measures it has been using for more than 20 years. We will also be looking at whether some of the previously mothballed plant, or mothballed units at some plant, can be brought back into operation if needed.