UK Parliament / Open data

Energy Bill

Proceeding contribution from Albert Owen (Labour) in the House of Commons on Wednesday, 19 December 2012. It occurred during Debate on bills on Energy Bill.

I agree with the Secretary of State that the Bill certainly has not been rushed, but although I support its main thrust—I have been arguing for it for many years—it is underdeveloped and needs to be developed further.

Electricity market reform would have been carried out by any Government who had won the election. It is the natural next step and a lot of work has been done in the past to establish a low-carbon economy. The Climate Change Act 2008—a very important piece of legislation—and other Acts in the previous Parliament and the one before it, paved the way for this Bill, so I shall support its main thrust, even though it is under development. I agree with the former Minister, the hon. Member for Wealden (Charles Hendry), that we need to build consensus on these big energy issues. Indeed, he is extending many of the issues on which the previous Government moved forward.

There has been a hiatus and a very public disagreement between the Treasury and DECC, which has been too obvious and has caused uncertainty. When I speak to a number of groups, including non-governmental organisations and industrialists, they all say that they want that political certainty in the future. It is incumbent on us all to build it so that we have a safe and secure energy supply for the future that meets low-carbon targets, which are set at all levels of government. I welcome the provisions from that perspective.

Hon. Members know that I am pro-nuclear, pro-renewables and pro-energy efficiency. I see no contradiction in holding those three views, because we need to move forward. We need the base load electricity that nuclear, clean coal and gas can provide, if the capture and storage systems are in place, along with renewables.

I have a few questions for Ministers. I cite the CBI, which has lobbied us heavily and joined a broad coalition. Not even the Minister of State, the hon. Member for South Holland and The Deepings (Mr Hayes) could call the CBI left-wing academics—there may be one or two; the CBI is very much the voice of business, and business is asking for decarbonisation targets. It is a

mistake for the Government not to put a clear message about decarbonisation in the Bill and not to honour the Climate Change Act in full. Having a target of 2030—[Interruption.] The other Minister, the right hon. Member for Bexhill and Battle (Gregory Barker) asks which Act. The Climate Change Act was probably the biggest piece of legislation on these things and the Bill should have signposts to secure—[Interruption.] Business is telling me this. The Minister is chuntering from a sedentary position. Perhaps he does not want to listen to business, but if he wants to make an intervention, I should be pleased to take one. The business sector is worried about uncertainty.

I have some specific questions. Businesses, particularly the independents, are expressing concerns to me about access to the marketplace in the future. They are concerned about lack of feed-in tariffs for smaller companies; in particular, those below 50 MW. If we decentralise the grid, we shall need a support mechanism as well as a grid for big industry. I do not think that subsidy is a dirty word; we need support mechanisms in the interests of the country so that we can produce the energy we need for business to survive. Will the Minister reconsider the position on feed-in tariffs for smaller businesses? The Select Committee looked at the issue, and the evidence that they are needed is overwhelming.

Will the DECC team look again the renewable obligations transition period? There is a danger of losing investment if we do not have continuity. The contracts for difference could play a big part. I welcome the £7.6 billion that has been set aside under the levy.

I welcome the basis for the Bill, but the lack of decarbonisation targets is a weakness. I think we should have them. The Secretary of State wanted them, as did industry. That is why we tabled the reasoned amendment. I want a pro-nuclear, low carbon economy to be the future, and I want the Bill to be the mechanism that takes it forward.

5.8 pm

About this proceeding contribution

Reference

555 cc925-6 

Session

2012-13

Chamber / Committee

House of Commons chamber

Subjects

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