Twenty years ago this country led the world in creating a competitive electricity market. This Bill promises electricity market reform, but the reality is that the contracts for difference, the capacity payments and the emissions
performance standard will put an end to that market in any recognisable form. Instead, we will have a market that is fixed by civil servants.
When we hear “contracts for difference”, what that means is that instead of the price being set by the market, prices will be set by civil servants for decades in advance, with different prices for different technologies and, potentially, different prices for different consumers. They will not even depend on how much CO2 a particular technology emits; rather, they will depend on what civil servants happen to agree in their commercial negotiations with providers, who I fear will have them over a barrel. Our constituents will be ripped off, with tens of billions of pounds of their money being transferred to producers who manage to negotiate the best deal with civil servants, who I am afraid are not up to the job of running electricity in the way that a market could in the interests of our constituents.
We should consider the price that our constituents will pay. We hear Opposition spokesmen say airily “It is only £100 a year: it is remarkably good value.” However, the DECC levy-funded spending is to rise from £2.1 billion last year to £9.8 billion in 2020, which is almost a fivefold increase. The Department’s spending is rising even faster than our contribution to the European Union budget. Moreover, our constituents will pay a great deal more than £100 a year. If we divide that £9.8 billion by the 27 million households in the country, the result is £360 per household.