UK Parliament / Open data

Energy Bill

Proceeding contribution from Baroness Verma (Conservative) in the House of Lords on Thursday, 25 July 2013. It occurred during Debate on bills and Committee proceeding on Energy Bill.

Of course, my noble friend is far more experienced in these matters than I and I am always open to learning from him.

These sources of data have confirmed the forecasts for UK wood use made in the renewables obligation banding review last year, which did not conclude that demand for UK wood for electricity generation would have significant detrimental impacts on other wood-using sectors. That was mainly because we estimate the vast majority of biomass for power to come from imports from countries such as the United States—to which my noble friend Lord Deben referred—which have larger forestry industries and whose companies are able to give power companies the long-term fuel contracts they need. Given the analysis undertaken for the bioenergy strategy and the renewables obligation banding review, and given the latest data we have on demand for wood for electricity, currently we do not see sufficient need to add the new regulatory burden proposed in this amendment on the electricity industry.

The amendment would introduce a new layer of complexity and potential for delay and uncertainty in developing both potential new generating stations and existing plants. It would also be likely to reduce investor certainty in the sector, introducing questions around disqualification from support under CFDs, should the Secretary of State not like a plant’s proposed fuel strategy. Establishing the basis on which a plan is judged satisfactory would be complex and open to legal challenge. Furthermore, the voluntary approach that we have taken is a light-touch regulatory approach that has delivered to us the information we need. We have used this industry-wide data to help develop the sustainability criteria framework on which we have made the proposals. This includes strengthening further some of the reporting requirements.

With these actions, I hope noble Lords will see that the Government are taking this issue seriously and are keen to continue to work with the wood processing and other sectors to give them further confidence that non-energy sectors should not be significantly detrimentally impacted by energy policy.

The noble Baroness, Lady Maddock, asked about Blyth power station. Perhaps I may write to her and the Committee with the details.

I hope that my noble friend Lord Roper finds my explanation at least partly reassuring and on that basis will withdraw his amendment.

3.45 pm

About this proceeding contribution

Reference

747 c565GC 

Session

2013-14

Chamber / Committee

House of Lords Grand Committee
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