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Proceeding contribution from Steve Webb (Liberal Democrat) in the House of Commons on Tuesday, 18 November 2008. It occurred during Debate on bill on Energy Bill.


Energy Bill

We can certainly learn from what has happened elsewhere, and the examples that the hon. Gentleman cites are good ones. For example, if a local authority takes forward a scheme, the revenue from that scheme can cushion council tax bills, or whatever. My worry is that whereas local authorities in Germany, for example, are substantially devolved, with revenue-raising power and other freedoms, we are grafting the feed-in tariff on to a British system that is staggeringly centralised. Local government has little power to do those things, although some find ways. There is great potential for what the hon. Gentleman describes, but a lot of other things would have to happen to facilitate it. In a sense, that is what I am flagging up. We need to ensure that mitigation measures are in place so that we get the good of the feed-in tariff without the damage of fuel poverty. I want briefly to raise two other issues. The first is the issue of grandfathering, which is to say that we want to avoid any hiatus. Again, that argues in favour of the 12-month limit proposed in amendment (a). We want people to invest now; we do not want them to hold off. One reason for holding off on a smaller-scale development—either a renewables obligation development or a feed-in tariff development—might be to wait and see what happens to the feed-in tariff. If the Minister could confirm that somebody investing in a certain regime would be guaranteed that regime for the life of the project, that would remove some of the investment uncertainty. If somebody was considering investing in a 4.4 MW two-wind-turbine project, that project would be below the threshold, and therefore potentially either feed-in tariff-able or ROC-able. We would want them to invest now and to get on with it, so can the Minister clarify whether, if it turned out that the feed-in tariff would be more beneficial, such a person would be able to opt into the feed-in tariff, perhaps once and for all, for the lifetime of the project? If I were deciding today to go for a two-turbine 4.4 MW project, which could relate to either a ROC or a feed-in tariff, could I switch on to the feed-in tariff—once we know what it is, that is—or would I be committing myself to the ROC for ever, in which case I might delay until I knew what the feed-in tariff was? Can the Minister confirm whether there might be a one-off opportunity to switch? I am still slightly hazy as to whether, once everything is up and running and both schemes are potentially available to small-scale generation, people will choose one or the other, or whether they would be able to switch between the two and change their minds. Can the Minister clarify how the two will interrelate? We warmly welcome the feed-in tariff, and the Government's amendment (g), which increases its scope. We need action to check that fuel poverty will not be worsened by the measure, but above all we need a sense of urgency, not endless further consideration to try to perfect the provisions. We must not make the best the enemy of the good. We must not simply strive for perfection when that means delay, because we will never have perfection. We need to get on with it—in which spirit, I support amendment (a), and I believe that amendment (f), on combined heat and power, also needs to be supported.


Secondary information

Type
Proceeding contribution
Reference
483 c152-3 
Session
2007-08
Chamber / Committee
House of Commons chamber
Subjects
Access Devolved matters Consumers Decommissioning Combined heat and power Carbon dioxide Biofuels Carbon capture and storage Fees and charges Licensing Energy Electricity generation Ofgem Insolvency Heating Electric cables Oil Payments Natural gas Nuclear power Offshore structures Nuclear power stations Meters Microgeneration Rural areas Scotland Renewable energy Wind power Feed-in tariffs Renewables obligation National grid
Legislation
Energy Bill 2007-08
Link
View this Proceeding contribution on www.publications.parliament.uk