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Proceeding contribution from Lord Whitehead (Labour) in the House of Commons on Monday, 7 December 2009. It occurred during Debate on bill on Energy Bill.


Energy Bill

There is a distinction between ensuring that the definition of fuel poverty works in the way that I have described and a clause in a Bill that enables a Government simply to declare that fuel poverty does not exist. As the hon. Gentleman says, it would be a bad outcome if a Government were able, by a legislative ruse, to declare that fuel poverty did not exist. However, as we all know that it does exist and as we have a definition in the Bill that is not to be removed, the question is how we ensure, through a combination of fuel-poverty proofing, social tariffs and reduced tariffs, and through how they cross over for people living in particular houses, that fuel poverty is combated rather more effectively than previously. I want to say a few words about the future of our energy supply. As my hon. Friend the Member for Sherwood (Paddy Tipping) mentioned, the test of the success or otherwise of our whole strategy of moving towards a low-carbon fuel economy will be the extent to which we effectively replace the 40 or so per cent. of our existing electricity supply with a low-carbon electricity supply. Over the next 10 to 15 years, all but one of our nuclear power stations will go out of commission, as will all our coal-fired power stations, a number of gas-fired power stations and, as things stand, all our oil-fired power stations, through a combination of age, end of life, the European large combustion plant directive and associated activities. It is imperative that that process should take clear note of the need to ensure, first, that we have a base load capacity in our fuel economy and, secondly, that we do not require investors in new plant—let us be clear: by and large, the investors in any new plant will be the energy companies that currently supply our energy investment in the UK—to invest in plant that will become redundant or a stranded asset as soon as it is installed. That will require two things to happen. First, we need to ensure that the capacity exists to invest in both coal and gas, while at the same time squaring the circle of that investment for a future low-carbon economy. Secondly, it is absolutely right that we should send out strong signals about carbon capture and storage for those new investments. It is also absolutely right, therefore, that we should put in place a legislative framework through this Bill to move ahead with carbon capture and storage, both pre-combustion and post-combustion, coupled with a serious tranche of new powers for the regulator to ensure that the energy market works in a more carefully regulated way. One thing to emerge as a result of those changes is that in future we will live in a far more regulated energy economy. Indeed, it is right that we should do so, because we have serious targets to reach, a short time in which to reach them and a series of replacements that we need to make in our generating capacity to enable us to reach them, rather than standing against them. Therefore, a combination of this legislation and Ofgem being able to recast the market arrangements for the generation of electricity, so that it underpins new investment in a positive way, will be a good achievement of the Bill should it become law. If we are to regulate positively in order to achieve our aims, it is important that we all face in the same direction, and that we do not place on the statute book legislation that resiles from those aims. I was therefore concerned to hear proposals from Conservative Members for legislation to prevent onshore wind energy from being put in place anywhere in the country if it is less than a specified distance from a house or dwelling. The aim of that proposal is not, as has been suggested by Opposition Front Benchers, to involve communities more in onshore wind development. It is simply to stop onshore wind farms being put in place. Giving that kind of signal through legislation would prevent the investment in our energy supply that we need to replace our ageing equipment, and create uncertainty in the market. Our claim to be able to move forward on to a low-carbon economy would effectively be rugby tackled by legislation that would make that impossible to achieve. I am sorry that, when those on the Opposition Front Bench were given the opportunity to repudiate that approach today, they simply ducked the question and said that it was nothing to do with them. It is something to do with them. We should place on record that we will put on the statute book legislation and regulations that will move us solidly in the direction of a low-carbon economy, to ensure that the people who are going to be paying their bills in such an economy are not so disadvantaged by what that economy is going to produce that they cannot take part in it. We should all face in the same direction on this, and we must make it clear that we do not support anything that goes against that. I hope that when the Opposition Front-Bench spokesman sums up their case on this Second Reading debate he will take the opportunity to repudiate that it is any part of their policy to stop the development of onshore wind farms by placing distance barriers in the way of such developments, thereby preventing them from going ahead.


Secondary information

Type
Proceeding contribution
Reference
502 c73-4 
Session
2009-10
Chamber / Committee
House of Commons chamber
Subjects
Conservation Coal Climate change Biofuels Carbon capture and storage Energy Electricity generation Ofgem Fuel poverty Fossil fuels Fuel oil Oil Planning Natural gas Nuclear power Markets Prices Pipelines Regulation Storage Utilities Wind power Science Carbon emissions Social tariffs
Legislation
Energy Bill 2009-10
Link
View this Proceeding contribution on www.publications.parliament.uk