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UK Government's Energy Policy

My hon. Friend is right. I have been working on the timing of new nuclear build in Anglesey. One of the great things that we have in Wales is the great decommissioning knowledge to be found in the pool of skills and labour that we are using at Trawsfynydd. I am keen to ensure that we do not lose those skills in that technology—it is a case of mind the gap—so, with my hon. Friend the Minister of State, I am saying that we need to pay attention to the time scales here. The extension of life of Wylfa assists, but the work at Trawsfynydd will be coming to an end, and we want to ensure that we retain and build on those skills in Wales. These are good, stable and sustainable jobs for the future for people in Wales. Although climate change means that we must focus on renewable and nuclear energy, we must not forget Wales’s proud tradition as the energy powerhouse of the UK, which is built on its strengths in coal and steel production. Coal will remain an important contributor to the UK total energy needs for decades to come, but we cannot shy away from the challenge of managing carbon emissions, and we cannot underestimate the problems. Demonstration of carbon capture and storage is achievable but definitely difficult. The work that Tata is doing and the CCS pilot being built by RWE at Aberthaw shows that coal still has a future in Wales, even if we must work hard and be innovative to ensure that it fits with our responsibilities to the environment. We also recognise that transition to a low-carbon economy will come at a cost, which is why we are bringing in measures to support consumers, address fuel poverty and help households to become more energy efficient. Current predictions suggest that energy prices will continue to go up. That is the unavoidable reality facing not just the UK but economies across the world. The central question is how we can ensure that these increases are kept as low as possible for consumers while also giving us the secure and sustainable power supply on which our way of life depends. The Government proposals for electricity market reforms will ensure that the necessary investment in renewables—nuclear, clean coal and gas-fired power stations—is as cost-effective as possible. We are taking steps to help people control their energy bills, through proposals such as the green deal, to which my hon. Friend the Minister of State referred earlier on, and to reduce energy consumption. Through the energy rebate scheme, we are helping some of the most vulnerable people in society to pay their fuel bills. Cold weather payments provide vital reassurance to the most vulnerable households across Wales so that they can afford to turn up the heating during cold weather. On top of that, around 700,000 older people in Wales benefited from winter fuel payments last winter. High fuel prices are placing a huge burden on families across Wales, but world oil prices and Labour’s fuel duty rises have also had a big impact. Everyone knows that the new Government faced a situation in which the country had run out of money and difficult decisions have had to be made. As a Government, we are examining options, including a fair fuel stabiliser, and those decisions will be taken in the Budget. In conclusion, Mr Havard, a low-carbon industrial revolution is necessary to ensure future prosperity. UK expertise and an innovative low-carbon business environment can lead the way in refocusing our economy to capture the global opportunities presented by the move to a low-carbon economy. The UK Government have shown that they are ready to lead that revolution, and I want to ensure that Wales is at the heart of it. We need all of us in Westminster and Cardiff bay to work together for the future viability and success of a diverse Welsh energy industry and to push forward, in readiness for the substantial opportunities that are coming our way.