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Fourth Carbon Budget

I can assure my hon. Friend that we in the ministerial team are absolutely committed to low-cost, affordable electricity. The last assessment the Department made—at the time of the annual energy statement, and we will make another at the next such statement—is that the overall impact of our policies, including energy saving and the effects that my hon. Friend mentioned, will add 1% to the cost of household energy bills in 2020. As it happens, that was posited on a world oil price of $80 a barrel. As he knows, the oil price has moved substantially beyond that. With oil prices and associated gas prices higher than $100 a barrel, our estimate is that our policies will save money for the British household. I am not saying that British households will not face increases in the cost of gas and electricity in future; what I am saying is that the policy mix of energy saving and low-carbon electricity generation will give a better deal to British households than would reliance on imports of variable fossil fuels from volatile parts of the world.