Thursday Volume 571 28 November 2013 No. 84 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Thursday 28 November 2013 £5·00 © Parliamentary Copyright House of Commons 2013 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 385 28 NOVEMBER 2013 386 industrial strategies. This country is arguing for the House of Commons most ambitious 2030 greenhouse gas emissions target of any EU member state. It is just not true that investors Thursday 28 November 2013 think that this Government are not committed to this issue. The House met at half-past Nine o’clock Chi Onwurah: This Government talk loudly, and at times obscenely, about the costs of decarbonisation, but they say little about the benefits, such as the potential PRAYERS for green jobs on Tyneside, which leads the world in clean power. If the delay is not causing the lack of investment, why has investment in clean energy fallen [MR SPEAKER in the Chair] by billions of pounds since this Government came to power? And what is the Secretary of State going to do to bring more green jobs to Tyneside? Oral Answers to Questions Mr Davey: The hon. Lady should not talk down the sector or her own area. She ought to know, because we have debated the matter at the Dispatch Box, that ENERGY AND CLIMATE CHANGE £31 billion has been invested in renewable electricity since 2010. We have doubled the amount of renewable electricity generation since we came to power. The Secretary of State was asked— Karl Turner: Does the Secretary of State agree that Decarbonisation setting a decarbonisation target for 2030 would greatly assist the much needed investment in Hull by Siemens? 1. Joan Walley (Stoke-on-Trent North) (Lab): If he Or does he agree with the Prime Minister that this is all will set a target to decarbonise the power sector by just “green crap”? 2030. [901298] Mr Davey: The whole Government, working with 9. Chi Onwurah (Newcastle upon Tyne Central) (Lab): colleagues like the hon. Gentleman, are doing our very If he will set a target to decarbonise the power sector best to ensure that we get that supply chain investment by 2030. [R] [901307] in the UK for our green sector. He knows that we are working with him and other hon. Members from Hull 11. Karl Turner (Kingston upon Hull East) (Lab): If to do just that. he will set a target to decarbonise the power sector by David Mowat (Warrington South) (Con): The Secretary 2030. [901314] of State will be aware that the UK now has among the The Secretary of State for Energy and Climate Change lowest emissions per capita and per unit of GDP in (Mr Edward Davey): I agree that there should be a Europe. For example, they are 25% lower than those of power sector decarbonisation target for 2030. That is Germany, which has just embarked on a programme why the Government are legislating so that a of building coal power stations. Is there anything more decarbonisation target range can be set in 2016, once we can do to help our European partners have any kind the fifth carbon budget has been set. When that target of meaningful targets? has been set, we believe it will be the world’s first such Mr Davey: I am grateful to my hon. Friend for his legally binding decarbonisation target. question. We are working with all our EU partners to raise ambition in the EU. This Government have proposed Joan Walley: I am interested to hear that the Secretary that we should have an EU target of a 40% reduction in of State agrees with me. We have all-party support for domestic greenhouse gas emissions by 2030, and be the Climate Change Act 2008, a recommendation from prepared to go up to 50% if we can get a global deal in the Committee on Climate Change that the target for 2015. We are leading the way in Europe on ambition. clean power should be set now, rather than later, and a Bill going through Parliament that could get rid of all Sir Nick Harvey (North Devon) (LD): My right hon. the uncertainty. By delaying this decision until 2016, is Friend will have noted that progress towards the he not simply creating greater investor uncertainty, decarbonisation goal was interrupted this week by the risking green jobs and kowtowing to the Chancellor? withdrawal of the Atlantic Array offshore wind project off the north Devon coast. Is he concerned that if that Mr Davey: I should like to pay tribute to the hon. were to be followed by other decisions by utility companies Lady, now that she has told people that she will not be to withdraw from such schemes, we could lose control standing at the next election. She has been a doughty of those critical national infrastructure decisions? Is he champion of green issues in the House. However, I do content with a situation in which the big six and foreign not believe that this short delay of two years will have utilities effectively have a veto over those critical investment the impact that she describes. She should remember decisions? that we have the EU 2020 targets for energy efficiency, renewables and emissions; the Climate Change Act, Mr Davey: I do not see it quite as my hon. Friend with the carbon budgets running up to 2027; and the does. We were initially disappointed when the decision Energy Bill which provides the most secure framework, on the Atlantic Array was announced, but when we the levy control framework going up to 2020, and learned that it was for technical reasons and that the 387 Oral Answers28 NOVEMBER 2013 Oral Answers 388 further analysis of the seabed that was needed would although the headline increase announced by the company have increased the cost, we understood why it had been is high enough, they are being quoted sometimes twice taken. My hon. Friend should be reassured, because the that increase in their electricity prices. Is there anything number of applications that we have received for final he can do to press Ofgem as to why there is such a huge investment decision-enabling contracts for difference—the increase in this tariff? “go early” CFDs—has far exceeded our expectations. I believe that there will be some good news on offshore Michael Fallon: I shall certainly do that. When Ofgem wind shortly. last looked at this tariff, it thought that the price was reasonable compared with some other time-of-use tariffs Julie Elliott (Sunderland Central) (Lab): As has been offered by other suppliers, such as Economy 7. However, said, RWE pulled the plug on the 240 turbine, 1.2 GW I am very happy to take the matter up again with wind farm in the Bristol channel this week, saying that Ofgem. it was not the right time to invest, although I accept that it also cited some technical reasons. That is the pattern with this Government: investment has gone down from Sir Robert Smith (West Aberdeenshire and Kincardine) £7.2 billion in 2009 to a point where it is expected to be (LD): In taking the issue up with Ofgem, the Minister £1.9 billion this year. Nearly four of the five projects needs to emphasise just how trapped these people feel. coming on line since 2010 were started under Labour. They feel that they cannot shop around and they want Does the Secretary of State accept that his refusal to to be completely reassured that they are getting the adopt a 2030 power generation decarbonisation target fairest deal possible. In the long run, will he examine now is scaring away investment, damaging green jobs whether it would be worth accelerating and prioritising and jeopardising our future energy security? the roll-out of smart meters for these customers to make it easier for them to switch? Mr Davey: That, of course, is absolutely not the case. If anything is damaging green jobs, it is the Leader of Michael Fallon: As I have said, it is not satisfactory the Opposition and his irresponsible position on freezing that dynamic teleswitched meter customers have a choice energy prices. That has had a damaging effect on investment, of fewer suppliers than other customers, although there and the right hon. Member for Don Valley (Caroline are technical reasons for that. I am happy to take this Flint) knows it. We have a very good record in this area, matter up again with Ofgem to see what we can do to and I am looking forward to making more announcements make it easier for such customers to switch. of more investment. Switching Suppliers Bill Esterson (Sefton Central) (Lab): A number of my constituents who have switched recently have been hit 2. Mr Alan Reid (Argyll and Bute) (LD): What by significant charges—in one case, thousands of pounds. assessment he has made of the process involved when a Given that switching is the Government’s main policy Scottish and Southern Energy customer on its “Total on energy, what can they do to ensure that mistakes are Heating, Total Control” tariff tries to switch to another not being made by energy companies and that there is a electricity supplier. [901299] fair deal for all customers who switch? The Minister of State, Department of Energy and Michael Fallon: If the charges are at that level, it is Climate Change (Michael Fallon): The ability to switch clearly unacceptable. We will look at this with Ofgem supplier is a key driver of a competitive market, and it is to make sure that everybody is entitled to a choice— important that we address areas where this is difficulty.