Parliamentary Debates (Hansard)
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Thursday Volume 585 4 September 2014 No. 32 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Thursday 4 September 2014 £5·00 © Parliamentary Copyright House of Commons 2014 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 409 4 SEPTEMBER 2014 410 Friend’s Committee when it was investigating this matter. House of Commons We certainly want to ensure that we move forward on this and that there is nothing in the way of taking up Thursday 4 September 2014 more demand-side measures. Nic Dakin: Last month, EDF announced that it was The House met at half-past Nine o’clock temporarily closing four of its nuclear reactors, reducing the UK’s nuclear capacity by a quarter. With most of PRAYERS the nuclear fleet being decommissioned by 2023, what steps is the Secretary of State taking to ensure maximum use of those assets before that date? [MR SPEAKER in the Chair] Mr Davey: With regards to the two nuclear plants involved, Heysham and Hartlepool, we are taking only precautionary measures to ensure that proper safety Oral Answers to Questions and security measures are examined, and I am sure that the whole House will agree that that is the right step. The impact that that will have on our margins over the winter has already been taken account of in National ENERGY AND CLIMATE CHANGE Grid’s analysis and procurement plans. On the hon. Gentleman’s longer point, the whole energy strategy is The Secretary of State was asked— designed to ensure that we have the capacity that we need not just for the short and medium term but for the Energy Security long term. I refer him to the investment report that we published in July, which shows a fantastic record of 1. Mr Tim Yeo (South Suffolk) (Con): What investment in energy across the piece. Indeed, there have assessment he has made of the security of the UK’s been record levels of investment in energy, especially in energy supply. [905173] low-carbon energy. 5. Nic Dakin (Scunthorpe) (Lab): What steps he is Stephen Mosley: What action are the Government taking to increase the UK’s energy security. [905177] taking to ensure that gas supplies keep flowing this winter should Russian gas stop flowing to the EU? 6. Stephen Mosley (City of Chester) (Con): What assessment he has made of the security of the UK’s Mr Davey: I thank my hon. Friend for his question. energy supply. [905178] The UK imports very little gas from Russia. We have the most liquid and resilient gas markets in the whole of 13. Joan Walley (Stoke-on-Trent North) (Lab): What the European Union, but of course we are not complacent. steps he is taking to increase the UK’s energy security. We have been working at the EU to ensure not only that [905189] we check resilience of our gas supplies but that our EU colleagues are able to ensure their energy security. This The Secretary of State for Energy and Climate Change is an EU measure which is very important for the whole (Mr Edward Davey): We have taken a number of measures of the European Union. to ensure the security of the UK’s energy supply, including introducing new electricity system balancing measures. Joan Walley: One of the best things that the Secretary Our recent national gas risk assessment demonstrated of State can do for continued investment is to bring that our gas infrastructure is resilient. In the autumn, I forward the 2030 decarbonisation target to give long-term will publish the statutory security of supply report for certainty to investors. 2014, which will provide a further assessment of our energy security, and set out my response to the Office of There is a particular issue with regard to gas and gas Gas and Electricity Markets’ recent electricity capacity storage, which is impacting on ceramic manufacturers. report. We have also engaged closely with EU and G7 Now that we have a new Minister, who is at the Department partners on measures to increase the EU’s energy security. of Energy and Climate Change and at the Department for Business, Innovation and Skills, and National Grid Mr Yeo: Does my right hon. Friend agree that one of has announced that it has brought forward the supplemental the most cost-effective as well as greenest ways to address balancing reserve tender, which will put even greater concerns about security is through greater use of demand- pressure on energy suppliers and security this winter, it side response, which has been successfully deployed at is absolutely essential that the Secretary of State reconsiders scale in the United States? Will he undertake to ensure his Department’s stance on gas storage. We urgently that the treatment of demand-side response providers need a change of policy on extra gas storage. in the forthcoming capacity market and the transitional arrangements is no less favourable than those available Mr Davey: The hon. Lady knows that we legislated to to electricity generators? introduce a decarbonisation target for 2030 in the Energy Act 2013. She also knows that my party strongly supported Mr Davey: I am pleased at the way in which our that. demand-side measures have been advancing. They are We looked at gas storage in huge detail to see whether something on which I have placed a lot of stress. I know there was a case for Government intervention, but we that my Minister of State appeared before my hon. found that an awful lot of gas storage was being built 411 Oral Answers4 SEPTEMBER 2014 Oral Answers 412 with more modern technology, which means that the collieries to close. We think that there is an advantage in gas can be produced and brought into the pipeline a commercial approach and that is what our attention is network much more quickly. We have looked at that focused on. matter in detail and we do not intend to review it. Renewable Energy Investment 17. [905195] Mr Peter Lilley (Hitchin and Harpenden) (Con): Does my right hon. Friend agree that the problems we are facing illustrate that, despite huge investment, 2. Mark Menzies (Fylde) (Con): What assessment he wind and other renewables cannot replace conventional has made of trends in renewable energy investment fuels and require additional capacity megawatt for megawatt since 2010. [905174] to meet need when the wind does not blow or the sun does not shine? Will he confirm that the Government’s The Minister of State, Department of Energy and costings for renewables do not take into account the Climate Change (Matthew Hancock): Since 2010, an cost of supplying an additional amount of conventional average of £7 billion has been invested each year in capacity? renewable electricity, compared with £3 billion a year in the previous Parliament. Mr Davey: We need a mixed approach to energy supply and generation. The Government have always Mark Menzies: May I take this opportunity to welcome argued that we need renewables, gas and new nuclear my right hon. Friend to his new role? There has been a and that diversity gives a country extra strength in its recent proposal for a tidal gateway across the Ribble security of supply. When we do our analysis we consider estuary that could provide enough electricity for all the system costs, not just of renewables but of 18,000 homes. Will the Minister update the House on nuclear and other systems, and no type of electricity the progress of the project and ensure that environmental generation is without its challenges. For example, in the considerations will be at the forefront of the proposal? short term, we have seen fires at two coal plants, Ironbridge and Ferrybridge, that we are having to take into account Matthew Hancock: The project is proceeding and I in our analysis to ensure that our capacity margins are would be very happy to hear more detail about my hon. okay over the winter. The mixed approach that we Friend’s position and support for the project. Ensuring propose is the most secure. that we get renewable investment of all kinds is an important part of our plan to deal with climate change Caroline Flint (Don Valley) (Lab): The future of and increase energy security, and that is something on Thoresby and Kellingley coal mines has now been in which we are working hard. limbo for more than five months, which raises concerns about energy security. Both the Business Secretary and Mr Dennis Skinner (Bolsover) (Lab): The Minister the previous Energy Minister, the right hon. Member has just heard an exchange about the question of state for Sevenoaks (Michael Fallon), said that they were not aid that specifically referred to him. We met the miners open to supporting or providing state aid, but the new from the three deep-mine pits that are left, Kellingley, Minister of State has indicated in meetings that he may Thoresby and Hatfield, which are in peril. I am talking be open to state aid, so will the Secretary of State clear about energy supply, something for which the Minister up once and for all whether the Government will consider is responsible. This Government took £700 million out providing it? of the miners’ pension fund last February and all we want is £70 million of state aid for those three coal pits Mr Davey: Important though the issue is, it is not an to exhaust their reserves. Treat us like you do the oil issue of energy security.