Energy: Shale Gas
Debate between Lord Trefgarne and Lord Marland
Lord Trefgarne
To ask Her Majesty’s Government what are the likely implications of the discovery of shale gas on United Kingdom energy policy.
The Parliamentary Under-Secretary of State, Department of Energy and Climate Change (Lord Marland)
My Lords, exploration for shale gas has only recently commenced in the UK and no commercial production has yet been proven. In a recent study for DECC, the British Geological Survey estimated that there could be worthwhile shale gas resources in the UK. However, on current knowledge, it is not possible to estimate the recoverable reserves and therefore it is too early to assess how shale gas in the UK might impact our energy policy.
Lord Trefgarne
My Lords, I thank my noble friend for that reply. However, are the discoveries so far not sufficiently encouraging to provide at least the potential for future energy policy? Will he take that potential into account in making his future plans?
Lord Marland
That is a very topical question. We hope that fracking—I use the word, which you might think has come from “Call My Bluff”, advisedly—is about to start in Blackpool. We should have the results of that this week. It is being observed. Once we have the results, we will have further study and a greater awareness of what is potentially there.
Energy: Electricity
Debate between Lord Trefgarne and Lord Marland
Lord Marland
The noble Lord is completely right that electricity bills are going up and have been going up. This is very regrettable, but let us look at the facts. In the past five years, oil prices have gone up by 60 per cent and gas prices by nearly 60 per cent. Electricity prices have also gone up by nearly that much in that time. It is incumbent on us to get a competitive situation in the market and I can assure your Lordships that this Government are trying everything that they can to achieve that.
Lord Trefgarne
My Lords, is it not the case that owners of wind farms are to be paid a so-called facilitation fee, apparently to contribute to the costs of their facilities, even when there is no wind and they are not producing any electricity? What sort of a contribution does that make to these competitive policies?
Lord Marland
With all due respect, the noble Lord is slightly wrong in his sweeping judgment that there is no wind activity from wind farms. There is of course wind; we live in a windy country. Wind farms are seen to be an appropriate way for this country to generate electricity. However, his broader point is very well made: in order to achieve by 2050 probably twice the amount of electricity that we need now, we have to get on with obtaining it from a portfolio of ventures. That means new nuclear, wind farms, renewables such as anaerobic digesters and biomass, et cetera. We have to have a portfolio of ventures and this Government have set about achieving that.