Caroline Flint
Main Page: Caroline Flint (Labour - Don Valley)(9 years, 8 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Davey
We need a mixed approach to energy supply and generation. The Government have always argued that we need renewables, gas and new nuclear and that diversity gives a country extra strength in its security of supply. When we do our analysis we consider all the system costs, not just of renewables but of nuclear and other systems, and no type of electricity generation is without its challenges. For example, in the short term, we have seen fires at two coal plants, Ironbridge and Ferrybridge, that we are having to take into account in our analysis to ensure that our capacity margins are okay over the winter. The mixed approach that we propose is the most secure.
Caroline Flint (Don Valley) (Lab)
The future of Thoresby and Kellingley coal mines has now been in limbo for more than five months, which raises concerns about energy security. Both the Business Secretary and the previous Energy Minister, the right hon. Member for Sevenoaks (Michael Fallon), said that they were not open to supporting or providing state aid, but the new Minister of State has indicated in meetings that he may be open to state aid, so will the Secretary of State clear up once and for all whether the Government will consider providing it?
Mr Davey
Important though the issue is, it is not an issue of energy security. Even if those collieries were in any way to be suspended, the energy security of the country would be okay. The Government have worked tirelessly with the different companies involved to do what we can to help them reach a deal that will ensure the future of those pits, and we will continue to do just that.
Caroline Flint
It really is important that we have clarity about the future of these mines. It helps no one—not UK Coal, not other potential investors and not the work force and their representatives—for this uncertainty to continue. The Business Secretary and the previous Energy Minister indicated that they were not open to providing state aid, whereas the new Minister has indicated that he may be open to state aid, so will the Secretary of State clarify? Will the Government not support state aid or have they changed their mind?
Mr Davey
We consider all options, but the right hon. Lady presents state aid as a “get out of jail free” option when it is not. If the European Commission were presented with the state aid case, it is extremely likely that by the end of the support it would require the collieries to close. We think that there is an advantage in a commercial approach and that is what our attention is focused on.
Mr Davey
As my hon. Friend will know, we have published a draft fuel poverty strategy. It sets out a range of measures that we would like to take, not least some ambitious new targets for tackling fuel poverty, and the issue raised by my hon. Friend is part of that. Ofgem’s retail market review looked at standing charges and their operation, and that analysis will feed into the consultation on the strategy.
Caroline Flint (Don Valley) (Lab)
In the early exchanges, a difference of approach seemed to arise out of the support or non-support for Thoresby and Kellingley coal mines. Will the Minister of State clarify whether he is open to a state-aid application, and say what form of assistance he would make available to UK Coal? If a formal application is made, how quickly will the Department for Business, Innovation and Skills decide whether to present the case to the Commission? If that is not the case, will he explain why the £4 million loan has been delayed, and say when he expects that money to reach the mines?
The Minister of State, Department of Energy and Climate Change (Matthew Hancock)
As the Secretary of State and I have described, the commercial option has the benefit of being under the control of UK Coal, and we are working towards that. It has not been delayed; it is a matter of ensuring that it can be done on a commercial basis. On whether we should go further and look at state aid, as I have said, I have been open to all options but there are some serious downsides, not least that the Commission would require the coal mines to close.