Electricity Market Reform

Debate between Chris Huhne and Martin Horwood

Tuesday 12th July 2011 Commons Chamber

[Chris Huhne]

My colleagues and I have had many discussions with the solar industry. The hon. Gentleman should know that nobody installing less than two tennis courts’ worth of solar panels has been in the least bit affected by the scheme announced by the Government whom he supported. For three years, the previous Government also made no allowance for those proposing to install more than two tennis courts’ worth of solar panels. I make no bones about the fact that we need to protect the consumer interest. If we had not acted, we would have taken so much money out of the budget that it would have affected not only small-scale solar, but other renewables. It is time to end boom and bust not just in the economy but in solar panels.

[Martin Horwood (Cheltenham) (LD)]

I will skip my own anti-nuclear preamble and just congratulate the Secretary of State on his plans for an emissions performance standard. Does he agree that that and other parts of his plans will in the end protect consumers from the price shocks associated with fossil fuels?

[Chris Huhne]

There is absolutely no doubt; my hon. Friend makes a very good point. Over the past year we have had a 30% increase in the price of gas, which has fed through exactly into consumers' gas prices and into electricity prices, too, because gas is such a significant part of how we generate electricity. By moving more towards low-carbon sources of electricity—renewables and nuclear—we will insulate ourselves against such price shocks. That is good news for the economy, good news for all businesses, whether they are in this area or not, and good news for jobs, and I hope that it will be welcomed in all parts of the House.

Nuclear Industry Safety

Debate between Chris Huhne and Martin Horwood

Wednesday 18th May 2011 Commons Chamber

[Chris Huhne]

I return to the point that I made in answer to the hon. Member for Brighton, Pavilion (Caroline Lucas). As Lord Stern said, we have experienced the greatest market failure of all time. We will be able to provide the incentives that will lead all of us, in the private and public sectors, to change our behaviour only if we offset that market failure by incorporating the costs. What there will not be is any subsidy for the nuclear industry.

[Martin Horwood (Cheltenham) (LD)]

I am sure my right hon. Friend will confirm that a magnitude 9 earthquake hit western Europe in its not too recent history, and that the consequent tsunami crossed territorial maritime boundaries and hit the United Kingdom. Given evacuation and compensation bills running into tens of billions of pounds, and sea contamination at 18,000 times the safe limit, is not the real lesson of Fukushima that in the event of an unpredictable catastrophe of any kind, nuclear is the worst possible power source to be in its path?

Energy Bill [Lords]

Debate between Chris Huhne and Martin Horwood

Tuesday 10th May 2011 Commons Chamber

[Chris Huhne]

My hon. Friend should recognise that the clause intends not only to provide more certainty for investors, but to recognise that there might need to be changes. Those changes would not necessarily be downwards, either; they might well be upwards, in circumstances that would have been set out clearly in an agreement. That applies to costs as well, so, far from saying that the measure would drive a coach and horses through our commitment to no public subsidy, I am saying exactly the opposite: it puts flesh on our commitment to no public subsidy for nuclear.

[Martin Horwood]

I did not say that the measure would drive a coach and horses through our commitment to no subsidy. I am sure that our commitment to it is absolutely intact, but the clause seems to insert a rather large crack in the edifice. The arrangement that my right hon. Friend mentions—in which the operator and the Secretary of State may agree to the necessity of some amendments, which might be upwards or downwards —is in the existing legislation. The difference between that and the clause under discussion, however, is that in the existing legislation the final decision rests with the Secretary of State, and in the clause before us the Secretary of State gives away that right in advance. That seems to represent poor negotiation.

To return to the situation in Fukushima—

Electricity Market Reform

Debate between Chris Huhne and Martin Horwood

Thursday 16th December 2010 Commons Chamber

[Martin Horwood (Cheltenham) (LD)]

Given the fresh security concerns about nuclear power, its notorious inflexibility and intermittency and the toxic legacy it will leave future generations for 1,000 years, should my right hon. Friend not explore a levy on nuclear to balance any hidden—even if unspecific—windfall subsidy, especially to existing nuclear power stations, which may come about through the reforms he has described?

[Chris Huhne]

My hon. Friend knows very well that our policy is no subsidy to nuclear. We are not intending to impose additional levies on nuclear, but the no subsidy policy certainly encompasses the idea that if there are uncertainties they have to be met in the payments made, for example, on waste and decommissioning.

Cancun Climate Change Conference

Debate between Chris Huhne and Martin Horwood

Monday 13th December 2010 Commons Chamber

[Chris Huhne]

I thank the hon. Lady for her remarks, and I am delighted that there is, I think, a broad measure of political support from all three main parties in the House—and also from the nationalist parties, although none of their representatives is in the Chamber.

The hon. Lady was absolutely right to mention the continuing gap between what the science tells us is necessary to reduce carbon emissions and the pledges that were made in the Copenhagen accord and that are now incorporated in the United Nations framework convention on climate change process. The gap will be assessed as part of the work that will be set in train as a result of the agreements in Cancun, and the UN environment programme report was a useful first step in pointing that out.

I make no bones about the fact that we argued for, and would have liked, a clear commitment to a peaking of global emissions by 2020. The reality is that time is running out, and we need to be as precise as possible. We were not successful in achieving that clear and specific target, but we did have a clear commitment on peaking global emissions as early as possible and, obviously, we will move as quickly as we can towards achieving certainty.

Yes, it was welcome that Spain joined us. We have been working quite hard on the 30% commitment, including through some meetings in Cancun. The Minister with responsibility for climate change, my hon. Friend the Member for Bexhill and Battle (Gregory Barker), had meetings with the incoming presidency, and I had meetings with the Spanish Minister and other colleagues. Apart from Spain, France and Germany, we also now have a commitment from Denmark, and I am confident we will shortly have a commitment from Sweden as well, with all of them broadly in the same place. We must recognise that there are difficulties, especially for some of the economies still in transition, particularly Poland, which rely very much on lignite and hard coal, and we can try to deal with that. The process is under way and it will be important to address that in the new year.

The negotiations on legal form were always going to be exceptionally difficult, and we knew we could not reach an outcome. For the UK, the key negotiating strategy was to make sure that we embodied in the agreement at Cancun a substantial amount of substance that we can then show at Durban next year. Hopefully, that will provide a real incentive to the progressive countries that want to do a deal and to some of the more reluctant countries, by showing that there is enough on the table to make them be a little more flexible than they have been thus far on, for example, whether there is a commitment in the Kyoto protocol or whether it is in the convention track—and, indeed, whether there is a legal commitment in the convention track, which I very much hope, so that we can, effectively, have two parallel sides.

The hon. Lady asked about the finance. Fast-start finance is under way, and I am very pleased to be able to say that the Government have already disbursed the fast-start commitments we made for this financial year, and they have also been identified for the next financial year. Therefore, that money, which was agreed at Copenhagen, is being paid out. On the broader objective of $100 billion a year, we had an agreement to take note of the work that the advisory group on finance had done. That means that a lot of the work—for example, on bunker fuels and the potential for raising finance from aviation—can be taken into account and will go forward to Durban. I am cautiously optimistic that this advance will be crucial in getting the developing countries to sign up next year. This agreement, by the way, is the first time ever we have had an agreement by the developing countries to reduce their emissions compared with business as usual. That is quite a step forward, although it would obviously be nice to make it legally binding.

I can assure the hon. Lady that there is no division in the Government on leadership in Europe. I know she is sceptical, but we have worked very closely with all parts of Government, particularly the Foreign and Commonwealth Office, which has done an outstanding job. The team in Mexico City and the FCO more widely have done an outstanding job in helping us to prepare for these talks. It is an agreed part of our strategy as a Government that we recognise that our power as a nation to achieve our national objectives in the area of climate change is immeasurably greater the greater the extent to which we work through our European partners and manage to get them on board. That has been a key part of our approach to this issue.

[Martin Horwood (Cheltenham) (LD)]

May I echo my right hon. Friend’s words about Patricia Espinosa, the chair of the summit, and indeed echo her words to me in Cancun, which commended my right hon. Friend personally for the positive role that he played? May I ask him to elaborate a little further on the issue that he was asked to tackle by her, namely the risk that in 2012 we may still see the planet unprotected by any continuing international agreement?

[Chris Huhne]

We would obviously like, as my hon. Friend knows, to have a legally binding global agreement. That is our objective and I know that it is shared by those on both sides of the House. It is also shared by our European partners. We must not underestimate, however, the fact that although the convention track is not yet legally binding and does not have a commitment to a legal outcome—although a process was set up at Cancun whereby the convention track can discuss options for a legal outcome—the political commitment that it represents of incorporating the Copenhagen accord pledges within the UN framework and of having an agreement about the monitoring, reporting and verification of those pledges on the Kyoto side and international consultations, analysis and separate wording on the convention side is a significant step forward. We can have a lot of trust, and so can businesses, in the fact that that will underpin many of the investments that are being made.

Let me add one other point that gives me cautious optimism. Some of the countries that have been regarded as difficult and sceptical about making international commitments were much better as regards our objectives at Cancun. I hesitate to single out any one in particular, but it is striking that China is making commitments through its latest five-year plan that, were they incorporated into an international agreement, would reach a long way towards where we would like China to be. The Indian Government—in particular, I pay tribute to Minister Ramesh—played an outstanding role in ensuring that we could get a verification system that will stand the test of time.

This is a very significant agreement. We do not have a legally binding agreement yet. We would like that, but the political commitment and the substance of many of the decisions that have been taken are substantial.