Nuclear Management Partners (Sellafield)

Debate between Ed Davey and David Mowat

Tuesday 13th January 2015 Commons Chamber

[Mr Davey]

Let me try to agree with something the hon. Gentleman said. The costs of decommissioning are huge. Two thirds of my Department’s budget goes towards decommissioning nuclear power stations from the past and dealing with that legacy, so we need to think about value for money as we do that vital work safely. That is one of the reasons that, with the new nuclear programme, it is vital that the contracts and prices we agree include the costs of decommissioning and waste management, and they do.

[David Mowat (Warrington South) (Con)]

The Secretary of State has made it clear that there will be no redundancies at Sellafield Ltd in Cumbria or Warrington. Does his migration plan identify any redundancies in AMEC, URS or AREVA, and what is the time scale for his appointing a strategic partner to assist the programme?

Oral Answers to Questions

Debate between Ed Davey and David Mowat

Thursday 18th December 2014 Commons Chamber

[Mr Davey]

I am slightly confused by the hon. Gentleman’s question because he misquotes what the Prime Minister said on Tuesday. The fact is that onshore wind supplies just over 5% of our electricity today. By 2020, with the onshore wind farms that are in the planning stage and with the assumption that some will not get through, we expect to get to about 10%.

[David Mowat (Warrington South) (Con)]

It is odd that we have nearly got to the end of DECC questions and nobody has mentioned nuclear power. To redress that, will the Secretary of State confirm that Hinkley Point C is going ahead at speed, and that the generation of power stations after Hinkley Point C at Sellafield, Wylfa and Sizewell are doing so as well?

[Mr Davey]

That is certainly our policy. We have managed to agree commercial heads of terms, as my hon. Friend knows. We have received state aid clearance for Hinkley Point C. We are in final negotiations with EDF and it is putting together its consortium of investors. We are not at the point of a final investment decision, but we are getting closer.

Annual Energy Statement

Debate between Ed Davey and David Mowat

Thursday 6th November 2014 Commons Chamber

[David Mowat (Warrington South) (Con)]

In the event that the positions are swapped for next year’s energy statement, I hope the Secretary of State agrees that it would be a shame if we went back to being 25th out of the 27 countries in the EU for renewables, as we were in 2010. However, my substantive question is about coal. Across the world we are seeing a renaissance in coal—I believe that last year coal increased by eight times more than renewables in absolute numbers. As the Secretary of State goes on trying to secure a worldwide agreement, does he really believe that we can make progress on this?

[Mr Davey]

My hon. Friend is right to focus on the last Government’s poor record on renewables. On coal, global investment in clean energy was outpacing global investment in fossil fuels last year and has been for the last few years, but he is right to warn about coal, because global coal prices have fallen, which has meant that some people are investing. That is one of the reasons why it is important that we have a price on carbon. We have policies such as contracts for difference, which give investors in low carbon security for the future.

Oral Answers to Questions

Debate between Ed Davey and David Mowat

Thursday 6th November 2014 Commons Chamber

[David Mowat (Warrington South) (Con)]

11. What recent discussions he has had with his counterparts in European Union member states about carbon and renewables targets.

[The Secretary of State for Energy and Climate Change (Mr Edward Davey)]

As my hon. Friend knows, I have been engaging with a large number of my EU counterparts over the past two years on these issues. By engaging in Europe—by building relationships and trust over a period—I believe that a UK Minister is better placed to win arguments in the EU that are in British interests.

That is what we have done over carbon and renewable targets, so now we have more ambitious carbon targets than many thought possible. We have an EU-wide renewables target, not a rigid member-state-based target, so European countries can cut carbon emissions using the lowest-cost technologies for them while still providing a strong signal to Europe’s renewables industry.

[David Mowat]

I agree that decarbonisation targets, not purely renewables targets, are a good way forward. However, the Secretary of State may be aware that the Government of Austria—a country that since 1990 has increased its carbon emissions, which are more than 25% higher than ours—have reportedly said that they are going to sue us over Hinkley Point C. Could the Secretary of State give us his perspective on their comments? Is there anything we can do to counter-sue carbon junky countries such as Austria that repeatedly fail to meet their emission targets?

[Mr Davey]

I probably will not answer the last part of that question, because the Foreign and Commonwealth Office might want to have a word with me. On the first part of my hon. Friend’s question, Austria has reportedly been considering taking the European Commission to court, to judicially review its state aid decision. We are confident that that decision was taken in a robust way and we were very supportive of it.

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[Mr Davey]

I completely agree with the hon. Gentleman, both in thanking my officials, who are extremely hard working and talented people, and on the future of low-carbon energy on Anglesey. He has been a real champion of those sorts of projects and the Horizon project for the new nuclear power plant there.

[David Mowat (Warrington South) (Con)]

Earlier in Question Time the Secretary of State made the point that the 2030 agreement was the export of our Climate Change Act across the EU. I very much welcome the 2030 agreement, but does he agree that the rate of decrease implied by that agreement is quite a lot slower than our Climate Change Act? Does he intend to harmonise the targets in the two agreements?

Oral Answers to Questions

Debate between Ed Davey and David Mowat

Thursday 4th September 2014 Commons Chamber

[David Mowat (Warrington South) (Con)]

12. What recent discussions he has had with his counterparts in other EU member states on carbon and renewables targets.

[The Secretary of State for Energy and Climate Change (Mr Edward Davey)]

I have engaged extensively with my EU counterparts on the European Commission’s proposals for a 2030 climate and energy framework. That has included discussions at the Energy and Environment Councils in March, May, June and July, and several meetings of the green growth group of like-minded EU Ministers, which I established. Throughout the discussions, I have stressed the need for early political agreement on an ambitious, cost-effective and flexible 2030 framework. That is important to unlock investment and to put the EU in a stronger position for the global climate negotiations in 2015.

[David Mowat]

To date, EU targets have focused principally on renewables, not on carbon reduction. The result is that countries such as Holland, Germany and Denmark, which produce more carbon per capita than us, have exceeded their renewables targets. Will the Secretary of State ensure that any future targets that we sign up to are focused on carbon reduction, which is the primary aim, and not on the secondary aim of renewables? That would allow nuclear, carbon capture and storage and gas to play a part in other states.

[Mr Davey]

As my hon. Friend is a huge expert in this area, he will know that the electricity market reforms in this country have been deliberately technology neutral. That will be the case as the market evolves over the next decade and more. This country has therefore not had targets for particular technologies. We want the market to decide on the mix. That is the approach that we have taken in the European negotiations. We have argued for the most ambitious greenhouse gas emissions target of any member state and for it to be technology neutral. I am delighted to report to the House that we are winning that argument.

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[David Mowat (Warrington South) (Con)]

Will the Secretary of State update the House on the position regarding state aid clearance on Hinkley Point C?

[Mr Davey]

We are actively involved in discussions with the European Commission on this vital state aid notification and have been meeting it over the summer. Most recently, officials met Vice-President Almunia’s team in Brussels yesterday, and I had a report yesterday evening. Those discussions are intense and, I think, very constructive.

Oral Answers to Questions

Debate between Ed Davey and David Mowat

Thursday 19th June 2014 Commons Chamber

[David Mowat (Warrington South) (Con)]

1. What discussions he has had with his counterparts in EU member states on carbon and renewables targets.

[The Secretary of State for Energy and Climate Change (Mr Edward Davey)]

I have engaged extensively with my EU counterparts on the European Commission's proposals for a 2030 climate and energy framework. This has included discussions at the Energy and Environment Councils in March, May and June this year; many meetings of the green growth group of like-minded EU Ministers, which I established in February last year; and various visits to individual member states for extensive bilateral engagement. Throughout these discussions, I have stressed the need for early political agreement on an ambitious and cost-effective 2030 framework. This is important to unlock low-carbon investment and to put the EU in a stronger position for the global climate negotiations in 2015.

[David Mowat]

I thank the Secretary of State for his reply. He will be aware that right across the EU, we are seeing the amount of electricity produced from coal increasing. In particular, in 2013, countries such as Germany, Holland and Denmark all showed a considerable increase, yet the UK, which is among the lowest carbon emitters in the EU, is phasing coal out at speed. How can that dichotomy of policy be rational?

[Mr Davey]

I do not think there is a dichotomy of policy. One of the key issues in the 2030 package that we are negotiating is reform of the EU emissions trading system to send a carbon signal that everyone had expected under the 2008 deal, which has failed to come through. It is right to proceed with this reform. I am proud that Britain is leading in Europe on the ambitious climate change package that is vital to tackle climate change.

Oral Answers to Questions

Debate between Ed Davey and David Mowat

Thursday 3rd April 2014 Commons Chamber

[Mr Davey]

We do not see a security of supply problem here, but the Government need to engage with all parties to determine what we can do, and we have been incredibly active in doing so.

[David Mowat (Warrington South) (Con)]

Ogfem tells us in its most recent energy capacity report that supply will fall by about 5% between 2012 and 2016, leaving an estimated capacity margin of between 2% and 4% in 2016. Will the Secretary of State confirm that contingency planning is allowing for that and that a cold winter will not cause the industry to have to close shifts?

[Mr Davey]

I can confirm that. Obviously, we have been preparing for that for some time and working with the industry, National Grid and Ofgem. As I said, we have short-term plans with National Grid to have a reserve of power plants, as well as our longer-term reforms regarding the capacity market, so I can confirm that the lights will stay on.

Oral Answers to Questions

Debate between Ed Davey and David Mowat

Thursday 28th November 2013 Commons Chamber

[Mr Davey]

The whole Government, working with colleagues like the hon. Gentleman, are doing our very best to ensure that we get that supply chain investment in the UK for our green sector. He knows that we are working with him and other hon. Members from Hull to do just that.

[David Mowat (Warrington South) (Con)]

The Secretary of State will be aware that the UK now has among the lowest emissions per capita and per unit of GDP in Europe. For example, they are 25% lower than those of Germany, which has just embarked on a programme of building coal power stations. Is there anything more we can do to help our European partners have any kind of meaningful targets?

[Mr Davey]

I am grateful to my hon. Friend for his question. We are working with all our EU partners to raise ambition in the EU. This Government have proposed that we should have an EU target of a 40% reduction in domestic greenhouse gas emissions by 2030, and be prepared to go up to 50% if we can get a global deal in 2015. We are leading the way in Europe on ambition.

Energy Price Freeze

Debate between Ed Davey and David Mowat

Wednesday 6th November 2013 Commons Chamber

[Mr Davey]

My hon. Friend is right. What the Labour party has done has increased the cost of capital. Who loses as a result? The consumer. By recklessly proposing this irresponsible policy, the Labour party has shown that it is against the consumer.

[David Mowat (Warrington South) (Con)]

The Secretary of State has made a valid point about the consensus on the Energy Bill. Is he aware that the Labour party amended the Energy Bill yesterday in a way that will ensure that coal stations are switched off more quickly, at an estimated average cost per consumer of £50? The Labour party then comes to this House and proposes this motion. What does he think about that?

[Mr Davey]

We are listening to their lordships House. I have to tell my hon. Friend that the argument is a little more complicated than what he has set out.

Consensus is critical, not just across the House, but within the coalition parties. I accept that there have been debates within the coalition, but we have come together and produced a coherent energy policy. I will aim to rebuild the consensus with the right hon. Member for Don Valley because, as I think she knows, that is in the national interest.

Annual Energy Statement

Debate between Ed Davey and David Mowat

Thursday 31st October 2013 Commons Chamber

[Mr Davey]

We want to do more for those people, which is why we are pushing switching and collective switching. The hon. Lady has a distinguished record as a former chief executive of a citizens advice bureau, and I hope she would welcome our proposal for the big energy saving network. That is now operating, with the help of Citizens Advice, Age UK and National Energy Action, to help people in communities up and down the country get better deals.

[David Mowat (Warrington South) (Con)]

During her remarks, the shadow Secretary of State said that she believes “secret deals” were being done by the big six—those were her words. If she has that evidence, it is clearly a cartel, which would result in a fine equal to turnover. In the case of Centrica that would be £20 billion. Does the Secretary of State agree that the right hon. Lady should put that evidence to the House—if she has it—and get that £20 billion?

[Mr Davey]

My hon. Friend makes a good point. If the right hon. Lady knows of secret information, I hope she will confirm that she has told the competition regulator so that it can be investigated. She is not very good at answering questions. I have asked her and her right hon. Friend the Leader of the Opposition questions about their policy, but we have not had a single answer.

Grangemouth Refinery

Debate between Ed Davey and David Mowat

Wednesday 23rd October 2013 Commons Chamber

[Mr Davey]

I once again pay tribute to the hon. Gentleman, who has been representing his constituents with his usual skill. I agree with much of what he says but, as the Government must look at all potential scenarios, we have to look at the potential scenario of liquidation, as announced by INEOS today. We very much regret that, but we have to plan for all potential outcomes. The hon. Gentleman is right that a better outcome would be to get both sides around the table so that we can get agreement on a way forward and secure the investment that we wish to see. We want to see the petrochemicals plant staying open and developing.

[David Mowat (Warrington South) (Con)]

The impact of Grangemouth closing is far in excess of the 800 jobs because of the issues regarding ethylene and refining capacity throughout the country. Will the Secretary of State assure us that, in the same way that European countries go to the nth degree to prevent their refineries from closing even though there is overcapacity in Europe, he will do the same in this country?

[Mr Davey]

My hon. Friend is right to say that the ramifications, severe though they are for the 800 people, their families and the communities in which they live, go wider than that, which is one of the many reasons why I and my colleagues have been working so hard to secure a resolution that sees the investment and sees the plant staying open. As I said in answer to the right hon. Member for Don Valley (Caroline Flint), we are very much focused on looking for the right approach to maintain the refinery capacity that the UK needs. We have already seen—I think it was two years ago—a refinery at Teesside closing, and recently there was the situation at Coryton. Refineries in the UK and throughout Europe are under severe pressure; their margins are very narrow and there are serious economic issues. I have referred to one of the reasons for that—the switch from petrol to diesel—but there are others as well. We need to ensure that our response is strategic and based on evidence, and that it will have the results that we need. We do need a successful refining industry in the UK and that is the purpose of our work.

Oral Answers to Questions

Debate between Ed Davey and David Mowat

Thursday 6th June 2013 Commons Chamber

[David Mowat (Warrington South) (Con)]

1. What recent discussions he has had with his counterparts in Germany, the Netherlands and Ireland regarding the level of per capita carbon emissions and the future policy of those countries.

[The Secretary of State for Energy and Climate Change (Mr Edward Davey)]

I frequently have talks with my German, Dutch and Irish counterparts. In April, for example, I attended informal energy and environment councils in Dublin, where discussions with other member states, including Germany, the Netherlands and Ireland, focused on the EU 2030 climate and energy framework.

[David Mowat]

The March European Environment Agency report confirmed that the UK’s per capita emissions are among the lowest in Europe, and in 2011 they fell at double the rate of those of the rest of the EU. Furthermore, the recent emissions trading scheme vote by the European Parliament means the UK has a carbon price six times higher than the rest of the EU, and now we are seeing several countries moving ahead to build coal stations that will not use carbon capture and storage. Is there a risk that we are increasingly acting unilaterally in this area?

[Mr Davey]

Let me reassure my hon. Friend. We work very closely with our European colleagues, and I formed the green growth group, currently working with about nine other member states, including our German and Dutch colleagues. We need to reform the ETS to make sure we have a functioning and effective carbon market in Europe, and we also need an ambitious 2030 target for greenhouse gas emissions. The UK Government have agreed that we will seek a 50% target in the context of winning a global climate change treaty.

Petrol Prices

Debate between Ed Davey and David Mowat

Wednesday 15th May 2013 Commons Chamber

[David Mowat (Warrington South) (Con)]

The allegations are serious, and yet the EU energy portal told me this morning that the pre-tax and duty prices of diesel and petrol in the UK are among the cheapest in Europe—indeed, they are cheaper than in Germany, France and Holland. Given that, will the Secretary of State tell us whether the focus of the inquiry is the UK market or the cross-border European market, which, on the facts, would appear to have bigger problems?

[Mr Davey]

My hon. Friend is right that pre-tax petrol and diesel prices in the UK are among the lowest in the EU. Nevertheless, we cannot be complacent, and it is right that there are investigations—I am sure he was not suggesting that the competition authorities should not investigate. He will know that, as I said in my statement, one issue surrounding the investigation is the reports made by different companies to a price reporting agency. We must wait to find out whether that affects domestic or European markets, but it is the reporting agencies and the prices they report that concern our competition authorities.

Energy Policy

Debate between Ed Davey and David Mowat

Thursday 29th November 2012 Commons Chamber

[Mr Davey]

Our investments and our policies for offshore wind have been widely welcomed, and we are seeing the industry really get going. We have the largest amount of offshore wind capacity already installed and we have some of the greatest potential in the world. It is important that we get costs down. We are working with the offshore wind developers and the forum that has been established to get cost reductions, and they produced a report just a few months ago showing how we could get cost reductions across the piece, which will make a huge difference to competitiveness.

[David Mowat (Warrington South) (Con)]

I welcome the Bill, which at last gives us the possibility of unleashing nuclear power at scale in the UK. The Secretary of State will have seen the recent EU figures showing that every EU industrial country except France has higher carbon emissions per head than the UK. Yet Germany, which has 20% more carbon emissions per head than the UK, has recently embarked on a project to build 20 unabated coal power stations. How does he reconcile Germany’s position with ours?

[Mr Davey]

I work closely with my German counterparts, particularly Peter Altmaier, and I know that they are having a big debate in Germany called the “Energiewende” looking at how they will deal with the implications of reducing their nuclear industry. I am sure that my hon. Friend would understand that, given our close partnership with Germany, I would not wish to tread on Herr Altmaier’s toes, but this country is investing in nuclear. We are putting forward a regime that we think is attractive, and Hitachi’s £700 million investment in the Horizon project shows that international companies and international capital believe we have got it right.

Gas Market Fraud

Debate between Ed Davey and David Mowat

Tuesday 13th November 2012 Commons Chamber

[Mr Davey]

Ofgem has a daily role to monitor energy markets and make sure that they operate properly. In that normal process, it encounters a number of allegations. These will not have been the first allegations that it has received. Ofgem does not announce every particular allegation; it has to go through a proper process. Now there appears to be some evidence backing these allegations, but the reason we have an independent regulator is to allow it to get on and do the investigation. I suggest that that is exactly what we should do.

[David Mowat (Warrington South) (Con)]

First LIBOR and now—potentially—this. Are there other indices at which we should be looking proactively without waiting for whistleblowers to suggest market abuse?

Jobs and Growth in a Low-carbon Economy

Debate between Ed Davey and David Mowat

Monday 5th March 2012 Commons Chamber

[Mr Davey]

My right hon. Friend the Chancellor would not have had to make that statement had Labour left the economy in a decent state. The fact is that we are having to clear up Labour’s deficit. Nevertheless, at the same time, we have established the green investment bank—something that it was unable to do even in the good times. That we are doing it in the difficult times shows our commitment to the environment.

That investment is already yielding real benefits. According to one survey, four out of five wind and marine energy companies are planning to hire more staff by this time next year. Many of those companies are small or medium-sized businesses, while many operate in areas that have otherwise struggled to attract investment. All are helping to rebalance and rebuild our economy, and hasten the low-carbon transition. For example, Evance Wind Turbines in Loughborough has doubled the size of its UK manufacturing facility and has expanded its work force by 25%. Sales have grown by over 200% since last January. Samsung announced plans last month for a new wind turbine plant in Fife—a £100 million investment that is expected to create more than 500 new jobs. Let us also consider Rolls-Royce, whose £400 million nuclear deal with Areva will support hundreds of highly skilled jobs, including in Rotherham. Even closer to the constituency of the right hon. Member for Don Valley, is the Don valley power project at Stainforth. It is one of the most advanced carbon capture and storage projects in Europe, and is looking to break ground in 2013, employing 2,000 people at the peak of construction and creating 200 jobs for normal operation. Those companies and many, many more are building the clean-energy infrastructure that will power Britain’s future, not just in generations to come, and not in some far off world, but in the weeks and months ahead. Some 4 GW of renewable electricity is expected to come online in the coming year—a doubling of capacity since May 2011. That is a real achievement.

A common thread running through some of the Opposition’s rhetoric concerns stability for investors. I would like to address that, because there is a difference between the parties on this issue, and it is plain for all to see. Let us take nuclear power. I am the first to admit that pushing ahead with new nuclear was not an easy decision for my party, but we have taken it, and we will do it. Let us contrast that with how Labour dithered over new nuclear, so that for the best part of a decade not a single new nuclear plant was authorised. It was the coalition that took forward the national policy statement on new nuclear, paving the way for the first new power station since 1995. However, I was grateful for what the right hon. Member for Don Valley said about nuclear power. Her strong support from the Opposition Front Bench for our new nuclear programme is welcome. It is important that we take politics out of such decisions, so I am grateful that we are making some progress.

[David Mowat]

Will my right hon. Friend give way?

[Mr Davey]

In a second.

On renewables, Labour missed chance after chance, allowing other countries to steal a march, so that when we came to office, the UK was near the bottom of the European renewable energy table—as some of my hon. Friends have said—despite our strong natural resources. We were ahead of Luxemburg—

[David Mowat]

And Malta.

[Mr Davey]

My hon. Friend is right. However, we were behind Bulgaria, Romania and the Czech Republic. We were at the bottom of the European league. This coalition Government are going to rocket us up that league. We want to ensure that our incredible offshore wind potential is realised. It was Labour that failed to do its job properly in government. If Labour had not done so, we would already have more manufacturing, more design and more added value here in Britain. Instead, we have seen manufacturers in Europe and Asia seize much of the supply chain value. In contrast, since we came to power, our policies to support manufacturing at ports and set up the offshore wind developers forum are already beginning to yield results. Foreign companies such as Siemens are now looking to invest in UK turbine manufacturing, and British companies such as David Brown are exporting technology to developers such as Samsung.

Investors and businesses want policy stability, but Labour could not deliver in government. Let us take the feed-in tariffs scheme—which Labour voted against in the last Parliament. Given an opportunity to encourage sustainable clean-energy industries here in this country, Labour dropped the ball. It should not have been necessary to review FITs, but they were not properly designed in the first place. The seeds of instability had already been planted by Labour Members. Labour’s scheme had no flexibility to change tariffs in response to the rapidly changing technology costs. As a result, 80% of the costs of FITs in 2015 will go towards paying for just 20% of the generation capacity, which was installed under Labour’s scheme. Under our new, improved scheme, we expect to get three times as much electricity generation for less than one third of the cost. When it comes to solar power, Labour is the party of the few, and the coalition is the Government of the many. There will be many more installations, and many more households will benefit. There will also be much more carbon dioxide taken out of the system.

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[Mr Davey]

I am afraid that the hon. Lady is slightly confused. The German scheme is a personal loan scheme. Our green deal scheme is attached to utility bills; it could not be more different. The structures that she is talking about would therefore not work in the scheme that we are introducing.

The Labour Government were, frankly, equivocal about the capacity and suitability of our energy infrastructure. The coalition is therefore having to work doubly hard to compensate for the missed years. Our reform, set out in our White Paper last year, will secure our energy supplies, guarantee returns for investors and safeguard consumers from volatile internationally-set fuel prices. Critically, it will deliver energy infrastructure that will ensure Britain can evolve into a competitive low-carbon economy. We are introducing a mechanism to ensure that there is sufficient capacity, too.

[David Mowat]

I have been listening carefully to the Secretary of State’s remarks. He tends to use the terms “low carbon” and “renewables” interchangeably; they are, of course, not the same thing. The Climate Change Act 2008 asked us to reduce carbon, not necessarily to build renewables. In any event, will he confirm that all low-carbon sources of energy, including carbon capture and storage and nuclear, will be eligible for green investment bank funding?

[Mr Davey]

I am delighted to confirm that. I am sorry if my hon. Friend thinks I am interpreting low carbon as renewables, which is not our position. When we look at electricity market reform and talk about low-carbon technology, we are indeed talking about new nuclear and carbon capture and storage as well. I hope I have reassured my hon. Friend on that point.

Oral Answers to Questions

Debate between Ed Davey and David Mowat

Thursday 14th July 2011 Commons Chamber

[Mr Davey]

Across the Government, our new approach to commercial diplomacy is working in all those areas. My right hon. Friend the Minister for Europe visited Baku last year and took with him a number of companies involved in the infrastructure project. I am sure that my hon. Friend will agree that the British music industry will take all the possible opportunities presented by the Eurovision song contest being held in Azerbaijan next year, and that they are not “Running Scared”.

[David Mowat (Warrington South) (Con)]

8. Which locations he is considering for the headquarters of the green investment bank.