Energy: Renewables Directive

Lord Vinson Excerpts

Tuesday 19th October 2010 Lords Chamber

Asked By

[Lord Vinson]

To ask Her Majesty’s Government how their programme implementing the European Union Renewables Directive takes into account the existing level of fuel poverty and the likely effect on employment in British industry.

[The Parliamentary Under-Secretary of State, Department of Energy and Climate Change (Lord Marland)]

My Lords, ensuring that we deliver 15 per cent renewable energy will bring benefits to the UK. By 2020, it will reduce the UK’s carbon emissions, contribute to our future energy security and create outstanding opportunities for the UK economy, with the potential to create 500,000 jobs. There will be other impacts, which will in some cases bring higher consumer energy bills. We are committed to helping households in fuel poverty and we will continue to look at ways in which we can make further progress towards meeting our fuel poverty goals.

[Lord Vinson]

I thank the Minister for his considered reply and the sagacity that he is bringing to his department. Does he not agree that, nevertheless, the Government have signed up to an EU carbon saving scheme that has very damaging unintended consequences, which are already contributing to the 4.6 million households now in fuel poverty and which will create ever rising unemployment as our fuel-intensive industries are taxed into uncompetitiveness? Even the Guardian calls the wind power feed-in tariff crazy. As energy is the lifeblood of our society, could not our new Government look again to find better ways of achieving the same ends—but by a less costly, more rational and possibly slower route than blindly following a wholly inappropriate EU commitment, which, if fully implemented, will bring immense harm to our economy? That is no joke.

[Lord Marland]

I have been called many things, but “sagacious” is a new one for me; I am extremely indebted to my noble friend for calling me that. Whether we like it or not, we are legally bound by the EU renewable energy target of 15 per cent and this Government are not interested in breaking the law. Fuel poverty has increased because fuel prices went up by 80 per cent between 2004 and 2008. Yes, increasing our renewables will increase electricity bill prices by about £10 per year, but that is a small price to pay when you consider that fuel prices have gone up by 80 per cent.