Energy Bill

We have had success with onshore wind farms, but problems still exist with offshore facilities. All hon. Members have a direct interest in the jobs that the energy sector provides in our constituencies, but if it fell to me to secure energy supply over the next 10, 15 or 20 years, I do not think that I could say, with my hand on my heart, that our energy needs could be met by a diverse range of renewables. History shows that that is not possible, even with the streamlined planning powers that we now have. The biggest delays to the development of renewables have been caused by problems with the planning process, and the culture of our island—our traditions and pattern of resistance to investments of that sort—means that we will not be able to resolve those problems. That is why I believe that it is inevitable and necessary that we embark on the proposed nuclear programme, and that we should continue to develop renewables at the same time. I urge those of my hon. Friends who oppose nuclear so strongly—I know that they believe that they have good reason—to accept that those of us who see nuclear as an inevitable and necessary component of our future power supply support the development of renewables just as strongly as they do. We want the Government to do more in that regard, and that is why we welcome the full-scale pilot project for carbon capture and storage—although I am not sure that that project is not evidence that we are indulging in the sort of recidivist tendency for picking winners to which there seemed to be a pathological aversion when I was in the Treasury. I hope that we get it right, and that others will come forward to challenge the orthodoxy—or whatever we choose to call it—that the Government embark on when the results of the competition are announced. However, the plant in question will not come on stream until 2014, so we are left with the questions posed by my hon. Friend the Member for Barnsley, West and Penistone (Mr. Clapham): will there be an energy gap between 2010 and 2018—or 2020, or even 2015, come to that—and how big will that gap be? If a gap does open up, from where will our needs be met? Coal-fired plants were supposed to be phased out back in 1997 and 1998, when I was at the Treasury. The energy policy at the time was that such plants should be got rid of, but last year they produced more energy than any other source of supply. The lifetime of coal-fired plants, and of existing nuclear plants, could no doubt be extended. Is that the Government's intention, or are we embarking on what amounts to another dash for gas? Is the purpose of the powers that the Government are taking greatly to increase our gas storage capability and the number of connections to the gas grid? It would be helpful if the Minister who responds to the debate could clarify that. Finally, several Labour Members have mentioned fuel poverty and asked why the Government have not used the Bill to tackle it. I have some experience of imposing windfall taxes on the utilities, and I do not recommend that as a solution to the problems that we are experiencing just now. However, massive increases in profits for the energy supply companies are matched by massive increases in the cost of energy for our constituents, who are its consumers. The average price increase must be well into double figures in percentage terms, so if every percentage point rise leads to 40,000 more people suffering from fuel poverty, the effect of the latest rises means that another 600,000 people will be forced into that category. In the debate, various figures from Friends of the Earth, Energywatch and other bodies have been quoted. Those organisations have done a good job, and my right hon. Friend the Secretary of State said that he was in discussions with the energy supply and utility companies in a bid to resolve the problem. I hope that he will remember that—faute de mieux, and if all else fails—the possibility of imposing a windfall tax does exist. If he bears that in mind in his negotiations, it might be a very useful tool for him.