Energy Bill [Lords] — House of Commons, 2016-03-14
Topic: Energy
Amber Rudd (Conservative, Centre-right): I beg to move, That the Bill be now read the Third time This Government are focused on delivering measures that support our long-term plan for secure, clean and affordable energy supplies. This Bill puts in place key manifesto commitments to achieve those objectives—first, by meeting our commitment to support the development of oil and gas in the North sea. The Bill provides the Oil and Gas Authority with the direction and powers it needs to be an effective regulator and to maximise recovery of resources in the North sea to the benefit of Britain’s energy security. Secondly, the Bill meets our commitments to ending new public subsidies for onshore wind and giving local people the final say on wind farm applications. In doing so, the Bill will protect bill payers by helping to control the costs to the public of support for renewable energy Let me take those in turn, addressing the action we have taken since the Bill’s Second Reading in January, before touching on other measures in the Bill. As I set out on Second Reading, amendments made in the other place sought to expand considerably the objectives of the Oil and Gas Authority. Our view is that this would dilute the focus of the OGA at a crucial time for the oil and gas industry. This House has reinstated the OGA’s original principal objective for maximising economic recovery. Both the industry and the unions are agreed on that. The OGA must have clarity on its primary objective. The Bill as it now stands provides that I set out our intention on Second Reading to re-introduce clauses on onshore wind that were removed in the other place. This was a clear Government commitment, and I am pleased to see those provisions put back. Let me be explicit: this Bill enacts a manifesto commitment. Clause 79 helps to implement that commitment to end new public subsidies for onshore wind. Onshore wind has deployed successfully to date, but without control there is a risk of over-deployment beyond the range we have set for 2020—the range that we consider affordable. Over-deployment could add extra costs to consumer bills or reduce the amount of support available to less mature technologies such as offshore wind that need help to bring their costs down, just as public subsidies have brought down the costs of onshore wind. To protect investor confidence, we have inserted clause 80, which sets out in legislation the grace period for those projects meeting certain conditions as of 18 June last year. That allows such projects to continue to seek accreditation under the renewables obligation after the early closure date I have also introduced a clause relevant to Northern Ireland. It remains my position that consumers in Great Britain should not bear the cost of Northern Ireland providing additional support to onshore wind. We have been clear about that throughout the process. The intention of the backstop power is to ensure that, should Northern Ireland choose to provide additional support for onshore wind, consumers in Northern Ireland, not Great Britain, will bear the cost The Government are committed to the Climate Change Act 2008 and our target to reduce emissions by 80% by 2050. We will meet our obligations and responsibilities by setting the fifth carbon budget by the end of June this year, covering the period 2028 to 2032. As the Committee on Climate Change has said, while we are on course to meet the second and third carbon budgets, the fourth carbon budget will be tough to achieve. We will set out our proposals for meeting our targets in our new emissions reduction plan. Our working assumption is that this will be published at the end of the year. Work on the fifth carbon budget is well under way across Government and has been progressing for over a year I understand the intentions of those who have sought to amend the Bill to change the way we count carbon for the purposes of the fifth carbon budget, and of course it is right that we keep our accounting practices under review, but I am afraid that accepting such an amendment to the Bill this far into the fifth carbon budget process would have risked serious delay, at a time when the UK should be showing clear, decisive leadership in the aftermath of the Paris climate change conference. Before I conclude, I wish to express my thanks to those who have supported the proper scrutiny of the Bill. First, I give thanks to my team on the Front Bench: the Minister of State, who has expertly steered the Bill through the House, and Lord Bourne for his management of the Bill in the other place. I would like to thank my hon. Friends the Members for Skipton and Ripon (Julian Smith), for Blackpool North and Cleveleys (Paul Maynard) and for South East Cornwall (Mrs Murray) for their excellent contributions and support. We are very grateful Let me also express my gratitude to Opposition Members for their measured approach to the scrutiny of the Bill. It is fair to say that there have been moments of disagreement, but we have also agreed on many issues, including the need swiftly to complete the work started in the previous Parliament to implement fully the recommendations of the Wood review. I therefore thank the hon. Members for Wigan (Lisa Nandy), for Southampton, Test (Dr Whitehead), for Norwich South (Clive Lewis), for Aberdeen South (Callum McCaig), and for Coatbridge, Chryston and Bellshill (Philip Boswell) for their considered scrutiny. I am also extremely grateful to my hon. Friends for their participation in our proceedings and in discussions both in and outside the Chamber, which has been very helpful During the passage of the Bill, my colleagues and I have listened carefully, and, where appropriate, have made amendments or added details to provisions. However, when it comes to the fundamental purpose of the Bill, we have stood firm on our commitments, and we intend to continue to do so.