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891 National Policy Statements 1 DECEMBER 2010 National Policy Statements 892
Andrew Percy (Brigg and Goole) (Con): In my
constituency, many properties are not on the gas network,
and there are no plans to expand the network into many
of the small villages there. Will those properties be able
to access alternative sources of heating through the
green deal, perhaps through air source heat pumps and
so on?
Charles Hendry: I am grateful to my hon. Friend for
the work that he has done to highlight issues such as
these. We said in the coalition agreement that prioritising
off-grid customers would be an important part of what
we are seeking to do. However, the help for them will
not come through the measures in the green deal. His
constituents will of course be eligible for support for
energy efficiency measures through the green deal, but
the renewable heat incentive will give them support for
other mechanisms such as air source heat pumps, ground
source heat pumps and solar thermal installations. There
will be a different funding mechanism for that, and we
have confirmed that £860 million will be made available
for the renewable heat incentive. We will set out the
precise details of that in the next few weeks, and it will
target precisely the people that he is most concerned
about in that respect.
Albert Owen (Ynys Môn) (Lab): The Minister has
been very effective in campaigning for the extension of
the gas network throughout the United Kingdom, but
what he has just said will be of little comfort to people
in many areas who simply want a choice. At present,
they have oil or liquefied petroleum gas, but they want
mains gas, which is often located only a few hundred
yards away from their village or hamlet. Do the Government
understand their frustration? Given that the market is
failing them, would it be possible for incentives to be
given in this regard, and for the regulator to ensure that
those gas connections can take place?
Charles Hendry: The hon. Gentleman raises an important
point. Certainly, encouraging people to install renewable
heat sources, particularly in off-grid properties, is part
of the solution. He is absolutely right to say, however,
that for many people, the convenience of being on the
grid will be their primary concern. It must be extremely
frustrating to live in a house close to the grid that is
unable to benefit from it. Ofgem is working to ensure
that the grid is extended, but that is obviously a gradual
process. We are considering different ways of dealing
with the problem. Grid development is mentioned in
the planning policy papers, but we are introducing
other measures such as the renewable heat incentive, to
help people who currently have no alternative to heating
oil or liquefied petroleum gas. I hope that it can be said
that we are dealing with the issue comprehensively.
Sarah Newton (Truro and Falmouth) (Con): Do not
local councils also have an important role to play?
Cornwall council, for example, is undertaking a project
involving feed-in tariffs. It will work with the third
sector in using the money that it earns from installing
solar panels in the county to help those in the greatest
fuel poverty—who, as other Members have pointed out,
are often off grid—not only through energy-efficiency
schemes but by providing heat from more appropriate
sources, such as ground-source heat.
Charles Hendry: My hon. Friend is right to draw that
to the House’s attention. As a result of one of the
changes that we have made, local authorities are now
allowed to sell electricity directly to the grid. Rather
than merely being able to host new facilities, they can
now become involved in these processes as partners.
They can sell the electricity that is generated, and benefit
from the feed-in tariffs or other financial packages that
are available. I hope that, in difficult times, councils
throughout the country will see such measures as an
important potential income-earner and a way of
encouraging their communities to move in a low-carbon
direction. That is a critical part of Government policy.
We have said that there will be special help for the
most vulnerable. The new energy company obligation
will provide additional funds for those who are most in
need and for homes that are hard to treat, which may
need additional support. Our policy also involves the
electricity market reform programme, which is a wholesale
redesign of our electricity market. There is no doubt
that that process, which will begin in a few weeks, is the
most fundamental reform of the market for 30 years. It
involves a new way of encouraging people to invest in
electricity generation, and I cannot over-emphasise the
importance that we attach to it. The power sector needs
to lead the way when it comes to cutting carbon.
Charlie Elphicke (Dover) (Con): Many of my least
well-off and most vulnerable constituents fear that in
five years’ time the lights may go out. What action can
the Government take to deal with the backlog of
infrastructure repairs?
Charles Hendry: I am keen to reassure my hon.
Friend. A couple of years ago, the outlook was a cause
for great concern. The recession reduced demand by 5%
or 6%, and, although it has grown again, it has not
reached its previous level. What appeared to be a serious
pinch point now seems to have been pushed further out,
but that does not give grounds for complacency. We all
know that cold winters and, in particular, cold still days
place immense demand on the system, and we need to
take action to deal with that.
As much as £200 billion of new investment may be
required in our electricity infrastructure. We have to
rebuild it. It would have been much better for the
country if more of that work had been done before
6 May, and it would have been much better had there
not been a five-year moratorium on new nuclear and a
delay of some years in new installations. I applaud the
conversion of the last Administration, which began to
put us back on track, but a number of years were lost.
John Woodcock (Barrow and Furness) (Lab/Co-op)
rose—
Huw Irranca-Davies (Ogmore) (Lab) rose—
Charles Hendry: I will give way shortly, but I hope I
shall be forgiven if I do not do so immediately, as I am
in full flight.
We need to establish a structure that will give people
an incentive to invest in new nuclear, clean coal, coal
with carbon capture, renewables—in regard to which
we have great potential—and new gas plant, along with
gas storage. We are alive to all the challenges, and we
are moving forward on all fronts.