PARLIAMENTARY DEBATES - United Kingdom Parliament
PARLIAMENTARY DEBATES - United Kingdom Parliament
PARLIAMENTARY DEBATES - United Kingdom Parliament
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85WS<br />
Written Ministerial Statements<br />
26 MARCH 2013<br />
Written Ministerial Statements<br />
86WS<br />
available on the Government website, and I have also<br />
placed copies in the Library of the House. While we are<br />
specifically inviting the views of councils and political<br />
parties and certain other consultees listed in the document,<br />
comments from all are welcomed. The consultation<br />
ends on 13 May 2013.<br />
Firebuy Ltd<br />
The <strong>Parliament</strong>ary Under-Secretary of State for<br />
Communities and Local Government (Brandon Lewis): I<br />
have today deposited in the Library of the House a<br />
copy of the annual report and accounts of Firebuy Ltd<br />
for the financial years 2010 to 2012.<br />
Firebuy Ltd was an Executive non-departmental public<br />
body sponsored by the Department for Communities<br />
and Local Government. It was a public policy failure of<br />
the last Administration, on top of the failed FireControl<br />
programme. In October 2010 it was announced that<br />
Firebuy was closing as part of the Government’s wider<br />
review of arm’s length bodies. It went into voluntary<br />
liquidation and ceased trading on 13 July 2011.<br />
These accounts have been produced to report to<br />
<strong>Parliament</strong> for the expenditure incurred between 1 April<br />
2010 to 13 July 2011 when Firebuy entered into liquidation<br />
and for all subsequent transactions up to 31 March<br />
2012. In doing so my Department is fulfilling its intention<br />
to produce the accounts on Firebuy’s behalf in order to<br />
meet our commitments within managing public money<br />
and to be open and transparent.<br />
The directors of Firebuy were discharged prior to<br />
completion of these accounts in order to allow Firebuy<br />
to enter into liquidation and close. Retaining the directors<br />
while these accounts were being produced would have<br />
delayed closure and incurred additional costs to the<br />
public purse in respect of an organisation that had<br />
failed to deliver value for money. By closing Firebuy the<br />
Department has saved over £1 million per annum.<br />
We will be taking forward the lessons learnt from<br />
Firebuy’s operation (and the closure process) within my<br />
Department as well as disseminating across Whitehall.<br />
Ultimately procurement is a matter for fire and rescue<br />
authorities to lead on based on their individual requirements.<br />
They are best placed to develop relevant models that<br />
ensure best practice standards are adopted as appropriate,<br />
so that the financial and efficiency benefits of interoperability<br />
and collaborative procurement can be realised.<br />
Like other public bodies, fire and rescue authorities are<br />
encouraged to update the publicly available “Contracts<br />
Finder” with details of upcoming procurement to allow<br />
suppliers to access these opportunities and promote<br />
joined-up procurement.<br />
ENERGY AND CLIMATE CHANGE<br />
Electricity Market Reform (Contingencies Fund)<br />
The Secretary of State for Energy and Climate Change<br />
(Mr Edward Davey): The Department for Energy and<br />
Climate Change requires a cash advance of £6,580,000<br />
from the Contingencies Fund for financial year 2013-14,<br />
to support urgent preparatory work to set up a contracts<br />
for difference (CFD) counterparty; to fund a panel of<br />
technical experts; and to fund external advisers in relation<br />
to transitional arrangements for early investors before<br />
parliamentary approval of both the specific enabling<br />
legislation and the necessary estimate.<br />
Contracts for difference (CFDS) are designed to ensure<br />
sufficient investment comes forward in time to replace<br />
old generating plant due to close from 2016 onwards<br />
with new low-carbon plant, thus ensuring continued<br />
security of supply for the UK and contributing significantly<br />
towards achievement of our legally binding EU renewable<br />
energy target.<br />
The Energy Bill will, subject to Royal Assent, provide<br />
for the establishment of a CFD counterparty. Work<br />
needs to commence now in order to ensure that the<br />
CFD counterparty is ready to sign and manage contracts<br />
for difference from mid-2014.<br />
The Energy Bill also makes provision for transitional<br />
arrangements to enable developers to take investment<br />
decisions, where required, ahead of full implementation<br />
of electricity market reform. The Department needs to<br />
engage external advisers before the Bill receives Royal<br />
Assent to support the negotiation of any such arrangements<br />
to ensure they represent value for money for consumers.<br />
Government have committed to setting up a panel of<br />
technical experts in order to scrutinise the analysis that<br />
will inform the first electricity market reform delivery<br />
plan. The first EMR delivery plan will be published in<br />
2013 and set out the CFD strike prices for renewable<br />
technologies and the reliability standard for a capacity<br />
market. An advance is required to pay the panel for this<br />
work.<br />
Accordingly, parliamentary approval for additional<br />
resources of £6,580,000 for this new service will be<br />
sought in an estimate for the Department of Energy<br />
and Climate Change. Pending that approval, urgent<br />
expenditure estimated at £6,580,000 will be met by<br />
repayable cash advances from the Contingencies Fund.<br />
Low Carbon and Renewable Heat<br />
The Secretary of State for Energy and Climate Change<br />
(Mr Edward Davey): I am pleased to announce today<br />
the publication of DECC’s heat policy document “The<br />
Future of Heating: Meeting the Challenge”. I am also<br />
announcing the next steps for supporting renewable<br />
heating through the renewable heat incentive (RHI).<br />
Heating is an integral and critical part of our lives<br />
and our economy, worth billions of pounds to industry<br />
and an essential element of all of our lives. The vast<br />
majority of heating is currently supplied by fossil fuels,<br />
comprising around a third of the UK’s total greenhouse<br />
gas emissions, and more than half of the UK’s natural<br />
gas usage.<br />
We need a strategic plan if we are to change the way<br />
we heat our homes, businesses and industry in the<br />
decades ahead to meet our carbon emissions targets.<br />
That is why in March last year I published a vision for<br />
low-carbon heat. I made a commitment to produce a<br />
follow-up paper setting out policies and actions to help<br />
make the vision a reality. Today I am delivering on that<br />
commitment.