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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.

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