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Mr. Baker: In the interests of diversity of supply, will the right hon. Lady explain why this week the Government announced £100 million for the coal industry, but, on the most recent figures, have spent less than £10 million on renewable energy research?
Mrs. Liddell: I am surprised that Liberal Democrats should attack the coal industry, particularly as the hon. Member for West Aberdeenshire and Kincardine (Sir R. Smith) represents a constituency that will directly benefit from the steps taken by my right hon. Friend the Secretary of State. I am sure that Liberal Democrats' remarks will be much reported in the communities that have suffered as a consequence of the previous Government's policy on the coal industry.
There is no reason to accede to new clause 2. The publications of the Department for Trade and Industry contain detailed and comprehensive data and statistics which underpin the analysis of UK energy within government and beyond. The sixth annual edition of the DTI's energy report was published in December, and I commend it to the hon. Member for Bognor Regis and Littlehampton--[Interruption.] He says that he has it on his desk. It would be quite useful to open it. I have many things on my desk that would occasionally come in handy if they were opened. I also have quite a few things under my desk, which I guarantee will never be opened. Copies of that publication are in the Libraries of both Houses. That gives not just a national view of energy issues, but an international view, which is particularly important in a modern and complex world.
Chapter 3 of that report addresses energy policy and answers all the questions that the hon. Gentleman put; chapter 8 contains full facts and figures about electricity generation; and I suspect that the rest contains any additional information that any hon. Member might reasonably want to know about energy policy. It is available on the DTI website, or from the Stationery Office and reputable bookshops for £39.50.
Mr. Gibb: I am grateful to the right hon. Lady for referring me to those learned texts, but what is the Government's nuclear policy given that the Magnox power stations are already being decommissioned?
Mrs. Liddell: The hon. Gentleman may or may not--one can never be certain--be aware of the announcement that was made by British Nuclear Fuels plc yesterday in relation to the closing date for the Magnox stations. That will be a determining factor in the future proportion of electricity generation from nuclear energy. I cannot second guess the outcome, but the Government's policy on new nuclear build is that it is for the market to come forward with its proposals. Companies may come forward with proposals for nuclear generation and they will be looked at in the usual way. At the moment, there is no suggestion that any companies are coming forward with new nuclear build, here or internationally.
Mr. Stunell: Does the Minister accept that, if the market comes forward with a solution that adds to the carbon dioxide burden on the atmosphere, the Government have a problem?
Mrs. Liddell: The Government do not have a problem, because it is for the Government to decide whether any application should go ahead. In taking a decision about the future of a specific energy proposal, we have to take into account all sorts of factors, not least our commitment to the Kyoto targets. That explanation also serves in relation to gas-fired power stations. Each proposal will be looked at on its merits. The hon. Member for Lewes referred to the Baglan bay proposal. That involves a high-tech specification, and that is one reason why the Government acceded to it. Hon. Members on both sides of the House argue effectively for gas-fired power stations. Regardless of from where the case comes, it will be looked at by the Government in some detail.
New clause 2 is unnecessary. Quite apart from the energy document to which I referred, which was published in December, there is also the Digest of United Kingdom Energy Statistics. That is not a new publication; it has been published by the Government every year for the past 50 years and it includes further information on electricity generation. All of that is supplemented by a monthly publication "Energy Trends", which is available on subscription from my Department. Any hon. Member who wished to receive it could contact the Department; perhaps we could even waive the cost.
Several points have been made about amendment No. 28, which would establish duties in relation to embedded generation and net metering. Those points have been debated in depth in Committee. Again, I must ask the House not to accept the amendment. Much embedded generation is from renewables; the Bill already acknowledges the importance of renewables. However,
the measure separates supply and distribution. It places a duty on distributors to facilitate competition in generation and to develop and maintain an efficient, co-ordinated and economical system of distribution. It places a duty on the authority to promote consumer interests by encouraging effective competition.I expect the duty to be effected through regulatory action, which will give all forms of generation, including embedded generation, a fair crack of the whip. Embedded generation should not be disadvantaged. If that means that the distributors have to provide readier access to their systems--that is the point of difficulty--and their databases, I expect regulation to ensure that that happens. However, it would not be right for consumer or environmental protection to give special advantages to embedded generation.
We have had several discussions about net metering. The hon. Member for Blaby (Mr. Robathan) takes a considerable interest in that, and I believe that he genuinely misunderstands the position. The Bill is neutral on net metering, which is one method of supporting embedded generation. I do not believe that it is necessarily the right method because it implies a cross-subsidy. It would require suppliers to pay more for electricity supplied through embedded generation than it was worth to them. It would relieve embedded generators of the cost of maintaining the transmission and distribution networks. Prices for other customers would have to reflect that.
Our policy is--to use a horrible phrase--to try to provide a level playing field, not to favour one system of generation over another. The hon. Member for Bognor Regis and Littlehampton challenged us about that when we considered gas-fired generation.
Mr. Robathan: I did not serve on the Committee that considered the Bill and held lengthy discussions on the subject. However, the Secretary of State's announcement of £100 million for the coal industry does not constitute providing a level playing field. If we genuinely want to encourage renewables, they need a boost. I am all for level playing fields in commerce, but sometimes a sector needs particular encouragement. For good reasons, renewables need a boost, and I am genuinely disappointed that the Government are not using the Bill to do that.
Mrs. Liddell: I am sorry that the hon. Gentleman is disappointed. He misunderstands the Bill--I hope not deliberately. Through the 10 per cent. obligation, the Bill will take renewables from the margins and make them mainstream. However, I shall consider that when we discuss the next amendment.
Our targets for renewables are clear, and clauses 60 to 65 cater for them well. The Government and the regulator acknowledge that further regulatory action may be required to ensure that embedded generation can thrive. That is why the working group to which my hon. Friend the Member for Milton Keynes, North-East (Mr. White) referred, which comprises representatives of the Office of Gas and Electricity Markets, the Government and the industry, is examining all the issues that surround embedded generation. It will report before the end of the year, and the Government will address any specific problems that it identifies.
The hon. Member for Bognor Regis and Littlehampton wanted the working group to report before the other place considered the Bill. That shows that the Conservative party is not committed to achieving a way forward for embedded generation. It is important to get things right. The Bill allows the regulator to take action when necessary to assist embedded generation.
6.15 pm
Through the working group and other initiatives, the Department is taking steps to remove some confusion about the connection of small-scale photovoltaic generators to the electricity distribution system. That has resulted in a draft engineering recommendation--G77--which provides technical guidelines to the industry on the connection of small PV systems. On 2 May, I shall address the photovoltaics conference in Glasgow, where I shall make that point. There are difficulties with photovoltaics; they are expensive. If we followed the route that some pressure groups propose, they would become so expensive that their price would run the risk of turning the public against renewables. We must take the public with us on renewables.
The hon. Member for West Aberdeenshire and Kincardine mentioned offshore wind. One of the problems of onshore wind is the difficulty of convincing people to have generators in their gardens. I accept the hon. Gentleman's point that offshore wind offers a new opportunity to the offshore industry. However, I am intrigued by his view that the oil industry is in the doldrums. I fail to understand how that can be true when oil costs $23 a barrel. I support greater activity from the oil and gas industries, not least because of the increase in the oil price, but also because of the Secretary of State's proposal to lift the restricted consents policy.
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