Select Committee on Trade and Industry Minutes of Evidence


Examination of Witnesses (Questions 435-439)

MALCOLM WICKS AND MR PAUL MCINTYRE

10 OCTOBER 2006

  Q435 Chairman: Minister, welcome to this evidence session in our continuing investigation into the Government's Energy Review. We are very grateful to you for coming so soon after the summer recess to update us. I should like to apologise to everyone in the room for the crowded nature of today's meeting. The Commons authorities have seen fit to put us in rather a smaller room than we needed and I apologise for that. We have a lot of ground to cover so I am encouraging my colleagues on the Committee to ask short questions and, Minister, I would encourage you to be as brief as is commensurate with accuracy in your replies, if that is possible. I should also like just to make clear what structure we are following in our question session. We are beginning with some wider policy questions about the context of the Energy Review then moving to reducing demand issues by looking at carbon trading, then on to the nuclear question, new nuclear build then moving to fossil fuels at that stage; and ending with a session on distributed generation and microgeneration, local energy and power. That is the structure and I hope that helps. Welcome, Minister. May I ask you to introduce your colleague?

  Malcolm Wicks: I am joined by Paul McIntyre who is the director of our Energy Review team. I shall certainly have regard to your stricture to be brief in my answers, particularly for the more difficult questions. May I say that we published the outcome of the Energy Review back in July—on 11 July? The purpose of the review was to address a range of questions but in particular two major challenges facing us in the 21st century: one, climate change or global warming and the second, energy supply and—I think the term is justified—energy security. We are now going through a period of consultation on a range of important and specific matters, so that process is underway. In due course we shall be publishing a White Paper on energy policy.

  Q436  Chairman: That is helpful; thank you. We look forward to that White Paper sometime in the New Year I believe.

  Malcolm Wicks: Sometime next year.

  Q437  Chairman: Sometime next year; before the summer recess anyhow. May I just put it to you that this document, the original document on which the review was based, is really about electricity generation? It is about keeping the lights on first and foremost, the second half of what you alluded to in your opening remarks. It is even true of the follow-up document that overwhelmingly it is about electricity generation. There are sections on the contribution that domestic space and water heating can make but relatively brief sections. Was it not a very heavily skewed consultation?

  Malcolm Wicks: I do not think so. We were looking at both demand and supply issues. There are very strong statements there about energy efficiency. Indeed we would go further in the housing sector and say we should stop talking about energy efficiency in a slightly woolly way and start to talk about energy reduction in the housing sector and therefore the reduction in carbon emissions and how we can bring that about. On heating it is crucial. I think some 30% of carbon emissions are from the heating we use. At present most of us rely on gas supplies for our domestic heating. There are issues about gas supply but that has proved efficient and reliable. In the Energy Review we talk about the need for us to do more work on combined heat and power, which is a technology which has a lot of advantages and which we see in other countries and in other ways in terms of microgeneration; some of the microgeneration is about the production of heat. It is something we are very aware of.

  Q438  Chairman: Was this first document not really about the Prime Minister's wish to get nuclear sorted out? Was this not the real purpose of this first document?

  Malcolm Wicks: No and I am surprised you put it that way. We were always concerned to conduct an holistic review of energy policy with some strong statements in the review report about demand and efficiency.

  Q439  Chairman: I know that numbers are not everything, but we reckon that 45 of the 73 pages in this document are about electricity generation and in the final document there are really only six or seven pages on domestic contribution. It is still overwhelmingly about electricity, is it not?

  Malcolm Wicks: Much of it is about electricity of course, but it is not all about electricity. We have some things to say about transport and you will be seeing more on that from the Government in the future.



 
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