Ed Davey
MP for Kingston and Surbiton · Liberal Democrat · United Kingdom
“I associate myself with the Prime Minister’s opening remarks, not least about the 25th anniversary of the horrific terror attacks of 9/11. I welcome the Government finally banning imports from illegal Israeli settlements, something Keir Starmer should have done a long time ago.”
“I thank the Prime Minister for that answer. Britain should be the safest country in the world to have a baby. We will keep raising this issue until it is the safest.”
“No mother should have to give birth in such circumstances. Does the Prime Minister agree that Musgrove Park cannot wait until 2033 for work to start on a new maternity unit? Will he offer a meeting to local MPs, so we can move it forward? And will he make fixing the maternity scandal across our country a top priority of his Government?”
“I hope at that summit the Prime Minister will negotiate a good deal for our country, our economy and our defence, and that means rejoining the single market. North Devon’s maternity unit has been closed for three weeks due to staff shortages, so women now have to travel for up to two hours to give birth.”
“The Prime Minister said yesterday that Brexit ushered in “a decade of low growth and stalled regeneration.” —[ Official Report , 1 September 2026; Vol. 790, c. 27.] He is right. Our economy is stuck in this mess thanks to the Conservatives—and the leader of Reform UK—and their terrible Brexit deal.”
“There are so many more problems in our political system: too much power in the hands of social media barons who interfere in our politics and crypto billionaires who use donations to buy influence; and too little power in the hands of our people.”
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“The hon. Gentleman notes that the energy debate is an important part of the debate on independence for Scotland, but I would not want to cloud that debate by suggesting that there should be new nuclear power plants there. He will know that our new nuclear build proposals include three consortiums, none of which is proposing new nuclear build in Scotland. We have a long way to go before that question arises.”
“I am grateful to the hon. Gentleman for his question. We have certainly spoken to people in the industry who make that argument, but our response has been to note that we have the final investment decision enabling contracts for difference, which will prevent a hiatus in investment in the immediate future. We are running contracts for difference side by side with the renewable obligations certificate to help people get more familiar with them before 2017. Some of the problems people had raised are now being answered and I hope that I will be able to persuade the hon. Gentleman that he need not have those concerns.”
“My hon. Friend makes a very good point. Perhaps the nationalists have given up before the referendum has even started. It has been pointed out to me that my constituency neighbour and good friend, the hon. Member for Richmond Park (Zac Goldsmith), wishes to intervene, and, given his knowledge on this subject, I would like to take his intervention.”
“I am grateful to my hon. Friend for pointing out that we are consulting on electricity demand reduction. I am passionately keen to see that taken forward, but I do not want to prejudge the outcome of the consultation. There are a number of ways of taking forward that policy measure. It might require amendments to the Bill and if so, we have time to introduce them, but there might be other ways to make progress on that policy objective.”
“Alongside CFDs we will introduce a capacity market to ensure that sufficient reliable generating capacity is available to meet electricity demand as it increases over the next decade. The capacity market will provide an up-front payment for capacity, reducing the risk of investing in flexible generation. The capacity market will provide an insurance policy against the possibility of future black-outs—for example, during periods of low wind and high demand.”
“Both nuclear and renewables tend to have low margin running costs and are likely to mean that fossil fuel power stations run at lower load capacities than in the past. If we do not consider the implications of such things, there might in the future be a danger of insufficient investment in the flexible generating capacity needed at certain times, especially at the peak, for example on less windy days. Moreover, given that new nuclear reactors will take some time to come online, and that new renewables may not fill the energy gap created by the closure of old coal and nuclear quickly enough in the next few years, there is the challenge of ensuring energy security over the next decade or more.”
“The Select Committee recommended that the Government change the draft Bill in that respect and appoint a single counterparty to these contracts for difference so it was easier for investors to know who would pay them. We have accepted that proposal. There will now be a new Government company that will sign and manage the contracts over their lifetime and collect money from suppliers to meet the payments due to generators. Electricity market reform will stimulate investment in new low-carbon energy, but low-carbon energy sources have different generating features from fossil fuels, so our market reforms must take account of them. For example, wind and solar are intermittent, and may need either storage technologies and/or back-up generation.”
“No, I am going to make some progress, I am afraid. Some have argued that CFDs are somehow complex, but I disagree. Generators will receive the market price for their electricity plus a top-up to an agreed level known as the strike price. When the market price is above the strike price, the generator will pay back the difference, ensuring value for money and greater price stability for consumers. CFDs are also a major improvement on the current system of renewable obligation certificates, because they keep the cost of energy to the consumer lower. During the scrutiny of the draft Energy Bill, one issue dominated the debate about CFDs, and the Energy and Climate Change Committee spent some time considering it. It was, in essence, the payment system and how generators would get their money in a CFD.”
“My hon. Friend has campaigned on the issue and he initiated a recent Adjournment debate on it. Whether it is new nuclear, onshore wind or other energy infrastructure, we need to consider how local communities can benefit, and we will do that. I give him that assurance again today.”
“I urge the hon. Gentleman to read the impact assessment a little more carefully. The bit he draws to the attention of the House assumes a perfectly operating electricity market. One reason why capacity payments will be a lot less than indicated in the part of the impact assessment he quotes is that without a capacity market, peak-demand electricity prices could go very high. One of the benefits of a capacity market is that it will smooth out the price of energy, so consumers will not have to pay high prices at the peak. That will offset the payment, and he needs to take that into account. The impact on the consumer will be far more beneficial than he suggests.”
“We are confident that any continuing military requirements could be met through contractual arrangements with a purchaser, and that a sale would have no adverse effect on safety or security. A final decision on any sale will depend on striking the right deal with the private sector, with value for money a key consideration. The earliest date for a sale would be during 2014. The House will see that the Bill is an ambitious one. It contains radical reforms, above all to secure the energy supply that Britain needs for our homes and businesses into the 21st century, boosting economic growth at the same time. The Bill will keep the lights on, it will help keep people’s energy bills down, and it will decarbonise Britain’s electricity system. I commend the Bill to the House.”
“The Bill also contains an amendment to the nuclear waste and decommissioning cost recovery mechanisms, which contributes to the coalition’s commitment that new nuclear power stations should receive no public subsidy. The final reform that I wanted to highlight is to the Government pipeline and storage system. This network was originally built for defence purposes, but is now predominantly used commercially, especially for civil aviation—it delivers around 40% of aviation fuel in the UK. Following a review, we have concluded that there is no need for this asset to be owned by the Government, and that its sale could encourage private investment in the system, potentially bringing wider economic benefits as well as reducing Government debt.”
“The first is on the issue of nuclear regulation. Nuclear power has an important part to play in the low-carbon energy mix of the future, and the sector requires an appropriately resourced and responsive regulator. In April 2011 we set up the Office for Nuclear Regulation, and the Bill will place what is already a world-class regulator on a statutory footing. The ONR will build on its current strengths as a modern, independent regulator working to the principles of transparency, accountability, proportionality, targeting and consistency. Its five key areas of responsibility are nuclear safety, nuclear security, nuclear safeguards, the transport of radioactive material, and health and safety on nuclear sites. The ONR will have the financial and organisational flexibility required to meet its business needs on a sustainable basis.”
“There is also a key measure to support investment in offshore transmission systems, which is so vital to Britain’s offshore wind industry, specifically with an amendment to the Electricity Act 1989 which will provide confidence to offshore generators that for a time-limited period they can lawfully commission any transmission assets that they build. We also expect to introduce measures on tariff reform during the Bill’s passage, so that we can ensure consumers get the best deal; and after we have consulted on electricity demand reduction, we will consider amendments to the Bill to support this radical approach to saving electricity, at the appropriate time. Yet there are two parts of the Bill that are substantial reforms but have received little attention to date, so I want to dwell a little more on those before concluding.”
“There are a range of measures in the Bill that deserve more attention than I can give them: the emissions performance standard, which will act as a regulatory backstop on the amount of carbon emissions that new fossil fuel plants are allowed to emit; the reform of Ofgem, with the introduction of a statutory strategy and policy statement, setting out the Government’s strategic priorities and intended outcomes with respect to energy policy, helping to align better the work of Government and the work of the regulators; and a new enforcement power for Ofgem, so where energy companies have breached regulatory requirements but are unwilling to provide redress voluntarily to affected consumers, Ofgem will be able to require them to do so, with fines going to the consumers affected, which will ensure fairer outcomes for consumers.”
“By improving liquidity we would improve competition, promote long-term security of supply, reduce barriers to entry and increase the robustness of the reference price for CFDs. Ofgem is currently working on proposals to improve liquidity, but in the absence of significant improvements, Government intervention may be necessary. The Bill therefore provides for such intervention. It also provides for powers to intervene to support investment by improving access to long-term contracts for the sale of electricity. This is a key concern for independent renewable developers. While the CFD will significantly reduce risk for these developers, it is important to be able to act if necessary. I therefore refute the Opposition’s assertion that the Bill does not address liquidity and competition; it clearly does.”
“I want to ensure that those decisions can be taken with confidence, even before our reforms come into effect. Therefore, as a transitional measure, the Bill will enable the Government to give effect to early CFDs, referred to as investment contracts, on a case-by-case basis at an early stage, in advance of the CFD regime. Our intention is that any investment contracts will be transferred to the single counterparty once it has been established. I am determined that the Bill will increase competition in all aspects of our energy markets, whether retail or wholesale, and I am particularly concerned about the lack of liquidity in the wholesale power market, and especially in the forward markets, which can deter investment by independent suppliers—so important for effective competition.”
“The Select Committee argued that there is a risk of conflicts of interest arising between National Grid’s existing role, including owning the transmission infrastructure, and the new role, so to reassure investors, we are working jointly with Ofgem to assess that risk, mindful of the very good reasons why the system operator should take the role. The Bill provides the Government with powers to manage any conflicts of interest if necessary, and ultimately to confer the functions on an alternative delivery body. Industry and investors have urged us to press on with our reforms to the electricity market, but it would be damaging and costly if in anticipation of an improved investment environment, they postponed final investment decisions on existing, shovel-ready projects in the meantime.”
“No, I will not give way. The two new instruments I have just outlined—CFDs and the capacity market—will be underpinned by a robust and transparent institutional framework that will provide certainty for industry and investors. Government will retain responsibility for both instruments, and will make decisions on strike prices for CFDs, taking into consideration our objectives for the electricity sector, and wider economic and sustainability impacts as appropriate. The system operator, National Grid, will administer and deliver both the CFDs and the capacity market, and Ofgem will regulate the system operator.”
“Helping people with energy bills is a top priority for us, so we have a range of initiatives including tariff reforms, energy-saving policies and direct help to cut the bills of those on the lowest incomes. From our consultation on proposals to help to get consumers on the cheapest tariffs to the green deal, and from the warm home discount to our promotion of collective switching, this Government will do whatever we can to help people and businesses to combat the effects of rising energy prices.”
“The hon. Gentleman got a lot of questions in there. I have looked at the headlines but I cannot say that I have read the full report, although I certainly intend to do so. I agree that it poses some challenges to those who debate energy policy, because it suggests that with a high gas price prediction, we could see energy bills going up by, I think, £600, whereas under a renewables strategy it would be only £100. The Government are adopting a mixed-energy approach, so that we are not dependent on any single energy source and can therefore manage the risks, because we cannot know the future of gas prices or predict how the cost of renewables will go down. I believe that our approach is the best one for the British economy.”
“We have taken a balanced approach in our tariff reform proposals, on which we are now consulting. We have tried to ensure that those people who are on so-called dead tariffs, or on unnecessarily high tariffs, will automatically be switched down to the lowest tariff, given their preferences. We have also tried to ensure that there will still be competition, in that there will be four classes of core tariff so that the energy companies will be able to compete using those tariffs. The key is to try to help people who do not engage with the energy market to get a good deal, as well as to ensure that competition can deliver for consumers and for businesses.”
“With respect, I did answer the question. It involves something called competition. On this side of the House, we understand competition and how it supports consumers. I have to say to Opposition Members that an awful lot of people were asking the last Labour Government why they did not sort out the multitude of tariffs that were creating complexity and confusion and getting in the way of competition. Through our simplification, we are helping the most vulnerable people and those who have been on dead tariffs and paying far too much for their energy, but we are also ensuring that competition can deliver for our economy.”
“It is great news because it shows how competition can assist in this process. I refer the hon. Lady to Ofgem’s retail market review analysis, which showed that customers on prepayment meters can save an average of £65 and up to £152 by switching to the cheapest deal within that prepayment method. The proposals we are taking forward really will help people on prepayment meters.”
“My hon. Friend is absolutely right: when it comes to energy bills, saving energy is the best way to save money. The green investment bank is engaging with my Department and the Green Deal Finance Company over the support it will give to the green deal. I cannot make an announcement today. All I can say is that the green investment bank is being helpful on the green deal, as on many other areas, and that it is a victory for this Government that we have introduced the green investment bank.”
“The hon. Lady does not seem to understand the green deal, For a start, it is being launched on 28 January, after the soft work we have seen over the last few months to prepare for it. We believe it will be a huge success. I believe the green deal should have cross-party support, and I hope that the hon. Lady will confirm from the Dispatch Box that the Opposition support it. The green investment bank’s support for the green deal will not be direct; it will come through supporting the financial arrangements of the credit. I thought the hon. Lady would understand that. As for predictions on insulation, I think we should wait. I believe the green deal will support the market and that it will be a real step forward.”
“This Government are doing everything they can to tackle fuel poverty. My predecessor, my right hon. Friend the Member for Eastleigh (Chris Huhne), set up the review to look at how we measure fuel poverty, and that concluded that the last Government could not even measure fuel poverty correctly. We are using a whole set of new initiatives, including collective switching, using the power of people coming together. One would have thought that Labour Members would have used that in their 13 years in power. They failed to use the collective principle to try to help people; we are doing that, and we are determined to tackle fuel poverty.”
“I have made full details available to both Houses by means of a comprehensive written statement tabled this morning.”
“Shale gas may prove to be a useful addition to the UK’s diverse portfolio of energy sources, and would be particularly valuable in replacing declining North sea supplies, with benefits to energy security as well as to the economy and employment—but its exploitation will be acceptable only if it is safe and the environment is properly protected. Hydraulic fracturing operations for shale gas were suspended last year, pending consideration of seismic events in Lancashire. Based on the latest evidence and expert advice, and having considered the responses to a public consultation on that advice, I have concluded that, in principle, fracking for shale gas can be allowed to resume— subject to new controls to mitigate the risk of seismicity.”
“I agree that shale gas has an important part to play in our energy mix and in our economy, and I also agree that we must ensure that communities benefit and that there is proper environmental regulation. I have been very impressed by the way in which Members in all parts of the House have contributed to the debate and to the Department’s thinking, but I pay particular tribute to the hon. Member for Fylde (Mark Menzies), who, along with the independent experts, has really influenced our thinking. It is very important for us to take the public with us as we explore the potential for shale gas in the United Kingdom.”
“Today’s announcement is about new controls to ensure that seismicity is not a problem.”
“Let me also pay tribute to the work that my hon. Friend has done for his constituents, who I know are concerned about shale gas. I can reassure him that the regulations that we already have in the United Kingdom are much stronger than those in many American states where fracking for gas has been taking place for many years. We have the regulations, controls and powers of the Environment Agency, the regulations, controls and powers of the Health and Safety Executive and the regulations, controls and powers of my own Department, so we already have a strong regulatory regime. However, if the exploration suggests that there is potential for commercial development and we move in that direction, we will keep that regime under review, and will tighten and strengthen it if necessary.”
“I do not think that anyone has described me as a frackhead. My job is to make certain that the environmental and safety controls are there, and I believe that the work that we have done, particularly on the seismicity aspect but also on other aspects, can reassure the public in that regard. I am determined to ensure that the environment is properly protected, and as Members will see if they read my statement, I have also commissioned a study of the potential impact of shale gas exploration on greenhouse gas emissions. I hope that that will reassure people on the environmental side as well.”
“I repeat my thanks to the hon. Gentleman. The way in which he has stood up for his constituents provides a model for all Members. I can reassure him that the Office for Unconventional Gas will be a strong office, and that it will be in my Department and accountable to Ministers, so that Members can hold us to account in the House. One of its jobs will be bringing together the various regulatory bodies so that they are properly co-ordinated, and our work as we approach potential commercial development in a few years’ time will include ensuring that we have all the regulatory controls that we need.”
“The whole House listens to the hon. Gentleman closely on these issues because he is an expert on drilling and all aspects of the coal industry. I do not know the case to which he refers, but if he wishes to write to me, I am sure my officials can look into it. He makes an important contribution to this debate, because he highlights the fact that this country has had to tackle methane emissions in the coal and the oil and gas industries, so we have a lot of knowledge, experience and expertise to draw on to make sure we can control emissions from shale gas.”
“Some of the press and commentariat have got very excited about the possibility of gas prices falling, but the independent analysis and the International Energy Agency findings do not necessarily support that.”
“First, I thank the right hon. Lady for saying she will look at our statement carefully. I know that her colleague, the hon. Member for Rutherglen and Hamilton West (Tom Greatrex), wrote to my hon. Friend the Member for Wealden when he was a Minister to set out the Opposition’s conditions. I believe that when the Opposition study the written ministerial statement—we gave a copy to the right hon. Lady before this Question Time, but she should have a chance to examine it—they will see that we have met all the conditions. The right hon. Lady’s main question was on prices. I agree with my hon. Friend the Member for Wealden that we should not bet the farm on shale gas. I am absolutely clear that the most responsible and sensible way forward for energy policy is to have a diverse set of resources and sources for our energy.”
“I agree with my hon. Friend that we should proceed with caution, and we are doing so. The evidence so far suggests that the carbon footprint of shale gas exploration is only slightly higher than that for conventional gas, but I am determined that we in this country examine it seriously, which is why I have commissioned a study.”
“In addition, I hope that she will be reassured to know that I have announced today that I am commissioning a study of the possible impacts of shale gas development on greenhouse gas emissions.”
“We liaise closely with the Environment Agency on this issue, and it confirms that volumes of water used in shale gas exploration are not exceptional compared with other industrial activities that routinely take place across the United Kingdom. Any operator who wishes to abstract water as an alternative to using public supplies will need a licence. Additional water abstraction will be authorised only where it is sustainable and no risks are posed to the rights of existing abstraction licence holders. Shale gas exploration is at a very early stage in the UK, and its possible scale is as yet unknown. We have legally binding carbon budgets, and that should reassure the hon. Lady.”
“We have legally binding commitments under the Climate Change Act 2008, and our carbon budgets have been set out for people to look at. When we announce strategies it is not unusual for there to be a whole set of analyses, including sensitivity analysis. Yes, one analysis showed higher carbon intensities, but there was also an analysis that showed lower carbon intensities, and I think that people have missed that.”
“I am grateful for the hon. Gentleman’s question. The Environment Agency will carry out the monitoring, but because we have increased the co-ordination of regulatory bodies, my Department will be aware of it. I hope that I assured him in my answer to the hon. Member for Brighton, Pavilion (Caroline Lucas) that the terms of any additional licences would have to ensure that the abstraction was sustainable and would not put at risk the rights of existing licence holders.”
“Since our last Question Time, we have published Britain’s first comprehensive energy efficiency strategy and a consultation on electricity demand reduction; we have announced a landmark agreement across the coalition Government on energy policy, including a tripling of support for low-carbon generation by 2020; and I have attended the UN climate change talks in Doha, where we were able to make steady progress on the Durban platform towards a legally binding global deal on greenhouse gas emissions in 2015. We have also introduced the Energy Bill, which will have its Second Reading next week. It will reform the electricity market, provide long-term certainty to investors and ensure that British households and businesses enjoy affordable, secure and clean electricity supplies.”
“The hon. Lady is wrong to say that the green deal is delayed. It is not delayed—it is on track. She also missed out a whole range of policies that the Government are taking, such as the energy company obligation, which includes affordable warmth, which will be targeted on fuel poverty. It is a very important measure and I think that people should focus on it. We are not complacent. We know that fuel poverty is a real concern, and that is one of the reasons why we have had so many initiatives, whether they be the reform of tariffs or collective switching. We are delighted that 115 applications have been received by our “Cheaper Energy Together” competition. That shows commitment across the country to help on fuel poverty, which is central to that competition.”
“I am grateful to my right hon. Friend for his question. I know that he did an awful lot of work on this issue himself. The Under-Secretary of State for Communities and Local Government, my right hon. Friend the Member for Bath (Mr Foster), is working on it and, when we discuss it as a Government, we will make our views clear. Zero-carbon homes are very important.”
“I am grateful for the hon. Gentleman’s support for Ofgem’s role, which is not a view shared by his Front-Bench team. Ofgem and the Financial Services Authority are undertaking investigations to make sure that, if there has been manipulation of the gas markets, it is tackled in the strongest possible way. We will have to await the results of their investigations.”
“I thank my hon. Friend for that question. He is right that we need to take this issue seriously. We intend to lay a parliamentary report announcing our decision before the end of the year, as is required by the Climate Change Act 2008. In making that decision, we are considering carefully the advice provided by the Committee on Climate Change. We are taking careful note of developments in the international policy framework for aviation, in particular in relation to the EU emissions trading scheme and discussions with the International Civil Aviation Organisation. It is important to clarify that the Government have set the first four carbon budgets, which take account of international aviation and emissions.”
“The welcome that industry gave to the publication of the Energy Bill was extremely heartening. The British Chambers of Commerce, the CBI, the Engineering Employers Federation and the Federation of Small Businesses, which represent thousands of businesses, welcomed the Energy Bill. The fact that we are taking powers in the Bill to set a decarbonisation target shows real leadership and many companies have welcomed that.”
“They are intended to do two separate things: contracts for difference are intended to stimulate investment in low-carbon energy and the capacity mechanism is about security of supply.”
“As the hon. Lady will know, a study was done on that early in the coalition Government. It was decided that although the Government would not take the matter forward, if a private consortium wanted to put forward proposals, we would study them. At the moment we have not seen proposals that we could back with any financial regime, whether renewables obligation certificates, contracts for difference or anything similar. I know that people are looking at the issue, but as yet the Government have not taken a decision to support any particular project.”