§ 13. Mr. BoswellTo ask the Secretary of State for Energy what has been the rate of improvement in energy efficiency since 1979 (a) in the United Kingdom and (b) in other European countries.
§ Mr. Peter MorrisonEnergy consumption in the United Kingdom is virtually unchanged since 1979, although our gross domestic product has risen by 20 per cent. The average reduction in the United Kingdom's energy intensity between 1979 and 1987 was 2.5 per cent., comparing favourably with the European average of 1.6 per cent.
§ Mr. BoswellI thank my right hon. Friend for those encouraging figures, but does he accept that continuing improvements in energy efficiency are the best means, if not the only means, of reconciling the needs of economic growth and of the maintenance and protection of our environment? Will he assure the House that, if possible, our relative improvement compared with other countries will be sustained in future years?
§ Mr. MorrisonThe simple answer is yes and yes. We believe that energy efficiency remains important, and we shall do all that we can to strive to ensure that we out-perform other countries.
§ Ms. ArmstrongIn the light of that reply, will the Minister reconsider the regulations, under which assistance for district heating schemes can be obtained only by users of more than 25,000 therms of gas per year? Derwentside district council has made representations to the Minister on that because, having managed through energy conservation to reduce its consumption to less than 22,000 therms a year, it is losing grant aid and support for its schemes. Is that not a scandal, and does it not go against everything that the Government preach?
§ Mr. MorrisonNo, it is not a scandal. I am prepared to look at any scheme according to the rules laid down, but it certainly is not a scandal and it does not go against the need to continue our efforts to achieve energy efficiency, as demonstrated by the 300 applications under the non-fossil fuel obligation.
§ Mr. SternDoes my right hon. Friend agree that one of the greatest spurs to energy efficiency is an increase in the cost of energy? Does he agree that it is not entirely realistic to compare our energy efficiency record with that of our continental neighbours without also comparing the average cost of electricity? Does he further agree that the greatest barrier to energy efficiency is the low cost of electricity in this country?
§ Mr. MorrisonI agree with my hon. Friend that international comparisons must take many factors into account, but neither he nor I would be popular with hon. Members if we advocated a policy of high energy costs.