HC Deb 26 July 1982 vol 28 cc729-30
3. Mr. Campbell-Savours

asked the Secretary of State for Energy what studies have been made by his Department of the relative cost of establishing new energy-producing capacity against introducing new conservation measures to achieve the same net energy effect.

Mr. Mellor

There is no simple choice to be made between investment in energy conservation rather than supply.

Mr. Campbell-Savours

I do not expect the Minister to accept the case of Friends of the Earth and the link that it believes exists between investment in nuclear power and gains from energy conservation. However, does he accept that it has been able to identify substantial gains that would be available to us? Will he replace the advisory council with a standing commission on energy conservation that will investigate these issues and take evidence? Will he consider putting in his private office a supporter of Friends of the Earth?

Mr. Mellor

We have recently reconstituted the Advisory Council on Energy Conservation, on which many interests are represented. We believe that it will be an extremely effective body under the distinguished leadership of Dr. Telfer. It is easy to suggest that we should not spend so much money on power stations, but the hon. Gentleman should know that only 7 per cent. of space heating is by electricity. Even if a 25 per cent. saving were achieved in conservation on space heating, electricity demand would be reduced by only 2 per cent. That is why there is no easy relationship between the two factors.

Mr. Rost

Is it more cost effective to spend public money on keeping open a few high-cost uneconomic pits or on improved insulation in public sector buildings?

Mr. Mellor

My hon. Friend poses a choice upon which I do not feel I should comment.

Mr. Palmer

When does the Department of Energy hope to comment on the report of the Select Committee on Energy, which has some valuable things to say about the proper balance between supply and demand?

Mr. Mellor

I am aware that the Select Committee has recently reported. The Department welcomes the report and is currently studying its response to it, which will be made later in the year.

Mr. Forman

Is my hon. Friend aware that the studious agnosticism of his original answer was somewhat disappointing? It would be more appropriate if his Department conducted such studies, whatever the methodological difficulties?

Mr. Mellor

I was trying to convey to the House that I believed in both approaches, not that I did not believe in anything. It is necessary that we have new and efficient power stations to replace elderly power stations in the 1990s. It is equally necessary that we continue to have an effective energy conservation programme.