HC Deb 13 May 1991 vol 191 cc8-9
9. Mr. Rost

To ask the Secretary of State for Energy what is his assessment of the contribution combined heat and power plant could make to reducing the United Kingdom's carbon dioxide emissions by the end of the decade.

Mr. Heathcoat-Amory

My Department's most recent estimates indicate that combined heat and power could in time lead to reductions of as much as 5 to 10 per cent. of United Kingdom carbon dioxide emissions. The degree to which this will be realised by the year 2000 will depend on the future development of the United Kingdom power market.

Mr. Rost

Will my hon. Friend acknowledge that combined heat and power can make a bigger contribution to reducing global greenhouse gases at a lower cost than any other solution? Is he aware that the Government memoranda to the Intergovernmental Panel on Climate Change estimated that the potential in the United Kingdom was not 4,000 MW but 30,000 MW? Will he now take measures—they are still required—to remove some of the obstacles holding back industrial combined heat and power, particularly the example that I sent to him from Air Products?

Mr. Heathcoat-Amory

Yes, I am happy to acknowledge that combined heat and power technology is good for the environment as well as being highly energy efficient. My hon. Friend referred to impediments, but I remind him that the restructuring and privatisation of the electricity supply industry have opened up the market to competitive, alternative, independent suppliers. Indeed, many suppliers of combined heat technology have risen to the challenge.

Mr. Barron

Does the Minister accept that the freeing of the power market means as much as what the Tories stated in 1983 in debates on the Energy Act? It means as much as what was said throughout the debates in the House on the privatisation of the electricity supply industry. The Government still do not recognise the fact that the energy from combined heat and power technology is not competitive with ordinary generated electricity. It is energy used for the benefit of the environment and consumers. When will the Government take the action that the hon. Member for Erewash (Mr. Rost) mentioned and stop the restrictions still in force against the development of combined heat and power?

Mr. Heathcoat-Amory

Any regulatory or administrative restrictions that still exist will be dealt with by my Department and the Office of Electricity Regulation, but the main impediment to the spread of CHP technology in the past has been the state-owned, monolithic structure of the industry, which we have dismantled. If the hon. Gentleman wishes to be known as environmentally aware, he should change his attitude towards what we have done in the electricity supply industry in the past three years.