HC Deb 08 July 2004 vol 423 cc1002-3
10. Anne Picking (East Lothian) (Lab)

What assessment she has made of the security of energy supply. [182687]

The Minister for Energy, E-Commerce and Postal Services (Mr. Stephen Timms)

We set out our market-based approach to the delivery of energy in last year's White Paper. It worked well to deliver secure energy supplies last winter, and we expect it to continue to do so. My right hon. Friend the Secretary of State has tabled an amendment to the Energy Bill, which has attracted wide support, requiring an annual report on security of supply for debate in Parliament.

Anne Picking

I am sure that my hon. Friend agrees that the renewables agenda is laudable; however, if the wind does not blow, we are snookered. My constituency has Torness power station, which guarantees a regular supply, and Cockenzie power station, which has the flexibility to kick in and generate when security of supply is at risk—indeed, it is a flagship power station in Britain and Europe for its capacity to do that. Does my hon. Friend agree that security of supply is paramount, even if new nuclear replacement is required?

Mr. Timms

I agree with my hon. Friend about the importance of security of supply, which is one of the four key goals set out in the energy White Paper. I also agree with her about the flexibility that we enjoy, with coal-fired generation and with an important contribution made by nuclear power stations such as Torness. The White Paper stated that we should not become over-dependent on any one fuel, but I believe that the development of renewables will help us by providing another independent source of power. On that basis, I think that we can look forward with confidence to continuing security in future.

Dr. Vincent Cable (Twickenham) (LD)

The Government have used security of supply arguments to justify subsidising nuclear power, but now that energy prices, especially power prices, have recovered strongly, how can they justify placing hundreds of millions of pounds of taxpayers' money at risk through a continuing line of credit?

Mr. Timms

It is important that we enjoy continuing security. British Energy is working through a restructuring, which we all hope will be successful, and the Government provided a line of credit to facilitate that process. The European Commission is examining the state aid implications of that and we expect its decision before long. Our approach to British Energy's restructuring is the right one. It provides good grounds for optimism about—to echo my hon. Friend the Member for East Lothian (Anne Picking)—the security that we need in future.

Mr. Geoffrey Robinson (Coventry, North-West) (Lab)

I am sure that my hon. Friend is aware of the Prime Minister's recent remarks about nuclear energy. Can he confirm that it remains Government policy—as set out in the White Paper—to retain the basic engineering skills in the sector, so that if a decision were made to embark on a new nuclear programme, we would be able to carry it through?

Mr. Timms

I can confirm that earlier this week my right hon. Friend the Prime Minister repeated the statement in the energy White Paper that we need to keep the nuclear option open, including by ensuring that we maintain the necessary skills, because we may well need new nuclear power stations in future. He also pointed out that we had first to overcome two major barriers. First, the economics of nuclear are pretty unattractive at present. Secondly, we need good answers to the question of what becomes of nuclear waste; work on that is ongoing. None the less, I agree that it is important that we keep the option open.