HC Deb 12 December 1986 vol 107 cc242-3W
Mr. Bruce

asked the Secretary of State for Energy what are his policies for securing energy savings on a sector by sector basis.

Mr. David Hunt

The EEO supports, through its schemes and services, many initiatives aimed at securing energy efficiency improvements in all sectors.

In particular its monitoring and targeting (M and T) programme seeks to establish NI and T systems across the major non-domestic energy consuming sectors. Forty sectoral systems will eventually be included in this programme 25 of which have already begun.

Evidence from sectors where M and T has been fully developed show typical improvement of 10 per cent. The programme directly aims to save industry and commerce some £300 million per annum. Total penetration in the longer term could lead to energy efficiency improvements worth £1 billion per annum.

Mr. Bruce

asked the Secretary of State for Energy what is the estimated capital investment required to make the energy saving per annum which the Government believe is attainable.

Mr. David Hunt

A substantial proportion of the energy savings can be achieved simply through better management, and with little or no investment. The rest of the savings, perhaps just over half, require investments with a relatively short payback period. Given payback periods ranging from a few weeks to five years, an associated once-and-for-all investment of some £6 billion to £9 billion might be required.

Mr. Bruce

asked the Secretary of State for Energy what would be the effect on the supply industries if the whole of the saving on energy which the Government believe is attainable was achieved in four years.

Mr. David Hunt

In the transport sector, the obvious effect would be a significant reduction in demand for automotive fuels. In the domestic sector, the effects on the supply industry will depend on how much of the improvements in energy efficiency are taken in improved comfort standards and how much in reduced energy demand.

In the industrial and commercial sectors also, the improved energy efficiency will not necessarily lead to reduced energy demand because, at the higher level of energy efficiency, businesses will be more competitive and hence able to increase their output. Additional energy will be needed to meet this increase in output.

Mr. Bruce

asked the Secretary of State for Energy how the percentage of energy which the Government estimate can be saved is divided between (a) industry, (b) domestic transport and (c) other and, for energy supply, from (i) coal, (ii) gas, (iii) oil, (iv) nuclear and (v) hydro-electricity.

Mr. David Hunt

The Government believe that about £7 billion worth of savings are available to the nation. This represents about one fifth of the nation's energy bill. In percentage terms, the available sectoral breakdown of these savings is:

per cent.
Domestic 27
Industry and Commerce 27
Public Services 6
Transport 40

The breakdown of total United Kingdom energy consumption by fuel on a primary energy input basis for 1985 is:

Primary energy input MTCE per cent.
Coal 105.3 32
Gas 82.3 25
Oil 115.0 35
Nuclear 22.1 7
Hydro-electricity 2.1 1