Category: Energy

  • David Cameron – 2006 Speech on Energy to the LGA Conference

    David Cameron – 2006 Speech on Energy to the LGA Conference

    The speech made by David Cameron, the then Leader of the Opposition, on 6 July 2006.

    “Thank you for inviting me to speak to you today.

    I want to talk about the importance of local democracy and the potential of local government.

    About what Joseph Chamberlain, in 19th century Birmingham, called the “municipal gospel” – the good news of reform, improvement and rebuilding.

    If ever a city needed a gospel, 19th century Birmingham was it.

    I am sorry to say the city was in the grip of rather reactionary civic leaders, called “the Economists”, whose only concern was to keep the rates down.

    They did not believe in “improvement”, especially when it cost money.

    But Chamberlain had a bolder vision for Birmingham.

    Using legislation passed by Disraeli’s government he cleared slums and built Corporation Street in their place.

    The centre of Birmingham became an economic powerhouse, and a place of beautiful urban design.

    Now I wouldn’t want to do everything Chamberlain did.

    I wouldn’t take the gas and water companies into public ownership, for instance.

    But I do want us to recover his spirit.

    The spirit of civic pride.

    For there are great things which local government can do.

    And there is a growing realisation in our country that many decisions that are now made centrally would be better made locally.

    So today, I’d like to set out my vision for empowering local government.

    And I’d like to illustrate that vision with a specific example of how local government can help tackle the great challenges we face.

    That example is climate change, where local government has a huge part to play in meeting our national – indeed our international – ambitions.

    In all our work on local government, I’m extremely fortunate to have the support and advice of an incredibly strong team that really understands the issues.

    People like Caroline Spelman and Eric Pickles.

    Sandy Bruce-Lockhart.

    A growing number of talented and experienced council leaders.

    And I want to make it clear today that we want to work with talented local government leaders across the political spectrum.

    No one party has a monopoly on wisdom, and we should be generous and open-minded in celebrating and learning from success, whatever the party label.

    PAST CONSERVATIVE COMMITMENT TO LOCALISM

    I know that devolution and deregulation have been the buzzwords of this conference.

    Government ministers have stood here this week and promised to hand more power and control back to local government.

    I was as delighted to hear that – as no doubt you were too.

    And I hope that you will approve of the localising vision that I will set out today.

    But first I think a note of humility is in order.

    It’s easy for Westminster politicians to talk about giving up power.

    But in practice, devolving power seems the hardest thing to do.

    This is certainly true of the last Conservative government.

    Despite our deepest Conservative values and instincts…

    …trusting people…

    …sharing responsibility…

    …believing that government should be closer to people, not further way…

    …the last Conservative government introduced a number of measures that centralised, rather than localised power.

    Of course there were some moves in the opposite direction, like local management of schools and the transfer of responsibilities in social care.

    And of course there were strong arguments at the time for the centralising measures that were taken.

    Protecting people from the costs of politically extreme councils.

    Promoting efficiency.

    Helping create jobs and wealth by stopping business from being fleeced.

    TODAY’S CONSERVATIVE COMMITMENT TO LOCALISM

    Well, since then, times have changed.

    Conservative leaders have certainly changed.

    That is, incidentally, one area where I am trying to reduce the rate of change.

    But my Party as a whole is changing.

    So I stand before you today, perhaps not quite a repenting sinner…

    …but at the very least an enthusiastic disciple of the localist creed.

    So what does that mean in practice?

    Today I want to set out four specific commitments that demonstrate our determination to give you more power…

    …empowering you to serve your local communities better.

    FOUR SPECIFIC COMMITMENTS

    First, we will address the democratic deficit caused by regionalisation and regional Assemblies.

    I believe passionately that Regional Assemblies are a costly and unnecessary bureaucratic barrier between local government and local people.

    Our position on Regional Assemblies could not be clearer.

    We will abolish them and return their powers to the local authorities where they belong.

    Secondly, we will address the cost and hassle imposed on councillors by the Standards Board.

    While its intent is positive, its bureaucracy just gets in the way.

    So we will abolish that too.

    Third, we will untie your hands when it comes to spending money.

    You know better than anyone what your local communities need.

    So you should be free to make your own spending priorities.

    We will progressively phase out the ring-fencing of government grant.

    All in all, we need a bonfire of the directives, audit systems, best value regimes, ring-fencing and all of the stark paraphernalia of the Whitehall control-freak regime that tells local authorities what they can and can’t do.

    My fourth commitment is about the structure of local government.

    I don’t think we need another local government reorganisation.

    We want to see stability in local government structures, and so we would scrap the review that David Miliband started. It’s wasting time, it’s setting council against council – and it’s a distraction from the real task of improving services and increasing efficiency.

    We will not hold yet another review of options like the creation of unitary authorities.

    We understand the value of civic pride, the impact of local democracy, and the inspiration that strong local leadership can bring.

    TACKLING CLIMATE CHANGE: A LOCAL GOVERNMENT PRIORITY

    There’s another powerful way of illustrating our commitment to localisation.

    It is to focus on what I believe is one of the greatest challenges for local government.

    Twenty years ago, at the height of the cold war, local councils had a key role in contingency planning for the greatest threat to the survival of mankind.

    Namely, a nuclear exchange between the two superpowers.

    The world has changed dramatically since then.

    Today, in the twenty first century, the greatest long term threat this planet faces is climate change.

    I’ve seen the evidence for myself.

    Earlier this year, I went to the Arctic.

    That’s where temperatures are rising faster, and where the effects of climate change are more pronounced.

    The consequences of those effects – the melting of the ice and the rise in sea levels – are potentially catastrophic for the rest of the world.

    I had the opportunity to interrogate the experts and put the arguments of the sceptics.

    It left a lasting impression, and it left me convinced that we must all rise to this great challenge.

    And in the battle against climate change, here in Britain, local government is in the front line.

    That’s because there is a direct connection between the choices we all make in our daily lives, at a local level, and the future of our planet.

    And I passionately believe that we all have a shared responsibility to rise to the challenge of climate change.

    My responsibility as a national politician is clear.

    To provide leadership.

    To push the issue up the political agenda.

    To champion the innovation and fresh thinking we need.

    And to set tough targets for reducing our carbon emissions.

    Your responsibility as local political leaders is also clear.

    To look at every aspect of local government and ask:

    How can we change the way we do things so we reduce our carbon emissions?

    How can we use less energy?

    How can we help local people and organisations to use less energy?

    How can we change the energy we use?

    THE CLIMATE CHANGE OPPORTUNITY

    I am fundamentally optimistic about our ability to rise to this challenge.

    I know that Britain is today lagging behind many other countries in our response to climate change.

    But it doesn’t always have to be like that.

    We here in Britain can lead the world in a decade if we act decisively today.

    That does mean radical changes in the way we live, work and play.

    But that doesn’t mean putting a brake on progress – far from it.

    When I think about climate change and our response to it, I don’t think of doom and gloom, costs and sacrifice.

    I think of a cleaner, greener world for our children to enjoy and inherit.

    I think of the almost unlimited power of innovation, the new technologies, the new products and services, and the progress they can bring for our planet and all mankind.

    Local government has a critical role to play.

    Think about the impact you have:

    The planning system… housing …

    … the massive purchasing power of local government procurement…

    … and the impact of education in our schools.

    Local councils have a vital part to play in delivering a low carbon future.

    We need to waste less energy; to generate more energy locally, and to generate more energy from renewable sources.

    Local authorities can make it happen, and I want to give you all the encouragement and help you need.

    DECENTRALISED ENERGY

    It will involve a new way of thinking about energy.

    Put simply, we need to move away from the old-fashioned top-down model of energy supply.

    The future of energy is not top-down, it’s bottom-up.

    In a word, the future’s not centralised – it’s decentralised.

    Decentralised energy – electricity generated in smaller, more local units like neighbourhood combined heat and power schemes – could make a huge contribution to reducing carbon emissions and improving energy efficiency.

    Decentralised energy offers an exciting vision of 21st century energy supply, re-engineering the system and opening it up to new, smaller technologies and more local participants.

    But we’ll never realise that vision unless we change our attitude to energy.

    In Britain we are still lumbered with the same backward-looking, central-planning mindset that has dominated thinking on electricity since the first half of the last century.

    There will always be a need for a robust and secure National Grid.

    Energy security is vital, but it is a myth that it can only be provided from remote and inefficient power stations…

    …or that electricity has to travel hundreds of miles to market.

    We live in a fast-changing world of scientific research and innovation.

    We’re on the brink of amazing technological breakthroughs that could transform the effectiveness and affordability of green energy options.

    I want Britain to be at the forefront of the green energy opportunity, and I want local government to be in the forefront of Britain’s environmental progress.

    That in turn requires action from national government.

    We need to spark a new green energy revolution in this country.

    We must remove the barriers that stand in the way of exciting innovation in fields like renewable and decentralised energy.

    BEST PRACTICE

    Already councils up and down the country are taking the lead in pioneering 21st century solutions to the new energy challenge.

    Last month, I presented the Ashden Awards which highlight and reward the successful use of sustainable energy.

    One of the main awards was won by Barnsley Council which has pioneered the most extensive application of biomass heating in the UK, using waste wood to heat community housing and other public buildings.

    They’ve taken out the old coal and gas burners and put in new ones that burn woodchips.

    As a result, the council has saved nearly 3,000 tonnes of carbon dioxide emissions a year.

    And Woking Borough Council isn’t waiting for a global solution to climate change.

    It has pioneered the use of decentralised energy to reduce carbon emissions.

    Combined heat and power; solar power, geothermal power, hydrogen fuel cells.

    All are playing a part in meeting Woking’s energy needs.

    In total Woking has been able to reduce its carbon emissions by a staggering 77% across its municipal estate.

    I want to see these islands of local government innovation become the everyday experience right across Britain.

    ENERGY REVIEW

    This needs vision and leadership from national government to set the right framework and create the right incentives.

    Today, we are publishing the interim findings of our own Energy Review.

    We have consulted widely with industry leaders and relevant experts.

    There is much more detailed policy work to be done.

    And we will study the conclusions of the Government’s own Energy Review carefully.

    But we are clear about our strategic objectives, the key principles that underpin our approach, and the policy direction we are taking.

    Our strategic objectives should be to reduce carbon emissions from the electricity supply industry and to guarantee an affordable and secure electricity supply.

    The policy direction we’re taking is based on two key principles.

    First, that government’s role should be to set the right framework for emissions reductions and energy security.

    Government should not be in the business of specifying a particular mix of electricity generation capacity.

    Our second principle is that industry’s role should be to develop the best and most affordable technology within this framework.

    We think it’s wrong to start with the technology you want to see, and set the framework afterwards.

    These principles, applied to the strategic objectives of carbon reduction and affordable energy security, point towards the three main components of the policy direction we are taking.

    We can guarantee carbon reduction by developing a long-term ‘cap and trade’ regime for carbon emissions.

    That means setting a limit on the overall amount of carbon dioxide that the electricity sector can emit, and allowing generators to buy or sell permits to emit carbon dioxide within the overall cap.

    We can guarantee that there will always be enough electricity generating capacity to keep the lights on by establishing a capacity payment system.

    That means paying generators to have spare capacity on stand-by.

    And we can spark a revolution in green energy by improving the regulatory structure for renewable and decentralised energy.

    That means getting rid of all unreasonable obstacles to investment in renewable and decentralised energy, for example making it easier for local generators to sell any spare electricity they generate back to the National Grid.

    There must be a level playing field for renewable and decentralised energy to compete on equal terms with nuclear power.

    That means, for example, improving and streamlining planning procedures both for nuclear and for green energy.

    ENERGY REVIEW SUMMARY

    So our position is clear.

    Guaranteed carbon reduction to tackle climate change.

    Combined with guaranteed security of energy supply to make sure the lights stay on.

    We want to give green energy a chance.

    That means no special favours or subsidies for nuclear power.

    Where the Government see nuclear power as the first choice…

    Under our framework it would be a last resort.

    Where the Liberal Democrats rule out nuclear power…

    We rule out subsidies and special favours for nuclear power.

    That is the strong and responsible position to take.

    CONCLUSION

    In renewable and decentralised energy, as in so many areas, councillors of all parties can lead a revolution in the way that Britain is run.

    There is an appetite for change.

    A hunger for progress.

    And a thirst for more local democracy and participation.

    I can feel it at this conference and I can feel it everywhere I go.

    Out there are the 21st century Chamberlains, the civic leaders who will be talked about in another hundred years’ time.

    Remembered for their vision.

    Recognised for their achievements.

    Rewarded with the legacy of strong communities and lasting civic pride.

    My job is to give you the power to make it happen.

  • Kwasi Kwarteng – 2021 Statement on Bulb Energy Going into Administration

    Kwasi Kwarteng – 2021 Statement on Bulb Energy Going into Administration

    The statement made by Kwasi Kwarteng, the Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 24 November 2021.

    As many people in the House will know, when energy suppliers leave the market, the regulator, Ofgem, runs a competitive supplier-of-last-resort process. Last week, Bulb informed the Government and Ofgem that it would be leaving the market. Ofgem has advised that the supplier-of-last-resort process is not viable for Bulb because of the size of its customer book. Ofgem has, with my consent, applied to the court to appoint energy administrators. If appointed by the court, the administrators will continue to operate Bulb under what is called the special administration regime, which is set out clearly in legislation.

    We will update the House once the court has made its determination, but I wish to clarify a couple of points. First, a special administration regime is a temporary arrangement that provides an ultimate safety net to protect consumers and ensure continued supply. The special administration regime will keep bills at the lowest cost that it is reasonably practical to incur while ensuring that the market remains stable. The House should understand that we do not want the company to be in this temporary state for longer than is absolutely necessary. Supplies remain secure and credit balances will be protected. Finally, all domestic customers in Great Britain are, of course, protected by the energy price cap, which remains firmly in place.

  • Greg Hands – 2021 Statement on the Energy Default Tariff Cap

    Greg Hands – 2021 Statement on the Energy Default Tariff Cap

    The statement made by Greg Hands, the Minister of State at the Department for Business, Energy and Industrial Strategy, in the House of Commons on 29 October 2021.

    The Domestic Gas and Electricity (Tariff Cap) Act 2018 enables the default tariff (price cap) on standard variable and default energy tariffs to be extended on an annual basis up to end of 2023 at the latest. These annual extensions are dependent on an assessment and statement that I make every year, by 31 October, on whether the conditions for effective competition are in place for domestic supply contracts.

    I am confirming today that the price cap mechanism will remain in place for 2022 as the conditions for effective competition are not yet in place for domestic supply contracts.

    As required by legislation, the independent energy regulator, Ofgem, has carried out an assessment into whether the conditions are in place for effective competition in domestic supply contracts this year. Ofgem has been transparent in how it made its assessment, and its report is clear and thorough. Ofgem assesses that these conditions have not been met and recommends that the price cap mechanism should be extended.

    The level of the price cap is a separate matter for Ofgem to determine.

  • Bridget Phillipson – 2021 Comments on Confusion Over Government’s Energy Strategy

    Bridget Phillipson – 2021 Comments on Confusion Over Government’s Energy Strategy

    The comments made by Bridget Phillipson, the Shadow Chief Secretary to the Treasury, on 10 October 2021.

    In the teeth of a crisis of its own making, the Government has put its out of office on. The Prime Minister has gone on holiday, no one knows where the Chancellor is, and this morning we understand the Business Secretary has entered the realms of fantasy.

    The two key government departments responsible for the current cost of living crisis have spent this morning infighting about whether they were in talks with each other. What a farce. If government ministers can’t even tell the truth about each other, then what hope do we have for the challenges facing our country?

    We need urgent answers on who exactly is running the show. The Government needs to get a grip because the British people are paying the price for the Prime Minister’s incompetence.

  • Ed Miliband – 2021 Comments on the Energy Crisis

    Ed Miliband – 2021 Comments on the Energy Crisis

    The comments made by Ed Miliband, the Shadow Business Secretary, on 11 October 2021.

    Yet again we see that in the face of their failed energy policy, the Government has nothing to offer businesses or consumers to help them with the crisis they are facing. For firms and families waiting to hear how the Business Secretary might help, there is a total absence of a plan and no extra help.

    The Government is squabbling amongst itself, with the Treasury even denying they are talking to BEIS about providing help for large, energy intensive industries.

    It is becoming clearer by the day that the Government that got us into this mess because of a decade of inaction is now paralysed by the scale of the crisis and cannot get us out of it. All the while, it is businesses and families who are paying the price of government denial, failure and an appalling refusal to understand what our country is facing.

  • Ed Miliband – 2021 Comments on Gas Prices

    Ed Miliband – 2021 Comments on Gas Prices

    The comments made by Ed Miliband, the Shadow Business Secretary, on 6 October 2021.

    Britain’s businesses and consumers are paying the price for the failures of this government.

    The UK is particularly vulnerable to increases in gas prices because the government allowed our gas storage facilities to close, blocked onshore wind, cut solar subsidies, stalled our nuclear programme and because of their total failure to deliver a long-term plan for energy efficiency.

    And now the Government remains in total denial about the scale of the energy price crisis facing consumers and firms. The Prime Minister needs to stop with the bluster, and get a grip of the cost of living crisis facing our country.

  • Claire Perry – 2018 Speech on Gas

    Below is the text of the article written by Claire Perry, the Minister of State for Energy and Clean Growth, on 18 May 2018.

    Developing our North Sea oil and gas has been a Great British success story.

    Since the first wells started producing in the 1960s we have created a secure domestic energy supply, created thousands of high quality jobs, delivered billions to the economy and driven the growth of a huge engineering sector that we have exported to the world.

    Even with the amazing improvements in North Sea production, volumes are declining and we are now importing almost half of our gas supplies.

    Although we are in no way reliant on Russian gas despite what the Russians would have you believe.

    Because gas is so important for our economy we know that we will need it for decades to come.

    It also fits with our world-beating climate goals as it generates less CO2 than oil and coal.

    That is why every estimate of our 2050 emissions reductions targets from the independent Climate Change Committee includes gas in our energy mix and why it is right to continue to look for gas that can be safely extracted from the potentially huge reserves hundreds of metres beneath our feet.

    And there are other benefits too.

    Shale gas extraction could provide a big clean growth boost for local communities as part of our modern Industrial Strategy – bringing thousands of high quality jobs, local investment and financial benefits to many parts of the country.

    And our world-leading environmental regulations mean we could create even more investment and export opportunities from innovations like recycling waste water.

    There are those who argue strongly against shale gas, using the most colourful and scaremongering language they can find and intimidating local communities and decision makers with lots of protesters from out of town.

    In my experience, most of these arguments are made by people who actually just don’t want us to use gas at all – now or ever.

    While we should all be hugely proud of our huge progress on renewables that delivers almost 30 percent of our electricity needs, we cannot meet our energy and heat needs now, or for many years to come, at a price we can afford, without using the gas that geography has gifted us.

    That is why we committed to support the development of onshore British shale gas and to deliver a clean safe and affordable energy supply for the country.

    It is why I have set out these changes to the planning and regulation regime to make sure there is support available for all involved in this process.