Clause 36
Energy Bill
1:00 pm
Malcolm Wicks (Minister of State (Energy), Department for Business, Enterprise & Regulatory Reform; Croydon North, Labour)
I wonder whether one issue in the hon. Gentleman’s mind is that there is something known as headroom in the renewables obligation, so we are always setting a percentage figure somewhat higher than where we actually are. That is how we incentivise people to come forward with investment, but I am happy to supply any other information that I can to the hon. Gentleman.
The hon. Member for Northavon, who is not here this afternoon, referred to “Rock Around the Clock”—I think that we have had the last of those jokes now. He was the second speaker on the Liberal Benches this morning, so he was very much the Comets to the hon. Member for Cheltenham’s Bill Haley.
The hon. Member for Northavon asked what the criteria were for establishing the bands. Bands were set on the basis of criteria in proposed new section 32D(4) of the Electricity Act 1989. In particular, the cost data came from a study by Ernst and Young, but we also took into account other criteria, including the cost to consumers. We have also paid heed to the results of our recent consultations on proposals, which supported a limited number of bands. Consultation has led to some minor changes to the bands to which he referred.