Electricity Generation (Local Authorities)

Energy and Climate Change – in the House of Commons at 10:30 am on 16th September 2010.

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Photo of Rehman Chishti Rehman Chishti Conservative, Gillingham and Rainham 10:30 am, 16th September 2010

What steps he is taking to enable local authorities to generate electricity and sell it to the National Grid.

Photo of Charles Hendry Charles Hendry The Minister of State, Department of Energy and Climate Change

Many local authorities are keen to take forward renewable energy projects. New regulations introduced on 18 August mean that local authorities can now sell electricity and can also benefit from renewable incentives such as feed-in tariffs and the renewables obligation. This new provision gives them the freedom to do that, enabling them to play their part in reducing emissions and meeting national renewable energy targets while saving money on their energy bills.

Photo of Rehman Chishti Rehman Chishti Conservative, Gillingham and Rainham

Does my hon. Friend agree that the export tariff of 3p per kWh for households should be increased?

Photo of Charles Hendry Charles Hendry The Minister of State, Department of Energy and Climate Change

I am grateful to my hon. Friend for that question, which does not directly relate to local authorities, but I can say that we are looking at these rates in the totality of the comprehensive spending review. We inherited schemes from the previous Administration that were extremely generous but which were not absolutely clear as to who was going to pay for them and how they were going to be paid for. We are absolutely committed to encouraging the roll-out of renewable electricity and renewable heat, but we must study very carefully exactly how these schemes can be paid for.