Clause 8 - Microgeneration and access to green energy certificates

Part of Climate Change and Sustainable Energy Bill – in a Public Bill Committee am 4:30 pm ar 25 Ionawr 2006.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Philip Hollobone Philip Hollobone Ceidwadwyr, Kettering 4:30, 25 Ionawr 2006

I support new clause 10, tabled by the hon. Member for Edinburgh, North and Leith. It is vital that a clear signal be sent to Ofgem that Parliament, and the Government, mean business on microgeneration.

There are three different electricity industries, and it is important not to confuse them. They are transmission—the long-distance transport of electricity, mainly on the national grid—distribution, which is the local, physical transfer of electricity on smaller voltage cables, and the electricity supply industry, which is just a financial contract industry where the same companies are buying electricity from generators and selling it to you and me, Mr. Benton, or to commercial firms, as customers. We tend to talk about the electricity industry, but it is not one thing; there are three fundamentally different activities going on.

The clause sends a signal to Ofgem that it must effectively promote microgeneration. However, it could be so simple to tie up all the things together. Were you minded, Mr. Benton, to have a wind turbine in your home, it should be possible to include on your electricity bill a line that says “minus £200” instead of “plus £200”, because of the electricity that you had generated in your home. The electricity would have physically left your home and gone into the local distribution network, but there would be an automatic transfer in terms of the financial contract and the meter reading. The job of the Bill, of government and of the regulator, should be to make that process as simple as possible. Otherwise we will not get the widespread expansion of microgeneration that all hon. Members want to see.