As the new chair of the cross-party Energy and Climate Change committee (ECCC) – one of the Commons’ most influential committees – I am looking forward to working collaboratively with colleagues from all parties in the best interests of consumers, businesses and the environment.
It is a big a responsibility taking on the role at this critical time. The UK faces big challenges on energy in the next five years. Our once thriving oil and gas industry has been hurt by historically low oil prices. Our wind and solar sectors are growing rapidly, but have been hit by sudden subsidy changes. And the big six energy companies have lost the trust of consumers.
Carbon emissions are beginning to move in the right direction, but searching questions need to be asked about whether we are on track to meet our longer-term climate targets. Nuclear new-build is behind schedule. Commercial-scale carbon capture and storage (CCS) still seems to be an aspiration. And slow progress on energy efficiency has left millions living in draughty homes that leak heat, money and emissions.
The new Energy and Climate Change Committee will only meet for the first time on Wednesday, so decisions are yet to be made on our future programme, but I will be recommending that we follow up on some of the excellent work done by the previous committee. I will also recommend that we proactively engage with stakeholders about the issues we should investigate.
The Competition and Markets Authority (CMA) has this week issued its interim report on the functioning of the energy market. I hope its final recommendations, due by the end of the year, will set the groundwork for re-establishing trust in the retail energy market.
The cost of connecting power stations to the grid and distributing the electricity they generate is a significant component of energy bills, but these “network costs” are often overlooked in the debate about energy prices. The previous Committee called on Ofgem to simplify the current arrangements, but there are still big variations across regions and nations. I would like us to look again at this.
Of course, all energy policy decisions have to be made in the light of climate change. The International Energy Agency has warned that the world is on track to exceed a two degree rise in temperature, so the outcome of international climate talks coming up in Paris are of crucial importance. World emissions need to peak and start declining by the 2020s. That is going to be a big challenge, but one that we must meet.
The policy decisions made at Westminster on all these issues will need careful scrutiny. Under my chairmanship I will ensure that the ECCC continues to be rigorously evidence-based. I look forward to working with colleagues and stakeholders in the industry to hold the government to account and get the best deal for energy consumers.
Angus MacNeil, chair, Energy and Climate Change committee