And raises a question-mark over future energy prices
North East Herts MP Oliver Heald has backed a Government Scheme (the new Carbon Reduction Commitment Scheme) to introduce emissions trading for companies and organisations using £1m of energy per year, but has raised concerns about cost rises for consumers and volatility of prices.
Oliver is a longstanding advocate of energy efficiency going back to his first speech at the Conservative Party Conference in the late 1980s, where he called for energy efficiency labelling of white goods - later enacted by the Conservative Government in the 1990s. Recently he has attacked Government caution over energy efficiency in his 2009 House of Commons' speech on Energy Security.
Speaking in the debate, Oliver questioned Minister Joan Ruddock on how the cost of energy will affect companies and consumers, he said: “It is often said that energy companies are slow to reduce their prices even when the wholesale price falls dramatically. With the EU Emissions Trading Scheme, there have been several occasions when the emissions price has risen by as much as a third…is the Minister concerned that substantial spikes in energy costs might do damage to those organisations and the country?”
Commenting later, Oliver added: “Energy efficiency is vital to our future energy security and so I welcome the new scheme. There have been concerns at price rises and price volatility in carbon trading schemes, particularly the European Scheme and it is important to monitor the new Carbon Reduction Commitment Scheme to ensure that businesses and other energy users can have a reasonable expectation of what their energy costs will be and that if they make efficiencies they will be adequately rewarded.”
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Notes to Editors
House of Commons Hansard: http://www.publications.parliament.uk/pa/cm200910/cmgeneral/deleg2/100223/100223s03.htm