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Senior Lib Dems to join cross-party rebellion on decarbonisation targets Senior Lib Dems to join cross-party rebellion on decarbonisation targets
(35 minutes later)
A new Tory-Liberal Democrat flashpoint has emerged with senior Liberal Democrats revealing their intention to join a cross-party rebellion to demand a quickly established decarbonisation target for the power sector.A new Tory-Liberal Democrat flashpoint has emerged with senior Liberal Democrats revealing their intention to join a cross-party rebellion to demand a quickly established decarbonisation target for the power sector.
The rebellion is expected in a key Commons vote this month with the Liberal Democrat president Tim Farron indicating he will back the move, vowing he will "maintain the pressure on the government as best he can". The rebellion is expected in a key Commons vote this month with the Liberal Democrat president, Tim Farron, indicating he will back the move, vowing he will "maintain the pressure on the government as best he can".
Such a move will be interpreted as a sign of the Liberal Democrat's growing confidence in the coalition and willingness to make their mark in the wake of victory over the Tories in the Eastleigh byelection.Such a move will be interpreted as a sign of the Liberal Democrat's growing confidence in the coalition and willingness to make their mark in the wake of victory over the Tories in the Eastleigh byelection.
The plan will infuriate Conservative government members who believed they had a deal with the Liberal Democrats to defer a decision on green targets in the power sector until after the election. Other Lib Dems have also said they will join the rebellion.The plan will infuriate Conservative government members who believed they had a deal with the Liberal Democrats to defer a decision on green targets in the power sector until after the election. Other Lib Dems have also said they will join the rebellion.
Farron's move in a letter to a constituent released at the weekend came as the IPPR thinktank published new research showing the proposed decarbonisation target need not increase energy prices, and the government's alternative of relying on gas will boost bills by as much as £15. IPPR said energy savings would be relatively small per household, but key advantage would be to reduce price volatility. Farron's move in a letter to a constituent released at the weekend came as the IPPR thinktank published new research showing the proposed decarbonisation target need not increase energy prices, and the government's alternative of relying on gas will boost bills by as much as £15. The IPPR said energy savings would be relatively small per household, but key advantage would be to reduce price volatility.
Environment group Friends of the Earth said: "It is great to see Tim Farron stepping up to support what is Lib Dem policy. It is hoped other backbenchers follow his lead." A Friends of the Earth spokesperson said: "It is great to see Tim Farron stepping up to support what is Lib Dem policy. It is hoped other backbenchers follow his lead."
The battle over the target has the potential to be one of the most bitter within government and will come in the form of an amendment tabled by Tim Yeo, the Conservative chairman of the energy select committee. Yeo has already been the subject of highly personalised attacks claiming he is merging his business interests with his politics.The battle over the target has the potential to be one of the most bitter within government and will come in the form of an amendment tabled by Tim Yeo, the Conservative chairman of the energy select committee. Yeo has already been the subject of highly personalised attacks claiming he is merging his business interests with his politics.
The Tory right are determined to portray the green movement as indifferent to energy bills of cash-strapped consumers.The Tory right are determined to portray the green movement as indifferent to energy bills of cash-strapped consumers.
The amendment to the energy bill would require the target to be set next year, and has gained the support of three prominent Liberal Democrat MPs: Julian Huppert, Martin Horwood and John Hemming.The amendment to the energy bill would require the target to be set next year, and has gained the support of three prominent Liberal Democrat MPs: Julian Huppert, Martin Horwood and John Hemming.
The move will increase pressure on Nick Clegg to give his MPs a free vote on the issue, something normally confined to issues of conscience.The move will increase pressure on Nick Clegg to give his MPs a free vote on the issue, something normally confined to issues of conscience.
Yeo has insisted: "This is a cross-party effort to ensure there is no delay in setting a carbon intensity target for electricity generation in 2030. The swift introduction of a target, in accordance with the advice of the committee on climate change, will help bolster confidence and attract investment in the UK's low-carbon supply chain and secure jobs in the industry."Yeo has insisted: "This is a cross-party effort to ensure there is no delay in setting a carbon intensity target for electricity generation in 2030. The swift introduction of a target, in accordance with the advice of the committee on climate change, will help bolster confidence and attract investment in the UK's low-carbon supply chain and secure jobs in the industry."
Last year's Lib Dem conference under the leadership of the Treasury chief secretary Danny Alexander overwhelmingly backed the setting of a decarbonisation target, but the energy secretary Ed Davey was forced to defer the proposal as part of his wider negotiations over green energy, including a £7.6bn-per-year Treasury commitment to provide green subsidies. Last year's Lib Dem conference under the leadership of the Treasury chief secretary, Danny Alexander, overwhelmingly backed the setting of a decarbonisation target, but the energy secretary, Ed Davey, was forced to defer the proposal as part of his wider negotiations over green energy, including a £7.6bn-per-year Treasury commitment to provide green subsidies.
The newly elected Lib Dem MP for Eastleigh, Mike Thornton, will be under pressure to support the amendment and show he has the same green credentials as his constituency predecessor Chris Huhne. The newly elected Lib Dem MP for Eastleigh, Mike Thornton, will be under pressure to support the amendment and show he has the same green credentials as his constituency predecessor, Chris Huhne.
Instead of a target, the energy bill includes a clause that would require the government to make a decision on whether or not to set a decarbonisation target in 2016 at the same time as binding emission targets are set for 2030 through the next carbon budget.Instead of a target, the energy bill includes a clause that would require the government to make a decision on whether or not to set a decarbonisation target in 2016 at the same time as binding emission targets are set for 2030 through the next carbon budget.
IPPR says a carbon target for the energy sector would save the economy £163m if gas prices rise in line with expectations, or £249m if gas prices are higher than expected. However, relying more on gas up to 2030 by building more gas-fired power stations would cost £312m or £478m if gas prices are higher than expected – between £10-15 per household. The IPPR says a carbon target for the energy sector will save the economy £163m if gas prices rise in line with expectations, or £249m if gas prices are higher than expected. However, relying more on gas up to 2030 by building more gas-fired power stations would cost £312m or £478m if gas prices are higher than expected – between £10-15 per household.
Will Straw, IPPR Associate director said IPPR's analysis shows not only would energy prices be more expensive, they would be highly volatile. At the government's upper estimate for gas generation in 2030, energy costs could vary by as much as £229 per household. At the lower estimate, energy costs are only likely to vary by around £51 per household. Will Straw, the IPPR associate director, said the thinktank's analysis showed not only would energy prices be more expensive, they would be highly volatile. At the government's upper estimate for gas generation in 2030, energy costs could vary by as much as £229 per household. At the lower estimate, energy costs are only likely to vary by around £51 per household.