Gas suppliers should 'Cap and Trade'

1.55.17pm GMT Wed 4th Oct 2006

David Howarth, MP for Cambridge and Lib Dem Energy Spokesperson, has today called for a duty on gas companies to encourage their customers to save gas.

Mr. Howarth commented:

"One third of energy used in the UK is used in heating water and space and the vast majority of this is powered by gas. This means that there is a large area of energy policy that is not covered by the Renewables Obligation or other policies designed to affect electricity generation. Heating is ignored in debate on energy in this country. This needs to change.

"Gas supply companies should have an obligation to encourage their customers to save gas. We would introduce a Cap and Trade system, similar to the system the Liberal Democrats have proposed for electricity supply companies, which caps the amount of gas they can supply (and so caps the carbon emissions) and allows companies to trade any spare allowance with other companies. Gas companies would then have a real incentive to invest in energy saving measures such as insulation and solar thermal heating for their customers. Companies would then have an incentive to pay for the installation of energy saving measures for their customers

"With a Cap and Trade policy, politicians are not left to 'pick winners'. Instead the market is free to produce the most cost effective method of reducing carbon emissions and companies are incentivised to take real action to reduce their negative impact on the planet."

David Howarth MP

Mr. Howarth's made his remarks as he addressed the Solar Trade Association at their annual conference in Milton Keynes.