Part of the debate – in the Senedd at 4:29 pm on 6 June 2018.
I'd like to thank all Members for their interesting and engaging debate today. Simon Thomas, on opening, said he made no apologies for recycling this debate. Well, we have a proud record on recycling in Wales.
The Welsh Government has clearly set out our ambition to transform the energy system in Wales, so that we move to a low-carbon system. By doing this, I believe that we can secure economic advantage and positively impact on the well-being of the people of Wales.
As the motion sets out, the Labour Party established a clear vision for energy in our 2017 general election manifesto, which included actions at both a UK and Wales level. The first step, to take control of energy supply networks at a UK level, has not been taken by the UK Conservative Government. The second step, to establish publicly owned, locally accountable energy companies and co-operatives to rival existing private energy suppliers, can be achieved in a host of different ways, many of which we have been pursuing. Only one method has been explicitly ruled out, and that is the establishment of a Wales-wide energy supply company. The Welsh Government explained our reasons for this in a written statement last August, which built on evidence from workshops around Wales over that summer. Our conclusion was that a strong case has not been made for establishing an umbrella supply company for Wales. This has been borne out by evidence since, which shows that the public supply companies that we studied last year are still reliant on public sector support and have yet to generate revenue. Bristol Energy made a loss of £7.7 million last year, and the break-even date has been postponed to 2021. It also recently lost a contract to supply Bristol council.
The people who contributed to the conversation about energy companies last year gave us a strong steer on their vision for the Welsh Government's role on energy. They asked that we provide a supportive policy environment, co-ordinate activity across Wales and act as an honest, independent and trusted voice, looking at the strategic and regulatory issues that impact on the energy system. This is what the Welsh Government seeks to do.
Plaid Cymru's report 'Ynni Cymru' sets out a vision of Wales reducing carbon emissions, harnessing natural resources sustainably and seizing opportunities in the low-carbon and circular economies. This vision is consistent with the Welsh Government's energy priorities, which were set out in November 2016: to use energy more efficiently, to generate more from renewables, and to derive multiple benefits from the transition. With evidence that our approach is working, we have seen renewable generation in Wales go from 8 per cent of the electricity that we used in 2006 to 43 per cent in 2016. In order that this can continue to increase, we continue to urge the UK Government to restore the support for new onshore wind and solar schemes. Excluding these proven lowest-cost technologies from the energy market mechanism is increasing the price of energy. My colleague the Cabinet Secretary Lesley Griffiths recently met Claire Perry, Minister of State for Energy and Clean Growth, and reinforced our persistent ask that the UK Government restore support to the most affordable renewable developments. Failure to do so is restricting our ability to decarbonise and is driving up energy costs.
Others today have referenced the current context in which we find ourselves, with the announcements with regard to Wylfa Newydd and potential announcements on the tidal lagoon. The First Minister welcomed the UK Government's announcement on Wylfa Newydd. We will continue to build on the close working relationship established with Ynys Môn council and other key regional stakeholders, with the aim of securing a lasting legacy for Wales. We know that tidal lagoons could also play a part in Wales's energy future. I know that Members will be well aware that the First Minister wrote to Greg Clark this week, offering to consider an equity or loan investment in the Swansea bay tidal lagoon project, if there was commitment from the UK Government for an appropriate contract for difference.
The Welsh Government does not hold all of the levers needed to tackle low incomes and energy prices, which makes the eradication of fuel poverty a significant challenge. Once updated fuel poverty data is available towards the end of this year, we will involve stakeholders in developing future actions on tackling fuel poverty in Wales. Improving the energy efficiency of homes in Wales is the most sustainable way to reduce energy bills, reduce carbon emissions from our housing stock and improve the health and well-being of occupants. This, in turn, reduces the burden on our public services.
Since 2011, we have invested over £240 million to improve the energy efficiency of over 45,000 homes of those on low incomes who live in the most economically disadvantaged and vulnerable areas of Wales. In this Government term, we have committed to invest £104 million to improve up to a further 25,000 homes. Our investment will also lever in—