Government minister Francis Maude announced the second wave of a ground-breaking national energy initiative during a visit to Teesside
Government minister Francis Maude announced the second wave of a ground-breaking national energy initiative during a visit to Teesside.
Tory MP Mr Maude, Minister for the Cabinet Office, was at the Air Products plant at Port Clarence yesterday to announce that the Government will repeat its Energy for Growth scheme - which uses Government buying power to save taxpayers’ money, support jobs and boost the UK energy industry.
Mr Maude said: “We are reforming Whitehall to get the best possible value for hardworking taxpayers, saving £10bn in 2012-3 alone.
“Before the last general election, Government failed to leverage its huge buying potential to negotiate a good price and support the UK energy industry.
Minister Maude visits Air Products in Port Clarence
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“Energy for Growth ensures the security of our energy infrastructure - it’s good for the industry, good for taxpayers, and supports this Government’s long-term plan for a stronger economy.”
In last year’s pilot project, the Government agreed a 20-year deal with Air Products to buy electricity at a fixed price from 2016 - protecting against the fluctuations of the market, saving taxpayers an estimated £97m and helping to create up to 750 jobs on Teesside.
Electricity generators will shortly be invited to bid for a new contract in the second phase of the Cabinet Office’s scheme.
The deal secured with Air Products also ensured the company’s investment in the energy-from-waste Tees Valley 2 plant in Stockton, which is worth an estimated £320m.
Under the second project, bids will be invited for a similar deal for up to 15 years with renewable electricity generators. It is hoped the deal will deliver comparable savings and help unlock further investment in the renewable energy market.
The Government’s Crown Commercial Service - the UK’s largest energy customer - spends £1.6bn on gas and electricity every year, 3% of the total UK energy demand.
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