No more cheap energy, warns cabinet minister John Hutton.

This is a remarkable example of clear-thinking policy.  He gives a 
cursory nod to 'climate change'  but firmly relegates it to the 
second division.  He totally rejects - and for the right good reasons 
- a windfall tax.  He backs efforts to get more of our own energy 
sources into play including that of coal.  He sees clearly the fast 
approaching danger of electricity blackouts.

If he'd just deal with the terrible waste of resources in vast 
windfarms and their vaster subsidies I'd give him an Apha Plus for this.

Will Brown let him deliver ??  And will Cameron wake up as a result?

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TELEGRAPH   28.8.08
No more cheap energy, warns cabinet minister John Hutton
By Andrew Porter, Political Editor

Millions of homes have been hit by a wave of recent energy price 
rises of more than 35 per cent, while petrol and food bills have also 
soared

John Hutton, the Business Secretary, admits households will struggle 
to pay their heating bills this winter due to rising costs.
But he effectively rules out imposing a windfall tax on energy firms 
because it would only lead to higher charges for customers.

And he warns that Russian aggression in Georgia has cast doubt over 
Britain's future energy supplies.

In an interview with the Daily Telegraph, Mr Hutton:
. Denies energy companies are ripping off customers who have 
benefited "very considerably" from low prices in recent years.
. Says Britain's ability to generate its own energy needs to be above 
climate change in Government's priorities.
. Risks upsetting environmentalists by calling for new nuclear 
reprocessing plants to be opened.
. Says he expects French electricity supplier EDF to conclude a deal 
with British Energy within two weeks - paving the way for a new era 
of nuclear power stations in Britain.

Mr Hutton's refusal to levy a windfall tax on power firms will dismay 
many who had hoped for extra government help to pay for heating this 
winter.

Millions of homes have been hit by a wave of recent energy price 
rises of more than 35 per cent, while petrol and food bills have also 
soared.

Seventy Labour MPs have signed a petition calling for a one-off tax 
on the "excessive profits" of the energy companies.

Two out of three people in the latest polls also favour the move. But 
the Treasury and Number 10 fear that any windfall tax could backfire 
with the energy firms just passing on the costs.

Gordon Brown levied a £5 billion windfall tax on the privatised 
utilities when Labour came to power in 1997.  But the measure, which 
paid for Labour's New Deal programme, was included in the party's 
manifesto - something Mr Hutton says gave it legitimacy.

As the Cabinet minister in charge of energy, Mr Hutton's comments 
represent the highest level of intervention in the debate so far. In 
a clear rebuke to his colleagues, Mr Hutton makes it clear that a 
windfall tax has effectively been ruled out.

Investment in future energy supplies would suffer if the firms were 
hit hard, he argues.

He says: "The era of cheap energy is over. The question is how are we 
going to adjust to that and what sort of help can we provide to those 
who are going to struggle the most.

"There is genuine concern about the difficulties that people will 
face paying their heating bills over the coming winter and we are 
looking at extra support.
"What we shouldn't do is create a climate that makes it harder to 
attract new investment. The new nuclear investment, the new 
renewables investment, the new investment in clean coal and gas.
"We need £100 billion plus in the next 10 years, so we've got to 
create the right framework that encourages investment. So we must not 
lose sight of that.
"And we shouldn't do anything that has the effect of putting up bills 
further."

Mr Hutton warns that with threats of a new Cold War opening up with 
Russia - which supplies a large part of the gas Britain is forced to 
import - securing reliable energy supplies has become vitally important.
"Energy security is fundamental to our existence as an independent, 
democratic, free state," he says. "I think the events not just in 
Georgia, but over a longer timescale, have really confirmed the 
growing importance of energy independence for the UK.
"Russia has huge energy resources and could be a really good partner 
for Europe but it's harder to do that when you see what is unfolding 
on the international stage.
"We must do as much as we can to get energy from indigenous sources. 
Britain needs more energy suppliers. It's harder to for us to have 
those energy relationships with countries that behave in the way 
Russia has been doing lately."

Mr Hutton defends energy firms against claims they are ripping 
customers off.
"Making a profit is better than making a loss and if we want these 
companies to invest significant resources investors are not going to 
do that if they don't think there's a reasonable return to be made on 
their investment," he says.

Instead of a one-off windfall tax, ministers will look to the big 
energy companies to help by offering some discounts to those who are 
considered the most poorly off and worst effected by rising bills.

Mr Hutton also claims the Government cannot put climate change above 
energy security.
He says: "Of course we've got to tackle climate change, it's a real 
and present danger for used, but we've also got to be absolutely 
clear that our energy policy has got to be figured first and foremost 
with a view to supplying Britain with affordable and secure energy it 
needs for the future.
"That is why we cannot turn our back on any proven form of 
technology. We cannot afford to say no to new coal, new gas or new 
nuclear."

In a surprising move he is also looking at building new nuclear 
reprocessing plants such as Sellafield, where nuclear waste is 
recycled into fuel, as a way of helping supply a greater amount of 
energy domestically - a move that will alarm environmentalists.