Future Of UK Coal

EDM number 2876 in 2005-06, proposed by John Grogan on 30/10/2006.

That this House welcomes the acceptance in the Government's recent Energy Review of the `added benefit' of indigenous deep-mined coal and its contribution to a secure, reliable and diverse energy mix in the UK; recognises domestic coal's twin benefits of price certainty over international market volatility and security of supply from UK assets; notes that Department of Trade and Industry statistics show that imports of coal have risen by 223 per cent. since 1997; further notes that the main remaining British coal producer, UK Coal, is tied into contracts with three main customers, EDF Energy, EON and Drax; understands that since 2003 power generators have paid £417 million more for imported coal than for the equivalent domestic coal, and that this price differential could rise as demand in the Far East and international freight costs rise; calls on electricity generators, particularly EDF Energy, EON and Drax, who comprise 86 per cent. of UK Coal's market, to act now and reassess the price they pay for coal mined in the UK in the light of international prices and import capacity constraints; is aware that electricity generators are looking for long-term certainty on emissions trading; urges in return that they offer a fair price for indigenous coal to allow long-term investment in mining capacity; and further urges Ministers to recognise that without immediate action by the recently established Coal Forum to tackle the issue of existing contracts for domestic coal, future production of indigenous coal, and the added benefit this provides, could soon be under threat.

This motion has been signed by a total of 56 MPs.