UK Coal after the Energy White Paper
The All Party Coalfield Community Group (APCCG) was formed in 1997 shortly after the election of the Labour government. It is a particularly active group with around 140 members. The purpose of the Group is to ensure a fair deal for UK mined coal whilst promoting awareness in Parliament of the issue facing former coalfield areas. Other objectives are support for regeneration and assistance with environmental problems in the regions.
The coal field communities stretch from Scotland, through Northern England and the Midlands into South Wales and Kent. In total their population is in excess of 5mln people. The problems of each region are different in nature and there is a lot to be done at the community level. Only a few still have working coal mines.
Nevertheless, coal is still important to the UK energy economy. Around one third of the UK’s electricity is produced from it. The privatised industry has a turnover of around £1bln and employs 9,000 people. Total coal production in the UK is about 29mln tonnes including 17mln from deep mines but its future remains in balance. Fundamental issues have not been addressed and an industry that produces the cheapest coal in Europe slips ever nearer to extinction.
Although the ‘Investment Aid’ is welcome the £60mln scheme is insufficient. It needs to be supplemented by ‘Operating Aid’. This is because UK coal price has to match the international coal price but it is so near that a movement in the price can tip the balance.
So what should be done? Well given the UK will be 80% dependant on imports by 2020 government should declare what’s left of the coal industry a strategic resource. Moreover, the generators should be encouraged to build new clean coal stations and develop carbon capture technology.
Finally, the implementation of the Large Combustion Plant Directive on an overall national plan threatens the UK indigenous coal industry. It will encourage the generators to import low sulphur coal. A better approach would be the Emission Limit Value.
A UK indigenous coal industry is important to maintain secure supply of energy. It is difficult therefore to understand why the DTI are failing make the continuity of the UK coal industry a priority.
