Russian Oil Import Ban 1.52pm The Secretary of State for Business,
Energy and Industrial Strategy (Kwasi Kwarteng) With permission, I
would like to make a statement on the UK’s phase-out of imports of
Russian oil in response to Vladimir Putin’s brutal and illegal
invasion of Ukraine. First, I want to say what a privilege it was
for all of us to hear President Zelensky’s historic address to the
House yesterday. I am sure that all Members will join me
in...Request free trial
Russian Oil Import Ban
1.52pm
The Secretary of State for Business, Energy and Industrial
Strategy ()
With permission, I would like to make a statement on the UK’s
phase-out of imports of Russian oil in response to Vladimir
Putin’s brutal and illegal invasion of Ukraine.
First, I want to say what a privilege it was for all of us to
hear President Zelensky’s historic address to the House
yesterday. I am sure that all Members will join me in thanking
him once again for his inspiring words and great leadership. It
is with those words in mind that I come here today.
The UK joins key allies, including the United States, in halting
the import of Russian oil, which makes up 44% of Russian exports
and 17% of the Russian Government’s revenue through taxation.
This action follows the most punishing set of sanctions that the
British state has ever imposed on a G20 nation. Our trade,
financial and personal sanctions are having an effect on the
Russian economy. As I speak, the rouble has now fallen by nearly
42%, and the Moscow Exchange’s stock trading has been shut since
25 February. The British Government have sent a clear message to
Putin’s regime and to those who support him in his war against
Ukraine.
It is important to remember that Russia produces only a fraction
of the fuel products currently imported in the UK. In a
competitive global market for oil and petroleum products, demand
can be met by alternative sources of supply. As a result of
international revulsion at Putin’s invasion, Russian oil is
already being excluded from much of the market, and currently it
is trading at quite a sharp discount from other crude oil
sources.
We want to go further. Yesterday I set out that the UK will be
phasing out imports of Russian oil during the course of the year.
This transition will give the market, businesses and supply
chains more than enough time to substitute Russian imports.
Businesses should use this year to ensure as smooth a transition
as possible, so that consumers will not be affected. The
Government will work with companies through a new taskforce on
oil to support them to make use of this period in finding
alternative suppliers. Yesterday I spoke with businesses, unions
and representatives from the sector, and of course I and
officials in the Department for Business, Energy and Industrial
Strategy will continue to engage with and support British
business.
Although Russian imports account for 8% of total UK oil demand,
we should remember that the UK is a significant producer of crude
oil and petroleum products. We participate in a global market for
those products and we have resources in place in the unlikely
event of supply disruption. Over the course of the year, the
taskforce that we have set up will work closely with
international partners, including the USA, the Netherlands and
the Gulf to ensure alternative supplies of fuel products. Last
week I addressed the International Energy Agency and tomorrow we
will have an extraordinary meeting of the G7 Energy Ministers to
discuss further steps.
Although businesses should do everything they can to secure oil
from alternative sources, it is important to emphasise that they
will still be able to import Russian oil during this transition
period. These measures target oil-related products imports only.
The UK is not dependent on Russian natural gas, which makes up
less than 4% of our supply. However, I will be exploring options
to end that altogether.
I want to make it clear to the House that we must end our
dependency on all Russian hydrocarbons. In the meantime, we need
more investment in North sea oil and gas production as we make
the move to cheaper, cleaner power. Turning off domestic
production at this moment, as some are calling for, would be
completely the wrong thing to do. We are not going to do that.
The Prime Minister has also confirmed that the Government will
set out an energy strategy to explain the UK’s long-term plans
for greater energy security, including renewable and nuclear
power, building on our 10-point plan.
This measure to phase out Russian oil, and those being taken by
our allies, will move the west away from dependency on Russian
oil. It will take us on a road to building a stronger and more
resilient British energy system. It will increase the growing
pressure on Russia’s economy and, ultimately, hamper Russia’s
ability to impose further misery on the Ukrainian people.
1.58pm
(Doncaster North) (Lab)
I thank the Secretary of State for his statement. We are united
against Russian aggression. We stand together in solidarity with
the Ukrainian people. Let me echo his admiration for President
Zelensky, whose bravery and eloquence yesterday were
extraordinary and inspiring.
On the Secretary of State’s immediate decisions, we know that
Putin’s war machine is being funded by oil and gas, which is why
it is right that every country does what it can to isolate the
regime, and that every company does so too. We fully support the
Government’s decision to ban oil imports, which is a welcome
step. It is also right to work with companies and unions on how
we implement that policy. What assessment has he made of the
impact of the ban on petrol and diesel prices?
We also support the Secretary of State’s decision to seek ways of
ridding ourselves of Russian gas imports. On the wider energy
security context, it is essential that we learn the right lessons
from this crisis. Although 50% of our gas comes from the North
sea and only 4% from Russia, we pay the same price for our own
gas as for that which we import because we operate in an
integrated gas market, so we are absolutely exposed to these
rocketing wholesale gas prices, which are currently up 100% on
the month and 800% on the year.
Therefore, the right lesson to learn is surely that we have to go
much further and faster in developing home-grown zero-carbon
power, including renewables and nuclear, which can free us from
the whims of autocrats and dictators who can use fossil fuels as
a geopolitical weapon. Does the Secretary of State agree this is
the right lesson and that policy will need to change? In
particular, does he agree that we should finally end the
effective moratorium on onshore wind in the planning regulations,
which since 2015 has denied us power each and every year
equivalent to our gas imports from Russia? Does he agree that we
should ramp up our offshore wind so we go well beyond 40 GW, and
that it is time to finally get serious about energy
efficiency—the best way of cutting energy demand and an area in
which the Government have not succeeded in past years?
There needs to be a phased transition in the North sea, but will
the Secretary of State now clarify the Government’s position on
fracking? Will he confirm that the moratorium that was put in
place will remain in place—no ifs, no buts—as fracking would not
make any difference to the prices consumers pay, is dangerous and
would take decades to come on stream? [Hon. Members: “No!”] They
do not agree with me. I have a position against fracking; they
support fracking. We would love to know what the Secretary of
State and the Government think and I am sure they would, too.
Let me ask the Secretary of State about the cost of living crisis
facing families, arising from what is happening to oil and gas
prices. We have consistently warned the Government that their
measures were wholly inadequate to address the rise in energy
bills. Will he undertake to tell the Chancellor that, in his
spring statement, he must come back with much more help for both
families and businesses?
We are united in our support for the people of Ukraine. We will
support the Government in everything they do that can cut off
support for the evil and barbaric Putin regime, and we urge the
Government to learn the right lessons for our country from this
crisis, so we can achieve both energy security and energy
sovereignty.
In his customary way, the right hon. Gentleman raised a large
number of questions, the majority of which I hope to deal with.
He spoke against Putin’s barbaric invasion and completely illegal
actions. I am very pleased that he reflects our sentiments and
that we have a mutual interest in making sure that Putin
fails.
As far as the cost of living is concerned, the Chancellor of the
Exchequer has made an extensive intervention, and it is wrong for
Opposition politicians to say that the price cap that will be set
in August will necessarily be higher than it is today. We simply
do not know. As the right hon. Gentleman understands, the price
cap will be set retrospectively, looking at the average price. It
may well be higher, but there are circumstances in which it will
not increase as much as he imagines. As is always the case, we
take an ongoing approach to looking at the price cap. We speak to
Ofgem all the time and Ofgem is engaged in work on how the price
cap is calculated.
I am pleased to hear that the right hon. Gentleman is keen to
support investment in the North sea, making sure that gas is a
key transition fuel, something that many people on the Opposition
Benches may disagree with. He is right to stress an increased
focus on renewables and nuclear power—we are absolutely at one in
our agreement on that.
(Newark) (Con)
I welcome my right hon. Friend’s statement. We have to brace
ourselves for the greatest impact on living standards that any of
us has known in our lifetime, which necessitates a more pragmatic
approach to energy policy. It means accelerating investment in
renewables, potentially lifting the effective moratorium on
onshore wind, looking again at fracking and taking all possible
advantage of our domestic supplies in the North sea as part of a
transition. Does my right hon. Friend agree with that, and also
that it would be perverse and dangerous to take away oil from
Russia and replace it with oil and gas from Iran and Venezuela,
two regimes that are just as malign and dangerous as Putin’s in
Russia?
My right hon. Friend is absolutely right: we have to look at all
the possible technologies that can give us as much resilience as
possible. We have to shrug off a lot of outdated dogma in this
area, and I am pleased that the right hon. Member for Doncaster
North () is full square behind
nuclear, because as I remember, when he was Secretary of State,
he was not the most supportive of the nuclear industry. My right
hon. Friend is right to identify potentially hostile powers and
we are keen to diversify away from providing resources to those
powers.
(Aberdeen South) (SNP)
I think it is safe to say that we in this Chamber all broadly
support the statement that the Secretary of State has made and,
while there will be arguments about the potential speed of the
transition, we cannot escape the sheer scale of what has been
announced today. This is a seismic shift in UK, US and indeed
European energy policy. However, we also cannot be blind to the
fact that there will be consequences and one of the potential
consequences is retaliatory action from Putin himself. What
consideration has the Secretary of State given to that
matter?
On that point, if there were to be gas and oil shortages on the
European continent, as a producer of oil and gas, would that not
emphasise the importance of Scotland’s North sea oil and gas
reserves? In terms of resources and Scotland’s resources in
particular, the renewable resources that Scotland has are
enormous: 25% of Europe’s entire offshore wind capacity sits off
the coast of Scotland. I was a bit disappointed that the
Secretary of State did not say more about renewables, so I would
like to hear a little more from him about the additional support
he intends to give to onshore and offshore wind, tidal, hydro
pump storage, hydrogen and so on and so forth, and what the
timescales for that progress will be.
Of course, the second big consequence will be for consumers. We
cannot escape that fact: there will be inevitable price rises,
irrespective of what the Secretary of State intimated about the
price cap. Will he commit to using every single penny of
additional resource that comes from the North sea oil and gas
sector to insulate households from the looming cost of living
crisis?
I was very determined not to inject any kind of partisan tone
into these proceedings, but it struck me as particularly bizarre
to hear the hon. Gentleman defend our North sea transition deal
and the considerable oil and gas assets in Scotland. I would be
very interested to hear what his Green counterparts in the
coalition north of the border thought of his remarks.
In relation to protecting consumers, the hon. Gentleman will know
that we are fully committed to the price cap, and review it all
the time to determine how effectively it can operate. Of course,
we are 100% behind renewables. Regarding onshore wind, it is
important to remind the House that we lifted the ban on the pot
one auction last year, which has led to a huge boost for onshore
wind.
(Harwich and North Essex)
(Con)
I thank my right hon. Friend for his statement and very much
welcome the overall emphasis on replacing fossil fuels with
renewables in the longer term. However, does his Department
understand the urgency of the present short-term situation for
not just prices, but security of supply? The Government have
announced support for households, but what about businesses?
Businesses tend to buy on six-month contracts and his hope that
the situation will rectify itself within a few months is, I am
afraid, hopelessly naive. We are facing a crisis in energy bigger
than the oil price shock of the 1970s and it is likely to have as
big an impact, or a bigger impact, on our economy than that had
on our economy then. Is his Department seriously engaged with
this situation with the necessary urgency?
We are absolutely engaged with that. As someone who is very
interested in the 1970s, my hon. Friend will remember that the
oil price quadrupled in three months. We are facing a difficult
time. The Department is fully aware of the urgency of the
problem, but he will appreciate that a lot of the investment that
we needed to make simply was not made. We did not make enough
commitment to nuclear—that was a historical mistake of previous
Governments—but we are focusing on dealing with the problem in
the here and now, and that is why my right hon. Friend the Prime
Minister and I are coming up with a plan in the next few days to
track—[Interruption.] I find it extraordinary that the right hon.
Member for Doncaster North (), who was responsible for
energy policy in the last Labour Government, is smirking from a
sedentary position, when he comprehensively failed the nuclear
sector, completely failed on energy supply and completely failed
on energy resilience. We are still trying to clean up his mess. I
say to my hon. Friend that we are working on these plans.
Madam Deputy Speaker ( )
We will have no more interventions from a so-called sedentary
position.
(Bristol North West) (Lab)
I thank the Secretary of State for advance sight of his
statement. He will know that many local authorities, NHS trusts
and other public bodies are locked into gas supply contracts with
Gazprom. To get out of them, the Government need to bring forward
legislation to amend the public procurement rules. Will he do
so?
The position in respect of Gazprom is that the UK company is
separate from the parent but, should anything happen to Gazprom,
just as with any other supplier of energy, we will take the
appropriate steps.
(New Forest West) (Con)
When we sanction Russia, we also sanction ourselves. We need to
be clear with the British people, do we not, that this is a
sacrifice we are expecting them to make, when the Ukrainians are
making so much greater sacrifice.
My right hon. Friend is absolutely right. People in this country
have an intuitive, heartfelt feeling for the people of Ukraine.
People understand—I have seen it in my constituency at the
weekend and I am sure he has seen it in his—and are willing to
endure hardships in solidarity with the heroic efforts that the
people of Ukraine are making. People understand that in this
country, because we are a generous and giving country.
(Brighton, Pavilion)
(Green)
The Government are right to get off Russian oil and gas—I welcome
that—but wrong to propose replacing it with new domestic
production. Our dependence on fossil fuels is what got us into
this energy crisis in the first place, and that is why many of
us, including the International Energy Agency, are calling for no
new licences. The real insanity is trying to get out of one
crisis by plunging ourselves into another. More extraction from
the North sea will keep our bills high and drive us past safe
climate limits, and fracking will not help. Will the Secretary of
State use this moment to launch an emergency green revolution?
Will he get serious at last about energy efficiency, and will he
wean the UK off not just Russian oil and gas, but all oil and gas
now?
On this question, I have to confess that the hon. Lady and I have
completely different views. We are diametrically opposed. I agree
with her on the net zero commitment, but this idea that we can
simply switch the lights off, so to speak, on oil and gas is
absurd. [Interruption.] It is completely absurd and we need to
have investment in the North sea.
“No new licences” is what I said.
Madam Deputy Speaker ( )
Order. I think I said quite clearly no more shouting from people
who are sitting down.
(Vale of Glamorgan) (Con)
I commend my right hon. Friend’s statement and pay tribute to him
and his predecessors for the diversification they have made to
the supply, security and sources of the energy mix over recent
years, despite the lack of investment in nuclear during the 2000s
leading up to 2010. Does he agree that oil will remain a key
source of energy for some time to come as we are transitioning?
What consideration has he therefore given to bringing about
influence on OPEC nations to produce more oil so that the global
supply can be better managed?
My right hon. Friend raises a particularly important point. We
had a discussion at the IEA ministerial only last week where we
all agreed as a collective to release our stock. That was an
American initiative that we supported. Clearly, we need to work
as an international community to ensure we can provide enough
supply to dampen the increase in prices that we are seeing.
(Birkenhead) (Lab)
I welcome the spirit of these plans, but I urge the Government to
act even faster. Russian gas and oil constitutes just a tiny
fraction of the UK’s energy mix and we must break this last
lifeline to the Putin regime as soon as we can. I am also deeply
concerned to hear Government Members call for a resumption of
fracking, which would be a betrayal of the commitments we made to
the world in Glasgow just five months ago. Will the Secretary of
State today commit to ruling out further investment in fossil
fuels and instead pledge his Department’s support for an
ambitious new green deal and wide-ranging investments in
renewables, including the Mersey tidal project, so that we can
finally set ourselves on the path of true energy
independence?
As Energy Minister and now Secretary of State, I have been
totally committed to increasing the supply and production of
renewable power. We reopened the pot one auction for onshore
wind. For the first time ever, we had a pot ringfenced for tidal
stream technology. I have introduced an annual auction for
offshore wind. I am completely with the hon. Member in being 100%
behind renewables and the green revolution.
(West Aberdeenshire and
Kincardine) (Con)
I thank my right hon. Friend not only for his statement, but for
his continued and unflinching support for the oil and gas
industry that I am proud to represent much of in West
Aberdeenshire and Kincardine. On that, despite the importance of
energy security, which has been brought home to us all through
the tragic scenes we are seeing on television right now, is it
not absurd that the Scottish Government’s official position
continues to be that we should have no new licences, no new
exploration and no new drilling in the North sea?
My answer to my hon. Friend is that he is absolutely right. It is
the North sea transition deal—“transition” is the key word—not
the North sea extinction deal, as the hon. Member for Aberdeen
South () and his Green friends north
of the border are pursuing. We have a very different approach
from Members on the Opposition Benches, and long may that
continue.
(Angus) (SNP)
“Transition” is the key word, as the Minister has just said. We
need to pivot very quickly towards renewable energy, but this is
a sharp reduction in oil and gas imports, as 8% come from Russia.
We welcome that measure, but insofar as that will lead to a net
reduction in the availability of oil and gas, it will also lead
to a net reduction in emissions, which will not be maintained. We
will need to supplement that demand in the short term. What
discussions does he plan to have with the Scottish Government to
ensure that we can meet that need with the maximum economic
benefit to oil and gas services companies?
I am happy to speak to colleagues in the Scottish Government
about these issues. The hon. Member should remember that while we
are banning the import, it is a phasing out. We could have gone
down the US route and had a 45-day grace period, but that would
have been too disruptive to the supply chain. I would be happy to
talk to him and his Scottish Government colleagues about how we
can manage the process, and that is exactly why in the statement
I also announced the formation of a taskforce to deal with that
transition.
(North East Bedfordshire)
(Con)
In regard to the UK’s Russian oil ban, I am convinced of the
moral case, although I am sceptical about the efficacy of such a
ban in the long term. I welcome my right hon. Friend’s commitment
to keeping all options open, but he will be aware that moving
faster on the transition to green puts greater costs on
households from technology risk. Will he therefore look again at
options on insulating homes and Government support for home
insulation as part of the package?
My hon. Friend, like other Members across the House, is right to
focus on energy efficiency, because that is clearly a big part of
this conundrum. We have had some successes, but we have also done
some things not as effectively as we could have done. There were
elements of the green homes grant that worked, and elements that
did not work as well. I am constantly trying to improve the offer
on energy efficiency with the public sector.
(Bristol East) (Lab)
The Minister has been asked twice now specifically about fracking
and has completely avoided answering the question. Would he like
to have another go?
I will have a go, and I will be very clear. Funnily enough, I was
a Minister at the time when the written ministerial statement on
hydraulic fracturing was made. The Government have always been
clear that we will take a precautionary approach and support
shale gas exploration if it can be done in a safe and sustainable
way. That remains our position, and we will be evidence-led. That
is what we wrote and said in 2019, and we are still committed to
that.
(Harlow) (Con)
I thank my right hon. Friend for his statement. On oil prices, he
will know that prices at the pumps are reaching £1.60 a litre.
Hard-pressed motorists are paying over £16 more than a year ago
and hauliers are paying more than £120 every time they fill up at
the pumps, which is literally unaffordable for most people around
the country. I recognise that the Government have done a lot with
the fuel duty freeze, but the Irish Government have today
announced a rebate of 20 cents on petrol and 15 cents on diesel.
We must do the same. He must make the case to the Treasury, so he
should not just fob me off. Will he introduce PumpWatch, as
recommended by FairFuelUK, which would monitor prices from the
big oil companies to ensure that motorists are not ripped off at
the pumps when the petrol pump price rockets as the oil price
goes high but goes down like a feather when the oil price
lowers?
No right hon. or hon. Member has done more for motorists over the
last 12 years than my right hon. Friend. I completely hear his
imploring the Treasury to help consumers. My right hon. Friend
the Chancellor provided a wide range of measures that offer some
support, but we are always happy to talk to him to see how we can
improve the offer.
(East Antrim) (DUP)
It is a great pity that it has taken a war in Europe to show how
mad our energy policy is. Nevertheless, I welcome the Secretary
of State saying that turning off domestic production of North sea
oil and gas would be completely insane right now. Does he agree
that it would be equally insane to turn our back on the shale gas
that is available in the north of England, which would help to
make us less dependent on foreign resources, create jobs, give us
security of supply and give the Treasury revenue from gas? Does
he agree that the Prime Minister’s decision not to concrete over
the wells that are already there is the first step to the
exploitation of that gas?
In conversation with the Prime Minister, we were clear that it
did not necessarily make any sense to concrete over the wells. We
are still in conversation about that. As I said, our position on
the moratorium has always been the same: if fracking can be done
in a safe and sustainable way, the Government are open to the
idea. We have always said that; the position has not changed.
With respect to the North sea, I fully agree with everything that
the right hon. Gentleman said.
(North Devon) (Con)
I thank my right hon. Friend for his statement and for the work
done by Conservative Governments to increase our renewable energy
capacity by 500%. As we move towards the new normal of a greener
and more secure energy supply, will he commit to increase the
capacity coming out of the Celtic sea and accelerate the roll-out
of floating offshore wind and the target that it can deliver
on?
As my hon. Friend remarked, floating offshore wind is key to
accelerating our renewables offer. In the next few days, we will
hopefully be setting some slightly more ambitious targets for our
2030 ambition than we have hitherto set.
(Exeter) (Lab)
Given that the Conservatives have been in power for 12 years, why
has the Secretary of State not already lifted the damaging
moratorium put in by on onshore wind—the cheapest
and quickest way of generating renewables?
I am sure that the hon. Gentleman will remember that there was a
moratorium on the pot one auction, which we lifted two years ago.
I am pleased to say that in the fourth auction round, we have a
separate pot that is ringfenced for onshore and solar
technologies. Onshore will be fully reflected in that
auction.
(South West Wiltshire)
(Con)
The Government are right to be cautious about windfall taxes, but
it is worth Conservative Members remembering that it was who introduced them in
1981. Given the extraordinary profits particularly of BP and
Shell in recent times, and given the very real prospect of simply
unaffordable bills landing on our constituents’ doormats in the
near future, will the Government at least keep that option
open?
My right hon. Friend is well versed in departmental
responsibilities and he will know that issues to do with taxation
are squarely within the remit of the Chancellor of the Exchequer.
I personally feel that a windfall tax is not the way to go in
this moment, because there is huge uncertainty about investment
in the North sea as it is. If we were to entertain the idea of a
windfall tax, that would simply frighten the investment, destroy
jobs and destroy wealth creation. I do not think that is in
anyone’s interest.
(Dwyfor Meirionnydd)
(PC)
Putin’s bloody war in Ukraine is being financed by Europe’s
addiction to fossil fuels, so we have to speed up our green
transition, but more than one in 10 Welsh households are living
in fuel poverty and the number is growing daily. Starved of
public transport investment, Wales is the most car-dependent
nation in the UK, so we will be disproportionately affected by
rising prices. Rural regions of Scotland and England with high
levels of car dependency are eligible for the rural fuel duty
relief. Will the Secretary of State extend that to Wales?
Even if I wanted to, that is not in my power, but I would be very
happy to talk to people across Government to address the issue
that the right hon. Lady has raised.
(Berwickshire, Roxburgh and
Selkirk) (Con)
I welcome the Government’s statement today and their plans. Are
they aware, however, of current supply issues for red and white
diesel? Businesses in the Scottish Borders have contacted me in
the last day or so to say that there are real issues in sourcing
red and white diesel. Indeed, suppliers are reporting that
Grangemouth will run out in the coming days. Are the Government
aware of that, and will they investigate it further?
I pay tribute to my hon. Friend, who consistently and ably
defends his constituents’ interests. The red diesel phase-out was
announced two years ago, and I would be happy to talk to him to
see how we can manage that transition.
(Wythenshawe and Sale East)
(Lab)
To follow on from the question of the hon. Member for Harwich and
North Essex ( ), many businesses, such as
aviation, which has a massive impact on my constituency, hedge
their future fuel costs, but many will be hugely exposed because
they have not hedged those costs. Is the Department doing some
analysis of the exposure of such businesses?
The hon. Gentleman raises a critical point. The Department is
always looking, particularly at a time of extreme price
volatility, at how prices affect the supply chain and businesses.
The Under-Secretary of State for Business, Energy and Industrial
Strategy, my hon. Friend the Member for North East Derbyshire
(), was speaking to energy intensive industries this
morning, as I was, and we are fully alive to their plight.
(Ashfield) (Con)
We all welcome the banning of Russian oil and gas to put the
squeeze on Putin, but what about Russian coal? We currently
import more than 500,000 tonnes a year of coking coal, which is
the same type of coal—metallurgical coal—that can be mined safely
and cheaply in this country. Does my right hon. Friend agree that
if we can get it out of the ground cheaply and safely, we should
do that without delay?
My hon. Friend will know that the specific issue relating to the
Cumbrian coking mine is under judicial review but, as I said in
my statement, we clearly want to move away from Russian
hydrocarbons. That is absolutely our intention.
(Bath) (LD)
Obviously, the crisis makes us all aware of consumer energy
prices and how to contain them to some degree. To reduce the
average energy cost for consumers, we need a replacement for the
green homes grant that is far more comprehensive and that
recognises that solar power, battery storage and smart metering
must be part of the solution. What are the Government’s plans to
roll out residential solar much more ambitiously, which, together
with battery storage and smart metering, could save the average
consumer up to £900 annually on their energy bill?
The hon. Lady will appreciate that we have done quite a lot to
drive solar. I referred to the fact that we have restarted the
pot one auction, which is all about onshore wind and solar. When
we announce the result, there will be lots of solar projects that
will hugely increase solar capacity in this country.
(Hitchin and Harpenden)
(Con)
The Secretary of State knows that I am a strong supporter of his
policy to end reliance on Russian oil and of the need to
intensify our investment in renewable energy. There are many
rural communities in constituencies such as my own and, I
suspect, across the country that rely on heating oil. What plans
does he feel his oil taskforce will make for securing the
availability of heating oil, ensuring the price of heating oil
does not rise out of ordinary people’s reach and intensifying
energy efficiency for homes, particularly for the older buildings
that we find in many rural communities in areas such as my
own?
The taskforce will do exactly what my hon. Friend has asked for.
It will look at where we can source supply at the cheapest rate
and how we can increase our independence. It will look at taking
away our reliance on Russia and at sourcing oil at the cheapest
rate. There is an issue about further interventions for heating
oil, and we are in discussions with the Treasury and others
across Government all the time about how we can lessen the burden
on our people.
(Swansea West)
(Lab/Co-op)
The Secretary of State will know that his Department refused
support for the Swansea bay tidal lagoon, but the new Blue Eden
lagoon project is nevertheless going ahead. Instead of looking
again at fracking, which generates 5% of fugitive emissions—that
makes it worse than coal for climate change—will he look at
supporting the Welsh Government and Wales overall in marine
technologies and renewable technologies, alongside looking at
organic batteries at scale, which can store such renewables
without causing pollution?
The hon. Gentleman makes a very fair point. We have done a huge
amount as a Government in driving renewables. I was very pleased
to see that the tidal stream auction has been ringfenced. On the
specific Swansea lagoon project, I, as the Energy Minister at the
time, and the Secretary of State felt that it was not economic,
but generally I do not think any Government have done more for
marine renewables and marine energy.
(Workington) (Con)
I welcome my right hon. Friend’s swift and decisive action on
phasing out Russian imports. To echo the comments of my hon.
Friend the Member for Ashfield (), as our minds are now
focused on increased domestic production, such as that from the
North sea, does the Secretary of State agree with me that the
benefits of domestic supply chain resilience and security should
also encompass other critical minerals, such as coking coal, of
which we looked to Russia for over 750,000 tonnes—50% of our
requirement—last year?
My hon. Friend will appreciate that there is a diversity of
sources for coking coal; we are not just looking to Russia. He
makes an excellent point about critical minerals, and he will
appreciate that this is the first Government ever to have a
critical minerals strategy. It will be published in the next few
weeks, and the Under-Secretary of State for Business, Energy and
Industrial Strategy, my hon. Friend the Member for North East
Derbyshire () is leading on that within the Department.
(Kilmarnock and Loudoun)
(SNP)
Electricity from gas power stations is one of the ways that we
meet peak electricity demand. The Secretary of State knows that
dispatchable energy can also be created from pumped-storage
hydro, which is a completely renewable source. To minimise our
reliance on gas and our switch to renewables, he knows that SSE
is ready to go ahead and build Coire Glas in the highlands. Will
he commit to agreeing a minimum floor price with the SSE, so that
it can get on and build, and will he confirm the timescale for
such an agreement?
I am really delighted that the hon. Member raises this. I think
he has raised it at every BEIS questions for the past 18 months,
and I will keep saying what I have said before. We are interested
in the technology, but I need to look at the specific proposals
he is suggesting, and we obviously need to work out whether it is
value for money. Those are the parameters we always look at.
(Rother Valley)
(Con)
Yesterday at the Business, Energy and Industrial Strategy
Committee, we had a panel of experts talking about this very
issue, and when the issue of fracking was raised, they were
unanimous in their voice that it would be neither effective nor
cost-efficient, would not do anything for the price and was
actually a bit of a red herring. Does my right hon. Friend agree
with me that fracking is a red herring, and that we should
instead focus for energy on more renewables and even more from
the North sea, because fracking just does not work in this
country?
I think we can look at a range of technologies. We looked at the
fracking issue—I was the Energy Minister at the time—and there
were issues regarding the seismicity of various projects.
However, we have always had an open mind, and we have always
said, and I will repeat it, that we will support shale gas
exploration if it can be done in a safe and sustainable way. We
will be led by the science on whether this is indeed possible, so
there are lots of experiments and empirical evidence that we need
to consider.
(Carmarthen East and
Dinefwr) (Ind)
The Secretary of State mentioned in his statement the need to
protect the Ukrainian people from further misery. As he knows,
Ukraine is a country with historical debt problems, and the
full-scale Russian invasion we are witnessing will inevitably
make matters worse for them. Considering this is likely to be a
prolonged crisis, can he assure the House that the British
Government will be leading international efforts with the IMF,
the World Bank and the G7 to offer Ukraine debt relief?
The issues about Ukrainian debt relief are for a much wider set
of participants than are reflected in this House. We will do
everything we can to support the Ukrainian people, and we are
looking at every possible intervention that can in some way
lessen the burden of this ferocious assault.
(North West Durham)
(Con)
I thank the Secretary of State for his statement. The sanctions
today are an excellent next step in what we are doing to clamp
down on Russia’s ability to fund its war machine, but my
constituents have two questions. First, how can they best support
the Government’s actions with direct contributions themselves?
Secondly, in their own interests as well, what is the UK going to
do to boost our domestic oil, gas and coking coal supply to
ensure not only that jobs are created here in the UK, but that we
reduce our dependence on other international players at this
point?
My hon. Friend is absolutely right. The issues of critical
minerals and of security of supply could not be more important,
and that is why I have commissioned a critical minerals strategy.
On the help his constituents have offered and their full support,
there are lots of ways in which we can contribute financially and
materially. I helped organise such an effort in my constituency
only last week, led by my excellent party chairman, Mike Brennan,
but there are lots of ways we can help. On security of supply,
that is absolutely, as the Prime Minister has said, our most
important consideration right now.
(Rutherglen and Hamilton
West) (Ind)
Banning Russian oil will come at a cost every day for people
across the UK, and it is a price I am sure they accept the
necessity of due to this war by Putin on Ukraine. However, with
an already growing cost of living crisis and soaring energy
bills, what discussions has the Secretary of State had with the
Chancellor about financially supporting green, clean and low-cost
energy provision, so that it can be accessed faster and more
broadly?
My right hon. Friend the Chancellor and I, and our Departments,
speak all the time about these issues. The hon. Member will
appreciate that there is a spring statement, but at the beginning
of February my right hon. Friend announced an extensive £9
billion of projects. We will be looking across the year at how
this market develops, but fiscal interventions, as she will
appreciate, are a matter for my right hon. Friend.
(Runnymede and Weybridge)
(Con)
I very much welcome my right hon. Friend’s announcement today. It
cannot be right that we are bankrolling the Russian state and war
machine through buying Russian oil and gas, and I am glad that we
are moving to fix this at pace. He will know that we import quite
a lot of aviation fuel from Russia, and his Department has done
fantastic work in developing sustainable aviation fuel and its
manufacture in the UK. Will he use this as an opportunity to
drive that forward at even greater pace to set up SAF manufacture
in the UK?
My hon. Friend raises a really important point. With the dismal
prospect of the ferocious aggression and violence that we are
seeing, one of the things we are thinking about is a more
sustainable future. A very thin silver lining on a very dark
cloud is the fact that we are talking about resilience and
sustainability, and I am absolutely delighted to be working with
my hon. Friend and with right hon. and hon. Friends in the
Department for Transport to make sure that we accelerate the
adoption of sustainable aviation fuel.
(York Central)
(Lab/Co-op)
The pace at which we divest from Putin’s fossil fuels is
important for stopping this war. As a result, as in wars past, if
we scaled up our manufacturing to see retrofitting and our
renewables industry, that could be not only the saviour of the
Ukrainian people, but the saviour of our planet. Will the
Secretary of State not only scale up, but lead an alliance of
countries that need to make such urgent diversification to ensure
that we apply this pain to Putin’s regime as quickly as
possible?
The hon. Lady is absolutely right. We must work internationally
across countries and come up with an alliance that can confront
Putin in that way. That is why we are having an extraordinary
meeting of G7 Energy Ministers tomorrow. However, it is
relatively easier for us and American colleagues to shut
ourselves off from that dependency than it is for colleagues in
Europe, who are far more dependent on Russian gas and
hydrocarbons.
(Vale of Clwyd) (Con)
I welcome my right hon. Friend’s statement about a ban on Russian
oil imports. Does he agree that the increasing need for
self-reliance on energy sources means that it is right that we
invest in renewable energy schemes in this country, including the
possibility of a large tidal range facility in north Wales?
I hear the clamour for a tidal range facility in the Vale of
Clwyd, and I am sympathetic towards it. My hon. Friend will, I am
sure, be good enough to acknowledge that for the first time ever
in the fourth auction round we have a tidal stream auction pot.
We are committed to doing all we can to further the development
of marine renewable energy.
(Edinburgh North and Leith)
(SNP)
The Secretary of State said that he was 100% behind renewables
and he has mentioned the tidal stream pot, but I would like him
to offer so much more support for tidal energy schemes, in which
Scotland can play such an important role. It is a such a cleaner,
greener and cheaper alternative to nuclear.
I recognise the hon. Lady’s commitment to tidal stream, and she
will be good enough to notice that this is the first time that
any British Government have committed to supporting any marine
energy renewable project. There is always the clamour for more.
We should do more, and we could do things more quickly, and I am
happy to work with her and other Members across the House to see
how best we can do that.
Madam Deputy Speaker ( )
I thank the Secretary of State for his thorough answers to a
great many questions on this important subject.
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