Oral Answers to Questions
Energy Security and Net Zero
The Secretary of State was asked—
Nuclear Fusion: Energy Provision
(Harrow East) (Con)
1. What assessment he has made of the potential merits of
developing nuclear fusion technology to provide energy.
(Leigh) (Con)
6. What assessment he has made of the potential merits of
developing nuclear fusion technology to provide energy.
(Bolsover) (Con)
10. What assessment he has made of the potential merits of
developing nuclear fusion technology to provide energy.
(Lichfield) (Con)
14. What assessment he has made of the potential merits of
developing nuclear fusion technology to provide energy.
The Secretary of State for Energy Security and Net Zero ()
As set out in the Government’s fusion strategy, the environmental
and economic impact of fusion energy could be transformational.
The Government’s programme aims to drive commercialisation of
fusion energy by building a prototype fusion energy plant by
2040.
I thank my right hon. Friend for that answer. When I was studying
physics at university more than 40 years ago, fusion was a gleam
in our professor’s eye. Now we have been able to achieve it, but
the key is scalability. What effort is my right hon. Friend
making to invest in the research and development that is required
to bring this clean, cheap and green energy to fruition?
As my hon. Friend says, fusion has always been talked about as 20
years hence, but to speed that up we have invested £700 million
in fusion in the spending review period. We are working to get
the world’s first fusion power station connected to the grid by
2040, with works scheduled to start in 2032.
The north-west has long been home to a large number of jobs
dependent on the nuclear sector. Does my right hon. Friend
foresee the potential for future jobs in the north-west as we
continue to develop nuclear fusion technology?
Yes, absolutely. Fusion technology could be fantastic for the
north-west and part of a big jobs boost. The UK Atomic Energy
Authority believes that around 4,500 suppliers will be involved
in that, and many of them will be in the north-west.
With the West Burton spherical tokamak for energy production
plan, we have the opportunity to further solidify the east
midlands as the home of the UK nuclear sector. What assessment
has my right hon. Friend made of the economic benefits to the
east midlands of that plant?
My hon. Friend is absolutely right, and the importance of that
plant to the east midlands could be tremendous. The spherical
tokamak for energy production—STEP—programme could support a
large number of jobs. When I launched “Powering up Britain” with
the Prime Minister at Culham, we stood next to the tokamak—the
hottest place in the solar system. Some might think that that
would be the sun, but it is 10 times hotter than the sun. To put
that in context, that would be more than all the hot air from the
right hon. Member for Doncaster North () in an entire year.
My right hon. Friend has answered all the questions that I was
going to ask. What work is he doing with Manchester University—I
have not told him that I was going to ask this—which is also
doing research in that area?
I am going to have to riff this one, since that came out of the
blue. The UK Atomic Energy Authority is working across the
country, including with Manchester University. Its CEO, Sir Ian
Chapman, is very proactive on this issue, and he hopes to work
with Manchester University, and other institutions, to ensure
that the coal-fired power station that was closed down at the end
of March in West Burton is opened as a fusion power station
connected to the grid. That will be done with the help of
Manchester University and many other institutions.
(Brighton, Pavilion)
(Green)
Even nuclear fusion’s most ardent advocates admit that it will be
decades before an operational power station is built. At the same
time, I remind the Secretary of State that his own Government’s
target for decarbonising the power sector is 2035, so nuclear
fusion will be no help in meeting that target. Instead of wasting
taxpayers’ money on yet another nuclear white elephant, why will
the Secretary of State not fully harness the things that we know
will work, which means an energy system based on renewables
backed up with interconnectors, batteries and storage, unblocking
onshore wind and unleashing a rooftop solar revolution? Why is he
not doing that, which will make the transition much quicker and
much cheaper?
Well, Mr Speaker, we are! When we came to power in 2010, just 7%
of our electricity was coming from renewables. Right now, if I
look at renewables plus nuclear—I know the hon. Lady does not
like to look at nuclear—that figure was 57% in the last year. The
idea that we should ignore technology and take that luddite
approach to energy is not the energy security that this
Government seek.
(Strangford) (DUP)
I have been a supporter of nuclear power and nuclear fusion in
particular, and we in Northern Ireland want to take advantage of
that, although we have been unable to do so until now. What
discussions has the Secretary of State had with the Department
for the Economy in Northern Ireland about nuclear technology and
creating energy for rural farming, which is a massive industry
not just in Northern Ireland but in my constituency of
Strangford? We want to be part of this growth. How can that
happen?
I firmly believe that all parts of the United Kingdom should be
part of our nuclear revolution to ensure that we can get a
quarter of our electricity from nuclear. Small modular reactors
could be of tremendous interest in Northern Ireland, providing
more localised power to individual communities which previously
would not have been up for a gigawatt-style power station.
Energy Transition Projects: Scotland
(Gordon) (SNP)
2. What steps he is taking to support energy transition projects
in Scotland.
The Parliamentary Under-Secretary of State for Energy Security
and Net Zero ()
We are supporting Scotland’s energy transition through the North
sea transition deal. Additionally, 52 of the 178 projects awarded
contracts for difference for renewable electricity are in
Scotland. We are also supporting the clean technologies of the
future with over £80 million-worth of funding through our net
zero innovation portfolio to 81 locations within Scotland,
including offshore wind, carbon capture, usage and storage, and
hydrogen.
The SNP-led Scottish Government have continued to announce more
support for energy transition in Scotland, this month pushing on
with investment in green hydrogen that will deliver 5 GW of
renewable and low-carbon hydrogen production by 2030. The
Minister says that the UK Government are supporting that, but
they are certainly not putting any money on the table up front as
the Scottish Government have through their £500 million energy
transition fund for the north-east of Scotland. When will the UK
Government finally put their money where their mouth is and
support the energy transition that Scotland desperately needs?
I thank the hon. Member for his predictable question. He was
obviously not listening to the answer I gave to his first
question: 52 of the 178 projects awarded contracts for difference
are in Scotland, and we are also supporting green technologies to
the value of £80 million. The fact is, the SNP cannot be trusted
on energy and cannot be trusted to give us the facts. It is
playing politics with people’s bills while we are delivering to
support households, having paid half of an average household’s
energy bills this past winter.
(Witham) (Con)
Energy transition projects affect the entire United Kingdom. I
thank the Minister for his engagement with MPs across the east of
England on the impact of 100 miles of pylons to connect new
offshore renewables to the grid. Will he give my constituents an
assurance that the Government are doing everything possible to
look at an offshore grid for the east of England? Of course, that
would also benefit the entire United Kingdom, including parts of
Scotland.
I thank my right hon. Friend for her question. It was a great
pleasure to be in East Anglia last week and to engage with
community organisations and MPs from that part of the world. I
confirm that all options are on the table as we look at what
infrastructure we can and need to build to move us forward into
our net zero future.
Mr Speaker
I call the SNP spokesperson.
(Kilmarnock and Loudoun)
(SNP)
It is nearly 10 years since a £1 billion carrot was dangled for
Peterhead carbon capture and storage, which was then withdrawn
post-referendum. We are now getting told that the UK Government
have £20 billion to spend on carbon capture and storage, but the
reality is that not one penny of that is ringfenced for Scotland,
and indeed there is not even a budget line for that £20 billion.
Instead of another jam tomorrow pledge focusing on nuclear, why
does the Minister, who comes from the north-east of Scotland, not
focus on getting the Scottish cluster track 2 status so that it
can get up and moving?
I thank the hon. Member for that question, but frankly I am fed
up with the SNP talking Scotland down, and indeed talking the
Acorn project down. The UK Government have already spent £40
million supporting the Acorn cluster, which is in a very good
position as we proceed with track 2. It would be good if, for
once, the SNP was to talk that up and work with us, rather than
the opposite.
It would be good if the Minister gave us certainty instead of
just blustering.
Energy UK has confirmed that the Brexit trading
arrangements are adding more than £1 billion a year to our energy
bills and, last year, nearly £5 billion was paid in constraint
payments. That is all money that could have been used to upgrade
the grid. It could have paid for pumped storage hydro that could
have procured a greater level of our world-leading tidal stream
technology. It could have funded the Acorn CCS or green hydrogen.
Instead of adding £6 billion to our bills, will the Minister tell
us how many Scottish jobs have been held back by this lack of
investment?
When it comes to bluster, SNP Members are certainly subject
matter experts. On support for Scottish billpayers, as I said,
over the past winter this Government were paying half of
everybody’s energy bills in this United Kingdom. [Interruption.]
The hon. Member says that that is thanks to the North sea, but
that is the very North sea industry that he and his partners in
the Green party would close down tomorrow. This Government
support the oil and gas industry for our whole UK moving forward.
Green Industries: Jobs
(Barnsley Central) (Lab)
3. What steps he is taking with Cabinet colleagues to help create
jobs in green industries.
(Lewisham West and Penge)
(Lab)
12. What steps he is taking with Cabinet colleagues to help
create jobs in green industries.
(Bedford) (Lab)
19. What steps he is taking with Cabinet colleagues to help
create jobs in green industries.
(Ogmore) (Lab)
22. What steps he is taking with Cabinet colleagues to help
create jobs in green industries.
The Minister for Energy Security and Net Zero ()
I am pleased to say that the green jobs delivery group is
co-ordinating across Government to ensure we maximise the number
of jobs in green sectors. The group has wide Government
representation, including the Department for Education, the
Department for Work and Pensions and the Department for
Environment, Food and Rural Affairs, and includes members from
Siemens, RenewableUK and the Institute for Apprenticeships and
Technical Education.
I thank the Minister for that response. He will know that South
Yorkshire is fast becoming known for its green energy research.
From Sheffield Hallam University’s Dext Heat Recovery project to
the University of Sheffield’s Translational Energy Research
Centre, there is huge potential in our region. Will the Minister
look at what more he can do to work with and provide support to
the South Yorkshire Mayoral Combined Authority, so that our
region can become a world-leading energy innovation hub?
I thank the hon. Gentleman for his question. He is quite right to
highlight the need for innovation and for keeping us at the
cutting edge of science. We committed £4.2 billion to net zero
research and innovation over the period from 2022 to 2025. Just
last week it was my privilege to open, up in Blyth, the Digital,
Autonomous and Robotics Engineering Centre. In his area, and all
over the country, green jobs offer a tremendous opportunity.
Last year, I visited a home in Sydenham that has been fully
retrofitted. Not only does that save bills and reduce emissions;
it also creates jobs. This is something we could be rolling out
now, yet the Government have spent less than 40% of the home
upgrade funding pledged in 2019 to make homes more energy
efficient. Will the Minister commit to actually making
retrofitting a national priority, and support Labour’s plan to
insulate 19 million homes by the end of this decade, creating
thousands of jobs along the way?
I share the hon. Lady’s enthusiasm for improving the insulation
and energy efficiency of buildings, including homes, around the
country. As she will be aware, we have already transformed it for
the better from the frankly dismal position in 2010, when 86% of
homes—the legacy from the right hon. Member for Doncaster North
() and the Labour party—were
not properly insulated. By the end of this year that will be 50%,
but I agree with her that we need to go further and faster, and
ensure retrofitting wherever we can.
I recently had a meeting with Cranfield Aerospace Solutions,
which is on track to certify a zero-emissions aircraft for
passenger flight in 2026. The company is growing and has an
ambition to reintroduce whole aircraft manufacturing to the UK,
bringing in new jobs. The ATI—Aerospace Technology
Institute—investment programme has been important in getting to
this point, but, as they go beyond research and development, what
more will the Government do to support ambitious companies such
as Cranfield Aerospace and Hybrid Air Vehicles to manufacture the
technology they have developed in Bedfordshire?
There are huge opportunities for our world-leading aerospace
sector in the move towards sustainable aviation fuels. The Jet
Zero Council helps to lead that work. We have set mandates to
help drive take-up and ensure we are a world leader.
The Prime Minister before last, two years ago, told the country
that Bridgend was going to be one of the great centres of battery
manufacturing in this country, if not the world. Of course he
meant Blyth, Mr Speaker, which is nowhere near Bridgend. Two
years later, following the closure of the Ford factory, the
people who worked in it for more than 40 years are still waiting
for the UK Government to deliver on much-needed jobs across the
M4 corridor. Will the Minister set out what support the
Government will be offering and when they will deliver the
long-anticipated battery plant for Bridgend?
What I can tell the hon. Gentleman is that the Government are
working flat out to deliver that. I am looking to ensure that we
strengthen the UK automotive industry as we move to
zero-emissions vehicles.
(Clacton) (Con)
Last Friday, I was fortunate enough to visit the outer Greater
Gabbard wind farm array with my constituency neighbour, my hon.
Friend the Member for Harwich and North Essex ( ). We sailed right out among
the wind turbines. The plan is to bring the power ashore in my
constituency of Clacton, but that does not make sense to me. I do
not understand why the power cannot be brought ashore to the
decommissioned Bradwell nuclear power station on the Dengie
peninsular—no need for more pylons or substations; upgrade what
is there. Will the Minister ask National Grid why it is insisting
on spoiling untouched beautiful countryside in the Tendring
peninsular and putting more pylons across the Essex countryside?
Mr Speaker
I think there must be a lot of green jobs if you come that way.
Try and answer that, Minister.
Thank you, Mr Speaker. I will ask the Minister who leads on
networks, my hon. Friend the Member for West Aberdeenshire and
Kincardine (), to get in touch with my
hon. Friend to discuss that further.
(Preseli Pembrokeshire)
(Con)
The Government’s plans for strengthening our energy security and
reaching net zero have the potential to create tens of thousands
of jobs in many of our communities. Does the Minister agree that
the further education sector has a crucial role to play in
unlocking new roles in engineering, technical and project
management? The list goes on. Will he join me in commending
Pembrokeshire College in my constituency, which is already
working with floating offshore wind developers who are looking to
bring new operations to the Celtic sea? They are showing the way
forward in developing those new skills.
I congratulate Pembrokeshire College. It is so important to have
the skills in place. That is what the green jobs delivery group
is all about. Industry is working to make sure that we have the
data on the forward expectations of need. That way, the
Department for Education, through FE colleges and other
institutions, can ensure that people have the right skills so
that as much of the supply chain as possible for developing
sectors such as floating offshore wind is here in the UK.
(Stoke-on-Trent North)
(Con)
Stoke-on-Trent North, Kidsgrove and Talke are proud to be home to
one of the largest European deep coalmine sites at Chatterley
Whitfield Colliery, which has huge potential in geothermal. That
is already being explored at Etruria. Will my hon. Friend meet
me, Chatterley Whitfield Colliery Friends, Historic England and
Stoke-on-Trent City Council, to see what green jobs can be
created at that former colliery site, to bring it back into use
with a green future?
The Parliamentary Under-Secretary of State for Energy Security
and Net Zero ()
Go on, go on!
I am being barracked by my Front-Bench colleagues, which is
unusual even for me. I would be delighted to accept my hon.
Friend’s kind offer.
Polluter Pays: Policy
(Glasgow East) (SNP)
4. What steps his Department is taking to ensure that its
policies align with the polluter pays principle agreed at COP27.
The Minister for Energy Security and Net Zero ()
I assume that the hon. Member is referring to the agreement at
COP27 to establish funding arrangements for loss and damage under
the Paris agreement. The main step that we are taking to help
deliver that is the doubling of our climate finance to £11.6
billion between 2021-22 and 2025-26.
Glasgow has a strong link with Malawi, which is one of the
countries that really feels the impact of climate change. The
Minister is right to reference that loss and damage fund. Will he
go a bit further, as I know Christian Aid would want? Will the UK
use its seat on the UN committee to mobilise that funding for
loss and damage and make sure that the commitments made at COP27
come good, and countries such as Malawi are not left behind in
the fight to net zero?
The hon. Gentleman is right to highlight that. Those on the
frontline suffering the impact of climate change often have done
least to contribute to it. It is important that we fulfil the
pledges we have made, from Paris to the breakthrough agreement on
loss and damage agreed at Sharm last year.
Fixed-term Energy Contracts: Hospitality Industry
(Brentford and Isleworth)
(Lab)
5. What discussions he has had with Ofgem on the potential impact
of fixed-term energy contracts on the hospitality industry.
The Parliamentary Under-Secretary of State for Energy Security
and Net Zero ()
I have had several discussions with the Ofgem CEO and suppliers
on businesses and hospitality businesses on high fixed contracts.
I am sympathetic to those businesses, but it is a commercial
matter.
The Royal Oak in Isleworth is a popular family-run pub. Last
autumn it had to sign a fixed-term contract at the highest rates.
When I raised this issue in March, just before the end of the
energy support scheme, the Minister told me that the Government
had met energy suppliers, as the Minister has just confirmed.
What else are the Government doing to make sure that no more pubs
or other successful and thriving small businesses go under
because of crippling energy costs?
This Government have been incredibly helpful to all businesses,
particularly the hospitality sector. As I mentioned, I am
sympathetic to those businesses, but this is a commercial matter.
Let me reassure the hon. Lady that I have met stakeholders and
suppliers. Today I have written to them again to reiterate that
they must be mindful of fixed-term contracts.
(St Ives) (Con)
No hotel, pub or guesthouse can do its job without the support of
the laundry sector, which is feeling the pain of high energy
bills, often fixed at the wrong time. I hear what the Minister
says about the commercial element, but will she arrange a meeting
with the energy efficiency unit and the laundry sector to see
what can be done to reduce demand and get better deals from
energy suppliers?
I thank my hon. Friend for that question. Of course, I am always
delighted to organise those meetings.
Grid Capacity
(North Shropshire) (LD)
7. Whether he is taking steps to increase grid capacity.
The Parliamentary Under-Secretary of State for Energy Security
and Net Zero ()
The Government are working with Ofgem, network companies and
others to increase network capacity. This includes Ofgem
accelerating strategic transmission projects worth £20 billion
and allowing £3.1 billion over the next five years for upgrades
to the local distribution network.
I have been contacted by a number of businesses, mostly farms,
that want to install renewable energy in the form of a solar
array or a wind turbine, but have been advised that they will
have to pay thousands of pounds to help to upgrade the grid in
their area, making those projects unaffordable. Along with the
commitment to phase out oil-fired boilers, that means that there
will be huge demand on rural grid capacity. Will the Minister
reassure me that he is taking steps to ensure rural networks will
be able to cope with that surge in demand?
I am very happy to give the hon. Member that assurance. We are
doing everything we can, working with Ofgem, companies, providers
and other organisations, to ensure that the grid across the
United Kingdom, but in particular in rural locations, where there
will be a huge surge in demand, is able to cope and that people
have fair and equitable access to that.
(Harrogate and Knaresborough)
(Con)
A few weeks ago, Knaresborough-based Harmony Energy opened the
largest battery farm in Europe. What steps are being taken to
allow grid capacity and connections for renewables and storage to
be made much more quickly, so that projects such as Harmony’s can
come on stream, deliver energy resilience and cut carbon
emissions?
We will jointly publish a connections action plan with Ofgem in
the summer, setting out actions by the Government, Ofgem and
industry to accelerate connections and reform queue management
systems. Network companies are already taking steps to free up
network capacity and bring forward connections via shovel-ready
renewable and storage projects, ahead of slower moving ones.
Mr Speaker
I call the shadow Minister.
(Southampton, Test)
(Lab)
Will the Minister explain how, on his watch, things have got to
such a wretched state with grid development? The grid apparently
cannot now connect renewable energy plants to the system until
after 2035, the date by which the Government say in the energy
security strategy
“we will have decarbonised our electricity system”.
Presumably they envisage that system will be connected to the
grid by that point. Has he been unaware that there is a serious
problem, or was he aware, but did nothing about it?
My watch began only in February. However, I believe the United
Kingdom is a victim of its own success, as this is what happens
when new renewable electricity production is developed at such
scale and pace. We understand the challenges facing the country
and the grid. That is why we are meeting with Ofgem and have
commissioned the Winser review, which we will publish in the
summer. We are determined that we will meet that 2035 target.
Dr Whitehead
The Minister says that some things are beginning to happen, but
does he recognise in this context the figure of £30 billion,
which is the investment the energy system operator considers is
necessary to make the system fit for offshore wind and other
renewables coming on to the system, not by 2035 but by 2030? Is
he prepared to commit now to find that amount of investment, one
way or another? If he cannot do that, how can we take his
assurances on action at all seriously?
This Government are determined to face up to the challenges that
we have. We have moved forward at such pace, having inherited a
disgraceful situation in terms of how much renewable electricity
was being produced under the last Labour Government. That is why
the grid is facing such challenges today and why we have
commissioned Nick Winser to produce a review in the summer to see
how we can move much faster to achieve our goals. I would welcome
the hon. Gentleman and the Labour party being more supportive,
talking up this country and our success in developing renewable
electricity, and working with us to tackle the challenges that he
so rightly brings to the Floor of the House today.
Oil and Gas Exploration: Subsidies
(Manchester, Withington)
(Lab)
8. What his Department’s policy is on subsidies for new oil and
gas exploration.
The Minister for Energy Security and Net Zero ()
The Government do not subsidise fossil fuels exploration, and
support international efforts to eradicate inefficient fossil
fuel subsidies and deliver net zero objectives. In addition,
since 2021 no Government support has been provided to the sector
overseas, including from UK Export Finance.
Really? At COP26 the UK signed up to a pledge to eliminate
inefficient fossil fuel subsidies, but now the windfall tax has a
super deduction loophole worth £11 billion to oil and gas
companies—a benefit enjoyed by no other industry. That money
could pay to insulate 4 million homes or build renewable power
for millions of homes. This will not reduce bills, and it will
drive a coach and horses through our climate commitments. Is it
not a terrible way to spend public money as well as breaking our
climate obligations?
Only for Labour Members—and perhaps some other people on the
Opposition side of the House—is it possible to have a 75% tax on
the sector, with the levy alone bringing in £25.9 billion between
2022-23 and 2027-28, and then talk about subsidy. Tens of
billions of pounds come from the oil and gas sector in this
country, and it provides energy security, keeps the lights on and
keeps people warm. If the hon. Gentleman’s party were in power,
it would cut off domestic supply, weaken energy security and slow
down our transition. In every way, they get it wrong.
Mr Speaker
I call shadow Minister .
(Bristol East) (Lab)
I think the Minister needs to look at the dictionary definition
of “subsidy”. The approval of the Rosebank oilfield would be an
astronomical waste of public money, handing £3.75 billion in
subsidy to a Norwegian company in tax breaks and incentives
without making any difference to British people’s bills. Does he
accept that it will not create jobs or solve our energy security
needs, and that it will be a backward step for climate targets as
it pumps out carbon dioxide equivalent to running 56 coal-fired
power stations a year?
Of course, we are a net importer of oil and gas and, if we do not
produce domestic gas, for example, we will have more
tankers—[Interruption.] We will have more tankers with higher
emissions coming into this country. We will undermine a
sector—[Interruption.] Oil, gas and renewables is effectively one
sector—[Interruption.] It is very hard to get through my answer
with all this enthusiastic barracking. It will undermine the
energy security of this country if we do not produce oil and gas
here while we are burning that. Thanks to the legislation of this
Government, we can be confident that it is compatible with net
zero because we have carbon budgets that are taking us there.
Rosebank is an oilfield and 80% of the fossil fuels produced will
be exported. If what the Minister says is true, why has the
Government’s own net zero tsar said that approving Rosebank would
undermine our climate leadership on the world stage and “trash”
our net zero pledge? Why are leading scientists warning
that
“we already have more than enough coal, oil and gas to overshoot
what is deemed our best hope of maintaining a liveable climate”?
Why is the Minister right and all the scientists wrong?
It is quite simple. We are reducing demand for fossil fuels, but
we are net importers of them. Producing them here and destruction
of demand have to be our focus and that is what the Government
are doing. We are getting rid of the power stations burning coal.
In 2012, nearly 40% of our electricity came from coal, the most
polluting of fossil fuels—that was the legacy of the right hon.
Member for Doncaster North ()—but by next year it will
be zero. We have moved from 7% to well over 40% with renewables,
as the Secretary of State has said. It is economic insanity for
us not to produce the oil and gas that we will need for decades
to come when we are a net importer.
Carbon Capture and Storage
(Orkney and Shetland)
(LD)
9. What recent assessment he has made of the potential role of
North sea oil and gas infrastructure in developing carbon capture
and underground storage capacity.
The Secretary of State for Energy Security and Net Zero ()
North Sea oil and gas infrastructure can play a crucial role in
lowering costs and speeding up deployment if it is repurposed for
carbon capture and storage, therefore improving our energy
security.
Mr Carmichael
The Greensand project in Denmark has proven the concept of carbon
capture, usage and storage, but we know that the supply chain in
this country is fragile. Indeed, if others go ahead and develop
CCUS, that is where they will go. Companies such as EnQuest in
Shetland, which operates the Sullom Voe oil terminal, are keen to
do exactly what the Secretary of State is talking about. Would he
or the Energy Minister agree to meet me and the operators of
EnQuest to hear what it needs to get that exciting project across
the line for a final investment decision?
The right hon. Gentleman is absolutely right about this, but the
UK is playing a leading role with its recent £20 billion
investment in carbon capture, usage and storage. We have
sufficient space to store potentially 78 billion tonnes of carbon
under the North sea—equivalent, I am told, to the space occupied
by over 15.5 billion well-fed elephants. I would be more than
happy to meet him to discuss the potential of the field he
mentioned.
(Banff and Buchan) (Con)
Unlike the SNP, who continue to talk down the fantastic Acorn
project, which by the way has never actually
stopped—[Interruption.]. One of the reasons it has not stopped is
because of the over £40 million invested by this Government in
the Scottish cluster; £80 million was promised by the SNP but
never delivered. What progress has been made to provide access to
CO2 storage sites such as those in the North sea for industrial
clusters without direct access to those sites by pipeline—for
example, through shipping? What advantage can be taken of
existing infrastructure at ports located near storage sites, such
as Peterhead in my constituency?
My hon. Friend is absolutely right about the £40 million that the
UK Government have already spent on the Acorn project. We have
track 1 expansion later this year and track 2 will be announced
later this year for CCUS. We look forward to further
developments. He is also right to highlight the importance of the
storage and transportation of carbon; in fact, it is a subject
being considered today in the Committee on the Energy Bill. By
the way, the largest Energy Bill that the House has ever
considered is being passed by this Government.
Mr Speaker
We come to Question 11. Is anyone from the Government Front Bench
going to bother? They are still thinking about the last question,
but I would like a Minister to answer.
(Doncaster North) (Lab)
They are too busy laughing at their own jokes.
I was laughing at the right hon. Gentleman, actually.
Low-carbon Industries: Investment
(Ellesmere Port and Neston)
(Lab)
11. What assessment he has made of the potential impact of the US
Inflation Reduction Act on levels of investment in low-carbon
industries.
The Secretary of State for Energy Security and Net Zero ()
Nearly £200 billion has been invested in low-carbon sectors since
2010, which is 50% higher than has been invested in the US as a
share of GDP.
This is a global race and I fear that, with the US Inflation
Reduction Act, we are being left behind. I am sure the Secretary
of State will be aware of last week’s comments by Stellantis,
which owns Vauxhall Ellesmere Port, about the need for urgent
investment in the move to electric vehicle production. The
Faraday Institution has reported that we need between five and 10
gigafactories in the UK to protect the automotive sector, and at
the moment we have one, maybe two, coming on stream. How many
does the Secretary of State think we need to save the automotive
sector?
First, it is good news that the US has woken up to the need for
this energy transition. I was in the US last week and they were
pointing out to me that we had already spent £200 billion on
this, with another £100 billion being leveraged in over the next
six and half years to 2030. The point is we are ahead of the US,
including on the transition to electric vehicles. The proportion
of EVs sold in this country is way in excess of where the US is.
By 2030, the US only hopes to get to 50%, whereas we will have
ended the sale of pure petrol and diesel vehicles, so in fact we
are ahead of the game.
Mr Speaker
I call the shadow Secretary of State.
(Doncaster North) (Lab)
The US has created almost 10 times more green jobs in the seven
months since the passage of the Inflation Reduction Act than the
UK has created in the past seven years. That is why British
business is deeply worried. Frankly, the Secretary of State is
all over the place on this, because his only significant response
to IRA, passed last August, was to describe it as “dangerous”.
Can he explain why IRA is dangerous? Is not the real danger to
Britain a Government who are standing on the sidelines while
others win the race for green jobs?
I take the opportunity to clear this up, because I have heard the
right hon. Gentleman mention that quote several times. I actually
said that aspects of the way in which some Senators passed the
Act were in danger of being protectionist. He refuses to quote in
full and he therefore misquotes.
As I discovered when I was in the US just last
week, the reality is that the US does not have the world’s
largest, second largest, third largest or fourth largest offshore
wind farm. Do you know why, Mr Speaker? They are all being built
here in the UK, where we are decades ahead.
That is exactly the kind of complacency that is costing jobs. Let
us talk about offshore wind. The Kincardine floating wind farm,
off the coast of Scotland, is indeed the largest in the world.
Its foundations were made in Spain, its turbines were made in
Rotterdam, where it was also assembled, and the finished product
was simply towed into Scottish waters—jobs that could have come
to Britain but did not because we have no industrial strategy and
the Government refuse to invest in our ports. Is not the truth
that we will never win the global race with this Government
because they think that public investment in green industry to
bring jobs to Britain is dangerous?
If there was a failure to develop the supply chain, I wonder
whether it could have been anything to do with the former Energy
Secretary, who only managed 7% of electricity coming from
renewables in Labour’s 13 years in office. As I mentioned, we are
coming up to 50% of electricity coming from renewables. It is
worth mentioning that we had the world’s first floating offshore
wind farm and the largest floating offshore wind farm. It is also
worth mentioning that we have just invested £160 million through
FLOWMIS—the floating offshore wind manufacturing investment
scheme–and that we have just succeeded in getting a monopiles
factory, which will produce up to half of the monopiles for
future offshore wind factories.
Fixed-term Energy Contracts: SMEs
(Glasgow Central)
(SNP)
13. What steps his Department is taking to support small and
medium-sized enterprises with fixed-term energy contracts.
(Linlithgow and East Falkirk)
(SNP)
18. What steps his Department is taking to support small and
medium-sized enterprises on fixed-term energy contracts.
The Parliamentary Under-Secretary of State for Energy Security
and Net Zero ()
The energy bill discount scheme will continue to provide a
discount to eligible non-domestic customers, including those on
fixed-term contracts. I met energy suppliers in March to
reiterate my expectation that they must do all they can to
support businesses on the highest-priced contracts.
The Federation of Small Businesses has found that more than one
in 10 small firms fixed their energy prices during the market
peak last year, meaning that now 93,000 small businesses across
these islands could be forced to downsize, restructure or close
their doors altogether. Will the Minister support the FSB’s calls
for action on this? It is unacceptable that businesses in Glasgow
Central and beyond have been marooned on devastatingly high
energy contracts.
One of the things this Government are committed to do is helping
small businesses. Both the Secretary of State and I have met the
FSB to discuss this matter and to ensure that we are doing the
best thing that we can for those on fixed-term contracts.
That was rather a non-answer. Since the downgrading of the energy
bill relief scheme to the mair austere energy bill discount
scheme, firms, many of them in my constituency, are paying three
to four times the amount they were for energy under the previous
scheme. If the Minister does not believe the figures she has just
heard from the FSB, how many firms does she think will go to the
wall as a result of these higher energy costs?
This Government remain committed to supporting all small and
medium businesses, and the whole business sector. We did the
relief scheme and we now have the discount scheme as well. We are
also implementing a high energy-intensive scheme. Both the
Secretary of State and I are urging suppliers to have a look at
these fixed rates and making sure that we can find a reasonable
way forward.
Net Zero Goals: Local Authorities
(Hendon) (Con)
15. What assessment he has made with Cabinet colleagues of the
potential barriers for local authorities in achieving net zero
goals.
The Minister for Energy Security and Net Zero ()
As a distinguished member of the Environmental Audit Committee,
my hon. Friend has recently returned from the Arctic, where he
saw the impacts of climate change. We recognise the importance of
enabling local areas to play their part in delivering net zero.
The net zero strategy and net zero growth plan set out our
commitments on how we would help them to do exactly that.
Dr Offord
Local authorities have an overwhelming role in achieving net
zero, but in the last hour the National Audit Office has told my
office that central Government have not developed overall
expectations about local authority roles in achieving net zero.
There is little consistency in local authority reporting on net
zero, making it difficult to gauge achievements. Neither the
Department for Levelling Up, Housing and Communities nor the
Treasury has assessed the totality of funding for local
authorities to achieve net zero, with the nature of grant funding
hindering value for money. So will the Minister carry out an
analysis of local authority funding for net zero to inform the
next comprehensive spending review, set up an appropriate review
to assess the extent to which local authorities in practice have
been able to use wider funding for economic growth and levelling
up, and work with local authorities to assess the skills gap?
The Government invest £5 million a year in the local net zero hub
programme. We have established the UK Infrastructure Bank, with
an initial £12 billion of capital, for the twin goals of tackling
climate change and levelling up, and it includes a specific loan
facility for local government to deliver net zero. We are looking
at other ways of enabling and encouraging local authorities to do
more. The details of a devolution deal for retrofit pilots in
Manchester and the west midlands will soon be worked out, and I
look forward to that being pioneered.
(Leeds Central) (Lab)
One risk to net zero is the delay in grid connections. The Chair
of the Environmental Audit Committee wrote to the Secretary of
State recently to highlight the problem of speculative
applications for connections. These are applications that do not
yet have planning permission and many never get it, but are
clogging up the queuing system. What can be done to fix that?
The right hon. Gentleman, as so often, is absolutely right; this
is a real issue. We have Nick Winser working on the transmission
system and he will report next month. On the distribution level,
to which the right hon. Gentleman refers, we will be coming up
with a connections plan later this year and working with Ofgem to
make sure that we have a system that weeds out projects that are
clogging up the system and yet will never be delivered, and make
sure that the ones that can be delivered get to the front of the
queue.
Fuel Poverty
(Luton North) (Lab)
16. What recent estimate his Department has made of the number of
families in fuel poverty.
(Blackburn) (Lab)
20. What recent estimate his Department has made of the number of
families in fuel poverty.
The Parliamentary Under-Secretary of State for Energy Security
and Net Zero ()
In 2022 there were an estimated 3.26 million households—13.4%—in
fuel poverty in England. The Government recognise how difficult
the increase in fuel bills, caused by Putin’s war in Ukraine, has
been for households across the country.
Recent figures show that energy companies such as Shell make
£61,000 a minute. Meanwhile, there are families—13,255 families
in Luton—living in fuel poverty. I also have pensioners in Luton
suffering from chronic health conditions who are risking their
health because they cannot afford to put on the heating. The
Minister could take action on fuel prices by extending the
windfall tax and closing loopholes, so why has she not done so?
We do not want any more flim-flam answers. The public are not
buying it, the people in Luton North are not buying it, and I am
not buying it.
The Government have applied a levy on these energy companies, but
the really important thing is the work that we have been doing
with those households. We have been giving a lot of support and
ensuring that we do the very best for all of those people. In
addition, on Thursday 31 May we are launching our “Claim your
energy voucher” day, and it is really important that all those on
prepayment meters do claim their vouchers.
The Minister just mentioned the work that the Government have
been doing, but the Environmental Audit Committee, in its report
in January, criticised the Government’s energy efficiency target
as “vague” and “unspecific”, saying that they had a poor record
on energy efficiency. Meanwhile, 16.6% of households in Blackburn
are in fuel poverty. Is the truth not that the pace of energy
efficiency under this Government is too slow, and it is driving
even more families into fuel poverty?
Just to reiterate, we have taken decisive action to protect
customers this winter. We have paid around half a typical
household’s energy bill. There are also multiple schemes in place
targeted at the most in need, including the social housing
decarbonisation fund, the home upgrade grant and the energy
company obligation scheme.
Topical Questions
(Hartlepool) (Con)
T1. If he will make a statement on his departmental
responsibilities.
The Secretary of State for Energy Security and Net Zero ()
Last week, as I mentioned, I was in the US promoting Britain’s
ambitious plans for renewables, nuclear and the incredible
potential of carbon capture, usage and storage, which could be
worth trillions to our economy. By forging those closer links, we
are bringing down bills, safeguarding our energy and putting
Putin’s energy blackmail and ransom on the back foot.
Does my right hon. Friend agree that we need to seize the unique
opportunity in Hartlepool by commissioning an advanced modular
reactor for our soon-to-be decommissioned site, to secure jobs
and skills and to make Teesside a world-leading area for green
energy?
First, I am very pleased that the Hartlepool nuclear power
station has had its lifetime extended to 2026. Secondly, my hon.
Friend is absolutely right to be enthusiastic about advanced
nuclear reactors and technologies, some of which have a little
way to go yet, but they get full support from this Government,
and we will support those coming into use when time allows.
(Warwick and Leamington)
(Lab)
T2. The Minister may be aware of a company called Green Energy
Together, used by authorities up and down the country who have
paid significant deposits. The company was wound up yesterday,
leaving thousands of people across the country, including dozens
of my constituents, out of pocket. Will the Minister agree to
meet me to discuss this urgent crisis, as many people face
significant losses? [R]
The Parliamentary Under-Secretary of State for Energy Security
and Net Zero ()
I thank the hon. Gentleman for bringing the matter to our
attention. I would be very happy to meet him to discuss it.
(Rugby) (Con)
T5. There is no point reducing our emissions in the UK if we
simply cause them to be produced elsewhere in the world by
importing manufactured goods, often from countries where higher
emissions may be embodied. A carbon border adjustment mechanism
can allow for that, although here in the UK we are behind Europe,
which already has a CBAM in place. What progress is being made to
develop and implement a CBAM to address the risks of carbon
leakage?
The Minister for Energy Security and Net Zero ()
On 30 March the Government launched a consultation to explore
potential measures on carbon leakage, including a carbon border
adjustment mechanism, mandatory product standards and measures to
grow the market for low-carbon products. The consultation closes
on 22 June and I hope my hon. Friend will consider contributing
to it. It is worth noting that full implementation of the EU CBAM
will not begin until 2026.
(Gower) (Lab)
T3. Tinmasters, an energy-intensive business in my constituency,
was told it was not eligible for the energy bills discount scheme
because it fixed its existing contract before December 2021. It
has since had to sign a “blend and extend” contract, as it was
the only option for survival. The Minister has spoken with me,
but can she tell me what her Government are doing to ensure that
suppliers who offer blend and extend contracts are being fair to
their customers and how the Government can support those
businesses not eligible for support because of an arbitrary date?
I thank the hon. Lady for the meeting we had to discuss the
matter, which we are looking into. We must recognise that it is
the suppliers and consumers who have entered into a contract.
However, my strongest encouragement to suppliers is that they do
all they can, and blend and extend is certainly one of the ways
we can help on that.
(Weston-super-Mare) (Con)
T7. Does the Minister agree that rewiring energy markets through
REMA, the review of electricity market arrangements, is the
fastest and cheapest way to cut bills by uncoupling them from gas
prices? Does he therefore agree that we should speed up and that
bill payers would be best served by a Government White Paper on
that before the summer recess?
I thank my hon. Friend for separately sharing his detailed
thoughts on REMA and its reform. This is a complex area with
multiple interrelated mechanisms; it requires careful
consideration to unlock the £280 billion or perhaps £400 billion
of investment in generation and flexible assets that could be
needed by 2035. While I share his impatience and desire to move
fast, it is more important still that we get it right. I aim to
publish a second REMA consultation in the autumn, which will
narrow the options for reform and detail the direction of travel.
(Orkney and Shetland)
(LD)
T4. Directors at Ofgem are on the record as saying they are
already doing everything that needs to be done to meet the
country’s net zero targets. I do not know anyone outside Ofgem
who sees that as anything other than dangerously complacent. Is
it not now time for the Minister to give a direct mandate to
Ofgem to include meeting net zero as part of its remit?
The Parliamentary Under-Secretary of State for Energy Security
and Net Zero ()
The Government have published a draft strategy and policy
statement for energy policy that makes clear Ofgem’s role in
promoting the UK’s net zero targets. However, we are considering
the effect of an amendment made in the House of Lords to the
Energy Bill currently going through this place on Ofgem’s
statutory duties in relation to net zero.
(Ynys Môn) (Con)
Does the Minister agree that the way to get cheaper nuclear
projects and cheaper electricity overall is to build a fleet of
new nuclear reactors, starting at Wylfa in my constituency of
Ynys Môn?
Yes, the Government agree that the way to cheaper energy bills
and a more secure network is to build new nuclear projects. That
is why we have launched Great British Nuclear, why we are working
with communities and industry across the country, and why I would
be delighted to visit Wylfa soon with my hon. Friend to see the
potential that that site has to add to our energy security.
(Glasgow North West)
(SNP)
T6. Ofgem has stated that prepayment meters should not be fitted
for anybody over the age of 85. In Glasgow, life expectancy is
76. Will the Minister look at increasing the range of people who
are considered vulnerable under this?
The arrangements that we have for prepayment meters are
incredibly important, and we are working closely with Ofgem to
ensure that we tackle this issue. As always, I am happy to meet
to discuss these issues.
(Darlington) (Con)
Sainsbury’s, Morrisons and Asda are charging more for road fuel
in my constituency than they are in neighbouring towns. Can my
right hon. Friend explain what he is doing to help my
hard-working constituents secure cheaper fuel?
We share my hon. Friend’s concerns. That is why we asked the
Competition and Markets Authority to investigate. It is doing an
inquiry. It came up with an interim report in recent days, and it
will come back with a full final report and recommendations for 7
July, addressing the very issue that my hon. Friend rightly
brings to us.
(Weaver Vale) (Lab)
T8. The Aston Grange energy project in my constituency, which
intends to provide solar, has been told it cannot connect to the
grid until 14 years from now, in 2037. What decisive action are
the Government taking to intervene and speed things up?
I have already set out exactly what the Government are doing. We
are working with Ofgem and others. We commissioned Nick Winser to
provide a report on how we can speed up connection times and
build our network to the position it needs to be in, but I am
happy to meet the hon. Gentleman to speak about the specific
project he has raised.
(Witham) (Con)
The House will be familiar with Wilkin & Sons in my
constituency, which makes world-famous jam that I am sure
everyone in the House has enjoyed. However, it faces significant
increases in its energy costs because it is not eligible for the
energy and trade intensive industries scheme, as its industry
classification is not within the scope of the scheme. The code is
10.3, and it is for processing and preserving fruit and veg. Will
the Minister look into that classification? There is an open
invitation to come up to Wilkin & Sons.
Mr Speaker
That will be very jammy.
I thank my right hon. Friend for that invite, and I would be
delighted to go if some of the product was on offer. We are
constantly looking at the help we can give. We are giving help
across all industries. We are giving universal help through the
discount, and we are helping energy and trade intensive
industries as well. The classification exists to ensure that we
do not have a bias.
(Glasgow North East)
(SNP)
T9. For seven long years, my SNP colleagues and I have fought for
justice for victims of green deal mis-selling. A successful
recent test case is now being appealed, and the resolution to
this could take many more years. In the meantime, some of my
constituents have died—most recently, a lovely woman by the name
of May Young. We do not have to keep putting people through this;
there is a political resolution. Will the Minister meet me to
discuss that?
I thank the hon. Lady for her question and her years of effort to
support constituents in this respect. I would be delighted to
meet her.
(Banff and Buchan) (Con)
There has been lots of talk in the Chamber today about green
jobs. When I talk to stakeholders in the renewable and low-carbon
technology sector, they talk about the need for electrical
technicians, mechanical technicians, engineers, instrumentation
engineers and all kinds of skills that currently exist in the oil
and gas industry. Will my right hon. Friend join me in
encouraging young people to consider a career in oil and gas, not
just to meet the energy security demands of today but to develop
the skills that will be much needed in the future?
When I recently visited Aberdeen, Inverness, Port of Nigg and
Orkney in the constituency of the right hon. Member for Orkney
and Shetland (Mr Carmichael), it struck me that nearly all—in
fact, I think all—the companies I met were working across oil,
gas and renewables. They are part of one system, whether it is
fabrication, subsea engineering or any number of other things. In
truth, our energy security is about oil, gas and renewables. We
are reducing our use of fossil fuels, but producing it here at
home is a noble career for people in my hon. Friend’s
constituency.
(Cambridge) (Lab)
In a few months’ time, there will be extra checks on food coming
into the UK from Europe. That will require extra cold store
capacity; it is being built, but the Cold Chain Federation tells
me that there is a three-year to four-year wait for connection to
the grid. What are the Government going to do to make sure those
facilities are up and running in time?
Years of world-leading green investment has meant we have
connected the second highest amount of renewable electricity in
Europe since 2010. That has, of course, put pressure on the
electricity network, and reducing connection timescales is a high
priority for the Government, as I have already set out multiple
times this afternoon.
Mr (East Londonderry)
(DUP)
A more rapid escalation towards net zero could be achieved by a
significant increase in electric vehicle charging points,
particularly in areas where there are very few, such as
Portstewart and East Londonderry in my constituency. What
meetings will the Minister have, and what pressure will he apply,
to try to ensure that there is a significant increase between now
and 2030?
As a former Transport Secretary, I can inform the hon. Gentleman
that the UK has more fast charging per mile of road than any
other major European economy, but we are always pushing to go
further. In particular, we have a very large programme working
with local authorities to install more capacity, particularly for
the harder-to-reach roads.
(Brighton, Kemptown)
(Lab/Co-op)
At the moment, many people receive their domestic energy on a
commercial contract, either via a landlord or because they live
above a shop. This Government put in protections to support them,
but they have now been lifted, and those people are of course
ineligible for the Ofgem energy price cap. Will the Government
review this situation to ensure those residential customers are
treated with the residential protections they deserve?
This Government have a commitment to ensure that everybody is
treated fairly, especially when it comes to the discounts and
relief schemes. We have legislated to make sure that landlords
pass on the payments they receive; if they do not, there is a way
of redressing that by going through gov.uk.
(Bath) (LD)
ChargePoint, one of the largest UK charging networks, worries
that the Government’s local EV infrastructure fund will replicate
the mistakes of the past, where electric charge points were put
into lamp posts and bollards where people with non-electric
vehicles park, therefore losing valuable electric charging. Will
the Government ensure that the LEVI fund is targeted at local
authority assets such as swimming pools and libraries, where
people will often go, therefore increasing EV charging capacity?
The hon. Lady makes a very good point: where charge points are
blocked, they become useless for EVs. The LEVI scheme that she
references is designed to try to help as many people as possible,
and I will certainly ask my right hon. Friend the Transport
Secretary to take a closer look at the specific point she raises
about those blockages.
(Edinburgh North and Leith)
(SNP)
Private jets, described as “incredibly carbon-intensive”, have
been in the headlines. The recent Department for
Transport-commissioned report suggests that the carbon footprint
of private jets in the UK is on par with 200,000 people taking a
return flight to Hong Kong, and calls for the number of private
jet flights to be halved. Will the Secretary of State be having a
word with his colleague the Foreign Secretary about that?
Private jets are in the headlines almost as much as motorhomes.
The reality is that to solve this problem, we need sustainable
aviation fuel in the shorter term, which is why the UK has one of
the world’s leading targets: 10% of SAF in our energy mix for
jets in just six and a half years’ time.
(Glasgow Central)
(SNP)
Some 13,450 energy bills support scheme vouchers have gone
unclaimed in my constituency. Given the delays that many of my
constituents have experienced in obtaining those vouchers and
arguing the case with their energy companies, will the Minister
push back the date by which they have to be redeemed, which is
currently 30 June?
The hon. Member makes an incredibly important point, and gives me
the opportunity to make plain that we must make sure all those
vouchers are cashed in by 30 June. I encourage every single
Member in this place to make sure that their constituents who are
on prepayment meters and have not cashed in those vouchers do so.
