Energy Price Guarantee Extension Chris Clarkson (Heywood and
Middleton) (Con) 1. What assessment he has made of the potential
impact of the extension of the energy price guarantee on household
energy bills.(904470) The Secretary of State for Energy Security
and Net Zero (Grant Shapps) The energy price guarantee has been
extended at the same level for a further three months until the end
of June. By then, the Government will have covered nearly half of a
typical...Request free trial
Energy Price Guarantee Extension
(Heywood and Middleton)
(Con)
1. What assessment he has made of the potential impact of the
extension of the energy price guarantee on household energy
bills.(904470)
The Secretary of State for Energy Security and Net Zero ()
The energy price guarantee has been extended at the same level
for a further three months until the end of June. By then, the
Government will have covered nearly half of a typical household’s
energy bills during this winter, and a third to a half of
business bills as well.
I welcome the Secretary of State and his entire team to their
places in this important new Department. I thank him for his
response, but does he agree that the best way to ensure the
stability of energy prices long term is to develop our own
sovereign supply, with technology such as small modular reactors,
hydrogen and nuclear?
My hon. Friend is absolutely right. That is why we put £200
million into funding new hydrogen in the “Powering up Britain”
document just a few weeks ago. He will know about Great British
Nuclear. I intend that we launch a competition, pick a winner for
that by the autumn and get on with it.
(Liverpool, Walton) (Lab)
If the energy price guarantee is to come to an end in June,
surely the logical next step is a social tariff. People have
become used to social tariffs from their mobile phone providers
and broadband. What is the Secretary of State doing to make sure
energy companies introduce a social tariff to target support at
the most vulnerable in society?
Just to correct the record, it comes to an end in April 2024, so
that guarantee remains in place. Wholesale prices in the
meantime, fortunately, have been falling—I noticed that they are
£98 per therm this morning. We do think that things like a social
tariff could be very helpful and the Chancellor has undertaken to
look at that as well.
(Chipping Barnet)
(Con)
It has made a huge difference to millions of families that the
Government have been paying over a third of people’s energy
bills, as part of a bigger package that is one of the most
generous in Europe, but can the Minister assure us that the
Government are doing everything possible to get inflation down
and ensure that we have more sustainably priced energy in
future?
My right hon. Friend is absolutely right. She mentions a third;
in fact, we have been paying around a half of the typical
household energy bill this winter, at huge cost. Fortunately, we
have seen the wholesale prices fall, and we will start to see
that reflected in the energy prices, although we have extended
the guarantee—the £2,500. But she is absolutely right in her
wider point: it is essential that we get to the cheapest, most
plentiful electricity in Europe, and the “Powering up Britain”
document aims to do precisely that.
(Brighton, Pavilion)
(Green)
One of the most effective and long-term ways of getting people’s
energy bills down would be to invest in a comprehensive,
street-by-street home insulation programme, which this Government
are still failing to do. Research by the Energy and Climate
Intelligence Unit shows that delays to legislating for minimum
energy efficiency standards for the private rented sector could
cost renters in the leakiest homes an additional £1 billion in
higher bills, so with the Energy Bill making its way through the
Commons later this year, will the Minister finally end the delay
and ensure that those proposals, which the Government first
started consulting about three years ago, are legislated for in
that Bill?
Sometimes, we speak in this House as if we have not actually
greened up any of our Victorian housing stock. In fact, back in
2010, only about 14% of houses in this country had A to C on
their energy performance certificate; today, that figure is 47%.
This year, we will have over half of our homes greened up. We are
putting £12.5 billion-plus into it. So we are making rapid
progress, which is sometimes not entirely reflected by Opposition
parties.
Intergovernmental Panel on Climate Change: Sixth Assessment
Report
(West Ham) (Lab)
2. What assessment he has made of the implications for his
policies of the sixth assessment report of the Intergovernmental
Panel on Climate Change, published on 20 March 2023.(904471)
(Hornsey and Wood Green)
(Lab)
4. What assessment he has made of the implications for his
policies of the sixth assessment report of the Intergovernmental
Panel on Climate Change, published on 20 March 2023.(904473)
(Leeds East) (Lab)
7. What assessment he has made of the implications for his
policies of the sixth assessment report of the Intergovernmental
Panel on Climate Change, published on 20 March 2023.(904476)
(Manchester, Withington)
(Lab)
10. What assessment he has made of the implications for his
policies of the sixth assessment report of the Intergovernmental
Panel on Climate Change, published on 20 March 2023.(904479)
The Minister for Energy Security and Net Zero ()
We welcome the IPCC’s latest report. It is a synthesis of global
scientific understanding and concludes that, in 2019, carbon
dioxide levels were at their highest point in 2 million years,
that rapid changes have occurred and that this has led to
widespread adverse effects. It does also say that deep, rapid and
sustained reductions in greenhouse gas emissions would lead to a
discernible slowdown in warming within 20 years, but risks are
increasing with each increment of warming. That is why we need
the rest of the world to follow this country’s lead in cutting
emissions and committing, as this Government have done, to net
zero by 2050.
Ms Brown
We all know that the Government have been opposing onshore wind
to appease the extreme views of their own Back Benchers, but the
Secretary of State’s Department’s own polling says that, by 20 to
one, people support onshore wind. Given the cost of living crisis
and the price of gas, and with all that is at stake, how on earth
can the Government justify acting in the interests of a very
small minority?
We all remember that just 7% of our electricity came from
renewables in 2010; it is now about half. Our largest single
source of renewables is onshore wind. I am pleased to say that
the Government are working hard to make sure that we come forward
with proposals that have community support, because doing things
with communities is what this party believes in; it is a pity
that the other party does not believe it, too.
On 2 May 2019, this Parliament declared a climate emergency, yet
four years on, the Government are still dragging their feet. Some
4.4 million people rent in the privately rented sector, and that
number is going up due to the Government’s incompetence in
building more homes. What will the Government do to bring all
privately rented properties up to an A, B or C rating as soon as
humanly possible?
I agree with the hon. Lady on the importance of improving our
housing stock. It is not only good for the environment but, just
as importantly, it helps to reduce fuel poverty and supports
families. That is why, as my right hon. Friend the Secretary of
State just pointed out, we have made such impressive strides
since the rather woeful situation we inherited: just 14% of homes
were properly insulated in 2010—it is about half now. I agree
with the hon. Lady that we need to go further and faster, and
that is why we are spending that £12.5 billion and why we have
set up a dedicated energy efficiency taskforce.
New analysis shows that, if the Government allow the Rosebank
oilfield off the Shetland Islands to go ahead, it will blow the
UK’s climate targets. Rosebank’s developers will get billions in
tax breaks due to the deliberate loopholes that the Government
have put in their windfall tax, but it will do nothing to lower
people’s bills. The United Nations Secretary-General, the
International Energy Agency and leading scientists are all saying
there should be no new oil and gas, so is it not time for the
Minister to rule out Rosebank?
I cannot comment on any specific measure, but what I can say
is—the hon. Gentleman should recognise this—that we will be using
oil and gas for decades to come as we move to net zero. It is
estimated that we will require about a quarter of the gas we use
today in 2050, and bringing it in from abroad in liquified
natural gas tankers will simply mean much higher emissions than
gas produced here, so it makes no sense. New licences will only
go to slow the very fast decline we already have in North sea
production; it will not see production overall increase. Even
with continued exploration and development, oil and gas
production is expected to decline in this country by 7% a
year.
There are 23 clean steel projects across Europe, but none in the
UK. Forty electric battery factories in Europe are planned to
open by 2030, but only one is set for the UK. All the Government
offered on their “green day” was weak re-announcements on carbon
capture and storage and nuclear, and no new funding for
decarbonising industry. British businesses are crying out for
more support, so why are the Government failing in their duty to
help industry to decarbonise?
I share the hon. Gentleman’s enthusiasm for the greening of
British steel, as it is at the base of UK manufacture. I am sure
he welcomed the “Powering up Britain” proposals, which I
presented to the House just before the recess. Our plans for £20
billion of investment in carbon capture and pushing forward with
the £240 million fund for hydrogen are exactly the measures we
need to decarbonise British industry, and we are global leaders
in that respect.
(North Wiltshire) (Con)
I am sure the Minister will agree that one of the best ways we
can contribute to achieving the Intergovernmental Panel on
Climate Change targets is through outstandingly good British
Arctic science and polar science in general, as we have through
78 universities and the British Antarctic Survey itself. Does not
the Minister agree that it was disappointing, when the
Environmental Audit Committee visited the Arctic over the Easter
recess, that we found that the British base up there, 400 miles
from the north pole, is only manned part-time? Perhaps I should
say “only personned” these days. Is it not time that we had a
permanent research base at Ny-Ålesund in the far north of
Svalbard?
I do not believe this strictly comes under my portfolio, but my
hon. Friend has, as ever, brilliantly put this matter on the
record and I will ensure others on the Treasury Bench are aware
of the remarks he has made.
Energy Bill Relief Scheme
Mr (South West Hertfordshire)
(Con)
3. What recent assessment he has made of the effectiveness of the
energy bill relief scheme.(904472)
The Parliamentary Under-Secretary of State for Energy Security
and Net Zero ()
The Government’s assessment of the energy bill relief scheme
shows we have spent over £5 billion to date—that is around £35
million a day to help businesses, charities and public sector
organisations to pay around half of their wholesale energy costs
this winter. This support has been unprecedented in nature,
demonstrating that this Government are always on the side of
business.
Linda from the Kitchen Croxley recently wrote to me about rising
costs:
“I have spent nights awake imagining solutions…it would be so
easy to give up… But my commitment to our customers and community
remain so strong that I cannot do this”.
What is the Minister doing to support hard-working people such as
Linda with their energy bills, so that she and other small
businesses keep their doors open to customers?
I applaud the work my hon. Friend does to support businesses in
his constituency such as the Kitchen Croxley. I understand times
are tough for many small businesses, which is why the Government
have implemented the energy bills discount scheme, to take effect
until April 2024. Businesses fixed into more costly long-term
contracts are more likely to receive the energy bills discount
scheme payment support due to how the baseline discount is
calculated.
(Inverness, Nairn, Badenoch
and Strathspey) (SNP)
An effective way to give consumers energy bill relief would be to
stop energy companies seeking to increase direct debits while
they are holding on to reasonable amounts of credit that belongs
to consumers—money that they could use elsewhere. Can the
Minister update us on what conversations she has had with Ofgem
to ensure that it regulates for that practice, and will she
support Members coming to the It’s Your Money campaign in
Committee Room 11 at 2.30 this afternoon to show their support
for getting that change?
That was an excellent plug by the hon. Member. He will know that
I have been engaging with stakeholders—a whole range of
stakeholders—including, of course, Ofgem.
(Loughborough) (Con)
A steelwork company in my constituency is very concerned that the
constructional steelwork sector is not included in the list of
industries eligible for higher support under the energy bill
relief scheme, despite being a high energy usage business.
Without this additional support, which would amount to over
£75,000 for the company, it will inevitably have to pass on its
additional costs to its customer, which is the Government. Will
the Minister please review the eligibility criteria and consider
adding the constructional steelwork sector to the list of
eligible industries?
The energy bill relief scheme is expected to cost £7.3 billion
over its duration. It provided a discount on the wholesale
element of gas and electricity to ensure all businesses and
non-domestic customers were protected from excessively high
energy costs over the winter period. Of course, the EBDS will
continue to provide a discount eligible to non-domestic
customers, with a higher level of support provided under the
energy-intensive industrial element of the scheme, which will be
available to most energy and trade-intensive businesses,
primarily in the manufacturing sector.
(Westmorland and Lonsdale) (LD)
Our hospices provide tender, professional, essential care for
people nearing the end of their lives, yet they are considered,
when it comes to energy bill relief, as businesses. As a
consequence, despite the fact that they have had a 350% increase
in their energy costs, there is not a special programme or
specialist scheme to assist them. I have raised this with the
Minister before. What progress has she made in looking at a
package to help to support our hospices and others who care for
those in desperate need in our communities?
I thank the hon. Member for bringing up such an important
subject. He will be pleased to know that this week I met Hospice
UK to discuss that very subject and, indeed, I am working to see
how we can be the most supportive.
Non-domestic Meter Customers
Sir (Rochford and Southend
East) (Con)
5. What steps his Department is taking to improve support for
non-domestic meter customers.(904474)
The Parliamentary Under-Secretary of State for Energy Security
and Net Zero ()
The new energy bills discount scheme will continue to support all
eligible businesses and non-domestic customers with their energy
bills from 1 April 2023 until 31 March 2024. This follows on from
the unprecedented £7.3 billion expected to be delivered through
the energy bill relief scheme over the course of the last
winter.
Sir
Many residents of East Beach residential park are grateful that
they can access the energy bill support scheme alternative fund,
but what steps is the Department taking to contact and help those
who are not aware of the benefits of these schemes to identify
what they are?
My hon. Friend is right to highlight the energy bill support
scheme alternative funding, providing £400, and £600 in Northern
Ireland, to households who do not have a domestic electricity
supply and therefore have not received the main EBSS payment. It
is up and running and I urge all Members to encourage their
eligible constituents, including those in park homes, to apply
via gov.uk.
(Sefton Central) (Lab)
British businesses pay among the highest energy bills anywhere in
Europe, yet Make UK said the Government’s plan
“does little to tackle the real and immediate threat
manufacturers face with rocketing energy bills.”
If the Government really wanted to support business, they would
implement Labour’s plans, help small firms with energy
efficiency, cut business rates and invest in renewable
electricity generation for the long term.
Mr Speaker
I call the Minister.
The Labour party is on the side of business—
Mr Speaker
Order. Mr Esterson, please do not take advantage of the Chamber;
other colleagues want to get in as well. It is totally unfair
This Government have an unprecedented record in helping both
domestic and non-domestic customers, and the energy bills
discount scheme will continue to provide a discount to eligible
non-domestic customers, with a higher level of support provided
under the energy and trade-intensive industry element of the
scheme.
Energy Efficiency Measures: Installation
(Cambridge) (Lab)
6. How many and what proportion of homes had energy efficiency
measures installed in (a) 2010 and (b) 2022.(904475)
(Norwich South) (Lab)
21. How many and what proportion of homes had energy efficiency
measures installed in (a) 2010 and (b) 2022.(904494)
The Parliamentary Under-Secretary of State for Energy Security
and Net Zero ()
The Government have made very good progress: 47% of homes in
England have now reached the Government’s 2035 target of
achieving EPC C levels, up from 14% in 2010—a 133.7% increase. In
2010, the Government supported the installation of around 968,100
measures. In 2022, the Government supported the installation of
around 204,000 energy efficiency measures in around 94,500
households. Around 1 million homes will be upgraded with improved
energy efficiency between now and 2026 through our help to heat
schemes.
That is a very partial account of the story, I have to say. The
Minister will know that in 2010 the Government inherited a
functioning scheme from the Labour Government that meant hundreds
and hundreds of homes in my constituency, and possibly his, were
being insulated. Come forward 10 years and what do we see: that
scheme has absolutely crashed, so can the Minister tell us just
how much that decade of Tory failure has cost our
constituents?
A decade of Tory failure? That is complete nonsense. We have had
a 133.7% increase from 2010, when, by the way, we inherited a
situation where only 14% of the country had EPC C levels. We are
now at 47% and from 2010 to 2022 the Government supported the
installation of around 8 million energy efficiency measures.
I know Front Benchers have already expressed their commitment to
local communities and local people driving our economy forwards
to a sustainable transition and future. With that in mind, may I
point them to my own local authority, Norwich City Council, and
its Goldsmith Street award-winning council housing—safe, secure,
affordable homes that it has built on a shoestring budget after
millions of pounds of cuts to its budget? What conversations have
Ministers had with the Chancellor to ensure other councils can
drive this programme forward to ensure every street is like
Goldsmith Street?
We in this party and this Government support community-led
initiatives just like the one the hon. Gentleman referenced and
we are consulting on how we can further support community
projects. I would be delighted to discuss that particular project
with him in more detail in due course.
(North West Leicestershire)
(Ind)
Will my hon. Friend outline how the energy efficiency taskforce
will help support energy efficiency across the UK?
The energy efficiency taskforce is committed to driving forward
energy efficiency measures throughout the United Kingdom and, on
that measure, I would be delighted to meet with him if he has any
further ideas on how we can go even further and faster to drive
forward energy efficiency measures across the country.
Mr Speaker
Minister, I am this way, not that way.
I am terribly sorry, Mr Speaker.
(South Norfolk) (Con)
I join my parliamentary neighbour, the hon. Member for Norwich
South (), in congratulating Norwich
City Council on what it has done in Goldsmith Street. Is the
Minister aware of what proportion of self-commissioned homes have
the highest energy rating? Is he aware that triple glazing is
almost standard in self-commissioned homes? What is he doing to
encourage the Department for Levelling Up, Housing and
Communities to have more self-commissioned homes?
Before I go any further, I congratulate my hon. Friend on
championing the self-build housing sector and that house building
sector on doing what it can, moving so far and so fast, to
improve energy efficiency measures across the buildings it has
been producing over the past few years. Once again, as he is a
subject matter expert, I would be delighted to meet him to
discuss it in more detail in due course.
Renewable Energy Projects: Connection to the Grid
(Feltham and Heston)
(Lab/Co-op)
8. What assessment his Department has made of the adequacy of
lead times for connecting renewable energy projects to the
grid.(904477)
(Cardiff North) (Lab)
17. What assessment his Department has made of the adequacy of
lead times for connecting renewable energy projects to the
grid.(904489)
The Parliamentary Under-Secretary of State for Energy Security
and Net Zero ()
Reducing connection timescales is a high priority for the
Government. We will publish a connections action plan in the
summer, which will articulate actions by Government, Ofgem and
network companies to accelerate network connections for renewable
energy and other projects.
It is a disgrace that while energy prices rocket, huge delays to
grid connections are holding back the supply of renewable energy
to UK homes and businesses. Wind farms coming online today were
approved when was in power. Even now, energy
companies are having to wait for 13 years, until 2036, for
connections for some projects. How on earth did it get this bad?
Is it not true that the Tories have taken their eye off the ball
on the National Grid, and it is now costing British families and
businesses dear?
I thank the hon. Lady for her question. It is interesting that
she references , because it was under his
Administration that the decision was taken not to invest in new
nuclear, which, by the way, would have solved part of the problem
we find ourselves in right now. However, I think everyone in the
House would acknowledge that the situation regarding grid
connection times is not acceptable. That is why we have
commissioned the Electricity Networks Commissioner, Nick Winser,
to submit recommendations to the Government on how we accelerate
delivery of network infrastructure. He will publish his report in
June.
The Minister completely failed to answer the question. The CEO of
Solar Energy UK has said that solar infrastructure projects are
being delayed into the 2030s—15 years or more—meaning that
operators will not connect them to the grid. Renewable energy is
cheap and will help to bring down the current absurd energy
prices. Are the Government purposely trying to keep energy prices
high and at the mercy of fossil fuels, firmly leading us on the
highway to climate hell?
Frankly, that question is utterly ridiculous. It is because of
the Government’s investment in new renewable technology that we
are powering ahead and leading the world in reaching our net zero
obligations. Half our energy now comes from renewable sources. I
have already acknowledged that the delays to grid connections are
completely unacceptable, which is precisely why we commissioned
Nick Winser to develop his report. We will be publishing his
recommendations in June.
(Hitchin and Harpenden)
(Con)
Just to bring down the temperature a little bit, the Minister
referenced the Government’s consultation later this year on how
the Government, with Ofgem, will drive forward investment in the
grid. Is the Government’s vision for more investment in a system
similar to what we have now? To what extent do they want to move
towards a more decentralised system for renewable investment in
the grid, so that local communities can invest their own efforts
and resources in developing their own renewable energy?
I thank my hon. Friend for his question. In March, we launched
consultations on community benefits for transmission network
infrastructure and on supporting the consenting process to revise
energy national policy statements. We are also supporting a
private Member’s Bill on alternative dispute resolution for
compensation disputes over land.
(Witham) (Con)
The Minister will know that the east of England does a lot of
heavy lifting when it comes to renewables; we are investing in
turbines and offshore wind. But he will also know that local
communities across the entire region are horrified by National
Grid’s plans to build pylons across the entire region, which will
connect and increase more energy supply. They favour an offshore
grid. Can I ask the Minister directly: what is he doing to work
with the local community to deliver that option?
The east of England does do a lot of heavy lifting for
renewables—almost as much as the north-east of Scotland—but this
is not a competition. I am delighted to inform my right hon.
Friend that I am visiting East Anglia next week to meet
communities in the area. Indeed, I met producers and
manufacturers yesterday to see what they can do to mitigate the
impact on her local community and other communities in the
region.
(Southampton, Test)
(Lab)
If we are prevented from building renewable power in the first
place, connection times become rather a moot point. Will the
Minister explain why he has failed to lift the ban on onshore
wind, despite the Government saying that it would be lifted by
the end of April?
This Government are committed to onshore wind as a huge part of
our renewable energy mix—14 GW, in fact. We are also committed to
new renewables offshore and to new nuclear, which the Labour
party opposed for such a long time. It will be a whole collection
of those new technologies and infrastructure projects that will
help us drive our way towards our net zero ambitions and the
cleanest and cheapest electricity in Europe.
Dr Whitehead
That wasn’t very good, was it? The Government’s own offshore wind
champion Tim Pick said last week that we will miss our 2030
offshore wind ambitions by more than 10 GW because of poor grid
connections. Even with the lifting of the onshore ban—if we
believe the Minister—developers will not invest given the
prospect of a 13-year delay in grid connection. When will the
Minister commit to a speedy programme of grid capacity building,
to give onshore and offshore wind a good chance of success?
As I said, this country is leading the way in investment in new
renewable technology. We acknowledge that there are difficulties
connecting to the grid, and we are investing in improving that.
Nick Winser’s report is coming in June, which will give
recommendations to Government on how to reduce the timescale for
connecting those new projects to the grid. That is the focus of
this Government, not playing politics. We are taking real
decisions to benefit this country, to cut our carbon emissions
and to reduce energy bills across the piece.
Energy Transition Projects in Scotland
(Cumbernauld, Kilsyth
and Kirkintilloch East) (SNP)
9. What steps he is taking to support energy transition projects
in Scotland.(904478)
John Mc Nally (Falkirk) (SNP)
19. What steps he is taking to support energy transition projects
in Scotland.(904491)
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, 44 of the 161 projects awarded
contracts for difference for renewable electricity are in
Scotland. More recently, we have allocated £81.1 million of
funding to 81 locations throughout Scotland—I have a list, but I
will not go through them—as part of the £1 billion net zero
innovation portfolio, from 2021 to 2025. Furthermore, we have
committed to funding the Aberdeen energy transition zone by £27
million, and the global underwater hub aimed at diversification
for the subsea sector by £6.5 million.
There was a lot to take in there. Recent positive noises around
the Acorn carbon capture project near Peterhead are obviously
welcome, albeit with the caveat that we have heard a lot of this
before. Can the Minister confirm what funds track 2 projects will
get and when Acorn funding will be confirmed, or at least when
such announcements will be made? Does he agree that track 2
projects must proceed much faster than track 1, both because of
the climate emergency and so that we can seize the opportunity to
be world leaders in that technology?
The hon. Member is absolutely right that there was a lot to take
in, because the UK Government are doing so much to support
Scotland’s energy transition. On Acorn, he does not recognise
that this Government have already invested £40 million of funding
in the project—most notably, £31.3 million under the industrial
decarbonisation challenge. I have the breakdown of the funding,
if Mr Speaker will allow me: £31.3 million from the industrial
decarbonisation challenge for onshore and offshore front-end
engineering design studies; £9.3 million of innovation funding
for CCS innovation and advancing CCS technology and hydro supply
programmes; and £250,000 for the development of Storegga’s
Dreamcatcher direct air
capture plant. Track 2 has been announced—
Mr Speaker
Order. Minister, do not tempt me.
John Mc Nally
I wish the Minister would slow his answers down—that was a bit of
a blur. Just last week, Harbour Energy announced that it is
cutting 350 highly skilled and valued jobs in Aberdeen, directly
linking that to the poorly implemented energy profit levy. We
warned many times that it would disproportionately affect
Aberdeen and Scotland and, unfortunately, we have been proven
right. Will the UK Government commit to matching the Scottish
Government’s £500 million just transition fund, and protect our
energy workers?
I am afraid I have to take all that with a massive pinch of salt.
Now it turns out that the SNP is against a windfall tax on the
oil and gas industry, when it had been campaigning for such a tax
for weeks and weeks, months and months. We have introduced the
energy profits levy to deal with the immediate crisis regarding
energy bills, but we have built into that investment
opportunities for companies to continue to innovate, create jobs
and develop our offshore oil and gas fields, because we will be
reliant on them as a transition fuel for many months to come.
This Government are committed to jobs and opportunities in
north-east Scotland, unlike the Scottish National party that
would close it down tomorrow.
(Dumfriesshire, Clydesdale
and Tweeddale) (Con)
I am sure the Minister will be able to give me a short answer to
this question. Does he agree with me that what transition in
Scotland definitely does not involve is some knee-jerk shutting
down of the oil and gas industry, especially given that liquid
gas supplied by tankers has two and a half times the emissions of
gas produced in the North sea?
Yes, I completely agree with my right hon. Friend. He is
absolutely right on this issue. Indeed, shamefully, Scottish
Government Minister , a member of the SNP’s
partner in Government, the Green party, said that oil and gas
workers in Aberdeen should simply get on their bikes and look for
other jobs, instead of investing in the industry, which this
Government are doing.
Mr Speaker
I call the spokesperson for the Scottish National party.
(Kilmarnock and Loudoun)
(SNP)
If we want a proper just transition and greater supply chain
security, we need new manufacturing facilities for renewable
energy components. Which suppliers and manufacturers has the
Minister spoken to about creating new manufacturing facilities in
Scotland? How many new Scottish manufacturing and renewable
energy jobs do this Government intend to create?
We are absolutely committed to building a UK-based supply chain,
and that includes, of course, new jobs in Scotland. I would be
delighted to meet my Scottish Government counterparts and the
hon. Gentleman to discuss how we can progress that further and
faster. If we are going to have an even more successful renewable
energy industry in this country, it is essential that we have a
UK-based supply chain. That is what this Government are committed
to achieving and, moving forward, I would be happy to work with
anybody so that we can do that.
Obviously, I am happy to meet the Minister and work with him, but
what I heard right there was that there is no plan for
manufacturing jobs in Scotland, no plan to match fund the just
transition fund, no answer to the job losses at Harbour Energy
and no firm commitments on timescales for Acorn, and that the
tidal stream funding has been halved. There is nothing happening
to match the Inflation Reduction Act in the United States and the
EU support packages. Is it not the case that at the moment just
transition are simply warm words for this Government and that
much more needs to be done?
Absolutely not. I have gone through in detail exactly what we are
doing in Scotland. Indeed, his colleague, the hon. Member for
Cumbernauld, Kilsyth and Kirkintilloch East () suggested that there
was far too much in my initial answer to demonstrate what we are
doing to support transition in Scotland. We will continue to do
that, while championing jobs and opportunities across the whole
United Kingdom, including in Scotland. That means investing in
new technologies and renewables, and supporting our oil and gas
industry as it transitions. All of that is possible because
Scotland remains in the United Kingdom, which would not be the
case if the hon. Gentleman had his way.
Clean Energy Technologies: Private Sector Investment
Sir (Reading West) (Con)
11. What steps he is taking to help increase private sector
investment in clean energy technologies.(904480)
The Minister for Energy Security and Net Zero ()
Our “Powering up Britain” plan seizes opportunities from our
transition to a decarbonised energy system. Our policies, backed
by billions of pounds of Government funding, will leverage around
£100 billion of private investment and support up to 480,000 jobs
in 2030. My right hon. Friend is absolutely right to highlight
the importance of unlocking that private investment if we are to
deliver our net zero ambitions.
Sir
One of the ways to ensure more private sector investment is to
support UK companies to export to key markets. With that in mind,
will the Minister update the House on any discussions between the
UK and the US Governments on critical minerals? Is he confident
that there will be an agreement between the UK and the US on
critical minerals, allowing UK companies to gain access to the
financial support available in the Inflation Reduction Act, on
which other blocs such as the European Union are already doing
deals?
I thank my right hon. Friend for his question. He shares my
enthusiasm for leading the world in meeting our net zero
challenge and, by doing so, developing technologies and then
being able to export those solutions. He is right to highlight
issues following the Inflation Reduction Act in the United
States, and making sure that in the negotiations with the US and
other partners, critical minerals and other issues are dealt
with. We are engaging solidly and I know my right hon. Friend was
in Japan only last week, talking to Secretary Kerry about that
point.
(Leeds Central) (Lab)
In 2021, approximately 60,000 heat pumps were installed in the
UK, compared with 1.5 million gas boilers. According to the
European Heat Pump Association, we have the lowest number of heat
pumps installed in the whole of Europe, relative to population.
What more can the Government do to change that?
The right hon. Gentleman is absolutely right that the
decarbonisation of heat remains a major challenge and we need to
do more. With the launch of “Powering up Britain”, on which I
made a statement to the House just before the recess, we are
using £30 million of Government money to leverage £300 million in
private investment, but I agree that we need to do more to change
the trajectory if we are to meet the target of 600,000 heat pumps
a year by 2028.
Mr Speaker
I call the shadow Minister.
(Bristol East) (Lab)
Since the passage of the Inflation Reduction Act, clean energy
companies have announced more than 100,000 new jobs in the US.
Nearly 10 times more new jobs have been created there in the past
seven months than in the UK’s green economy in the past seven
years. British business wants a proper response to IRA, yet all
we have had is the Secretary of State denouncing it as
“dangerous”. Is not the biggest danger that of Britain being left
behind in the global race as others speed ahead?
It is ironic that the hon. Lady says that. We have already set
out the position: our energy efficiency figures have gone from
14% to about 50%, and our renewable electricity figures have gone
from 7% to about 50%. The rest of the world, I am pleased to say,
is playing catch-up.
(Doncaster North) (Lab)
indicated dissent.
It is playing catch-up. The Opposition do not believe in powering
Britain from Britain, and they do not believe in supporting the
record. The truth is that the UK has cut its emissions by more
than any other major economy. Rather than hosing credits in the
direction of businesses, we have a regulatory system that
encourages investment.
That is just ridiculously complacent and out of touch. Only this
weekend, it was reported that Britain’s only home-grown battery
manufacturer is considering leaving the UK for the US, and it is
not alone. The Government are absolutely at sea as to what
Britain should do. They say simultaneously that IRA is dangerous,
that we are doing it already and that the Chancellor will get
around to responding to it in the autumn, more than a year after
the Act passed. When will they realise that dogma, dither and
delay are harming our country?
The truth is that the rest of the world is playing catch-up. Our
regulatory systems—the contracts for difference, for
instance—have entirely unlocked renewables in this country. We
are continuing to accelerate that, for example with the grid,
which is also an issue in the United States. We take our
competitive situation extremely seriously and will continue to
come forward with policies to ensure that we maintain our global
leadership.
Families in Fuel Poverty
(Bedford) (Lab)
12. What estimate his Department has made of the number of
families in fuel poverty. (904482)
(Slough) (Lab)
13. What estimate his Department has made of the number of
families in fuel poverty. (904483)
(Lewisham, Deptford)
(Lab)
16. What estimate his Department has made of the number of
families in fuel poverty. (904487)
(Newcastle upon Tyne
North) (Lab)
18. What estimate his Department has made of the number of
families in fuel poverty. (904490)
The Parliamentary Under-Secretary of State for Energy Security
and Net Zero ()
In 2022, an estimated 3.26 million households were 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. That is why the Government
have stepped in to provide unprecedented energy bill support to
households this winter.
Will the Minister confirm when the energy bills discount scheme
will be distributed to customers such as my vulnerable
81-year-old constituent Ann? Her bills have soared by more than
400% because she receives her energy via a communal system that
is not protected by the same Ofgem energy price cap that applies
to individual domestic consumers. Will the Minister confirm
future bespoke support for heat network customers?
I reiterate that we have been giving unprecedented support to
domestic and non-domestic customers throughout this incredibly
difficult situation, and we are making sure that we review the
situation on an ongoing basis.
Mr Dhesi
At a time when many of my Slough constituents are struggling to
pay their energy bills, oil and gas giants are raking in the
windfalls of war, but the Prime Minister and his Government are
too weak to stand up for the British people, and especially for
the increasing number of households now living in fuel poverty.
Energy efficiency measures are one of the best routes to tackling
fuel poverty, but unfortunately not a penny of new money was
announced in the Government’s relaunch just last month. Why is
there such complacency when installation rates in 2020 were 20
times lower than in 2010?
It has been estimated that without the additional support, a
further 350,000 households in England would have been in fuel
poverty in 2022. Energy efficiency improvements remain the best
way to tackle fuel poverty in the long term and contribute to
long-term reductions in both energy bills and carbon emissions,
in line with net zero.
One of my constituents and his partner have two young children,
one of whom has a medical condition. In August last year, they
were charged £778 for gas and electricity—18 times the bill of
£43.15 from the previous February. My constituent is living in
fuel poverty and struggling to feed his family. What steps is the
Minister taking to ensure that families requiring high energy
usage medical equipment do not fall into fuel poverty?
I share the hon. Lady’s concern. I have been meeting various
stakeholders, including representatives of citizens advice
bureaux, to discuss how we can mitigate the situation, but I
should add that we have been providing unprecedented support
throughout.
Last year, Citizens Advice Newcastle saw a 229% increase in the
number of people facing disconnection and needing help with
energy top-up costs. While today’s announcement from Ofgem is
welcome, it will still allow those who are deemed to be at medium
risk—parents of children under five, pregnant women and those
aged between 75 and 84—to be forced to have prepayment meters
installed. What more will the Government do to ensure that
vulnerable people will not be forced to have those meters
installed and to face living without heat and light?
The abuse of prepayment meters in recent months has been
disgraceful. We have demanded urgent action, and we welcome the
code of practice announced today. As I have said, I have been
meeting representatives of citizens advice bureaux across the
country, and we are discussing how we can continue to provide the
unprecedented support that we have already been giving.
(Christchurch) (Con)
Many of the people who are in fuel poverty live in park homes.
Perhaps the Minister would be interested in meeting me, in my
capacity as chairman of the all-party parliamentary group on park
homes. At a meeting of the APPG yesterday, considerable concern
was expressed about the fact that the alternative funding scheme
was not delivering for many park home residents because of
anomalies and inflexibilities. The Department for Levelling Up,
Housing and Communities has written to the Minister’s Department
about this, but has not yet received a response.
As I have said, I am always keen to meet stakeholders, and of
course I should be happy to meet my hon. Friend.
Topical Questions
(Stoke-on-Trent South)
(Con)
T1. If he will make a statement on his departmental
responsibilities.(904555)
The Secretary of State for Energy Security and Net Zero ()
Since we last met, the Department has been active in, for
instance, publishing the “Powering up Britain” document. In the
last week, I have been in South Korea and Japan, where we
negotiated with the G7 an update to the climate energy security
plan, and a large number of our partner G7 countries expressed
the view—not always recognised throughout the House—that this
country leads when it comes to the green transition in
energy.
Energy costs remain a major concern for many businesses. In
particular, as has been recognised, the tying of electricity
prices to the price of gas is raising energy prices to
unnecessarily high levels, which is deterring investment in
electrical technologies and forcing businesses to continue to
invest in gas-powered technology. Will my right hon. Friend tell
us when the decoupling of electricity and gas prices will
actually happen?
This decoupling is a particularly complex matter, but we are
absolutely into the detail of it. As my hon. Friend knows, the
connection between electricity and gas prices is to do with the
way in which the contracts have been written. We are conducting a
review of the electricity market, and we are also looking at the
way in which some of the existing standing costs are allocated
between gas and electricity, with the aim of achieving precisely
what my hon. Friend is after.
Mr Speaker
I call the shadow Secretary of State.
(Doncaster North) (Lab)
Today’s announcement on prepayment meters is simply not good
enough. The new rules ban forced installations for only a very
narrow group and do not do so for what is called the medium-risk
group. I am reading from the document here. That group
includes
“those with Alzheimer’s, clinical depression, learning
difficulties, multiple sclerosis…the elderly up to age 85, the
recently bereaved, and those with the youngest children.”
How has the Secretary of State allowed this to happen?
I think the House recognises that we have moved very fast on
prepayment meters—[Interruption.] The same rules were in place
when Labour was in power for 13 years. We are the
ones—[Interruption.] I am reminded that the right hon. Gentleman
probably set the rules in the first place, but I will have to
fact check that for the record. We have taken a number of steps
to relieve that pressure and I am pleased to see the Ofgem
announcement today. We will keep this matter under review and go
further if required.
What a completely hopeless answer. There is a high-risk group for
whom a ban is being put in place and a medium-risk group for whom
the Government are leaving this at the discretion of the energy
companies, which is simply not good enough. Will the Secretary of
State now instruct the regulator to keep the forced installation
ban in place until he meets the promise he made—which is being
broken today—to protect all vulnerable customers?
It is an Ofgem announcement today, which I welcome because I
asked Ofgem to go away and come to a voluntary agreement. It is
actual action that makes a difference. What the right hon.
Gentleman needs to explain is how, if we did not have some sort
of measure in place to allow people to install meters to manage
those finances, he would deal with all the additional cases that
would end up in court. As ever, he gives simplistic answers in a
complex world that I would not expect him to even start to
address.
Sir (Rochford and Southend
East) (Con)
T6. Potton island and Foulness island in the Rochford district
would very much like to see onshore wind farms. What incentives
can the Government bring forward when onshore wind comes back
online?(904560)
The Minister for Energy Security and Net Zero ()
The Government want communities to participate in and benefit
from onshore wind proposals for their areas, and we will shortly
issue a consultation on onshore wind partnerships in England to
enable supportive communities hosting new onshore wind
infrastructure to enjoy the benefits of doing so, exactly as my
hon. Friend says, by getting developers to support local energy
discounts, new community infrastructure projects and the
like.
Rachel Hopkins (Luton South) (Lab)
T2. Energy-intensive businesses need Government support to
transition to a low carbon economy, including the Vauxhall van
plant in Luton South, yet last month’s “green day” saw only weak
reannouncements on carbon capture and storage and nuclear, and no
new money for industry. Can the Minister explain why the
Government are failing to help our motor manufacturing industry
to decarbonise?(904556)
The Parliamentary Under-Secretary of State for Energy Security
and Net Zero ()
We have announced an unprecedented £20 million investment in the
development of carbon capture, utilisation and storage and a £185
million extension to the industrial energy transformation fund,
and confirmed the first winners of the £240 million net zero
hydrogen fund. In addition, this Government have provided more
than £2 billion since 2013 to energy-intensive industries to make
electricity costs more competitive.
(Waveney) (Con)
T8. Maximising investment in renewables is vital to bringing new
jobs to coastal communities such as Lowestoft. I would be
grateful if my right hon. Friend confirmed that he is working
closely with the Treasury to prepare a comprehensive fiscal
strategy that will form part of the autumn statement, and that it
will include tax incentives, the reform of capital allowances and
measures to unlock private investment in ports.(904562)
My hon. Friend will be pleased to hear that we always work
closely with our Treasury colleagues. We launched the floating
offshore wind manufacturing investment scheme—FLOWMIS—on 30
March, which is worth up to £160 million and will support
investment in port infrastructure precisely to unlock floating
offshore wind investment and deployment. The spring Budget set
out the Government’s plans to launch the refocused investment
zones programme to catalyse 12 high-potential growth clusters
across the UK.
(Bath) (LD)
T3. The Under-Secretary of State for Energy Security and Net
Zero, the hon. Member for Derby North () has just mentioned the
Government’s ambitious plans for CCUS. The Petra Nova carbon
capture facility in the US was meant to reduce carbon emissions
by 90%, but it achieved only 7% over three years and allowed the
continued extraction of fossil fuels. What will he do to ensure
that UK Government investment in CCUS goes only to truly net zero
projects?(904557)
The hon. Lady is right to highlight the technical challenges. The
Labour Government said in 2003 that CCUS implementation was
urgent. No one thinks there is a route to 2050 without CCUS and,
as she says, it is important not only that we make the
investments we are making, but that we do so in a way that is
compatible with the highest possible capture percentage.
(Eastleigh) (Con)
The Government’s commitment to park home payments is welcome, but
residents in Eastleigh are still awaiting their payments because
the council says it does not have access to Government systems.
Will the Minister make sure her officials speak to Eastleigh
Borough Council today to get this sorted? Will she commit to
writing to let me know what has gone wrong so that we can get my
constituents the payments they need?
All the councils that are able to participate in the scheme have
received the money from the Government, with 99% of local
authorities onboarded so far. Ninety five per cent. of councils
are processing claims, with the majority of applications having
been accepted and paid. However, we are working to understand the
specific problem in Eastleigh, and I will update my hon. Friend
as soon as I can.
(Newcastle upon Tyne Central) (Lab)
T5. The experience of my constituents who are on prepayment
meters is atrocious, and today’s announcement from Ofcom will do
absolutely nothing to protect vulnerable groups such as those
with Alzheimer’s, the under-fives and those who are over 75 but
under 85. Will the Secretary of State answer the question he did
not answer earlier, and say why he is not protecting the
vulnerable from prepayment meters and the lack of energy
support?(904559)
Just to correct the record, Ofgem is in charge. The measures it
put out today, with industry agreement, will help to protect
people. When a person’s payments are in deficit, they have to
find a way out. The hon. Lady appears to favour a system in
which, rather than installing a prepayment meter, people are
immediately taken to court, which I do not think is a good
solution. We will carry on working with Ofgem to make sure we put
the best solutions in place.
(Cleethorpes) (Con)
Ministers will be aware that the Humber region has attracted £15
billion of private sector investment in carbon capture projects.
Needless to say, there was widespread disappointment when none of
those projects was included in track 1. Is the Minister able to
give the clarity that the private sector needs?
My hon. Friend is right about the possibilities for CCUS. The £20
billion fund was competitive, and others, including HyNet on the
east coast, won. When it comes to the Humber cluster, both the
track 1 expansion and track 2 will happen later this year.
(Warley) (Lab)
T7. British industry has supplied small modular nuclear reactors
to the Royal Navy for more than 60 years, giving us a head start
on the exciting commercial application of this zero carbon energy
technology. Why is the Minister undermining and delaying its
progress by going through an unnecessary so-called international
competition, rather than backing British engineering excellence
and British workers?(904561)
That is a brilliant question. What happened during all those
years when the Labour party was against civil nuclear power? This
Government are moving ahead, and we have set up Great British
Nuclear and funded Rolls-Royce with £210 million and counting. I
have already said from this Dispatch Box that we are starting a
competition now to select a winner in the autumn. Where were
Labour Members when we were doing all this?
Dame (Basingstoke) (Con)
I have already met the Minister for Energy Security and Net Zero
to discuss the National Fire Chiefs Council’s concerns about the
use of lithium-ion storage facilities to get renewable energy to
the grid. Will the Government review existing fire and
environment regulations to ensure they reflect these deep
concerns and risks, and help to ensure that renewable energy can
get to the grid smoothly and in a timely manner?
The Parliamentary Under-Secretary of State for Energy Security
and Net Zero ()
Grid-scale lithium-ion battery energy storage systems are covered
by a robust regulatory framework, which requires manufacturers to
ensure that products are safe before they are placed on the
market, that they are installed correctly and that any safety
issues found after products are on the market are dealt with. I
am meeting my right hon. Friend this week to discuss this in more
detail and I look forward to that very much.
(Dwyfor Meirionnydd)
(PC)
T9. The Minister must surely recognise that fuel poverty cannot
be solved by threatening to send vulnerable people to court or
imposing the installation of smart meters. When will he stop
passing the blame to Ofgem? When will he really start to support
vulnerable people who are facing fuel poverty?(904563)
It is incredibly important to this Government that we support
vulnerable people. We are looking at all of the issues around
prepayment meters, but we have provided £400 of support through
vouchers and I encourage all Members to ask their constituents to
come forward to get those if they have not already collected
them.
(Rugby) (Con)
In Rugby, we are proud of the rate at which we provide new homes.
I recently visited Barratt Homes’ Ashlawn Gardens development,
where I heard that intending purchasers of new homes now place an
enormous priority on the size of their energy bills. Does the
Minister agree that it is important for house builders to promote
the thermal efficiency of their products?
I entirely agree with my hon. Friend on that. This is why we set
up the energy efficiency taskforce, to work with industry to make
sure that we take forward a tremendously transformed situation
from the appalling one in 2010 and accelerate and move forward
even more quickly in the future.
(Edinburgh West) (LD)
More than once this morning those on the Government Benches have
congratulated themselves on the home insulation figures, but
those figures could and should have been so much more impressive,
if, after 2015, this Government had not abandoned Liberal
Democrat policies to invest in renewables and insulate homes. The
impact of that on my constituents has been fuel poverty. This
winter, they are struggling to heat their homes, with still
expensive carbon fuels, and there is a growing incidence of
mould. When will the Government recognise that emergency
insulation is needed?
We have worked very hard on making sure that homes are insulated.
We have just announced another £1 billion for the Great British
insulation campaign, which makes £12.5 billion over this
Parliament and into the next one for insulation. That is one
reason why nearly half of homes are now insulated, whereas the
figure when Labour was in power was only 14%.
(Darlington) (Con)
I welcome the £12 million from the social housing decarbonisation
fund and the home upgrade grant for Darlington, which will help
cut heating costs and carbon emissions, and reduce fuel poverty
for my constituents. May I invite the Minister to visit the
fantastic Darlington economic campus, where some of his team are
situated?
I am very glad to hear about the successful funding bids in my
hon. Friend’s constituency. These schemes will improve homes up
and down the country, improving their energy efficiency and
lowering energy bills. I am delighted to accept the invitation to
visit the Darlington economic campus, although I can confirm that
I have already visited it and was incredibly impressed by the
calibre of the individuals working there to drive forward our
ambition—
Mr Speaker
I call .
—to get this country the greenest, cleanest electricity in
Europe.
Mr Speaker
Minister, that is the last time you do that to me. Seriously, you
are taking advantage of this Chamber too much. You were enjoying
yourself earlier, which was fine, but I am not consistently
having you dictate to the Chair. Do we understand each other?
Yes.
Mr Speaker
I do hope so.
(Kingston upon Hull North)
(Lab)
With the Humber estuary responsible for 40% of all industrial
emissions in this country, it beggars belief that it was not
included in the track 1 for carbon capture. Will the Minister now
guarantee that the Humber cluster will be included in the
expansion that he just talked about, as it brings £15
billion-worth of private investment with it?
The right hon. Lady is absolutely right about the potential of
the Humber cluster. I want to put that on the record, as well as
the fact that track 1 and track 2 announcements will be made
later this year. It is perhaps a testament to the amount of
competition for carbon capture, usage and storage that this
country has sufficient space to store 78 billion tonnes of
carbon, which is the equivalent of about 200 years of all
Europe’s carbon being stored in the North sea. There is just
heavy competition for where it goes
|
