Contracts for Difference Scheme
(Waveney) (Con)
1. What recent assessment she has made of the effectiveness of
the contracts for difference scheme in supporting low-carbon
electricity generation.(906448)
(North Devon) (Con)
2. What assessment she has made of the potential implications of
the outcome of the contracts for difference allocation round 5 on
the future development of floating offshore wind.(906450)
Mr Speaker
I welcome the Secretary of State.
The Secretary of State for Energy Security and Net Zero ()
Our contracts for difference scheme is a UK success story, having
contracted more than 30 GW of capacity, including 20 GW of
offshore wind, since 2014. AR5 delivered a record number of clean
energy projects, enough to power the equivalent of 2 million
homes, and the Government’s commitment to offshore wind remains
unchanged, which is 50 GW by 2030.
I welcome my right hon. Friend to her place. The great advantage
of the CfD scheme is that with forward planning it has the
flexibility to adapt to changing economic conditions. Can she
therefore confirm that the Government will be working
collaboratively and straightaway with industry to ensure a
successful round 6 so that offshore wind can get back on track,
and UK consumers and the UK economy can benefit from low-cost,
low-carbon energy?
I thank my hon. Friend for his long-standing support in this area
and I can confirm that we are wasting no time in engaging the
sector in advance of AR6. I personally spoke to offshore wind
stakeholders following AR5 and confirmed our commitment. The
Minister for Energy Security and Net Zero held a roundtable with
the sector on 12 September. We are listening to the sector and
annual auctions mean we can respond quickly.
Question 2 please.
I know that as chair of the all-party group on the Celtic sea my
hon. Friend is a long-standing supporter of offshore wind. We
have announced that AR6 will open in March 2024 and we have
published an indicative timetable. We are supporting research and
development in floating wind technology via the floating offshore
wind demonstration programme, announcing up to £160 million in
capital grant funding.
Mr Speaker
Can we work to the order, as it is a grouped question? The
question should not be answered in that way. should be asking a direct
question.
Thank you, Mr Speaker. I am keen to understand better what more
can be done to assist floating offshore wind in AR6 following
what happened in AR5.
I know my hon. Friend is a long-standing supporter of offshore
wind. We have announced that AR6 will open in March 2024 and we
have published that timetable. We are supporting floating wind
technology through different programmes and manufacturing
investment schemes too.
Mr Speaker
I call the Chair of the Energy Security and Net Zero
Committee.
(Na h-Eileanan an
Iar) (Ind)
We also welcome the Secretary of State to the Dispatch Box. With
many renewable projects built on the strength of contracts for
difference, but with reports of many not invoking these contracts
and instead benefiting from the higher energy prices, can the
contracts in principle be invoked later, when prices fall, or
could the Government enforce the invoking of the CfD contracts
now, at the start of the generation of these projects, rather
than their taking the high prices while they can?
The CfD programme has driven prices down over time to enormous
effect, by 70% since they started, which is much more than people
expected. I would be happy to take the hon. Gentleman’s
particular point away but overall this is a successful programme,
and our annual auction changes will also make a difference.
(North West Leicestershire)
(Reclaim)
Given the unreliable and intermittent nature of both solar and
wind-generated energy, we already have more of these projects
than the grid can efficiently manage. Does the Secretary of State
agree that what we really need is more reliable baseload capacity
and that that can only be delivered via fossil fuels or
nuclear?
We have a strong focus on energy security, and that means having
a just transition to clean energy but also investing in nuclear.
The hon. Gentleman may have seen that we have started the capital
raise for Sizewell C, and we support the oil and gas industry as
a just transition fuel.
Mr Speaker
I call the shadow Secretary of State.
(Doncaster North) (Lab)
I wish the Clerk of the House well in the future, and I warmly
welcome the Secretary of State to her new role and congratulate
her on her appointment to the Cabinet. I look forward to working
together. Let us start with the truth. The offshore wind auction
that she inherited was a totally avoidable disaster. It means
another lost year for our country and another year of higher
bills, and it is because Ministers obstinately refused to listen
to warning after warning from industry. RenewableUK estimates
that the auction failure will add £2 billion to bills. What is
the Secretary of State’s estimate of the cost to families of this
fiasco?
I thank the right hon. Gentleman for welcoming me to my place. I
am delighted to serve opposite him and face him at the Dispatch
Box.
There are a couple of things I will point out. If we had tried to
do what the right hon. Gentleman suggested, we would have delayed
the 3.7 GW of clean energy that we secured, which is able to
power 2 million homes. If we want to look at what is going to
hurt people and their bills, I would point to his disastrous
policies, whether it is the ultra low emission zone, which is
hitting people who can least afford it, or his borrowing spree,
which will raise inflation.
I am afraid the Secretary of State is quite wrong about that,
because Ireland adjusted the price and had 3 GW of offshore wind.
Let us talk about the way that this Government are jeopardising
our energy security. They have delivered—[Interruption.]
Mr Speaker
Order. Mr Stuart, I know this is the last day before the recess
and you are excited to get some freedom, but let’s save it.
This Government have delivered the worst cost of living crisis in
a generation. There is a pattern here: they banned onshore wind
and raised bills, they slashed energy efficiency and raised
bills, and now they have trashed offshore wind, raising bills.
That is why we are so exposed. I know that the right hon. Lady
did not make those decisions, but now that she is the Secretary
of State, she needs to tell us, after 13 years of failure, what
is she going to do differently?
Let me tell the right hon. Gentleman about the last 13 years. We
have decarbonised faster than any G7 country, while also growing
the economy. We have grown renewable energy from 7% of our
electricity when Labour left power to 50% now. I am proud of what
we have achieved over the last 13 years. We have a proud record
when it comes to climate change and a proud record when it comes
to renewable energy, and I am proud to defend it.
Mr Speaker
We now come to the SNP spokesperson.
(Angus) (SNP)
I welcome the Secretary of State to her new role. I wish I could
have welcomed her to her new role on 5 September, when we had the
remaining stages of the Energy Bill, but she was not here. I wish
I could have welcomed her on 7 September for the urgent question
on the auction round 5 strike price, but she was not here for
that either, so what has the new Secretary of State been doing in
the midst of the chronic energy crisis facing our constituents
and allowing her Department to see shovel-ready offshore wind go
into abeyance? What has she been doing?
I struggle to see how that was directly related to the question,
but let me tell the hon. Gentleman what I have been doing. I was
here for the Third Reading of the Energy Bill; perhaps he was
not. During this time, I have been moving forward with all the
Government’s priorities on energy security and ensuring that we
can move to a just, clean transition.
Forgive me if that rendition is not immediately recognisable in
offshore wind projects from auction round 5. I hope the
Department has learnt some salutary lessons from this mess, but
it will be consumers who pick up the bill. Can I ask the
Secretary of State for her personal intervention in pumped
storage to introduce a cap and floor mechanism, which industry
has been clear is absolutely necessary to get this vital baseload
energy source into position? Will she intervene personally and
get that moving, because it is blowing in the breeze just
now?
I am absolutely focused on getting investment into offshore wind.
One of the first things I did after AR5 was speak to investors
from across the board, to make sure I was listening to their
concerns, and there are multiple things they care about. One is
having certainty; there was lots of welcoming of the move to
annual auctions. The other is connections to the grid. I will be
looking at all those things and making sure we can get the
investment the sector needs.
Carbon Capture, Usage and Storage
(Stoke-on-Trent Central) (Con)
3. What assessment she has made of the potential impact of carbon
capture, usage and storage technology on economic
growth.(906451)
The Secretary of State for Energy Security and Net Zero ()
We have committed £20 billion to the early deployment of carbon,
capture, utilisation and storage, which will deliver economic
growth and decarbonisation of our industrial heartlands. Our
analysis has shown that it could support up to 50,000 jobs in
2030 and add up to £5 billion to the economy by 2050.
I thank my right hon. Friend for her reply. Following the
commitment in “Powering Up Britain” to provide up to £20 billion
of funding for early deployment of CCUS, how does she intend to
finance that support? Does she recognise that CCUS funding needs
to be matched by creating a competitive environment for private
sector investment, including a carbon border adjustment mechanism
to smooth the path to deployment, as recommended by the
Commission for Carbon Competitiveness, of which I am a
member?
I welcome my hon. Friend’s work as a member of the Commission for
Carbon Competitiveness, and she makes an excellent point. The £20
billion will be funded through a variety of sources and will be
allocated in due course, and early this year the Government
consulted on a range on measures to support decarbonisation,
including a carbon border adjustment mechanism. The Government
will provide a response to that consultation in due course.
(Huddersfield)
(Lab/Co-op)
If the Secretary of State is looking for innovation that will
make a real difference to economic growth, will she look at not
only carbon capture and storage, but hydrogen? Many of the same
universities and research establishments are looking at hydrogen
as the new energiser for transport and so much else in our lives.
Will she put some serious money into both hydrogen and CCS?
I am interested in innovation in all of those areas, because that
is what will get us to the ambitious targets we have set out. I
will be looking at hydrogen, carbon capture, and every single
other area to see what more we can do.
Methane Leaks from Oil and Gas Production
(Blackpool North and
Cleveleys) (Con)
4. What plans she has to help tackle methane leaks from oil and
gas production.(906453)
The Minister for Energy Security and Net Zero ()
The Government have ambitious plans to tackle methane emissions
from oil and gas production. With support from Government and key
regulators, industry is on track to end routine flaring and
venting prior to 2030, in line with the World Bank’s
initiative.
While I welcome the Government’s introduction of new oil and gas
licences in the North sea as part of a just and graduated
transition to more reliance on renewables, the Minister will be
aware that methane is a far more warming gas than carbon dioxide.
Given that much more can be done, will the Government look at how
they can ensure that flaring, venting and leaks are fixed by the
new licence holders as and when they occur and, in the context of
the North sea transition plan, ensure that the new Affleck oil
field is not allowed to flare until 2037, as set out in the
permission granted to it? This is all part of how we can reach
net zero without it costing my constituents the earth.
The North Sea Transition Authority already expects methane
emissions to be as low as possible and all new developments to be
developed on the basis of zero routine flaring and venting, and
that they should be electrified or electrification-ready. Of
course, what is required and will help facilitate that is new
investment in the North sea facilitated by licences, without
which we are unlikely to see the reduction in emissions that we
have so successfully driven so far.
(Brighton, Pavilion)
(Green)
The Minister has not really given any reassurance to the hon.
Member for Blackpool North and Cleveleys (). As we know, methane is a
whopping 80 times more powerful than carbon dioxide over a
20-year period, so if the Minister is serious about tackling this
issue, will he explain why the Government failed to use the
Energy Bill to ban flaring and venting? Why did they whip their
own MPs to vote against an amendment that would have outlawed it,
and given that the practice has been illegal in Norway since the
1970s, will he finally recognise that this makes a mockery of
Ministers’ claims about UK oil and gas being greener?
Unusually, the hon. Lady has got her facts wrong: I do not think
that amendment was even selected for debate that day. According
to the North Sea Transition Authority, flaring was reduced by
more than 10% just last year, contributing to a reduction of
nearly 50% between 2018 and 2022. As I have said, the North Sea
Transition Authority estimates that methane emissions have fallen
by more than 40% to fewer than 1 million tonnes of carbon dioxide
equivalent—a record low. We have old existing infrastructure and
are moving with a maximum of ambition to reduce emissions, and we
have a successful track record to date.
Climate Change Committee: 2023 Progress Report
(Blaydon) (Lab)
5. What assessment she has made of the implications for her
Department’s policies of the Climate Change Committee’s 2023
Progress Report to Parliament, published in June
2023.(906456)
The Minister for Energy Security and Net Zero ()
I am grateful for the work of the Climate Change Committee, and I
pay tribute in particular to the commitment of its outgoing
chair, . The Government will respond to
the committee’s report in October.
The latest Climate Change Committee report found that, out of 50
key indicators of Government progress on tackling climate change,
just nine were on track. According to Energy UK, even before the
disastrous offshore wind auction, the UK was forecast to have the
slowest growth in low-carbon electricity generation of the
world’s eight largest economies up to 2030. Does the Minister
recognise that the Government’s failure has cost every family
£180 in higher bills?
Our climate leadership is measurable and real. We have reduced
emissions by more than any other major economy since 1990. We
were the first to legislate for net zero. We have eliminated
coal, which as late as 2012 produced nearly 40% of our
electricity supply—the legacy of the Labour party—and we have
lifted renewables from 7% to 48%. We have cut emissions by more
than others, transforming our energy system, and we are leading
on this issue internationally and domestically. That is exactly
what the Government rely on in fulfilling their aspiration to
climate leadership.
(Christchurch) (Con)
Does my right hon. Friend accept that one consequence of the
Climate Change Committee report is to increase our country’s
reliance on Chinese technology and raw materials?
China has even greater offshore wind capacity than ourselves—it
has the largest wind and largest solar capacity in the world—and
it has a significant level of production. We recognise that we
will need technology from all over the world, including China, if
we are to meet our net zero aspirations.
Mr Speaker
I call the shadow Minister.
(Bristol East) (Lab)
According to the Climate Change Committee,
“the private sector…is being held back…by weak policy signals,
uncertainty, and barriers to investment,”
and perhaps we would not need to be so reliant on China if those
issues were addressed. Just last month, UK investors representing
£1.5 trillion in assets wrote to the Prime Minister, warning that
that could mean the UK missing out on 1.7 million jobs. Will this
zombie Government listen to investors and their own advisers,
look at the game-changing interventions in the States and bring
forward a UK version of the Inflation Reduction Act before it is
too late to save British businesses and British jobs?
Yet another unfunded spending commitment from the Labour
party—the party that left us with less than 7% of our electricity
coming from renewables and that left us reliant on coal; a party
that wants to nationalise the industry and drive out all those
companies that have transformed the North Sea basin, led the
world in cutting the cost of offshore wind, and made us the
European leader in offshore wind and the global leader in cutting
emissions. The Labour party is the biggest enemy of net zero and
the biggest enemy of the private investment in this country that
will help us get there.
Onshore Wind Industry
(Leeds East) (Lab)
6. What steps she is taking to help develop the onshore wind
industry in England.(906457)
(Dulwich and West Norwood)
(Lab)
13. What steps she is taking to help develop the onshore wind
industry in England.(906466)
The Minister for Energy Security and Net Zero ()
The Government recently announced changes to national planning
policy, giving greater flexibility to local authorities to
respond to suitable opportunities for onshore wind. The
Government also want communities to benefit from hosting onshore
wind and have consulted on improving the current system of
community benefits for England.
The truth is that the Government have failed to properly lift the
ban on onshore wind, while bending over backwards to support
expensive new oilfields and even giving billions in tax breaks
for those polluting projects. That ban has already added hundreds
of pounds to people’s bills, undermining the investment we need
in the cheapest form of energy, and cost thousands of good green
jobs. Will the Minister not admit that the Government’s failure
to properly lift the ban on onshore wind will continue to keep
bills higher and makes us less energy-secure?
More than 15 GW of onshore wind are deployed in the UK. In our
allocation round 5 just the other day, we secured 1.7 GW of
onshore wind capacity; allocation round 4 secured 1.5 GW. It is
extraordinary: an industry—domestic UK oil and gas—has lower
emissions than the alternative from abroad and employs 200,000
people, every one of whose jobs is at risk if the Labour party
ever gets into power. Labour Members are suggesting that there is
a negative fiscal impact, when that industry is expected to
contribute £50 billion over the next five years. The Labour party
is an enemy of the transition to net zero and of British jobs and
prosperity.
If the Minister will not accept the argument of my hon. Friend
the Member for Leeds East () , will he at least listen
to industry, which described the recent announcement on onshore
wind as a “missed opportunity” to end the ban? RenewableUK
said:
“The proposed changes don’t go far enough”
and would not make up for
“eight years of lost progress.”
When will the Minister listen to industry and lift the ban
properly so that we can cut bills?
On 5 September, the Government announced changes to national
planning policy for onshore wind in England, giving greater
flexibility to allocate suitable areas and to address the
planning impact of onshore wind. I agree with the hon. Lady; I am
an enthusiast for more onshore wind where it goes with the grain
of communities, and we will continue to pursue that to make sure
that we can realise the benefits that come from it.
Mr Speaker
I call the shadow Minister.
(Southampton, Test)
(Lab)
The Minister will know, although he unaccountably did not tell
us, that there was precisely no new onshore wind in England in
the recent AR5. The Minister claims that the latest compromised
wording, which he alluded to, will lift the ban on onshore wind,
but he knows really that that is not so and he knows what the
industry has been saying about it and why it will not invest for
the future. The result is no new onshore wind getting built in
the medium-term, higher bills for families and less energy
security for the country. Why will his Department not just face
down his luddite Back Benchers, introduce fair planning
regulations for onshore wind and get the industry restarted
across England?
As I have just said, we announced changes as recently as 5
September. Like the hon. Gentleman, I look forward to a positive
future for onshore wind in England, as well as in the rest of the
United Kingdom.
Uyghur Region: Solar Industry Sourcing
(Rutland and Melton)
(Con)
7. What assessment she has made of the implications for her
policies of the report by Sheffield Hallam University entitled
“Over-exposed: Uyghur Region Exposure Assessment for Solar
Industry Sourcing”, published in August 2023.(906458)
The Parliamentary Under-Secretary of State for Energy Security
and Net Zero ()
The Government are determined to ensure that our energy system is
not dependent on forced labour at home or abroad. The supply
chain and innovation sub-group of the solar taskforce is
therefore considering this issue as a top priority.
I start by welcoming my right hon. Friend the Secretary of State
to her place.
What conversations has my hon. Friend the Minister had with the
Foreign, Commonwealth and Development Office and the Department
for Business and Trade on eradicating forced labour from our
supply chains? Does he agree that we must ban the worst offending
companies from our shores? Will he therefore lead a
cross-Government effort to take action on tackling slave labour
in our supply chains, just as Germany, America and the EU already
have done?
My hon. Friend knows that this issue is a top priority for the
Government and for me. A range of tools can be used to tackle
forced labour in global supply chains. The Government continue to
keep our policy responses under close review, and we are working
closely with our partners, including at the United Nations, to
hold China to account for its egregious human rights violations
in Xinjiang. We have already taken robust action, introduced new
guidance on the risks of doing business in Xinjiang, enhanced
export controls and introduced financial penalties under the
Modern Slavery Act 2015.
(Strangford) (DUP)
I thank the Minister for that answer. As chair of the all-party
parliamentary group for international freedom of religion or
belief, I commend the hon. Member for Rutland and Melton () on raising this matter. For
me, freedom of religious belief in China is paramount and should
be a priority for the Government—I think it is. To make it
happen, we need clear legislation in this place and real power
from this Government, and we need to be assured that no company
that uses forced labour in China can have its products sold in
this country. Again, I seek confirmation from the Minister that
that serious strong will is there.
I concur very much with the hon. Gentleman’s view on this matter.
The Government are determined to ensure that our energy system is
not dependent on forced labour. As I said, we are continuing to
work with international partners to do what we can to hold China
to account for its egregious human rights violations, and to work
with the solar industry to see what we can do to weed out forced
labour and ensure that it is not part of that supply chain moving
forward.
National Grid Funding: South-west England
(Plymouth, Sutton and
Devonport) (Lab/Co-op)
8. What plans she has to provide funding for the National Grid in
the south-west.(906459)
The Parliamentary Under-Secretary of State for Energy Security
and Net Zero ()
Electricity networks’ funding is regulated by Ofgem through the
network price control. In the current price control, National
Grid Electricity Transmission will be investing approximately
£700 million in the south-west. Ofgem has allowed £5.7 billion
for the distribution network company covering the south-west,
£1.2 billion of which is for the south-west region
specifically.
May I declare an interest, as one of my brilliant little sisters
works in the renewable energy sector? I want to see more
renewable energy schemes get off the ground in the far
south-west, but I am being told that schemes greater than 1 MW
have to wait until 2027 at the earliest for a grid connection.
This means that dozens of renewable energy schemes are gathering
dust on paper, when they should be generating clean power. It is
wrong and is setting back our net zero ambitions. What are
Ministers doing to speed up grid connections for renewable energy
schemes, allowing us to build the already approved clean energy
schemes that we need, which will create green jobs, cut carbon
and reduce soaring energy bills?
As the Minister for Energy Security and Net Zero, my right hon.
Friend the Member for Beverley and Holderness () suggests from a sedentary
position, we are doing lots and lots. Specifically, the
Government are using strategic planning to support investment
ahead of the need in the networks, including the south-west. The
first example of that was last year’s holistic network design,
which set out a blueprint for connecting new offshore wind
projects to the grid by 2030. An update to the holistic network
design follow-up exercise, HND 2, will be published early next
year and provide recommendations for the connection of floating
offshore wind specifically in the Celtic sea. For the first time,
offshore wind developers participating in the Crown Estate’s
leasing round 5 will receive clarity over their grid connection
from the electricity system operator at the same time as a secure
seabed lease.
Mr Speaker
I call .
(Norwich South) (Lab)
The Minister may be surprised—[Interruption.]Indeed, Question 9,
Mr Speaker.
Area-based Home Retrofit Schemes
(Norwich South) (Lab)
9. What plans she has with Cabinet colleagues to help increase
the capacity of local authorities to deliver area-based home
retrofit schemes. (906460)
The Parliamentary Under-Secretary of State for Energy Security
and Net Zero ()
To support English local authorities, we fund an embedded
technical assistance facility, providing access to experts,
training and guidance to enhance their capability to deliver our
domestic grant schemes.
Second time lucky. The Minister may be surprised—[Laughter]—to
hear the following words leave my lips, and I know I am: I agree
with the former Prime Minister, the right hon. Member for South
West Norfolk (), in her claim that low and
middle-income households cannot afford to pay for the transition
to net zero. Where we differ is that I do not believe that we
should let the planet burn, as she does. Instead, the wealthy
must pay for the green transition. Will the Minister commit to
income and wealth redistribution and finally give households and
local authorities the ability to transition successfully?
The Government provide a wide range of funding to support local
authorities in reaching net zero through the core settlement,
grant funding schemes and UK growth funding. The Government are
enabling local authorities to tackle net zero goals.
(Barrow and Furness) (Con)
One of the biggest challenges that we have in delivering home
retrofit schemes in Cumbria is not with local authorities but
with industry capacity and skills. What are the Government doing
to try to send the right signals to industry so that we are
getting the right skills into the supply chain to deliver some of
these schemes, especially in areas such as Cumbria where we have
skills deserts?
My hon. Friend makes a really important point on skills. In fact,
we have invested £15 million in subsidised training over the past
three years and have provided 16,800 training opportunities. We
will continue to support this important industry.
Boiler Replacement Guidance
(New Forest West) (Con)
10. Whether she plans to issue guidance to people with oil-fired
heating on replacement of boilers.(906462)
The Minister for Energy Security and Net Zero ()
The Government have created an online advice service to help
consumers in replacing fossil fuel heating systems, including oil
boilers, with a heat pump. We are also providing funding through
the boiler upgrade scheme.
Mr Speaker
This will be helpful.
Absolutely, Mr Speaker. There is a panic now in Germany as its
premature ban on gas-fired boilers approaches. The Minister will
want to avoid a similar panic as we approach our own premature
ban on oil-fired boilers, won’t he?
As ever, I thank my right hon. Friend. We are listening. As the
Prime Minister set out, we will reduce our emissions in line with
our obligations but do so in a way that recognises the challenges
that families face. Off-grid households will be supported through
the transition, and we will respond to the consultation in due
course.
(Tiverton and Honiton)
(LD)
During the summer recess, when I was touring villages, I found in
my corner of Devon that some constituents are worried about
whether they should replace their oil-fired boiler in the next
couple of years with a heat pump or put their faith in
hydro-treated vegetable oil. Some have been encouraged by the
pilots of so-called HVO as an alternative source to heating oil.
What assurances can the Minister offer that it will be a truly
sustainable source of fuel and not made from palm oil, which
encourages deforestation? Or should we put 100% of our efforts
into heat pumps?
As the hon. Member doubtless knows, we have conducted a
consultation on the use of HVO in heating, and we are determined
to ensure that we decarbonise heat in homes, including off-grid
homes, in a way that is practical and aligned with minimising any
negative impacts on those families.
Energy-intensive Industries: Decarbonisation
(Walthamstow) (Lab/Co-op)
11. What steps her Department is taking to help energy-intensive
industries decarbonise.(906464)
The Secretary of State for Energy Security and Net Zero ()
The Government have committed £20 billion to support the early
development of carbon capture and storage, and £500 million for
the industrial energy transformation fund to help industry
decarbonise, phase 3 of which is expected to open for
applications in early 2024.
May I put on the record the thanks of Back Benchers to the Clerk
of the House for his work?
Steel accounts for 8% of global carbon dioxide emissions and
50,000 jobs here in the UK. We have no viable alternative to
steel, which is why the Government’s decision to go with an
electric arc furnace only modelled for decarbonisation does not
make any sense. Not only does it put at risk thousands of jobs
but it makes the industry vulnerable to changes in steel prices,
as the UK will have to import it. The Minister spoke about carbon
capture, but can she explain why the Government have not gone for
a combination of technologies such as carbon capture, or the
retrofitting required for hydrogen-based steel production? That
way, we would not only decarbonise the industry but protect those
vital jobs and the industry in the UK for generations to
come.
As the Business and Trade Secretary set out, the Government’s
deal has provided long-term security for at least 5,000 steel
jobs. The investment will grow UK domestic green steel
production. I gently urge the hon. Lady to look at her party’s
plans for industry, which have been described as impossible and
decimating the working classes.
(Romsey and Southampton
North) (Con)
Energy-intensive industries come in many forms. Can my right hon.
Friend provide any reassurance that the Government will review
the classifications of what constitutes an energy-intensive
industry? SB Joinery in my constituency contains a large sawmill
and planing facility, but has been deemed ineligible for high
levels of the energy bills discount scheme. Would my right hon.
Friend be prepared to look at that case personally?
I would be delighted to meet my right hon. Friend and discuss
that particular case. We keep looking at everything we can do to
support business, as we have done this entire time.
Mr Speaker
I call the shadow Minister.
(Croydon Central) (Lab)
For years people have been calling on the Government to have a
proper plan to help our steel industry decarbonise. Instead, the
industry has lurched from crisis to crisis, and now the
Government are spending £500 million in a deal that will make
thousands of Port Talbot steelworkers redundant. Is it not the
simple truth that jobs and wealth will be lost because there is
no comprehensive plan for steel, automotive or any industry that
needs to decarbonise?
I refer the hon. Lady to my previous comments. The investment
will provide long-term security for at least 5,000 steel jobs. We
have had record investment of £4 billion in the auto industry
this year. Again, I urge her to look at her own party’s plans.
Its industry decarbonisation plans are disastrous, and will push
jobs and investment out of this country.
Heat Networks
Dame (Hackney South and Shoreditch) (Lab/Co-op)
12. If she will take steps to ensure that consumers do not pay
for heat network remediation.(906465)
(Carshalton and Wallington)
(Con)
15. What steps she is taking to support heat network customers
with energy bills.(906469)
(Lewisham East) (Lab)
17. What assessment she has made with Cabinet colleagues of the
potential merits of introducing a mandatory price cap on heat
networks.(906471)
The Parliamentary Under-Secretary of State for Energy Security
and Net Zero ()
The Government are providing millions in support for remedial
work through the heat networks efficiency scheme. We are
supporting customers with their bills via the energy bills
discount scheme. Through the Energy Bill we will appoint Ofgem as
a heat network regulator, so that customers benefit from fairer
prices.
Dame
I must declare that I live in a block with a heat network. Many
heat networks will be quite expensive to change under the
technical rules proposed by the Government for 2024. Given many
blocks have also had cladding and other pressures on
leaseholders, are the Government looking carefully to ensure that
customers are not being overlayered with many more charges to
remediate networks?
Through the heat network efficiency scheme, the Government are
providing £32 million to upgrade existing heat networks and
reduce energy costs. The scheme will upgrade old equipment and
help consumers in more than 10,000 houses to reduce their energy
use. We will shortly announce the first awards from the fund.
Residents living in New Mill Quarter in Hackbridge in my
constituency have been plagued by a litany of problems since they
were connected to the Sutton decentralised energy network,
including an inability to change tariffs. Does my hon. Friend
agree that residents have been let down by the mismanagement
identified in an independent report on its poor running by Lib
Dem-run Sutton Council? Will she commit to working with me to
ensure that heat network customers, who have nowhere else to go
for their energy, are protected by new measures in the Energy
Bill?
I know how hard my hon. Friend works for his constituents and I
thank him for bringing this scheme to my attention. We want all
heat network customers to receive a high-quality service and fair
pricing, which is why we are appointing Ofgem as a regulator
through the Energy Bill and currently consulting on how it will
operate. Of course I will meet my hon. Friend.
Many of my residents are locked into district heat network
schemes. They have been paying up to 13 times more than the rest
of the UK because they are not protected by the energy price cap.
Do the Government not think it is time to implement a mandatory
price cap straight away?
At this moment in time we do not think that a uniform price cap
would benefit consumers, given the huge diversity in size and
scale of providers in the market. However, through the Energy
Bill, the Secretary of State will have powers to introduce a
price cap, should one be beneficial in future.
Families in Fuel Poverty
(Bradford East) (Lab)
14. What estimate her Department has made of the number of
families in fuel poverty.(906467)
The Parliamentary Under-Secretary of State for Energy Security
and Net Zero ()
In 2022, there were an estimated 3.26 million households in fuel
poverty. The additional support we provided last year prevented
350,000 households from falling into fuel poverty in 2022. The
established targeted support remains in place, while from July
2023 household energy bills have been falling.
Over 40,000 families in Bradford have been plunged into
uncertainty as the Tory Government lurch from crisis to crisis.
More than one in five of my constituents now live in fuel
poverty, yet the Minister still comes here today with no real
plans or solutions, and no real windfall tax on the booming
profits of energy giants. Let me ask the Minister to put herself
in the shoes of my constituents. What does she have to say to
those who, frankly, have been abandoned and have to choose
between a warm home, a full stomach and school uniforms for their
children?
Having experienced fuel poverty myself when I was growing up, I
do understand completely how the hon. Gentleman’s constituents
feel. That is why the Government are absolutely committed to
ensuring that we support people. We have given unprecedented
support. We have the warm home discount and the cost of living
payment, among many other measures, to help constituents through
the cost of living.
Renewable Energy Sector: High-skilled Jobs
(Chipping Barnet)
(Con)
16. What steps she is taking to help promote the creation of
high-skilled jobs in the renewable energy sector.(906470)
The Secretary of State for Energy Security and Net Zero ()
This is a crucial area. There are already over 400,000 jobs in
the renewable energy sector and that will rise steeply over time.
We are investing billions in skills, including green skills and
including 26,000 training opportunities in energy efficiency and
low carbon heating.
May I urge the Government to give real priority to the creation
of apprenticeships in the renewable energy and green sector? That
way, we can use net zero to create great opportunities for young
people and boost social mobility.
As a former Education Minister, I am absolutely passionate about
this area. We have delivered almost 5.5 million apprenticeships
since 2010. The Minister for Energy Security and Net Zero, my
right hon. Friend the Member for Beverley and Holderness () chairs the green jobs
delivery group, which will publish a net zero and nature
workforce action plan in the first of half of 2024.
(Denton and Reddish)
(Lab)
I welcome the Secretary of State to her position. Although the UK
has the second largest offshore wind capacity in the world after
China, Denmark has three times as many jobs in the sector. Many
British wind turbines are being built in Spain, Holland and
Indonesia. Why are the Government so far behind the curve on the
green jobs bonanza that is so possible for our country?
Thanks to Government policy and spending, we will support another
480,000 jobs in the green sector by 2030. As I said, we are
leading the way in decarbonising faster than any other G7
country, with the jobs that come with that right across the
country.
(Bolton North East) (Con)
I, too, welcome the Secretary of State to her place and remind
her that we started in this place at the same time, four years
ago. Will she highlight the job opportunities in the new
renewable energy sector that AI presents for my constituents in
Bolton?
My hon. Friend raises an interesting point about the job
opportunities presented by AI, which will undoubtedly have an
effect across the country and a beneficial effect in this sector.
I would be delighted to meet him to speak about this further, but
we will be setting out more detail on our green jobs delivery
group and our net zero and nature workforce action plan in the
first half of 2024.
(Westmorland and Lonsdale) (LD)
Would it not boost skills in renewable energy generation and
installation, as well as encouraging more uptake, if all those
installing solar energy schemes had to be certified under the
microgeneration certification scheme so that the householder,
farm or business concerned would be guaranteed payment for
surplus energy fed into the grid?
The right hon. Gentleman asks an interesting question. We have
explored his suggestion of legislating to make certification
mandatory. We have no such plans at this time, as there is a
mature approach to certification standards, and most UK domestic
solar installations already take place within well-established
schemes.
Domestic Nuclear Energy
(Ynys Môn) (Con)
18. What assessment she has made of the potential contribution of
Great British Nuclear to domestic nuclear energy
targets.(906472)
The Parliamentary Under-Secretary of State for Energy Security
and Net Zero ()
The British energy security strategy sets out our ambition for
deploying up to 24 GW of civil nuclear by 2050. We launched Great
British Nuclear to help deliver new nuclear projects, starting
with a small modular reactor competition. The GBN offer to
successful vendors will include funding to support technology
development and support with accessing sites.
May I say “Croeso” and welcome my right hon. Friend the Secretary
of State to her place?
Wylfa is recognised as the best site for new nuclear in the UK—if
not in Europe—but a Welsh Affairs Committee report stated
recently that ownership of the site is holding back progress.
What are the Minister and Great British Nuclear doing to transfer
its ownership from Hitachi to an active nuclear developer?
The terms “doughty champion” and “passionate” are regularly
thrown about in this place, but when it is a case of championing
Wylfa new nuclear, no one comes close to my hon. Friend. When
launching the small modular reactor competition in July, the
Secretary of State indicated that, as part of a comprehensive
offer to industry, GBN would support access to sites for
successful vendors, and Wylfa is one of a number of sites that
could host civil nuclear projects. However, no siting decisions
have been made so far.
Topical Questions
(Witham) (Con)
T1. If she will make a statement on her departmental
responsibilities.(906473)
The Secretary of State for Energy Security and Net Zero ()
Since my appointment a fortnight ago, the Energy Bill—which will
deliver cheaper, cleaner, more secure energy—was given a Third
Reading in this House. We have funded a record 95 renewable
energy projects, and I have visited our pioneering Culham Centre
for Fusion Energy. I have also launched the £1 billion Great
British insulation scheme. We have bolstered our energy
collaborations with Ireland and Japan, we have made our biggest
ever climate finance pledge, and just yesterday we invited
partners to invest in Sizewell C, a major component of our
nuclear revival.
I welcome my right hon. Friend the Secretary of State to her new
role. She will be aware that the huge increase in offshore wind
farms in the east of England has led to an unwelcome proposal
from National Grid to put 100 miles of pylons across the area. We
do not want that. We need an offshore solution. Will my right
hon. Friend meet Members from the east of England to discuss this
proposal?
I thank my right hon. Friend for raising this issue today. I
understand that concerns have been raised by local communities
about the National Grid electricity transmission plans for
network reinforcement between Norwich and Tilbury. The Minister
for Nuclear and Networks, my hon. Friend the Member for West
Aberdeenshire and Kincardine (), has visited the area and
will continue to engage with colleagues, but I am also happy to
meet local MPs to discuss the matter further.
Mr Speaker
I call the shadow Minister.
(Manchester, Withington)
(Lab)
According to analysis by the Resolution Foundation, more than a
third of British households face higher bills from the end of
this month because of higher standing charges and the demise of
the energy bills support scheme, and the people who use the least
energy, and those in the poorest households, are
disproportionately worse off. At the same time, the windfall tax
has massive loopholes costing billions. Would not closing those
loopholes and extending more help to people during the cost of
living crisis be the right thing to do?
The Parliamentary Under-Secretary of State for Energy Security
and Net Zero ()
The hon. Gentleman will be aware that the Government are raising
a 75% energy profits levy, and he will also be aware that
standing charges are a matter for Ofgem. Let me reiterate,
however, that we are mindful of the cost of living crisis and
have been providing support with the warm home discount, the £900
cost of living payment, and a raft of other measures to support
people through this crisis.
(Waveney) (Con)
T2. The launch last week of the Great British insulation scheme
was very welcome. So as to build on this and to kickstart a mass
retrofitting revolution, will my hon. Friend liaise with the
Treasury to obtain its support for the introduction of such
fiscal measures as an energy-saving stamp duty and an employee
benefits scheme similar to the cycle to work scheme?(906474)
The Government set the aspiration in the clean growth strategy of
upgrading as many homes as possible to energy performance
certificate band C by 2035, where practical, cost-effective and
affordable. We remain committed to that aspiration. Although tax
policy sits with the Treasury, we are considering how to improve
energy efficiency for owner-occupied homes and plan to consult by
the end of 2023.
(York Central)
(Lab/Co-op)
T7. Energy companies have accumulated hundreds of pounds, if not
over £1,000, in consumer credit. When those companies go into
administration, the company taking over does not honour that
credit and people often with very little means have lost hundreds
or thousands of pounds. How will the Minister ensure that they
get compensation and get credited by the new company with the
amount of money they have lost?(906480)
I can assure the hon. Lady that we are in constant conversations
with Ofgem on such matters. Although this is a matter for Ofgem,
I have a regular meeting to make sure that we are on top of
this.
(Carshalton and Wallington)
(Con)
T3. Energy from waste requires burning waste and it is therefore
not conducive to net zero. The expansion of the Beddington
incinerator in my constituency is not needed to meet local
demand, so can my right hon. Friend assure me that the
Environment Agency will take that into account before making a
decision on whether or not to license?(906475)
The Minister for Energy Security and Net Zero ()
The Environment Agency’s recent consultation on varying the
environmental permit for the Beddington energy recovery plant
closed on 1 September. The Environment Agency will carefully
consider all relevant responses and issue a final decision in due
course.
(Brent North) (Lab)
In the Select Committee inquiry into preparations for this
winter, one of the repeated calls that we have heard from expert
witnesses is to support the vulnerable and fuel poor with a
social tariff. Will the Minister do that?
Of course we are aware of the challenges that are facing
consumers this coming winter, which is why we are keeping the
price cap as a safety net. To give the hon. Gentleman
reassurance, we will be monitoring the situation in case we need
to look at this further.
(Wimbledon) (Con)
T5. Recent investment in electric vehicle charging and the EV
supply chain shows the benefit of the Government setting clear
targets so that the private sector has the confidence to invest.
Does my right hon. Friend agree that if we had similar policy
consistency across the whole of the economy, we would see greater
investment in green growth and in meeting decarbonisation by
2050?(906477)
The zero-emission vehicles mandate supports our commitment to end
the sale of new petrol and diesel cars and vans. By setting it
many years in advance and giving clear notice to the market, it
provides appropriate stimulus to industry in a way that the ultra
low emission zone singularly fails to do, as my hon. Friend will
have noted.
(Bath) (LD)
The Energy Minister got his facts wrong in his earlier response
to the hon. Member for Brighton, Pavilion (), so he might want to
correct the record. The Liberal Democrat amendment to the Energy
Bill to tackle flaring, venting and leaking of methane was
selected for a separate vote. It would have reduced methane
emissions by 72 %. Why did his Government vote it down?
I stand corrected. On that issue, we have infrastructure, some of
which dates from the 1970s, and we are moving at the maximum
possible speed. It is technologically and economically
challenging to make this change, and yet, as I set out earlier,
we are already showing significant efforts, and of course we are
champions of the methane pledge, which we plan to exceed. When I
am at COP28, I will be urging other countries to follow us in
agreeing and supporting that World Bank methane pledge.
(Gedling) (Con)
T6. The hydrogen industry will, I am sure, welcome the
introduction of the hydrogen production business model for green
hydrogen, with a further business model planned for next year,
but the storage and transportation business model for hydrogen is
not due to be finalised until 2025. For customers of companies
such as Luxfer Gas Cylinders of Colwick in my Gedling
constituency, this is a potential barrier to some projects moving
forward. Can my right hon. Friend give come clarity on the
sequencing and whether there is scope to bring forward the
storage and transportation business model so that the timing is
joined up?(906478)
My hon. Friend is right to talk about the challenge of bringing
all the pieces together to unlock opportunity. The Government
will promote the whole hydrogen economy—production, demand,
networks and storage—and stimulate private sector investment. In
August, the Government published the low-carbon hydrogen
agreement, setting out the hydrogen production business model’s
terms. We will award contracts for that in quarter 4 of 2023. My
colleagues and I are happy to meet my hon. Friend to talk about
making sure we get this absolutely right so that we maximise its
benefits.
(Ellesmere Port and Neston)
(Lab)
Biodiesel producers in my constituency are being undercut by
cheap Chinese imports because of the Government’s decision to
award them inward processing relief. This is making it difficult
for us to support UK industry, so can we have an explanation for
why that decision was made?
I will write to the hon. Gentleman.
(Sleaford and North
Hykeham) (Con)
Writing for The Daily Telegraph last year, our now Prime Minister
said:
“On my watch, we will not lose swathes of our best farmland to
solar farms.”
Yet the industry has not heard that, and vast swathes of farmland
in my constituency, totalling 16 square miles, are open to
planning, engulfing whole villages and using the best and most
versatile land. Will my right hon. Friend meet me to discuss how
he and the Department can ensure that the Prime Minister keeps
his very important promise?
I can assure my hon. Friend that planning policy and the
associated guidance encourage large-scale solar projects to be
located on previously developed or lower-value land. Where
greenfield sites or high-grade land are used, developers are
required to justify using such land and to design their projects
to avoid, mitigate and, where necessary, compensate for any
impacts. I hear my hon. Friend’s personal testimony, and I will
be happy to meet her to discuss this further.
(City of Chester) (Lab)
Almost 20% of the housing stock in my constituency dates from
before 1919 and is therefore classified as historical. What plan
does the Department have to improve skill levels in retrofitting
historical residential buildings?
As I previously mentioned, retrofitting is one of our most
important projects. Of course, skills are a real issue, which is
why we are delighted that this will enable us to enhance our
skill bases.
(Banff and Buchan) (Con)
I welcome my right hon. Friend the Secretary of State to her new
role. Given the vital role that oil and gas play in managing our
energy security as demand continues, albeit declining, and the
vital jobs, skills, technologies and expertise in that industry,
90% of which are thought to be immediately transferrable to the
renewables sector, does my right hon. Friend share my
disappointment at today’s reports of Humza Yousaf’s vow to end
Scotland’s place as the oil and gas capital of Europe?
My hon. Friend is right. Last year we were dependent on fossil
fuels for 77% of our energy. If we import more gas from abroad,
it will be in the form of liquefied natural gas, which, according
to a report from the North Sea Transition Authority two weeks
ago, has four times the production emissions of domestic gas. The
Scottish National party, ably supported by the Labour party,
wants to threaten 200,000 jobs, £50 billion of tax revenue over
the next five years, and the very subsea engineering and
technological capability—not to mention the balance sheets—that
we need to develop hydrogen, carbon capture, usage and storage,
and the rest of the transition. It is madness, and it is the
policy of the SNP.
Dame (Llanelli) (Lab)
Yes, we need increased electric arc capacity to reprocess more
scrap steel in the UK, but Trostre tinplate packaging works in my
constituency needs a grade of steel that can be produced only by
the blast furnace process, until green production technologies
are developed. With 23 such projects elsewhere in Europe, will
the Secretary of State commit to investing in developing these
technologies at Port Talbot, thus reducing emissions and keeping
jobs in Port Talbot and Llanelli?
I share the hon. Lady’s enthusiasm for keeping those jobs, which
is why we are investing hundreds of millions of pounds to ensure
that these industries can make that transition. I entirely agree
with her on the importance of innovation and making sure it is
embedded so that not only do we sustain those industries but so
that, through innovation, we can strengthen them in the years
ahead.
(Rutland and Melton)
(Con)
A decade ago, the onshore wind industry committed to a community
benefit protocol to provide compensation of £5,000 per MW
installed per annum to communities for the duration of a wind
scheme. So far, solar developers have refused to do something
similar, and surely that is not fair. Does my right hon. Friend
agree that compensation schemes must be equal, whether wind or
solar is involved?
It is perhaps typical of my hon. Friend that not only is she
asking a question and championing this issue, but she has
scheduled a meeting with me immediately afterwards. I look
forward to discussing this with her and making sure that we have
the most coherent position possible as to where we are set on
rewarding communities that host transmission infrastructure and
other parts of our transition. I look forward to having that
conversation with her in the coming minutes.
(Glasgow Central)
(SNP)
My constituent Lee Haywood is on a communal heat network, and he
and his neighbours saw their price per kWh double last winter.
What protection can the Minister give as we come into the next
winter, as residents in Dalmarnock are really worried that prices
will again soar in this unregulated area?
We have put in place protection to ensure that prices are not
going to go up; we have the energy price guarantee. In addition,
let me point out that prices are coming down.
(Glasgow North) (SNP)
Do the Government think the UK is on track to meet the 2050 net
zero target? Do the Government think the UK will meet that
target? Do the Government even really care?
We have, of course, met all our carbon budgets to date. In the
progress report, the Climate Change Committee said it had
increased confidence in our meeting carbon budget 4 and, yes,
this country will meet its net zero targets by 2050. It will do
so in line with the advice that we are given, and I am proud of
the fact—the hon. Gentleman could share this with his
constituents, who may be concerned otherwise—that this country
has cut its emissions by more than any other major economy on
earth, thanks to the policies of this Government.
(Westmorland and Lonsdale) (LD)
This morning, I received a text from one of the leadership team
at one of our local hospices. It said that
“there has been no additional support for our energy costs. Costs
have gone up while statutory support hasn’t changed... Hospices
UK lobbied for additional support…to no avail… We operate 24/7
and have to keep the heating on—you know what the weather is like
in Cumbria in the winter!”
When will the Minister come up with a bespoke support scheme for
our vital hospices?
I thank the hon. Gentleman for the meetings we have had, and I am
mindful of the situation that hospices face. We have given
support and I will make sure that I keep monitoring the
situation.
