(7 months ago)
Commons ChamberRead Hansard Text Watch Debate Read Debate Ministerial Extracts
Kenny MacAskill (East Lothian) (Alba)
The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
My Department attended the Grangemouth industrial just transition leadership forum alongside Scotland Office Ministers and representatives of Unite the union on 28 March. We remain in close contact with the Scottish Government and the owner Petroineos. My hon. Friend the Minister for Energy Security and Net Zero met Scottish Government counterparts and Petroineos management on 15 May and raised the importance of working with the unions.
Kenny MacAskill
Warm words are one thing; tangible support is quite another. If Grangemouth closes, Scotland faces the possibility—indeed, the probability—of being the only major oil producing nation without refinery capacity, yet €700 million has been found by the UK Government to support an Ineos plant in Antwerp while not a penny is available for Grangemouth. Is it to be a Brexit bonus for Belgian workers and a P45 for those Scots at the refinery?
Claire Coutinho
We are working with the Scottish Government and Petroineos to understand all possible options for the future of the refinery. I remind the hon. Gentleman that the Conservatives are the only major party who are backing the North sea, the biddings it brings in each year and the hundreds of thousands of jobs that it supports, while a new report last week showed that Labour’s plan could lose as many as 100,000 jobs in the next five years.
Henry Smith (Crawley) (Con)
The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
We are on track to reach net zero by 2050, and we will do so in a way that brings the public with us. We overachieved on our third carbon budget by 15%, and we announce today that we will not be rolling that over as we think that we will be able to overperform on carbon budget 4 as well.
Henry Smith
I congratulate the Government on us being one of the first major economies in the world to set out the ambition for net zero carbon emissions by 2050. What discussions has the Secretary of State had with the Chancellor and the Secretary of State for Transport with regard to a revenue support mechanism for sustainable aviation, as well as ensuring that feedstock for sustainable aviation fuels takes priority?
Claire Coutinho
I know from experience that my hon. Friend is a doughty champion for his local area and for the aviation sector. My Department is in regular contact with the Department for Transport and the Treasury on aviation decarbonisation and the important role for sustainable aviation fuel in that transition. On 25 April, DFT published a consultation on options for a revenue certainty mechanism alongside details of the SAF mandate, which together will support both decarbonation and the growth of the sector.
Angus Brendan MacNeil (Na h-Eileanan an Iar) (Ind)
Tapadh, Mr Speaker.
There are many criticisms of the Government—I am sure they are aware of them—that they are too slow and indecisive about giving signals to the market for particular technologies, which means that, when they need to commission new energy, they are stuck with only one option: gas, which, as we know, is not exactly the way to net zero. What will the Secretary of State be doing to move things a bit quicker and give the market signals as to which energy path the UK will be taking?
Claire Coutinho
I remind the hon. Gentleman that we have one of the most remarkable records when it comes to renewable energies. The only country that has built more offshore wind than us is China, we have set out the largest expansion for nuclear, and we are at the forefront of cutting-edge technologies such as fusion, hydrogen and carbon capture.
Dame Andrea Jenkyns (Morley and Outwood) (Con)
Meeting our net zero targets, which will be extremely difficult and eye-wateringly expensive, has been enforced on my constituents. Does the Secretary of State agree that we must be more honest and open about the enormous costs of net zero on the British taxpayer? Will the Government commit to publishing a detailed analysis of those costs in advance of my Westminster Hall debate?
Claire Coutinho
There is a balance to be struck, which I believe we are striking, in ensuring that we can make the most of the jobs and opportunities of the energy transition, which will support up to 480,000 green jobs in 2030. But, yes, when it comes to additional costs, we are taking a measured approach because we want to protect households.
Caroline Lucas (Brighton, Pavilion) (Green)
In the Climate Change Committee’s latest progress report, it was made clear:
“There continues to be an overly narrow approach to solutions, which crucially does not embrace the need to reduce demand for high-carbon activities.”
So when the Secretary of State goes back to the drawing board to revise the Government’s carbon budget delivery plan, as she now must, will she finally reduce the reliance on unproven technofixes and look instead at demand reduction measures—or, following the recent embarrassing judgment from the High Court, is she aiming for a hat-trick, with her Department’s climate plan declared unlawful for a third time?
Claire Coutinho
I would find the hon. Lady’s questions more credible if she would at least once welcome the fact that we are the first country in the G20 to have halved emissions. On our progress, I am proud that one of the reasons that we have come so far is technological fixes, because of the remarkable progress that this country has made in renewable energy. That is why we overshot on our first, second and third carbon budgets, and we are on track to overshoot on our fourth.
Edward Miliband (Doncaster North) (Lab)
Two weeks ago the Government were found, for a second time, to be in breach of the law over their climate targets. That failure will mean that families across the country will pay higher energy bills. The Court found:
“The Secretary of State’s conclusion that the proposals and policies will enable the carbon budgets to be met was irrational”.
Last time, the Government claimed that their breach of the law was just on a technicality. What is the right hon. Lady’s “dog ate my homework” excuse this time?
Claire Coutinho
Let us be clear: the Court did not question the policies that we have set out, which we have done in more detail than any of our peers. It did not question the progress that we have already made, as the first G20 country in the world to halve emissions, and it did not question the ambition of our future targets, which are among the most ambitious of our peers. If the right hon. Gentleman wants to look at what would smother the transition and private investment in this country, he need only look at his own mad, unachievable 2030 target.
Edward Miliband
With a defence like that, I can see why the Government lost in court not just once but twice. Buried in the court documents is the confidential memo that reveals the real reason they lost the case—officials were telling Ministers that they had low or very low confidence that half their carbon reductions would be achieved. That is why they were found unlawful. The right hon. Lady comes to the House each month with her complacent nonsense, but the court judgment exposes the truth: the Government are way off track, abysmally failing to meet the climate emergency and pushing up bills for families as a result.
Claire Coutinho
I have learned in this role that the right hon. Gentleman likes to call people who disagree with him names. Last week, representatives from the Tony Blair Institute said that his plans would raise bills and harm our energy security. Are they flat earthers? An industry report said last week said that his plans would see up to 100,000 people lose their jobs. Are those people who are worried climate deniers? When will the right hon. Gentleman admit that his plans are based on fantasy and ideology and are the last thing that this country needs?
Liz Twist (Blaydon) (Lab)
Liz Twist
Every family in Britain is paying the price for the Government’s failure on energy, with bills through the roof while oil and gas profits have soared. A publicly owned clean energy company would allow us to take back control of our energy, cutting bills and creating jobs across the UK. Why are the Government letting their ideological stubbornness get in the way of supporting families, when they could follow other, successful countries and set up a publicly owned clean energy company like Great British Energy?
Justin Tomlinson
I thank the hon. Lady for her question, but I do not think that consumers will. The TUC itself has highlighted the potential £61 billion to £82 billion cost that will be landed either at the taxpayer’s doorstep or directly on to consumers’ bills, which is nothing to be thankful for.
Dominic Raab (Esher and Walton) (Con)
In 1985, just before privatisation, 4.2% of total consumer spending was on energy bills. Between 2000 and 2020, that dropped to between 2% and 3%. Even last year during the war in Ukraine, it only hit 3.6%. Does my hon. Friend agree that, as he has already said, the suggestion from the hon. Member for Blaydon (Liz Twist) would wallop consumers?
Justin Tomlinson
We have to work with businesses to secure investment. We have secured £300 billion for low-carbon technologies since 2010, as we boost UK energy production, our energy security and, ultimately, deliver cheaper bills for consumers.
Kerry McCarthy (Bristol East) (Lab)
When it comes to who controls and benefits from our energy system, why does the Government refuse to put the British people first? As we have heard, foreign-owned firms, whether France’s EDF or Denmark’s Ørsted, reap the rewards of energy produced in Britain. As they benefit British people pay the price, exposed to sky-high energy bills and beholden to volatile international prices. Why is the Minister so opposed to putting power back into the hands of the British people?
Justin Tomlinson
There is not a single country around the world that thinks Governments alone can deliver increased energy security. By working with businesses, we can unlock the private investment to do it. And talk about irrational: imagine a career politician, the shadow Secretary of State, running UK energy. Consumer bills would rocket.
Kerry McCarthy
The Minister is completely missing the point, so I will use a real-world example. In Bristol, we have set up the 20-year Bristol City Leap project with Ameresco and Vattenfall, a partnership between the public and private sector that will help the city to cut carbon dioxide, bring down bills and deliver green jobs. Actually, the Government are piloting a similar project in York, because it has been such a success in Bristol. But why should it be Vattenfall, a 100% Swedish state-owned firm, rather than a British equivalent, such as Labour’s GB Energy, that benefits? Why can Swedish taxpayers profit from investing in our future, but British taxpayers cannot?
Justin Tomlinson
Politicians with zero business experience are high risk. It was not so long ago that the shadow energy security Minister highlighted the success of Robin Hood Energy, backed by Nottingham City Council, which delivered a £38 million loss.
Andrew Bridgen (North West Leicestershire) (Ind)
The Minister for Energy Security and Net Zero (Justin Tomlinson)
Our pragmatic, proportionate and realistic approach to meeting net zero will capitalise on the opportunities of the low-carbon transition, creating jobs and investment across the UK.
Andrew Bridgen
The cost of net zero is being borne by our hard-pressed constituents, at the same time as China increases its carbon dioxide emissions by more than the UK’s total emissions every year. Wholesale electricity prices are currently £65 per megawatt, but we are paying £102 per megawatt for fixed offshore wind, offering £246 for floating offshore wind, £89 for onshore wind, and £85 for solar. Can the Minister explain whatever happened to plentiful, cheap renewable energy?
Justin Tomlinson
The hon. Member and I agree that we must champion the importance of delivering cheaper bills for consumers. This does not have to be a binary choice between tackling climate change and delivering cheaper consumer bills. By investing in a cleaner, more efficient energy system, we can do both.
Sir John Hayes (South Holland and The Deepings) (Con)
I refer Members to my entry in the Register of Members’ Financial Interests.
The benefits of renewables cannot come at any cost. In that spirit, I welcome the commitment of the Secretary of State and in particular the Minister to protect food security through the additional protections of versatile and productive agricultural land. Will the Minister also affirm the Government’s determination to protect areas that are particularly affected by energy infrastructure—pylons, wind and solar—such as the Lincolnshire fens, the Somerset levels and Romney Marsh? Food security matters just as much as energy security in the national interest for the common good.
Justin Tomlinson
We are proud to have taken renewables from just 7% under the last Labour Government to 47% today, but my right hon. Friend makes a powerful point about the need to tackle clustering. The Secretary of State reiterated clear guidelines and advice for local authorities and planning committees up and down the country to make sure that we safeguard, wherever possible, our key agricultural lands as part of our commitment on food security.
Tim Farron (Westmorland and Lonsdale) (LD)
Communities in Westmorland cannot afford for us not to be reducing carbon emissions. I think of communities such as Kirkby Stephen, Appleby and Kendal, all of which are listed as energy crisis hotspots. That means they have below average incomes, but above average energy prices. There are over 10,000 homes in need of loft insulation and 6,940 homes in need of cavity wall insulation in my communities. Will the Minister give resources to the excellent Cumbria Action for Sustainability to meet that need and decrease bills, and also perhaps revise the rules for ECO4 so the scheme better fits older homes in rural areas such as ours?
Justin Tomlinson
I thank the hon. Member. As on football, we agree on the principles. The Government are proud to have taken energy-efficient homes from 14% to 50%. Local initiatives can play a key part in that and I would be interested to learn more about the project he highlighted.
Dr Caroline Johnson (Sleaford and North Hykeham) (Con)
Decarbonisation is welcome, but it must be achieved in a way that balances the country’s other priorities, such as food security. I welcome last week’s statement from the Secretary of State about the importance of protecting our best and most versatile farmland, but can the Minister tell me more about how he will ensure that we prioritise solar power on rooftops instead?
Justin Tomlinson
The Government are proud to have delivered an additional 43 GW of renewable energy since 2010 alone. We have also introduced planning changes to make it easier to install solar panels on rooftops, including those of industrial buildings, and we can thank consumers for leading the way: an average of 17,000 households a month added solar panels to their roofs last year.
Andrew Rosindell (Romford) (Con)
Steve Tuckwell (Uxbridge and South Ruislip) (Con)
Simon Baynes (Clwyd South) (Con)
Mrs Sheryll Murray (South East Cornwall) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
The price cap has fallen by 60% since the start of last year, and the Government are taking a comprehensive approach to bring down future energy bills for consumers. That includes reforming electricity markets to make them more effective, investing across the energy system to make it smarter, and investing in energy efficiency to reduce costs for households.
Andrew Rosindell
I thank the Minister for her answer, but I want her to understand that for constituents such as mine in Romford energy prices are becoming completely unaffordable, and the Government need to do more. My constituents are also very concerned about the cost of net zero, and we need to know what that will cost them in years to come. Surely the Government need to take the British people with them on these policies, but at present there is a great deal of scepticism.
Amanda Solloway
That is certainly one of the Department’s aims. We are very conscious that we must get that energy security while also helping all the vulnerable households—and non-domestic businesses—that need our support.
Steve Tuckwell
A significant number of households in my constituency who are experiencing the continued impact of Russia’s illegal invasion of Ukraine and unrest in the middle east have received help in the form of the Government’s cost of living support payments. Those payments are welcome, but does the Minister agree that this important support should continue, along with more information about the help that is available and how to gain access to it?
Amanda Solloway
My hon. Friend is a great champion for his constituents, and of course I agree with him about the importance of ensuring that householders know where to obtain information about what they may be able to receive, especially as we are providing them with £108 billion between 2022 and 2025. I recommend that they visit the Help for Households web page on gov.uk to find out what support they may be entitled to.
Simon Baynes
Many rural properties on the Welsh borders—including those in Clwyd South and in neighbouring north Shropshire—are not connected to mains gas and therefore use oil or liquefied petroleum gas for heating, and many of the residents are unaware of the support that is available to help with their energy bills. Can the Minister tell the House what support the Government are providing for those residents?
Amanda Solloway
My hon. Friend has raised an important issue. We are, of course, helping all those households. The Government supported about 3 million households using alternative fuels with the £200 alternative fuel payments in the winter of 2022-23, and although energy prices, including alternative fuel costs, have fallen significantly since then, we are nevertheless committed to supporting all households with that £108 billion package between 2022 and 2025.
Mrs Murray
I have just had some solar panels fitted to my roof and I am pleased to report that they are reducing my bills, but what more are the Government doing to encourage people to produce their own electricity by means of renewables, in order to reduce the pull on the grid and also reduce bills?
Amanda Solloway
I am delighted to hear that my hon. Friend has had those solar panels fitted. She will be interested to hear that the Government are considering options to facilitate low-cost finance from retail lenders to help households with the up-front costs of installation, and to drive rooftop deployment and energy efficiency measures.
Janet Daby (Lewisham East) (Lab)
I know of too many cases in which people whose properties are connected to heat networks are paying extremely high energy bills. I welcome the Department’s response to the consultation on heat networks, but the Energy Act 2023 only allows for Secretaries of State to introduce a price cap, at their discretion. Some of my constituents are paying bills that are 13 times the level of the cap. Will the Minister consider a mandatory cap to ensure fair prices for heat network customers?
Amanda Solloway
The hon. Lady makes an important point. Of course, the price cap is an issue for Ofgem. However, I would be interested to hear some of her suggestions and I am always happy to have a meeting on that particular subject.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
Fuel and extreme fuel poverty across the highlands and islands is higher than anywhere else in the UK, yet families there are forced to pay the highest electricity standing charges in the UK—50% more than in London, for example. That is despite the region exporting in excess of six times the amount of renewable electricity that it uses. When will the Government introduce a highland energy rebate to ensure fairness for people across the highlands and islands?
Amanda Solloway
The hon. Gentleman will know that we have had many conversations about this subject. One of the things that the Secretary of State and I have been doing is talking to Ofgem to make sure that it is looking at the standing charges. That has led to a call for input, which has recently had over 30,000 responses.
Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
My constituent Beverley Scott, who has cancer, suffered from poor work carried out under the Government’s ECO4 scheme. This included leaving her without heating and damaging her internet. She eventually had to go to the small claims court to get redress for shoddy work, and I know of other people who have had to follow the same route. Given that provider companies, enabled by Government strategy, leave vulnerable householders with no option but to go to court, does the Minister not agree that there should be better oversight and a simpler remedy for people like Beverley Scott?
Amanda Solloway
The right hon. Lady makes an incredibly important point. Of course, one of the things that we are determined to do is make sure that those installations are carried out in the correct manner. In fact, we have new regulations in place to make sure that that happens going forward.
Christine Jardine (Edinburgh West) (LD)
The Minister will know that I am concerned about the level of standing charges in my constituency, as I have discussed this issue with her before. One of the problems is that people with pre-payment meters often find that, when they go to add the payment, the standing charges wipe everything out. Can the Government and Ofgem find a way to provide more support for those on pre-payment meters to avoid that problem?
Amanda Solloway
The hon. Lady and I have had many conversations about this issue. One of the things that we have done is make sure that people who are on pre-payment meters are not unfairly penalised.
Dr Alan Whitehead (Southampton, Test) (Lab)
The Minister and her colleagues have repeatedly said today that they care about cutting bills for families, but a recent report by the Resolution Foundation found that the onshore wind ban has hit the poorest households’ income six times harder than that of the richest. Such households have been forced to pay additional electricity bills as a result of the total failure to build onshore wind in England. How on earth can Ministers continue to sit there and claim that they stand up for working families when they continue to block the cheapest form of clean energy there is, which could cut bills for families who desperately need help? Before she leaves office, will the Secretary of State pledge to put this right so that onshore wind can be built again and customers can save money on their future bills?
Amanda Solloway
That is absolutely not the case. We stand here incredibly proudly as Ministers in the Department for Energy Security and Net Zero, and we have made a commitment. We are doing more than has ever been done on renewables and offshore wind, and we have done more to help people with the affordability of their bills.
Sir Desmond Swayne (New Forest West) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
The social housing decarbonisation fund is upgrading to EPC C a significant amount of the social housing stock that is currently below that standard. We have already committed over £1 billion of Government funding, with a further £1.25 billion already committed for 2025 to 2028.
Sir Desmond Swayne
By how much has the Minister increased the level of insulation, and what significance does she attach to it?
Amanda Solloway
I thank my right hon. Friend for his brevity, as always. The amount of social housing that is well insulated has gone up from just 24% in 2010 to 70% today. For housing overall, we have gone from just 14% in 2010 to 50% today.
Mr Ben Bradshaw (Exeter) (Lab)
I welcome, through the Minister, the admission by the Secretary of State last week finally that this flagship scheme is failing, although the words she used were that it has been
“a bit slow on the uptake”.
They have had 14 years to devise the most cost-effective way of reducing carbon emissions and people’s bills, making homes warmer and creating good new skilled jobs. When will we have a scheme that actually works?
Amanda Solloway
I respectfully say to the right hon. Gentleman that we do have schemes that are working. I remind him that the Department for Energy Security and Net Zero has launched a £1 billion Great British installation scheme, which aims to upgrade around 300,000 of the country’s least energy-efficient homes.
Dave Doogan (Angus) (SNP)
The Scottish Government are working at pace to replace polluting heating systems and improve energy efficiency in Scotland’s building stock, with £1.8 billion being invested in this parliamentary Session towards heat and energy efficiency measures and £600 million towards new affordable housing. With the Climate Change Committee stating that the Scottish Government’s heat in buildings Bill could become the template for the UK, helping Scotland to decarbonise faster than anywhere else in the UK, would the Minister like to visit the Scottish Government in Edinburgh? I can arrange that for her, so that she can see climate leadership in action.
Amanda Solloway
I reiterate that energy efficiency is incredibly important to us on the Government Benches and to the Government. I would be happy to come on a visit to Edinburgh. Indeed, I have already visited there.
Dave Doogan
Slightly more enthusiasm might have been welcomed by people living in England in cold and draughty houses. Nevertheless, it is not simply our extensive ambition that leaves the UK behind Scotland, but our delivery, too. Since 2007—[Interruption.] Those on the Government Benches might want to listen to this. Since 2007, per person, the SNP has built 40% more homes than Tory England and 70% more homes than Labour Wales and ensured 65% of the Scottish social rented sector has an energy performance certificate rating of C or above. Insulation levels in Scotland are way higher than in England. It is clear that the UK Government have materially failed to abate the demand side of the energy system to any meaningful extent. What will the Minister do, in the few weeks they have left in office, to atone for this glaring betrayal of bill payers?
Amanda Solloway
Unlike the hon. Gentleman, we have not abandoned our targets, and there has been good progress and improved household energy efficiency. Around half of our homes—48% in England—have now reached the Government’s 2035 target of achieving an EPC rating of C, up from 14% in 2010.
Afzal Khan (Manchester, Gorton) (Lab)
The Minister for Energy Security and Net Zero (Justin Tomlinson)
Britain is the first major economy to halve emissions, while growing the economy by 80%. We have more ambitious targets for 2030 than the EU, with the UK aiming for a 68% reduction in emissions, compared with its 55%. We have over-achieved on all carbon budgets to date and remain on track for the next.
Afzal Khan
At COP28, the UK, alongside nearly 200 countries, agreed to the transition away from fossil fuels. Since then, the Government have recklessly granted new oil and gas licences and pushed legislation through this House to max out North sea fossil fuels. Will the Minister meet the 50 cross-party parliamentarians who last week signed a letter urging the Government to show climate leadership and join the Beyond Oil and Gas Allowance, which aims to phase out oil and gas production ahead of COP29?
Justin Tomlinson
I thank the hon. Member for raising that important issue. That is why we are proud that we have already taken 70% out of the oil and gas sector.
Derek Thomas (St Ives) (Con)
Hydrotreated vegetable oil is a good alternative to ripping out heating systems that already exist in rural homes. We have heard today about the cost to rural homes as we try to address the impact of using less fossil fuels. Will the Government get behind the opportunity for HVO in rural communities to give householders a chance to contribute to reducing harmful emissions in their homes?
Justin Tomlinson
My hon. Friend has always championed his local constituents to ensure that they get value for money. We must explore all potential options, local or national, to find the best way to deliver energy security and lower bills in future.
Tommy Sheppard (Edinburgh East) (SNP)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
The evaluation of our energy support schemes will conclude in summer 2025. To ensure their bills were fair, supported heat network customers received an average of £1,200 via the energy discount scheme, which closed last month.
Tommy Sheppard
That is rather disappointing. I have more than 100 constituents in the Greendykes area of Edinburgh who get their heating and hot water from a communal district heating scheme. The Government have refused to offer them price protection, saying instead that this should be regulated by the business regulation scheme, but that ended on 31 March, leaving those people with no protection at all and facing increases of up to 500% in their energy bills. My constituents want to know: why did the Government wait until the business scheme finished before considering alternative protection for these domestic customers? Why take a year to get them protected and what compensation are the Government going to offer in the meantime?
Andrew Bowie
I hear the passion with which the hon. Gentleman stands up for his constituents, and rightly so, given the circumstances that they find themselves in. We are introducing regulations with Ofgem powers to investigate and intervene where prices for consumers appear to be unfair, and to ensure that all heat network consumers receive a high-quality service from their providers. I am happy to meet him to discuss this in greater detail.
Richard Fuller (North East Bedfordshire) (Con)
District heating networks are a good innovation and the Government have a good record of stimulating these projects around the country, but the hon. Member for Edinburgh East (Tommy Sheppard) is right to say that the regulation in this area needs looking at. Can I reassert what he has just said and ask the Minister to carefully come forward with protections to ensure that consumers on shared heating networks are not at a disadvantage compared with people who pay their bills directly?
Andrew Bowie
I am pleased to give that assurance to my hon. Friend. As I have said, we are talking to Ofgem right now about introducing regulations to make this much fairer and simpler and to ensure that consumers on heat networks get the service that they deserve.
Michael Shanks (Rutherglen and Hamilton West) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
The planning decision is devolved to the Scottish Government. Officials will work together to resolve cross-border matters. The UK Government are committed to effective co-operation with the Scottish Government on this and other issues, supporting our shared energy security and net zero objectives.
Michael Shanks
I thank the Minister for his answer and for the promise that officials will work together, but he will be aware that this is a 4.1 GW renewables project that could be the largest offshore wind farm in the world, delivering over £8 billion to the UK economy. The only reason that it is not eligible for this year’s contract for difference auction is the Scottish Government’s failure to make a decision on consent for the project. Has the Minister or anyone in his Department spoken to Scottish Ministers about the impact of this decision on investment in our economy, and to ensure that the consenting for offshore wind process is sped up so that we do not miss out on the tens of billions of investment and the thousands of jobs that a project such as this would deliver?
Andrew Bowie
The UK Government work closely and collaboratively with the Scottish Government on a whole host of areas, especially energy security and net zero. However, this is a live planning issue, and whether it is in the jurisdiction of Westminster or Holyrood, we do not comment on live planning cases given their quasi-judicial status.
Bob Blackman (Harrow East) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
The civil nuclear road map reconfirmed the Government’s ambition to deploy up to 24 GW of nuclear power by 2050. The road map sets out plans to make investment decisions concerning 3 GW to 7 GW every five years between 2030 and 2044.
Bob Blackman
Clearly it is important to have a mixed economy in terms of energy production, and nuclear has to play its part. What action is my hon. Friend taking to ensure that the development of small modular nuclear reactors is enhanced and brought forward, because that is the fastest way to get nuclear energy into our network?
Andrew Bowie
I completely agree with my hon. Friend. The small modular reactor technology selection process—the fastest of its kind in the world, I might add—continues to progress quickly and is currently in the tender phase, allowing vendors to bid for potentially multibillion-pound technology development contracts. Companies will have until June to submit their tender responses, at which point Great British Energy will evaluate bids and negotiate final contracts. The aim is to announce successful bids later this year.
Jim Shannon (Strangford) (DUP)
The Minister is always quick and keen to ensure that all parts of this great United Kingdom of Great Britain and Northern Ireland have advantages. When it comes to the technology to which the question refers, when will Northern Ireland get the same advantage?
Andrew Bowie
As the hon. Gentleman knows, I am keen to ensure that every part of our great United Kingdom of Great Britain and Northern Ireland benefits from the expansion of nuclear power and the benefits that it can bring, not only for meeting our net zero objectives but for the economies in which these small modular reactors will be built. I would be happy to meet him at any time to explore what benefits can be accrued in Northern Ireland from the expansion of our nuclear capacity here in the UK.
Nadia Whittome (Nottingham East) (Lab)
The Minister for Energy Security and Net Zero (Justin Tomlinson)
The Government are immensely proud of our record on climate change. We have cut emissions faster than any other G20 country over the last decade. The judgment contains no criticism of our detailed plans or the policies themselves, which will keep the UK on track to meet net zero by 2050.
Nadia Whittome
The Government have a legal and moral duty to meet our carbon emissions target. Failure to do so would consign my generation, and generations after mine, to a future of climate catastrophe, so it is beyond a joke that the Government’s carbon budget delivery plan has now been ruled unlawful, not just once but twice. When will the Minister tell the flat earthers sitting behind him to stop trying to make net zero a culture war issue, and instead deliver a transition that both meets our climate obligations and improves people’s living standards?
Justin Tomlinson
Our carbon budget delivery plan has over 300 detailed policies. We are recognised as a leader internationally, having already cut emissions by half—the first major economy to do so—with a further ambitious target to get to 68% by 2030, compared with just 55% for the shadow Secretary of State’s beloved EU.
Dan Carden (Liverpool, Walton) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
The energy suppliers are responsible for paying compensation. They have carried out 150,000 assessments so far, with 2,500 customers due compensation. A total of 1,502 payments have been made, with 1,000 more planned.
Dan Carden
Despite the energy ombudsman ruling that one of my constituents should not have been placed on a prepayment meter due to her vulnerabilities, she has not been awarded a penny of compensation under the scheme. As the Minister has just outlined, only 1,500 people, out of 150,000, have had any compensation awarded at all. That is 1%, so why is the number so small? Could it be that the energy suppliers themselves, overseen by Ofgem, are deciding who is entitled to these payments? Both sat idly by as agents forced their way into people’s homes to install the prepayment meters.
Amanda Solloway
I thank the hon. Gentleman for his question and for the opportunity to provide clarity. The forced installation of prepayment meters is clearly unacceptable, and the Government have done everything we can to counteract it. However, I reiterate that 150,000 investigations were carried out, in 2,500 of those cases compensation is due and, instead of 1%, the actual figure on compensation is 60%.
Keir Mather (Selby and Ainsty) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
The policy on fuel poverty is devolved. Statistics for England estimate that 3.17 million households were in fuel poverty in 2023, which is more than 1.5 million fewer than in 2010.
Keir Mather
The best way to cut fuel poverty is through a nationwide home upgrade scheme, but the Secretary of State seems unaware of the reality when it comes to home upgrades. Her officials said in recent documents given to the High Court that progress to decarbonise the UK’s building stock has been slow, that policy gaps remain and that the Government are lagging behind. Why will she not admit in public what her Department tells her in private?
Amanda Solloway
This Government are committed to making sure that we not only get energy efficiency but support people with their energy bills.
Vicky Ford (Chelmsford) (Con)
Thanks to Government grants, a social housing provider in my Chelmsford constituency, CHP, has made some great investments in social housing to help energy efficiency, reduce bills and lower fuel poverty, but it would like to go further. Will the Minister discuss with me the ways in which we can help to share the benefits of those savings so that some of them can be invested in improving energy efficiency and lowering bills in even more homes?
Amanda Solloway
My right hon. Friend makes the important point that energy efficiency is crucial to lowering bills. That is why we have the social housing decarbonisation fund, which supports local authorities and housing associations in upgrading social housing stock below energy performance certificate level C.
Justin Madders (Ellesmere Port and Neston) (Lab)
The Minister for Energy Security and Net Zero (Justin Tomlinson)
Our Department’s ministerial team meet regularly with industry, for example through the hydrogen investor forum, the Offshore Wind Industry Council, the solar taskforce, the green jobs delivery group, and the cross-cutting Net Zero Council.
Justin Madders
Last week, Stellantis, the owner of the Vauxhall car plant in Ellesmere Port, announced that it would import electric vehicles, despite the fact that we produce some great electric vans in Ellesmere Port and want to move on to producing cars there as well. Does the Minister think that, over the long term, reaching our net zero targets through the import of cheaper Chinese vehicles will be a good or bad thing for the UK car industry?
Justin Tomlinson
The hon. Member raises a very important point. One of the Opposition’s main pledges, which is to fully decarbonise the grid by 2030, could be met only by opening the floodgates to cheap Chinese imports—the exact thing he is opposed to.
James Gray (North Wiltshire) (Con)
Many unwelcome applications for large-scale solar farms, such as Lime Down in my constituency, are funded by offshore companies such as Macquarie, which is most famous for letting Thames Water fall to pieces. What meetings has the Minister had with these speculative investors to ensure that the people who build solar farms will be there in 40 years to make sure that they are removed?
Justin Tomlinson
My hon. Friend and constituency neighbour raises an important point about speculative development. As part of speeding up the grid queue, in which we have somewhere in the region of 700 GW of power capacity coming forward, we wish to prioritise shovel-ready schemes, not speculative schemes.
Liz Twist (Blaydon) (Lab)
The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
Since I was last at the Dispatch Box, we have been building up Britain’s energy security. We have taken the next step in the biggest expansion of nuclear in 70 years, making Britain a producer of advanced nuclear fuel and pushing Putin out of the global energy market. Just today, Rolls-Royce announced that it will invest millions of pounds in bringing new jobs to Sheffield to manufacture small modular reactors. We have overachieved in our third carbon budget, which is keeping us on track to reach net zero, and we are building on our proud record of being the first major economy to halve emissions. We have invested over half a billion pounds to help cut energy costs and bills for schools and hospitals, and we are taking our next steps on PumpWatch to protect motorists from unfair prices.
Liz Twist
Latest figures by National Energy Action show that there are still 1,875 homes in my constituency with legacy prepayment meters. What action are the Government taking to remove this costly burden on families?
Claire Coutinho
I thank the hon. Lady for her question. During my career, I have looked at the issue of prepayment meters for a long time, and one of the things that I am proudest of is our taking out the premium that people on prepayment meters were paying.
Dr James Davies (Vale of Clwyd) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
My hon. Friend makes an important point and is right to pick up on this matter. I reassure him that I have encouraged and pushed Ofgem to do more on this issue. Electricity standing charges include network costs, which reflect the cost of maintaining and upgrading the transmission and distribution networks across the country. I am of course happy to meet him to discuss this subject further.
Sarah Jones (Croydon Central) (Lab)
The National Infrastructure Commission said that the Government have reversed some progress on net zero. The right hon. Member for Maidenhead (Mrs May) said that the Government’s roll-back on net zero has put off investors. A member of the Climate Change Committee has said that we are “not ready at all” for the impact of extreme weather on our national security. Mad, bad and dangerous. Will the Secretary of State finally back Great British Energy and the national wealth fund instead of lurching from crisis to crisis, not having a plan and selling out Britain?
The Minister for Energy Security and Net Zero (Justin Tomlinson)
We absolutely will not be backing putting the shadow Secretary of State in charge of UK and British energy companies, piling misery on to consumer bills. We have unlocked £300 billion of public and private investment in low-carbon technology since 2010, with plans for £100 billion more by 2030. Last year alone, we saw an investment of £60 billion; that is up a staggering 71% on the previous year.
Rachel Maclean (Redditch) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
My hon. Friend is absolutely right that we need to protect the best and most versatile agricultural land in this country. Unlike the Opposition, we respect the views of communities up and down this country, and we will not countenance the industrialisation of our countryside. However, solar power remains very important. We are committed to our 70 GW target. In our forthcoming solar road map, we will set out exactly how we will incentivise the development of rooftop solar, and development on brownfield and other sites.
Tonia Antoniazzi (Gower) (Lab)
Justin Tomlinson
That is simply not the case; we are leading internationally. Last year alone, there was £60 billion of funding for low-carbon technology; that is up 71% on the previous year. That is why other countries turn to our businesses and supply chain for their expertise—and to us, as we are leading with our policy framework.
Theresa Villiers (Chipping Barnet) (Con)
Justin Tomlinson
The Government have invested in the Faraday battery challenge, a £541 million programme to support the research, development and scale-up of world-leading battery technology in the UK. Since 2022, all new homes and homes undergoing major renovation in England have been required to have a charge point installed. That is why we welcome the year-on-year 49% increase in charge points.
Patricia Gibson (North Ayrshire and Arran) (SNP)
Amanda Solloway
A social tariff means lots of different things to different people, but what it ultimately means is ensuring that we support all vulnerable people. The hon. Member will be aware that the Government are doing many things to support people; there is the warm home discount, the cost of living payment, which is £900, and a variety of other measures.
Mark Eastwood (Dewsbury) (Con)
Andrew Bowie
As my hon. Friend has heard me say already today, solar power is important, and we remain committed to our 70 GW target. However, food security is as important as energy security when it comes to national security. That is why we are protecting the best and most versatile farmland in the United Kingdom. Unlike the Opposition, we respect the views of communities up and down the country; we will ensure that our countryside is not industrialised, and incentivise companies, individuals and organisations to invest in rooftop solar, and solar on brownfield, not greenfield, sites.
Dan Carden (Liverpool, Walton) (Lab)
Amanda Solloway
We are ensuring that energy businesses are able to survive, and not just through the price caps. This is also a matter for Ofgem.
Chris Clarkson (Heywood and Middleton) (Con)
My constituency is home to Scout Moor, one of the largest onshore wind farms in Europe, but the north-west also has amazing potential for offshore wind; an example is the Morgan and Morecambe development off the coast of Lancashire. Such projects require huge amounts of infrastructure to be realised. Notwithstanding the reassurances that my right hon. Friend has already given, will she ensure that community consent is part of any infrastructure projects of this kind?
Justin Tomlinson
My hon. Friend raises an important matter. Absolutely; that is part of our forward planning in making sure that we can unlock the huge potential in every region of our United Kingdom.
Richard Foord (Tiverton and Honiton) (LD)
Amanda Solloway
The hon. Gentleman’s question covers a few issues. One of the most important things is to look at how the standing charges are made up. That is why we have encouraged Ofgem to answer our call for input. Insulation schemes are incredibly important as well, which is why the Government are committed to supporting so many of them.
Alexander Stafford (Rother Valley) (Con)
Hydrogen is the only viable alternative to natural gas for a balanced, reactive and carbon-zero electricity grid. The UK has 32 gas power plants, all of which could be cheaply and easily retrofitted to burn hydrogen as a natural gas. What is the Department doing to encourage this sort of retrofitting, so that we can allow technologies to decarbonise electricity generation and take advantage of the many benefits of hydrogen?
Andrew Bowie
I thank my hon. Friend for that rather surprising question on hydrogen. The Government recognise the value of hydrogen in supporting a decarbonised and secure power system. We intend to publish soon our response to the December 2023 hydrogen-to-power market intervention consultation, and we will soon legislate for decarbonisation readiness requirements, so that new-build or substantially refurbished combustion power plants are built net zero ready.
Marion Fellows (Motherwell and Wishaw) (SNP)
In the last 12 months, one in five households, or one in four young households, in energy debt have turned to illegal money lenders to help pay for bills and everyday essentials. The End Fuel Poverty Coalition has stated that the crisis could mean that young households spend years at the mercy of these loan sharks. What assessment has the Minister made of the merits of working with Ofgem and energy suppliers in order to introduce support to alleviate this record-high energy debt?
Amanda Solloway
The hon. Member makes an incredibly important point, and I have had many conversations with her on this matter. I can reassure her that I meet Ofgem regularly to discuss this, as the issue is very close to my heart—hence the call for input. To give her further reassurance, I can tell her that earlier this week, I met energy suppliers, and I also have ongoing meetings with Citizens Advice and other stakeholders.
Sir Jeremy Wright (Kenilworth and Southam) (Con)
Like others, I welcome what the Government have already done to extend the permitted development rights for rooftop solar and car park canopies, but may I encourage my hon. Friend to tell others in Government who have responsibility for planning that there are considerable benefits to car park canopies, particularly in hotter summers?
Andrew Bowie
I thank my right hon. and learned Friend for his question. I urge him to bide his time and have patience, because in the next few weeks we will publish our solar road map, which will expand on exactly how we will work with other Government Departments, and indeed industry, to ensure that we benefit from the huge advantages that we have in the number of rooftops available for the deployment of solar capacity across the UK.
Mr Gregory Campbell (East Londonderry) (DUP)
There has indeed been a significant increase in domestic insulation schemes in recent years. However, will the Minister agree to increase the number of conversations with devolved institutions, so that we can see a genuinely nationwide revival of insulation schemes that, individually, can do more to reduce the dependency on high energy costs for those at maximum risk, in social housing and elsewhere?
Amanda Solloway
Clearly, energy efficiency is incredibly important, which means that making sure that we get the correct insulation schemes is also incredibly important. I give the hon. Gentleman my assurance that we are doing everything we can to ensure that that insulation takes place.
Cherilyn Mackrory (Truro and Falmouth) (Con)
Given the floating offshore wind manufacturing investment scheme funding recently awarded to Wales, can the Minister please advise me on when A&P Falmouth, which is to be a vital part of the supply chain for the only successful project in allocation round 4, will be put on the reserve list? The Minister has promised to meet me on several occasions. Can I ask that we expedite that much as possible?
Andrew Bowie
I would be delighted to meet my hon. Friend to discuss this matter. Indeed, I am determined to ensure that ports that were not successful in the FLOWMIS process can take advantage of the huge increase that we expect in the deployment of floating offshore wind capacity off the coast of the United Kingdom. I am happy to meet my hon. Friend and, indeed, any other Member of Parliament who represents a port that was not successful through the FLOWMIS procedure to discuss how we can move this forward.
Wera Hobhouse (Bath) (LD)
Community energy can deliver so many renewable energy products and save on energy bills. Last year in Bath, a community energy project putting rooftop solar on schools saved schools £130,000. When will the Government remove the barriers to community energy?
Andrew Bowie
As a result of the Energy Act 2023, we launched a consultation and a multimillion-pound fund to help to support the expansion of community energy across the United Kingdom. It would be great to have the Liberal Democrats’ support in the effort that this party and this Government are making to ensure that the benefits of community energy are felt up and down the length and breadth of the country.
Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)
As we go to net zero, surely we also need to retain our sense of human rights. Polysilicon mostly comes from Xinjiang, where it is mined using slave labour. To what extend are we prepared to say that net zero trumps slave labour, and are we checking on slave labour products in the arrays?
Andrew Bowie
I can assure my right hon. Friend that we are indeed ensuring that the extent to which slave labour is used is kept very much at a minimum, if at all, in the supply chain of any of the components coming to advance us towards net zero. The solar road map, as referred to earlier, will set out in greater detail how the Government will work with industry to ensure that there are no slave labour components to any of the parts we are importing to develop our renewable technology.
Alison Thewliss (Glasgow Central) (SNP)
My constituent from Govanhill is being passed backwards and forwards between Utilita Energy and the Department for Work and Pensions. He receives income-related employment and support allowance and should be entitled to the warm home discount, but neither Utilita nor the DWP is able to give him the money he is entitled to. He applied in September last year. Will the Minister intervene and make sure he gets the money he is due?
Amanda Solloway
I encourage the hon. Lady to write to me on this particular issue and I will look into it.
Alicia Kearns (Rutland and Melton) (Con)
I put on record my heartfelt thanks to the Secretary of State and the Minister for Nuclear and Renewables for the action they took last week to put food security, alongside renewable energy, at the heart of local planning decisions. What are the Government doing to ensure that all councils immediately enact that policy, because it is both for local councils and for Government? Will existing soil assessments stand for nationally significant infrastructure projects, or will they be redone?
Andrew Bowie
I thank my hon. Friend for her question and her kind words. I am pleased to confirm to the House that my hon. Friend the Minister for Housing, Planning and Building Safety has written to all local authorities to draw their attention to the statement last week, which underlined our robust policy on solar farms on our best and most versatile agricultural land. Local planners should know this Government are serious about solar being put in the right places, and not on the best and most versatile agricultural land.
Angus Brendan MacNeil (Na h-Eileanan an Iar) (Ind)
Tapadh leat, Mr Speaker. Zonal pricing has the potential to lower bills for households from Sussex to Shetland, from Stonehaven to the great town of Stornoway. Of course some vested interests will be concerned, such as energy generating companies that are benefiting from the constraint payments raised from customer bills. What are the Government doing to stimulate debate and knowledge about zonal pricing?
Justin Tomlinson
It was a pleasure on my return as a Minister to attend the hon. Gentleman’s Select Committee, which he chairs so well. This is part of stage 2 of our wider consultation under our review of electricity market arrangements, and we take on board his and his Committee’s constructive suggestions in that meeting.
Simon Fell (Barrow and Furness) (Con)
A key tool in our arsenal against climate change must be sequestering carbon. It was a pleasure last week to see the Morecambe bay net zero peak cluster vision launched, which could decarbonise 40% of our cement and lime industries, securing a gigatonne of carbon under Morecambe bay. Can I encourage my hon. Friend the Minister to meet me to discuss the project further?
Andrew Bowie
I would be delighted to meet my hon. Friend at any time, and I am happy to discuss this and any other matter relating to the subject.
Sir John Hayes (South Holland and The Deepings) (Con)
Thank you, Mr Speaker. Now that the Government have recognised the importance of versatile and productive agricultural land in respect of solar, will they recognise too the threat of a monstrous string of pylons stretching right down the east coast of England? We either care about our green and pleasant land or we do not—for, as Keats understood, truth is beauty and beauty, truth.
Justin Tomlinson
My right hon. Friend will know that we value taking communities with us and working with them. I am having a number of meetings on this very subject to look at new technologies to see what additional options there could be to support local communities as we rapidly upgrade our national grid network.