Written Statements

Monday 28th October 2024 Written Statements

Monday 28 October 2024

Contracts for Difference

Monday 28th October 2024 Written Statements

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)]

I would like to advise the House that today I am laying draft regulations to implement two amendments to the Contract for Difference (CfD) scheme in time for the next allocation round, supporting the Government’s clean energy superpower mission to deliver clean power by 2030 and accelerate to net zero.

The CfD scheme is the Government’s main mechanism for supporting new low-carbon electricity generation projects in Great Britain. Awarded through regular, competitive allocation rounds, it guarantees a set price per megawatt-hour of electricity for 15 years, indexed to inflation. The income stabilisation that it provides for the generator makes projects that have high up-front costs but long lifetimes and low running costs attractive to investors and lenders, reducing the cost of capital and overall project cost. It also protects consumers when electricity prices are high.

The latest allocation round, AR6, was a great success, securing a record-breaking 131 projects and 9.6 GW of renewable electricity capacity. But we must continually evolve the CfD scheme to drive progress towards the 2030 clean power target and ensure that it reflects the global challenges and opportunities faced by the renewables sector.

These amendments to legislation will extend the option to phase projects under the CfD to floating offshore wind and enable repowered onshore wind projects to apply for a CfD, provided they meet certain criteria.

This Government have committed to radically increasing the UK’s offshore wind capacity. Floating offshore wind is an emerging technology that allows us to access wind resource in deeper waters, which tend to be further from shore and have higher, more consistent wind speeds. CfD phasing policy allows offshore wind projects with a maximum capacity of 1,500 MW to be built in up to three stages. Previously this only applied to fixed-bottom offshore wind. The extension of phasing to floating offshore wind will benefit this emerging sector, de-risking the construction process and helping developers and the supply chain to work with more certainty. This, in turn, will reduce investment risk and enable the construction of larger floating windfarms, as investors gain confidence in successful project completion.

The other amendment concerns onshore wind. From the late 2020s onwards, it is likely that a significant proportion of current onshore wind sites will reach the end of their operational life. When a project comes to the end of its operating life, the generator can choose to decommission permanently, extend its life, or repower. Repowering would require decommissioning and recommissioning of the existing site, incurring similarly high up-front capital costs to that of a new build. Allowing projects to apply for a CfD to repower, in contrast to retiring, could make a significant contribution to the 2030 clean power goal. This amendment offers revenue certainty for onshore wind projects that may otherwise struggle to repower. Without it, we may lose the opportunity to retain and increase this renewable capacity and the societal and economic benefits this confers.

This draft legislation laid today is another important step forward in delivering clean power, shielding families from volatile gas prices and establishing the UK as a clean energy superpower.

[HCWS168]

Sea Level Rise: Maritime Zones

Monday 28th October 2024 Written Statements

[The Minister for Development (Anneliese Dodds)]

The UN convention on the law of the sea sets out the legal framework for all activities in the ocean and seas. Upholding UNCLOS is central to the UK Government’s approach to ocean issues as an essential enabler of global security, growth and a healthy planet.

UNCLOS sets out the legal basis on which states can establish the baselines along their coasts, or joining points on their coasts, from which they are entitled to generate maritime zones, including their territorial sea and exclusive economic zone.

When UNCLOS was drafted, significant sea level rise and changes in coastlines as a result of the climate crisis were not contemplated by the drafters, and no provision was made for this. However, with sea level rise, coastlines are likely to regress, and some features may be completely inundated and lost.

The International Law Commission is the UN body of international law experts responsible for studying and making recommendations to encourage the progressive development and codification of international law. ILC work on the topic of sea level rise in international law has been ongoing since 2019, and the UK has responded to ILC requests for information on state practice. On 6 August 2021, the Pacific Islands Forum made a declaration to the effect that having, in accordance with UNCLOS, established and notified their maritime zones to the UN Secretary-General, Pacific Islands Forum members intend to maintain these zones without reduction, notwithstanding climate change-related sea level rise, and will not review or update the baselines or outer limits of their maritime zones as a consequence of climate change-related sea level rise. The Alliance of Small Island States made a similar statement in their leaders’ declaration in September 2021.

Having considered the work of the ILC to date on the issue of maritime boundaries, and the views of our partners, I can confirm that the UK Government take the view that UNCLOS imposes no express or affirmative obligation on states to keep their baselines or the outer limits of maritime zones derived from them under review, or to update them once they have been established in accordance with UNCLOS. UNCLOS provides that baselines and outer limits of the maritime zones are as shown on the relevant chart or specified by co-ordinates. It does not expressly require coastal states to update those charts or co-ordinates. This position is consistent with the object and purpose of UNCLOS as a regime for securing a stable division of maritime space. Once a state has established its maritime zones in accordance with UNCLOS, it is permitted to maintain those maritime zones, and the rights and entitlements that flow from them, notwithstanding changes to coastlines and physical features that result from sea level rise caused by the climate crisis. This does not prejudice the UK Government’s position on other international law questions raised by sea level rise that the ILC is also considering.

The UK Government’s position is that this analysis can only apply to baselines or outer limits which are initially established in accordance with UNCLOS. It remains the UK Government’s position that UNCLOS provides the complete and definitive rules on the drawing of baselines from which maritime zones are measured.

While the UK Government recognise that UNCLOS does not require states to update the relevant charts or co-ordinates designated by states as depicting the baselines and outer limits of their maritime zones, the UK Government consider it important that necessary hydrographic surveying takes place and navigational charts and other information continue to be updated as frequently as necessary for the purposes of navigational safety.

[HCWS171]

Supply of Radioisotopes

Monday 28th October 2024 Written Statements

[The Minister for Secondary Care (Karin Smyth)]

I am today updating the House on the severe shortage of radioisotopes that the UK is facing. The affected radioisotopes are mainly used for diagnosing cancers, including prostate and breast cancer. It is also used for imaging of organ function in scans, including for the heart. Despite efforts by my Department and NHS England to limit the negative impacts of this shortage, there will be delays to patient access to services relying on the impacted radioisotopes, including cancellations.

This shortage is due to a temporary reduction in the production of molybdenum-99 which is used to generate technetium-99m. The radioisotope technetium-99m is used safely for diagnostics in the NHS. This issue is impacting not only the UK, but countries across Europe, and worldwide.

The shortage of molybdenum-99 is caused by a sudden global disruption of manufacturing capacity, with a number of the nuclear reactors used to produce these elements being out of service. There are six trusted research reactors globally for the supply of molybdenum-99, none of which are in the UK. Some of these reactors are currently out of service to allow for critical repair work; this is essential work necessary for the safe running of the research reactors. Two of the impacted reactors are expected to restart production during the second week of November, with deliveries from these reactors expected to resume in mid-November. My Department, together with relevant experts, is working closely with suppliers to support the process to restart the affected reactors as soon as possible.

There will remain a significantly constrained supply of these radioisotopes to the UK from the remaining reactors. Radioisotopes give off radiation and undergo a process of decay, which means they cannot be stored or kept in reserve. Our priority is to minimise the impact on patients as much as possible. Therefore, my Department is working closely with suppliers, clinical experts, NHS England and devolved Governments to support the allocation of deliveries and ensure there is equitable and fair access across the UK to the constrained supply of stock that is available. NHS England is supporting trusts and hospitals to share available supply and ensure that critical patients are given priority. Guidance is being issued to ensure that patients with the most critical need are prioritised. If any patient is concerned about their treatment, they should discuss this with their clinician at the earliest opportunity.

I know how difficult this will be for affected patients while we face this supply issue. This issue is different in nature to normal supply chain problems due to the unique challenges radioisotope shortages present. My Department is working closely with suppliers and relevant experts to resolve the supply issue as soon as possible. I will continue to keep Parliament updated on our progress to resolve this severe shortage.

[HCWS170]

Social and Affordable Housing

Monday 28th October 2024 Written Statements

[The Secretary of State for Housing, Communities and Local Government (Angela Rayner)]

This week’s Budget will set out how the Government will deliver more affordable housing and ensure that social housing is available for those who need it most.

This will include an immediate one-year cash injection of £500 million to top up the existing affordable homes programme, which will deliver up to 5,000 new social and affordable homes, bringing total investment in housing supply in 2025-26 to over £5 billion. This comes ahead of the multi-year spending review next spring, where the Government will set out details of new investment to succeed the 2021-26 affordable homes programme. This new investment will deliver a mix of homes for sub-market rent and home ownership, with a particular focus on delivering homes for social rent.

The Government will also consult on a new five-year social housing rent settlement, which caps the rents that social housing providers can charge their tenants, to provide the sector with the certainty it needs to invest in new social housing. The intention would be for this to increase with consumer prices index inflation figures and an additional 1%. The consultation will also seek views on other potential options to give greater certainty, such as providing a 10-year settlement.

These measures to increase affordable housing come alongside changes to the right-to-buy scheme. England’s existing social housing supply is depleted every year by the scheme while also disincentivising councils to build new social housing. To address this, the Chancellor will confirm at the Budget that councils will be able to retain 100% of the receipts generated by right-to-buy sales. This will enable councils to scale up delivery of much needed social homes while still enabling long-standing tenants to buy their own homes. The Chancellor will also set out how right-to-buy discounts will be reduced to protect existing social housing stock to meet housing need, while ensuring that long-term tenants can still benefit. This will deliver a fairer and more sustainable scheme that also presents better value for money for councils.

The Chancellor will also confirm at the Budget £128 million of funding to support the delivery of new housing projects, comprising of:

Confirmation of a £56 million investment at Liverpool Central Docks, which is expected to deliver 2,000 homes in north Liverpool, along with office, retail, leisure and hotel facilities. This will transform Liverpool’s former dockland into a thriving waterfront neighbourhood.

A £25 million investment in a joint venture to establish a new fund with Muse Places Ltd and Pension Insurance Corporation to deliver 3,000 energy-efficient new homes across the country, with a target of 100% of these being affordable.

The confirmation of £47 million to local authorities to support the delivery of up to 28,000 homes that would otherwise be stalled due to “nutrient neutrality” requirements. This funding will not only unlock much needed new housing, but clean up our rivers in the process.

[HCWS169]