Fuel Costs: Rural Households and Communities

Amanda Solloway Excerpts

Wednesday 29th March 2023 Westminster Hall

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

May I first say what an excellent speech that was, and what thought-provoking words have come from this debate? I express my gratitude to the hon. Member for Lanark and Hamilton East (Angela Crawley) for initiating the debate, and for her additional work on supporting rural households and communities.

The Government have implemented several comprehensive support schemes across the United Kingdom to assist our rural households and communities. In particular, I would like to address the issue of the support being provided in Scotland, given the importance of these communities to Scotland, as well as the wider United Kingdom. I am aware of the significant proportion of Scottish domestic properties not on the gas grid; as the hon. Member said, it is estimated to be about 65% of homes in rural Scotland. These communities face significant challenges. The number of households classed as being in extreme fuel poverty is about three times higher in rural areas than in the rest of Scotland. As hon. Members will know, many factors influence that, including a longer heating season, exposed conditions, and historically poor housing stock. As a result, the Government’s energy schemes have rightly offered much-needed support to rural communities over the winter in the face of high energy costs.

A range of domestic and non-domestic support has been provided to rural communities, and particularly off-grid users. The alternative fuels payment is available to households that use as their main heating source alternative fuels, such as heating oil or liquefied petroleum gas. That includes many Scottish rural households. More than 85% of relevant customers in Great Britain will have received their payment automatically via their electricity supplier in February 2023. Those who have not received the payment automatically will need to apply to the AFP alternative fund via a short online form on gov.uk.

[Helen Morgan]

On that point, I cannot reiterate enough how many people might not be able to access that online portal. I am aware that there is a phone number, but the messaging on and advertising of that number have been quite poor. Constituents have come to us asking about this, and we have pointed them in the right direction, but there will be people out there who are not aware that they can access that support, because they cannot get online.

[Amanda Solloway]

I thank the hon. Member for a very valid point. As she points out, we have been engaging. We have the helpline; we have a contact number. We are trying to reach out as much as possible. I encourage all hon. Members, on the record, to reach out and encourage people to go through the website portal or, indeed, through the helpline.

The energy bills support scheme is being delivered as a £400 discount on electricity bills, provided by suppliers in monthly instalments from October 2022 to March 2023. It has been delivered to 2.6 million households in Scotland. As March is almost over, may I use this opportunity to again urge hon. Members to join the Government in highlighting to their constituents that it is important that traditional prepayment meter users redeem their vouchers for that scheme now? Electricity suppliers can reissue expired or lost vouchers, but they must all be used by 30 June, when the scheme closes. It is vital that households in Scotland that use traditional prepayment meters and receive EBSS in the form of vouchers make use of the support being provided to them. Our latest transparency publication data shows that as of 1 March, almost 340,000 vouchers in Scotland remain unused—a point to which hon. Members have referred.

Households in Great Britain that do not have a domestic electricity supply, such as off-grid households and park home residents, and who have not been able to receive their support automatically, can now apply for their £400 support through the energy bills support scheme alternative funding. I encourage households that are eligible to apply for support before the scheme closes on 31 May 2023, either through the online application form on gov.uk, or by calling our contact centre helpline. I would be happy to share this information with MPs following the debate.

The final aspect of domestic support that we have provided is the energy price guarantee, which reduces electricity and gas costs for domestic customers. It helps to lower annual bills, combat fuel poverty and maintain supplier market stability. The scheme covers approximately 2.5 million households across Scotland and 29 million households across the UK in total. I hope the hon. Member for Lanark and Hamilton East was pleased to hear the recent announcement that the energy price guarantee will be kept at £2,500 for an additional three months from April to June, providing more savings to households.

[Tim Farron]

I am grateful for the Minister’s comprehensive answers. The support that businesses get will expire, which is a problem that we could address. Lumped under the category of “businesses” are our hospices, which have seen a 350% increase in fuel bills. Not only are they getting insufficient support now, but they will soon get nothing. Will the Minister consider a special package to support hospices, which clearly cannot turn the heating down?

[Amanda Solloway]

I thank the hon. Member for that question. I assure him that I am reaching out to a whole host of stakeholders, and am talking to a variety of groups about that very issue. Alongside the support we are offering to households, there is the energy bill relief scheme, introduced in October 2022 for the winter; we will continue to run it until the end of the month. The support offered by this package is worth £7.3 billion and is available across the United Kingdom.

It is right that we balance continued support with energy costs with our duty to the taxpayer. Energy prices are coming down, but we must also recognise that prices remain above historical levels. For that reason, although the energy bill relief scheme is coming to an end, we have pledged to provide further support to non-domestic customers, including our farming industry, from April onwards, through the energy bills discount scheme. Under this support package, energy and trade intensive industries and domestic customers on heat networks will receive more than the baseline element of support.

I thank again the hon. Member for Lanark and Hamilton East. I give my assurance that I am reaching out to a variety of stakeholders, including suppliers. This has been an incredibly important debate, and I sincerely thank her for securing it. It is important to raise awareness of the support for rural communities in these challenging times.

Question put and agreed to.

Energy Trilemma

Amanda Solloway Excerpts

Thursday 23rd March 2023 Commons Chamber

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

I am going to go through my speech as fast as I can, because this has been an incredible debate. I would so much have liked to have had more time, but I want to allow my right hon. Friend the Member for South Northamptonshire (Dame Andrea Leadsom) to come back in at the end.

I welcome the opportunity to debate this important issue, and I thank all hon. and right hon. Members for their contributions. We have had an informed and interesting discussion. I particularly thank my right hon. Friend the Member for South Northamptonshire for bringing this important topic to the House. I also pay tribute to her for the important work she did in advancing the nation’s energy and climate security as Secretary of State with responsibility for those matters, as well as in her role as Energy Minister prior to that. I welcome the work that she and other Members have been doing more recently to contribute to this policy debate.

I agree with my right hon. Friend about the creation of the new Department for Energy Security and Net Zero, which I am sure that the whole House will welcome. It will deliver policies at the heart of the Government’s agenda and tackle the energy trilemma. Indeed, the Secretary of State was mindful of the trilemma as he laid out his priorities, which are:

“To set Britain on a path to energy independence, in other words, delivering energy security.

To bring bills down as soon as possible, and keep them down, so wholesale electricity prices are among the cheapest in Europe, delivering consumer security.

To decarbonise energy as part of our commitment to net zero, delivering climate security.”

As the Minister with responsibility for energy consumers and affordability, I will be working hard with the Secretary of State to bring down energy bills for households and businesses and to tackle fuel poverty.

The Government have a clear plan to deliver our priorities, set out in our Energy White Paper, published in 2020, and in our “Net Zero Strategy”, published in 2021. The British energy security strategy, published in April last year, charted a pathway to reducing our dependence on imported oil and gas and achieving net zero greenhouse emissions by 2050.

In the 2022 edition of the index, the UK was ranked fourth overall, as the hon. Member for Southampton, Test (Dr Whitehead) mentioned, ahead of G20 competitors including France, Germany and the United States. We are clearly doing something right. We should not consider the three aims of having secure, affordable and clean energy as being in competition with each other. In fact, enhancing security means decarbonising electricity, and both mean keeping energy bills affordable. To illustrate that point, I highlight the role that wind and solar play in our energy mix. They are not only the cleanest sources of power that we have, but the cheapest, and they contribute to our energy security by reducing our reliance on imported fuels.

I want to mention the contributions from a couple of other Members. My hon. Friend the Member for Banff and Buchan (David Duguid) has a great depth of knowledge and brings real experience to the subject. He has a genuine commitment to the subject, and he mentioned carbon capture, usage and storage. That is a priority for the Government, and we are progressing as quickly as we can. The funding package announced at the Budget is unprecedented and demonstrates His Majesty’s Government’s strong commitment to delivering CCUS in the UK.

[Alan Brown]

Will the Minister give way?

[Amanda Solloway]

I am so sorry, but I just do not have time.

I would particularly like to mention my hon. Friend the Member for Crewe and Nantwich (Dr Mullan), who is a strong and consistent advocate for energy security and net zero. The UK currently does not have access to large naturally occurring geothermal resources that countries such as Iceland have, but I welcome the review he is doing and look forward to reading it.

To meet our ambitions on renewables, I agree with my right hon. Friend the Member for South Northamptonshire that we should accelerate the planning processes and networks infrastructure vital to bringing these projects to fruition. That is why the Government have committed to dramatically reducing timelines for delivering strategic onshore transmission network infrastructure by around three years, with an ambition to halve the end-to-end process by the mid-2020s. We look forward to the report from the Electricity Networks Commissioner, Nick Winser, this summer, and will take action in response to his recommendations.

We are committed to ensuring that projects benefit not only the nation as a whole, but the communities in which they are built. Members rightly call for an electricity system that is smart and flexible, and by the end of 2022 there were 31.3 million smart and advanced meters across Great Britain. The flexibility of the system is underpinned by a growing pipeline of electricity storage projects, with nearly 23 GW of storage already online.

Members have rightly pointed out the crucial role in energy security of reducing consumption through targeted energy efficiency measures, and we are already off to a good start. In 2010, only 14% of homes were in energy performance band C or better, but thanks to Government and industry action, 46% of homes now meet this benchmark.

The Government are bringing all this work together through the Energy Bill, which is the vehicle for delivering our strategy. It will modernise the way that we heat people’s homes, it will turbocharge British technology and it will liberate private investment, scaling-up jobs and growth.

To sum up, the UK is firing on all cylinders to deliver a green, resilient and independent energy system, with these three elements going hand in hand. As my right hon. Friend will know, the UK is a global leader not just in clean energy, but, as the energy trilemma index confirms, in cheap and secure energy. So it is only right that our ambition is to completely decarbonise our power system by 2035, subject to ensuring security of supply. This will provide the cheap, clean and British energy we need for decades to come.

Draft Electricity Supplier Obligations (Excluded Electricity) (Amendment) Regulations 2023

Amanda Solloway Excerpts

Monday 13th March 2023 General Committees

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

I beg to move,

That the Committee has considered the draft Electricity Supplier Obligations (Excluded Electricity) (Amendment) Regulations 2023.

This statutory instrument amends the Electricity Supplier Obligations (Amendment and Excluded Electricity) Regulations 2015. The existing legislation supports the competitiveness of energy-intensive industries by providing for a scheme exempting eligible businesses from a proportion of the costs of funding renewable electricity. These are costs associated with funding the renewables obligation, contracts for difference and the small-scale feed-in tariff schemes. The costs associated with those schemes are passed on by electricity suppliers through their electricity bills, and they have a particularly high impact on foundation industries such as steel, paper, chemicals and cement, which are critical to many infrastructure projects and provide well paid, highly skilled jobs across the United Kingdom. As foundation industries, these businesses are critical in the development of new projects, including offshore wind, and therefore play an important role in the transition to net zero.

The exemption also provides relief for new and emerging industries such as battery manufacturers, which are critical to electric vehicles, and manufacturers of semiconductors, which are critical to the UK high-tech economy. They provide not only direct jobs but indirect jobs in the aerospace and automotive sectors. They employ people from Cornwall to Kent and from Grangemouth to South Wales.

The original legislation was put in place in 2017, and since then over 320 businesses have benefited from the exemption. Under the regulations, businesses that applied in 2017 will need to be reassessed this year using the last three years of data. For many businesses that will include 2020 and 2021. This statutory instrument allows businesses to exclude data from that period where it does not reflect the normal course of business. Some businesses had to reduce production or lost profitability during the covid pandemic. The flexibility in this instrument will enable them to continue to benefit from the exemption. It also allows companies applying for an exemption to apply for relief with one quarter’s worth, rather than two quarters’ worth, of data. That will encourage new businesses and start-ups to apply for relief.

The sectors eligible for the existing exemption scheme employ around 400,000 workers and account for over a quarter of total UK exports. Many are located in areas of economic disadvantage and provide good, high-paid jobs. In the UK, our electricity prices for medium and large industrial users were the highest in western Europe in 2018. Clearly, electricity costs have a significant impact on the competitiveness of such enterprises. The industries affected operate in international markets, so higher electricity costs place them at a competitive disadvantage, which results in the risk of “carbon leakage”, whereby companies choose to move their production to countries with less ambitious climate policies.

Existing legislation covering energy-intensive industries allows eligible businesses to receive an indirect exemption of up to 85% of the costs of funding renewable electricity schemes. Where an eligible business applies successfully for the exemption, its electricity supplier receives a reduction in the costs, which in practice it passes on to the eligible business. That approach mitigates the cost of the renewable electricity scheme, supports industrial competitiveness and provides certainty for businesses. The costs of the exemption are distributed to all other electricity users. The regulations amend legislation to improve access to the exemption for new companies. They also allow companies to exclude two years of data from their application, which accounts for the impact of the covid-19 pandemic.

In conclusion, the regulations will improve the operation of the scheme and support the competitiveness of energy-intensive manufacturing industries in the United Kingdom, and I commend them to the Committee.

--- Later in debate ---

[Amanda Solloway]

I thank the hon. Member, as ever, for his valuable and well thought out contribution.

The exemption provides relief for key foundation industries, including companies operating in the steel, paper, chemicals, cement, and glass sectors. The scheme also supports emerging sectors, such as battery manufacturers and companies making semiconductors. The companies that the scheme supports are located across the country and provide high-paid, good-quality jobs, both directly and in the supply chain.

The hon. Member asked about communication. Communication is key in all that we do, and we will endeavour to ensure that we keep on communicating all we are doing to support the industry. The regulations are necessary to improve the operation of the scheme. They will make it easier for start-ups and businesses to apply. They will also allow businesses to account for the impact of covid-19 when applying for relief. We will update and publish our guidance on gov.uk in April 2023 to ensure that business is aware of the relief, and we will proactively engage with stakeholders to ensure that they are aware of the changes. All 320 companies have received a discount, and we know that other companies have already applied. The list of eligible sectors is based on the most electricity and trade-intensive businesses. We continue to engage with industry and other stakeholders to ensure that support is targeted at those sectors most exposed to high electricity costs.

The hon. Member asked about the 100% exemption. On 23 February 2023, the Government announced their intention to move to 100% as part of the British industry supercharger. The delivery mechanisms and timelines for the implementation of the supercharger will be consulted on this spring.

[Dr Whitehead]

What the Minister says appears to be a reannouncement of what was announced in August and not proceeded with. Is the Minister now saying that the 100% discount is being proceeded with, and will be in place, say, this spring or later on? When does she think that might happen?

[Amanda Solloway]

To reiterate, the Government announced their intention to move 100% as part of the British industry supercharger on 23 February 2023.

[Dr Whitehead]

But you announced it in August last year.

--- Later in debate ---

[Amanda Solloway]

Following a consultation in spring 2023, we will come forward with our proposals on the recently announced British industry supercharger, which aims to roll out further support to important manufacturing businesses by exempting firms from certain costs arising from renewable energy obligations, as well as GB capacity market costs, while exploring reductions for network charges, which are the costs industrial users pay for their supply of electricity.

[Andrew Western (Stretford and Urmston) (Lab)]

Given the intention to look at the list of industries, will the Minister commit to reviewing the inclusion of the mining of hard coal? My hon. Friend the Member for Southampton, Test, suggested that it may be wise to do so.

[Amanda Solloway]

The list of eligible sectors is determined by their electricity and trade intensity. I commend the regulations to the Committee.

Resolved,

That the Committee has considered the draft Electricity Supplier Obligations (Excluded Electricity) (Amendment) Regulations 2023.

Energy

Amanda Solloway Excerpts

Tuesday 7th March 2023 Commons Chamber

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

I beg to move,

That the Alternative Fuel Payment Pass-through Requirement (England and Wales and Scotland) Regulations 2023, dated 19 February 2023, a copy of which was laid before this House on 21 February, be approved.

[Mr Deputy Speaker (Sir Roger Gale)]

With this we shall take the following motion:

That the Non-Domestic Alternative Fuel Payment Pass-through Requirement and Amendment Regulations 2023, dated 22 February 2023, a copy of which was laid before this House on 23 February, be approved.

[Amanda Solloway]

The instruments were laid between 11 January and 23 February 2023, and their purpose is to ensure that benefits from the alternative fuel payment, both domestic and non-domestic, are passed through to consumers. Throughout this winter, the Government have delivered critical support to households, businesses and other non-domestic consumers in response to the unprecedented rise in energy prices. The Government brought forward emergency legislation on energy support, paving the way for this support package to be delivered rapidly across the entire United Kingdom.

The alternative fuel payments scheme provides support to households, organisations and businesses that do not use mains gas and use alternative fuels such as heating oil. Eligible domestic consumers using alternative fuels will receive a one-off fixed payment of £200. Non-domestic consumers will receive £150.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Can the Minister tell us how many households are still waiting to access the £200 payment?

[Amanda Solloway]

I thank the hon. Gentleman for that question. With his permission, I will get back to him with the answer.

The pass-through requirement regulations are an important part of the support package and of ensuring that support reaches those who need it. The alternative fuel payment and non-domestic alternative fuel payment pass-through schemes set out in the regulations take the same approach as other energy schemes, particularly the energy bills support scheme and the energy bill relief scheme. They make it mandatory for intermediaries to pass the financial benefit of the schemes through to end users, which is necessary because that benefit is being delivered through electricity suppliers. In some cases, a supplier will have a contract with an intermediary such as a landlord or a heat network rather than with the end user, so we need to ensure that the support that it provides to the intermediary is passed on to the end user in a fair way.

Let me clarify what I mean by “end user”. In the case of both the alternative fuel payment and the non-domestic alternative fuel payment, an end user is an individual who consumes energy and pays for its usage through an intermediary such as a landlord. We are talking about tenants of different types—they could be domestic tenants, businesses or any kind of organisation.

Like other energy schemes, the schemes set out in the regulations require that support be passed on in a “just and reasonable” way. The regulations have been drafted in that way to account for the many kinds of relationship between an intermediary and an end user. If we used a narrow definition of “just and reasonable”, we could run the risk of inadvertently excluding some intermediaries from the pass-through requirements.

The regulations also accommodate scenarios in which there are multiple end users to whom intermediaries pass on support. They make it clear when and how intermediaries should communicate with end users regarding the benefit that is being passed on.

Our approach to enforcement is consistent with the approach taken in other energy schemes, particularly the energy bills support scheme in Great Britain. If an intermediary does not pass on the benefit to a user who is entitled to it, that user will be able to pursue recovery of the benefit debt through civil proceedings. Should a court rule in the end user’s favour, the end user will be entitled to the payment plus interest at 2% above the Bank of England base rate.

The Government have published guidance on gov.uk to ensure that the requirements are clear to all parties. If necessary, there are also template letters that tenants can use to contact their landlords if they are concerned about their energy bills. The Government are working with a wide range of stakeholders to ensure that the pass-through regulations work for everybody in scope, including vulnerable people and vulnerable groups.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

It is apparent from my constituency casework that there are people who have already received the payment through their energy company, but who probably should not have. I ask the Minister to confirm on the Floor of the House what she has told me in correspondence:

“Government will not require customers to repay an Alternative Fuel Payment which they have received, even if they use electricity to heat their homes.”

[Amanda Solloway]

As the right hon. Gentleman will know, I am very new in post, so I will check that point before I respond, if I may.

The regulations are vital to ensuring that support reaches the people it is designed to help. They are essential to the effectiveness of the alternative fuel payment in GB and the non-domestic alternative fuel payment across the United Kingdom. They will ensure that intermediaries pass on the support to those who really need it: the households and non-domestic energy customers most vulnerable to high energy costs. With all those important reasons in mind, I commend the regulations to the House.

--- Later in debate ---

[Amanda Solloway]

With the leave of the House, I will respond to the debate.

I thank my hon. Friends and other Members for their valuable contributions tonight. I will send on some information about some of the figures that I am unable to give at the moment. The regulations are necessary to ensure that we implement the alternative fuel payment scheme, in Great Britain, and the non-domestic alternative fuel payment scheme by allowing support to reach those who need it, and I think we all agree with that. The schemes are already in place and are delivering support to organisations across the United Kingdom.

As we are all aware, the domestic alternative fuel payment scheme is delivering £200 to households that use alternative fuels such as heating oil, liquified petroleum gas, coal or biomass, helping some 2 million off-grid households to meet their energy costs this winter. The scheme particularly supports households in rural areas that are not connected to the gas grid. Support was doubled to £200 in the autumn statement to reflect the price rises facing people using alternative fuels in their houses. The vast majority of eligible households should have received the payment automatically via their electricity supplier in February.

The non-domestic alternative fuel payment is delivering £150 to non-domestic customers who use alternative fuels for heating, helping premises in Great Britain and Northern Ireland meet their energy costs this winter.

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

I want to pick up the point about park homes and site owners and ask the Minister to address that specific point in her closing remarks. There are concerns that site owners are not always passing on the benefit of this payment to the residents of park homes. I would like some reassurance that there are proper measures in place and penalties that will make a difference in ensuring that site owners pass the benefit of these payments on to residents.

[Amanda Solloway]

I will address that in a moment. As I was saying, the scheme supports a wide range of domestic and non-domestic customers, including businesses, schools, hospitals and churches that are not connected to the gas grid. It will also deliver a top-up payment to the highest users of kerosene heating oil. Most eligible non-domestic customers should receive their £150 payment automatically in March, and we continue to update and publicise our guidance on the gov.uk website to ensure that energy users and intermediaries understand their rights and obligations.

I turn now to a couple of other questions that have been raised—as I have said, if I do not address any of the questions that have been asked, I will write to hon. Members. One thing I can confirm is that the Government will not require customers to repay an alternative fuel payment that they have received, even if they use electricity to heat their house.

Thinking about how to ensure that energy users know how to make necessary claims, end users can recover claims to pass-through amounts as civil debts in the county courts, in the same way that other outstanding amounts owed to an individual can be claimed. However, for future pass-through requirements, we will be keeping ahead of that position and making sure that we review it on a constant basis. We have reflected on advice we have received regarding previous pass-through regulations and meaningfully engaged with stakeholders across the United Kingdom to promote and disseminate requirements for all the schemes. That includes working side by side with delivery partners such as utility regulators and energy suppliers, and key stakeholders including consumer ombudsman services.

We considered introducing sanctions on intermediaries if they failed to notify the end user of their rights. However, we decided that the incentive for end users to make an application for sanctions to be applied would be insufficient, given the time and the administrative burden involved in doing so. None the less, notification requirements were included in the statutory instruments, on the basis that many intermediaries are likely to comply with the requirements set out and that the published guidance clarifies the contents of this obligation. Furthermore, it was considered important to ensure consistency in approach across the pass-through regulations of all energy support schemes.

We will continue to seek views and feedback from those impacted by all these regulations, as well as from key delivery partners. I commend the regulations to the House.

Question put and agreed to.

Resolved,

That the Alternative Fuel Payment Pass-through Requirement (England and Wales and Scotland) Regulations 2023, dated 19 February 2023, a copy of which was laid before this House on 21 February, be approved.

Energy

Resolved,

That the Non-Domestic Alternative Fuel Payment Pass-through Requirement and Amendment Regulations 2023, dated 22 February 2023, a copy of which was laid before this House on 23 February, be approved.—(Amanda Solloway.)

National Medical Isotope Centre: North Wales

Amanda Solloway Excerpts

Wednesday 22nd February 2023 Commons Chamber

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

I thank the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) for the connection that we had before this debate. On the point about the portfolios in the new Department, it may well be that some questions remain unanswered, but she has my guarantee that I will get them to the right Minister for a response.

I thank the right hon. Lady for securing this debate on a national medical isotope centre in north Wales. This is such an important matter to discuss. I agree that there is more that the UK can do to maintain secure access to the radionuclides that we need. Radionuclides, also known as radioisotopes, are vital to UK healthcare. Common uses include the diagnosis of cancer and heart and lung disease, as she mentioned. They are vital in the treatment of some cancers. The already important role of radionuclides in our healthcare system is set to grow. New radiopharmaceuticals are under development, including for cancer therapy, and there is an ever-increasing demand for diagnostics. The Government recognise the importance of finding a sustainable solution to radionuclide production to safeguard the provision and development of radiopharmaceuticals for UK patients.

Most radionuclides are produced in research reactors outside the UK. This leaves the UK reliant on ageing infrastructure overseas. A number of these reactors are due to come offline this decade, and their replacement projects have been delayed. Without a confirmed route to replace production, the supply chain will risk becoming even more fragile.

In 2022, the unplanned maintenance of a research reactor in Belgium caused global shortages of several critical medical radionuclides, including weeks of shortages in the UK. Those shortages were managed through a combination of Government, NHS and industry responses. The Department of Health and Social Care, working closely with the British Nuclear Medicine Society and other specialist clinicians, issued guidance to the NHS. This guidance outlined how to manage patient services effectively to prioritise the usage of pharmaceuticals that require radionuclides produced in reactors.

Thanks to a significant amount of work by DHSC officials and a strong relationship with UK suppliers, the UK was able to source adequate material to ensure that the impact on patients was minimal. Access to a global resilient network of research reactors is critical for these products, which cannot, as we know, be stockpiled. That international co-operation ensured a continued, albeit limited, supply of those products during the shortage period.

A European Commission report, published in 2021, supports the idea that the supply chain may become more fragile. It notes that the shutdown of European research reactors, as well as the general ageing of infrastructure and the lack of immediate replacements, are unsolved issues that require concerted European action.

The Government recognise the need to strengthen our access to medical radionuclides in the UK to mitigate the impact of shortages and to continue delivering nuclear medicine services for UK patients. As the lead Department for nuclear innovation, the Department for Energy Security and Net Zero is playing a central role. By reviewing our access to medical radionuclides and developing technologies, we aim to improve security of supply. We have been clear that nuclear technology has a role to play in the UK, and our ambitions have centred around providing secure, reliable, low-carbon energy to millions of UK homes.

However, we must continue to use our capability as a nuclear nation to support the provision of nuclear medicine services and to drive healthcare innovation. In recognition of the opportunity for the UK to do more to secure its access to medical radionuclides, my Department launched the £6 million medical radionuclide innovation programme in December last year. The programme will focus on encouraging innovation in technologies and techniques that could support access to radionuclides and increase our national resilience against global shortages.

The call for projects to receive funding will be competitive, but the programme has been designed to be technologically agnostic and a research reactor such as the proposed medical isotope centre is one of the technology options it could support. The programme will also provide a comprehensive understanding of global supply and UK demand for medical radionuclides up to 2050. Any gaps in supply will be analysed to understand the impact on UK patients. That work will provide the evidence base that the Government need to take informed decisions on future radionuclide supply.

DHSC continually monitors supply concerns, including through regular contact with UK suppliers, and is working closely with officials in the Department for Energy Security and Net Zero. Together, we recognise the need for leads in nuclear technology and healthcare to collaborate and deliver results.

Radiopharmaceuticals play an important role in the diagnosis and treatment of some cancers, as we have acknowledged, and the recovery of elective cancer services remains a Government priority. Thanks to symptom awareness campaigns and the hard work of NHS staff, there are continued high levels of urgent cancer referrals, with more than 10,000 urgent GP referrals seen for suspected cancer per working day in December 2022. DHSC is working to reduce the 62-day cancer backlog, which has fallen by 9% since peaking in May 2020.

It is promising that more cancers are being caught early. Recent data also shows that more than 100,000 patients last year were diagnosed with cancer at an earlier stage, when of course it is easier to treat. I know that researchers and staff across the service are focused on achieving the NHS long-term plan ambition to diagnose 75% of all cancers at an early stage by 2028. In addition to the immediate action to support cancer services, recognising that the majority of cancer patients will have at least one other condition, DHSC is developing a major conditions strategy that will cover disease areas including cancer.

I have outlined the important progress that the Government are already delivering across nuclear medicine and radionuclide supply. However, we acknowledge that there is always more that can be done to maintain future access to radionuclides and to deliver for UK patients. It is important to note that, when making recommendations for future policy, our advice must be driven by evidence. That is especially salient when making decisions on high-budget interventions such as the construction of a national medical isotope centre. With nuclear innovation, and especially innovation in healthcare, we must ensure that we have the strongest possible rationale for what we are asking the Government to deliver.

We aim to ensure that resources are focused effectively, giving best value and the greatest possible benefit to the taxpayer. We will do so via the medical radionuclide innovation programme and other important initiatives such as NHS England’s review of NHS trusts’ radiopharmacy services to better understand the facilities, equipment, workforce and capacity needed to effectively deliver nuclear medicine.

I am keen to stress, however, that the medical radionuclide innovation programme is not running in contradiction to proposals for large infrastructure projects, including the one under debate today. Our programme aims to determine the technologies needed to deliver the radionuclides required for nuclear medicine services across the United Kingdom. As well as supporting the development of new targeted therapies, the programme will therefore consider the suitability of a national research reactor as one of the technology options once we have concluded our assessment of the radionuclide landscape. While the delivery of healthcare and the supply of medicines are devolved matters, it remains important that the four nations can come together and support one another where possible.

Our chief scientific adviser at the Department for Energy Security and Net Zero has had regular engagement on this issue over the past two years with his counterparts in the Welsh Government and the Department of Health and Social Care. Together, they understand the need to build an evidence base to provide clarity on the best means of supporting supply resilience of radionuclides in the future—from bench to bedside. Officials in my Department and DHSC engage regularly with their counterparts in the devolved Governments and their nuclear medicine leads. It is clear that the four nations share the same commitment to delivering patient outcomes, and the issue of nuclear medicines is no different.

One of questions asked by the right hon. Member for Dwyfor Meirionnydd was whether we imported from Russia. Analysis performed by the Department of Health and Social Care indicated that there are no known medical radionuclides within the supply touchpoints impacted by the sanctions. She also asked about the champions we could have for radionuclides. That is certainly something that I would encourage, and I will pass it on to the relevant Minister to look into further.

My Department will progress the medical radionuclide innovation programme, and our decisions will be driven by the evidence as it is gathered over the coming months. We remain open-minded to the conclusions of the programme, and the role the Government might have in medical radionuclides supply in the future. We are keen to stay up to date with the proposal of a medical isotope centre in north Wales. Our policy teams will continue to meet regularly with their Welsh counterparts to discuss the project as it progresses. My Department is excited to play a part in the future of medical radionuclide supply for the United Kingdom. I thank the right hon. Member again for raising this vital topic.

Question put and agreed to.

Energy Suppliers: Customer Credit

Amanda Solloway Excerpts

Wednesday 22nd February 2023 Westminster Hall

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

It is a pleasure to be here. I thank the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) for securing the debate and for meeting me yesterday to discuss the matter. That was important for me, because I am new in the role and it is important to have our eyes wide open when we take such a role on. I want to make it clear that the customer has to be at the heart of all we do. If there is any point to which I am unable to respond, given my newness in the role, I am happy to write to hon. Members.

The Government welcome steps to increase customer awareness and engagement. We believe that energy suppliers need to ensure, now more than ever, that customers do not build up large credit balances. Suppliers should not be sitting on money that is not needed to pay for the energy that a customer is using. An account might move between credit and debit over the course of a year, in line with energy demand, but accounts should not build up an excessive credit balance. I concur with the hon. Member: it is the customers’ money.

The Secretary of State for Energy Security and Net Zero wrote to the energy suppliers in November and urged them to ensure that their IT systems are more responsive to changes. I note the point about the app; I had not heard about that, but we will look into it. The Secretary of State called on suppliers to ensure that direct debits are more accurate and that customers do not end up with large credit balances on their accounts. He has also urged Ofgem to ensure that suppliers are complying with the rules.

Ofgem requires energy suppliers to review their customers’ direct debit arrangements at least once a year. Most review them twice a year. As the hon. Member for Inverness, Nairn, Badenoch and Strathspey has mentioned and has noted in his campaign, it is important to have accurate and regular meter readings. That is easily done by having a smart meter fitted so that readings are sent automatically to the supplier and stored electronically. I note, and will look into, the comments about smart meters not always being fit for purpose.

With the combination of a smart meter and an online account, customers and suppliers both have an accurate and up-to-date record of energy usage to hand. That is one of the most effective ways of ensuring that direct debits are at the right level, but I note the examples of customers not finding it to be the easiest of things. I have been reflecting on my father, who will not like my admitting to his age of 88; it is certainly a problem for older customers and others who will not necessarily have access to the app or the IT, so I will look at that. Elderly customers and those who are less able to engage have a dedicated helpline run by the supplier or the citizens advice bureau. However, I understand from my conversation yesterday with the hon. Member for Inverness, Nairn, Badenoch and Strathspey that customers might not always know that, so we need to look into that.

In August 2022, Ofgem changed the licence conditions on suppliers to ensure that direct debits are based on the best and most current information available in all cases. The tightening of the licence conditions should reduce the likelihood of suppliers accruing excessive credit balances. Ofgem requires suppliers to explain the reasons for any changes that they make to a customer’s direct debit arrangement and to inform them of any change at least 10 days in advance. A customer may challenge a proposed increase and ask for a revised level. However, as has been acknowledged in today’s discussion, that option is not always readily available and the customer may not always recognise that it is there, so we need to reach out to ensure that they know how to ask for it.

A customer can ask their supplier to refund a credit balance at any time. Suppliers must do so promptly. If a supplier refuses to give the customer a refund, it must explain why it is unable to do so. If the customer is not happy with the situation, they should lodge a complaint with the supplier. I am aware that there are often complaints about suppliers increasing direct debit amounts; I have said as much to the Secretary of State, who has urged improvement. We must ensure that refusal by suppliers is not allowed. My understanding is that suppliers have so far not refused to refund a credit balance. I discussed the matter yesterday with the hon. Member for Inverness, Nairn, Badenoch and Strathspey, but I am happy to look into it more fully.

If a customer remains unhappy with the outcome of their complaint to their supplier, they can reach out to the energy ombudsman. Ombudsman Services, an independent body that provides dispute resolution and is free for customers, can investigate and where appropriate oblige the supplier to rectify the situation. Customers can also contact their supplier at any time to request a review of their direct debit arrangement. The review should be based on their annual consumption, using actual data or, where that is not available, estimated data. Customers can often change the direct debit themselves via the supplier’s website, over the phone or via their bank. However, it is much better for the supplier to get it right in the first instance, and that is what I want to see.

As has been acknowledged, the advantage for customers of paying for energy with a fixed direct debit or standing order is that they pay the supplier the same amount at regular intervals—usually monthly—irrespective of how much energy they have consumed. Customers typically build up a credit balance on their account over spring and summer because they use less energy for heating during those warmer periods. The credit balance is then drawn on during the colder autumn and winter periods, when more energy is consumed. Actual energy use will vary and is dependent on weather conditions. We must be mindful that this is the customer’s money we are talking about.

[Drew Hendry]

It is important to clarify one thing. There is no dispute that energy suppliers, if pushed, will return credit balances, but “if pushed” are the active words. Many of my constituents have told me that there are sometimes barriers to getting their money back. “You don’t want to do that, do you? You should really take a smaller amount”—that is the message. As I commented earlier, Ofgem seems to be missing on the issue.

[Amanda Solloway]

I noticed that point in the hon. Gentleman’s speech. Maybe we should look at whether there could be some automatic repayment. I believe that that has been looked into before, but I am certainly prepared to do so and to give an assurance on that.

[Alan Brown]

Everybody here welcomes what the Minister says about looking at automatic refunds. As my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) said, Ofgem does not currently require refund requests to be processed within a specific time. It is only if a customer closes their account to switch that there are stipulations on the time period in which their credit must be returned. The issue in the short term is that the companies are not obliged to keep to a timescale to return the credit, so I welcome the Minister’s comments about automatic refunds.

[Amanda Solloway]

I thank the hon. Member. This is an important debate, not only because it is on an important topic, but because it is important for me to listen and understand the issues.

Ofgem recently provided a progress update. It has opened formal compliance engagement with 12 suppliers and has required them to submit remedial action plans to address its concerns. To date, Ofgem has satisfactorily resolved 95% of the concerns and has secured several supplier improvements in relation to policies, processes and controls, credit balance arrangements and staff training.

Ofgem has proposed further measures to protect consumer credit balances. The reforms would require suppliers to have enough working capital to run without needing to rely on customer credit balances, about which concern has been illustrated today. The reforms should further ensure that suppliers do not gain a financial advantage from holding credit balances. Ofgem’s reforms will mean that when an energy supplier fails and Ofgem’s safety net quickly moves the customers to a new energy supplier, the customer credit balances with the failed supplier are limited in size and can, where necessary, be ringfenced.

I was unaware of the problem with smart meters, which I will certainly look into. I mentioned the app problem; I was unaware that there was an inconsistency between the reports from the app and from the website, but I am happy to look into that.

Once again, I thank the hon. Member for Inverness, Nairn, Badenoch and Strathspey for securing the debate and for his campaign to encourage customers to take more control over their energy account balances. I also thank him for noting that we must ensure that we are as helpful as possible. Customers must be at the heart of this, because it is the consumer who is affected.

The Government and Ofgem are taking clear and firm action to ensure that customers are treated fairly, are protected and receive good service. The Energy Security Secretary has written to energy suppliers about the importance of setting direct debit payments more accurately. He has also made it clear that protecting consumers is a top priority for this Government. Finally, one of the early meetings that I will have in my new role will be with the Ofgem CEO. I shall press him on what can be done to ensure that customers get their money back swiftly and easily, and to prevent suppliers from building up consumer credit balances.

Beer and Pub Taxation

Amanda Solloway Excerpts

Wednesday 5th February 2020 Westminster Hall

[Amanda Solloway (Derby North) (Con)]

To say that pubs are the pillars of our community and the foundation stone of British culture is a cliché; but it is a cliché for a reason, because it is true. There is much to be said for pubs and what they bring to the country. I am sure that we all have some great memories of being down the local, although I could not possibly comment about my own experiences. Derby North has some spectacular pubs, such as the Wilmot Arms in Chaddesden, with its incredible quiz master, Jerry, and the Nags Head in Mickleover. In London, especially within zone 1, one would think that pubs were going through a renaissance. However, it is very different outside the metropolitan zone, where pubs are closing in their droves. So many of our communities have lost their heart as a result of those closures.

Pubs bring so many benefits, which I could talk about until the end of days, really. They combat loneliness; in fact, I have a nibble and natter down at our local, the Travellers Rest, for that very reason. They foster community cohesion and promote social wellbeing, and if somebody happens to have one or two too many, there is always a friendly face to offer them a glass of water. It goes without saying that pubs also make an economic contribution. In Derby North alone, there are 52 pubs and 11 breweries supporting 888 jobs. The industry in my constituency pays about £10 million in wages, £2 million in investment, and £9.1 million in taxes. However, pubs are under a lot of strain as a result of high rents and supermarket prices.

The Government are not blind to the issue. They have introduced a raft of measures such as the asset of community value scheme, a freeze on beer, cider and spirit duty, and business rate reliefs. The results have been spectacular: the rate of pub closures has halved. However, we can do more. We can bring down the number of closures even further, so that no pub has to close its doors. The Budget would be an excellent opportunity to do so, and I would wholeheartedly support the Government in that endeavour.

Growth Strategy

Amanda Solloway Excerpts

Tuesday 21st January 2020 Westminster Hall

[Amanda Solloway (Derby North) (Con)]

I congratulate my right hon. Friend the Member for Wokingham (John Redwood) on introducing this important debate. May I add that it is absolutely freezing in here, and I am very cold?

One of the most important duties of any caring Government is to grow the economy. The question of how a Government should tend to and nurture the economy has been tackled by politicians of all stripes and colours, and answered in many ways, arguably to varying degrees of success. Fundamentally, people’s lives—whether they can support their families, get on the housing ladder, or enjoy some of the nicer things in life—rest largely on the Government’s safe stewardship of the economy. Governments have a responsibility to protect and promote the livelihoods of their citizens.

We should all be really proud of the Government’s record on growth. Since the crash of 2008-09, when the economy collapsed by 4.2%, the Government have managed to grow the economy every single year. That said, we cannot rest on our laurels. There is a lot more that we need to do. Libraries could be filled with writings on the north-south divide. In 2012, The Economist said, rightly or wrongly, that the divide was so broad that the north and the south were starting to resemble different countries. Growth continues to be stronger in the south. London recorded a 1.1% annual rise in output per person to £54,700 in 2018, increasing the per capita gap with the poorest region, the north-east, where growth was only 0.4% to £23,600 per head, according to data from the Office for National Statistics.

Less well documented, however, is the increasing gap between the east and the west. Across the midlands and the north, the growth of the west has been twice as fast as that of the east since the 2008 financial crisis. Do not get me wrong: London and the south, as well as cities such as Manchester, are assets to the country and we should be really proud of them. However, regardless of where we live in these isles, we should all share the fruits of economic growth.

To address the problem, we must not bring those places down, but bring areas such as the east midlands up with them. The Government are not blind to the problem: the midlands engine for growth, which we must ensure happens, and the northern powerhouse show that the Government are listening, and are determined to address the issue. The 2020s offer a unique opportunity to rethink how we can foster growth in our regions.

I could list a range of issues that we could talk about, including investing in transport, investing in our high streets, which I know we are doing, and supporting leadership in SMEs, which I am incredibly passionate about. However, I am conscious of time, and I know that my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) would like to speak, so I will limit myself to one topic: free ports.

As I am sure we all know, free ports are areas that are exempt from normal customs and procedural rules that are enforced by the Government. They aim to encourage businesses to locate and grow there, bringing growth, jobs and investment to local communities. I am glad that the Prime Minister will introduce free ports as we start our new relationships with trading partners across the globe. I would love one to be introduced in the east midlands, which already has the key ingredients to justify one: a wealth of manufacturing, the means to store goods, and the access to reach international markets easily, building on East Midlands airport’s cargo capability.

Proposals are being explored for a free port that might incorporate both East Midlands airport and the neighbouring East Midlands Gateway, plus the site of the Ratcliffe-on-Soar power station, just down the road from where I live, which will be decommissioned by 2025. A free port would position the east midlands as a viable and exciting proposition for businesses that need to import components for assembly before exporting assembled goods to overseas markets, while not being subject to excessive tariffs.

[John Redwood]

My hon. Friend might like to think about adding an enterprise zone to the free port. Obviously the free port allows people to import and export, but the enterprise zone allows people to sell to the domestic market as well.

[Amanda Solloway]

I thank my right hon. Friend. That is an excellent idea, which I will certainly look into.

Of course, as the MP for Derby North, I would call for an east midlands free port. However, I believe that they have the potential to unlock and boost all corners of our country, and will go far to reduce some of the current imbalances. It is important that regardless of where people live they are able to go as far as their abilities can take them. I believe that the Government’s free port plans will go a long way to achieving that.

Oral Answers to Questions

Amanda Solloway Excerpts

Tuesday 7th January 2020 Commons Chamber

[Sajid Javid]

I believe the right hon. Gentleman means Mr Neil Woodford, not Mr Ian Woodford. The ongoing inquiry is, rightly, being led independently. It is not a matter for Ministers, and neither should it be. We are, of course, interested to ensure that an inquiry takes place and that we learn all necessary lessons. I believe the Economic Secretary to the Treasury again has a meeting with the FCA on this issue tomorrow, but we will let the inquiry take its course independently. Once it is complete, we will ensure that all necessary lessons are learned.

[Amanda Solloway (Derby North) (Con)]

T2. The midlands engine for growth shows the Government’s commitment to the midlands, which is welcomed by me and by Derbyshire colleagues. What plans does the Chancellor have to push the engine forward and deliver investments and jobs for Derby North?

[Sajid Javid]

May I warmly welcome my hon. Friend back to her rightful place? Last month, I visited with her some excellent businesses in her constituency, and I want to see more such businesses, not just in Derbyshire and the midlands, but throughout the country. There is so much more we can do with the midlands engine, and in this coming Parliament we are going to really fire it up and spread opportunities. I look forward to working with my hon. Friend and colleagues in doing just that.