National Policy Statement for Nuclear Energy Generation
Debate between Baroness Bloomfield of Hinton Waldrist and Lord Hunt of Kings Heath(1 week, 5 days ago)
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Lord Hunt of Kings Heath (Lab)
My Lords, the noble Baroness, Lady Bloomfield, is very experienced and knows that departmental spring is not entirely consistent with meteorological science. I very much take the point, however, that we all want to see a final investment decision on Sizewell C—except the noble Lord, Lord Howell—and great progress on the SMR programme.
This has been a really interesting debate, and I just make it clear that the contributions that noble Lords have made today will be fed into the consideration of our final version of EN-7. In a sense, the debate does not finish here; we will make sure that the contributions are considered very carefully by officials before we receive final advice on the contents.
I congratulate the noble Baroness, Lady Maclean, on a very lively, excellent maiden speech. We look forward to her future contributions. She will discover that the West Midlands is not overrepresented in your Lordships’ House, so it is very good to see her here. I did not know about Redditch tights—I now know—but I do know about the potential of Redditch. I also share her view about the need to encourage the aspirations of young people in Redditch, and I know about the work being done on the educational system there to try to improve aspirations, including through access to higher and further education.
This debate has been very encouraging. When I last had this job in 2008 to 2010, there was much more of a mixed view, inside and outside Parliament, about the role of nuclear. There has been a huge change in attitudes and in support for nuclear. We know that from the regular polling that my department has done on public attitude following Putin’s invasion of Ukraine. Among experts and political parties, there is generally now a baseload of support for nuclear, which is really encouraging. Given the long lead times of investment decisions and build for nuclear, having stability for the companies that wish to take this forward is absolutely crucial, as it is in terms of building a UK supply chain. This kind of debate is therefore very encouraging in that respect.
I know that the noble Lord, Lord Howell, was disappointed with EN-7. On future demand, there is clearly a range of estimates for what we need based on assumptions including the extent of electrification, the role of hydrogen and the growth of artificial intelligence. I assure him that we are not wedded to a single estimate, but we clearly have to flex the supply of electricity generation according to how we go forward in relation to the future.
On EN-7 and his argument that it insufficiently mentions SMRs, we believe that EN-7 caters to SMRs throughout. We do not refer to broad categories such as SMRs as planning decisions will reflect the facts of each set of plans rather than what they are called. The different characteristics of SMRs are addressed, particularly when it refers to phased development and cooling, where we recognise that different stations may be cooled in completely different ways.
The noble Lord, Lord Howell, made a number of remarks about Sizewell C that I do not think other noble Lords agree with. I know that he thinks that the replication of Sizewell C in relation to Hinkley Point will not lead to improvements in productivity, but I point him to the improvement in productivity between unit one of Hinkley Point C and unit two. To be fair, we know that Hinkley Point C has had many challenges, and clearly we are all anxious to see further progress made, but it has made progress. There is no doubt that it has learned about how to build on a huge site using the modular approach in many ways. I am convinced that Sizewell C will benefit hugely from it. Pulling the plug on Sizewell C and saying that we will put all our eggs in the SMR basket would be greeted with consternation within the industry. That is not the way to go forward.
I agree with the noble Baroness, Lady Coffey, about the RAB model. That was an important consideration. I was interested in what she had to say about the coalition agreement in 2010, and I still remember the decision made to withdraw support from Sheffield Forgemasters in 2010, which I think was a big mistake. I pay tribute to Sheffield Forgemasters, the work it is now doing and its potential.
On the financing of SMRs, there are plenty of companies which are knocking on our doors saying, “Just give us the green light. We can develop all this. We do not need any public money”. Allow me to be a little sceptical, particularly when it comes to first-of-a-kind development. Coming back to the comments of the noble Baroness, Lady Maclean, about the share of GDP spent on public finances, et cetera, nuclear is one of those areas where you need public and private partnership. Of course we will develop our policies over the next few months, in particular in relation to advanced modular reactors, and look at the best way we can encourage private finance, because clearly we need the private sector to finance the development of AMRs in future. However, at the moment, and we have seen this with Sizewell C, public finance will be involved with the development of SMRs. Public finance is involved.
Clearly noble Lords are impatient for us to get to the end of the current programmes. We have basically inherited GBN’s assessment of SMRs. We cannot intervene now. It is working as hard as it possibly can to get decisions to government very quickly. Of course it is then tied into the spending review process, as it has to be, but the spending review outcomes are going to be known within a very short space of time. I do not accept that we are at risk of falling behind. I know from various discussions that I have had with other countries that there is huge interest in the GBN process. I hope that at the end of the process we will have a decision that will enable us to go forward with confidence and with the huge opportunity of developing a UK supply chain.
On the various contributions of the noble Lord, Lord Ravensdale, I first thank him for all the work he has done in the Midlands, showing the potential that we have in the Midlands, both east and west. He and his colleagues, uniquely, have brought the east Midlands and the West Midlands together, which as he and anyone living in the Midlands will know, is one of the greatest challenges known to men and women. Even though Brum is only a few miles away from Derby and Leicester, pulling them together is hard. He and his colleagues have done that and my department is very interested in the work that he is doing. I have already met him and I hope that he will carry on this work. It is worth saying that we already have huge assets. For instance, at the grid in Warwick, we have great skills and I am sure that we will contribute more in the future. That is probably not a departmental view, but noble Lords will know where I stand on these matters.
On community support, I very much take the point. It is an unknown quantity at the moment. With the existing sites that are listed in EN-6, we know that there was broad support in the local community for the development of new nuclear. We do not really know what the appetite will be in those areas that are new to nuclear. I take the point about the need for communications—mainly by the developers but I accept that the Government have a role. I should say that today we published our Community Benefits and Shared Ownership for Low Carbon Energy Infrastructure working paper for consultation, which may be helpful in encouraging communities to host infrastructure, receiving high-quality benefits in a consistent manner by building on existing voluntary approaches to community benefits.
On the noble Earl’s point about the Strategic Spatial Energy Plan, this will not be limited by EN-6 but will be consistent with it, as it obviously should be in EN-7. He asked about the threshold of 50 megawatts in England and 350 megawatts in Wales. This applies to planning applications, so it would naturally incorporate entire projects and entire sites. We think it unlikely that a developer would split a complex nuclear project into multiple planning applications to try to game the system. If they did, we could call in the applications and treat them as nationally significant infrastructure projects. I think that, given the scale of investment that is concerned, that is very unlikely.
I turn to the comments made by the noble Baroness, Lady Coffey, I take her point on population density. We had a lot of discussions about that before we published EN-7 and we are continuing to look at it in the EN-7 consultation. Any change we make has got to be broad-based and based on strong evidence. There is obviously a balance between safety, certainty of industry and public confidence. We are still considering this point. We are of course reviewing the national policy statement at least every five years and the review will give us an opportunity to revisit this as evidence develops and we gain experience of community attitudes in, say, urban populations, which we do not really know at the moment.
A very important point was made about water. EN-1 requires applicants to consider water quality and resources in detail, covering both construction and operation. Obviously, they need to engage early with the Environment Agency and water companies, but it is a substantive point. Of course, we have the more general issue of the need to build reservoirs, and I am well aware of some the discussions taking place about this at the moment.
My judgment on Sellafield, having revisited it after a gap of 14 years, is that it has made considerable progress. There is a long way to go, but I pay tribute to the work that is being done, the current leadership at Sellafield and the good relationships it has with the workforce. My judgment is that we need to see Sellafield as part of the future rather than just a legacy of the past. The skills developed at Sellafield—and, generally, in nuclear decommissioning—contribute to the industry as a whole. Confidence in the future and new nuclear depends on our being seen to deal with waste and decommissioning as effectively as possible.
We did not know that the noble Lord, Lord Wigley, was such an expert and had such experience. His constructive approach to new nuclear in north Wales is very much appreciated. He has made the point to me, and I very much accept it. He will know that Wylfa offers many attributes; that is why it is listed in EN-6. I also understand the issue about Trawsfynydd and isotope production. Isotopes are a matter for my colleagues in the Department of Health, and I encourage the noble Lord to talk to them about that.
I visited Wylfa in 2009 and met many people in the workforce there. At that point, they were very keen to see nuclear development continue. It is a matter of great regret that the Horizon project fell apart, but we certainly consider Wylfa to be a site that offers many attributes.
On the issue of the sites listed in EN-6 that missed out, we are saying, in essence, that we have those sites and they continue to have much to offer, but we want a more flexible siting to allow more areas to come in. Before this was published, I was very keen not to suggest that, suddenly, the sites we listed in EN-6 were being overlooked, because they are not. Clearly, they offer many advantages.
My noble friend Lord Browne made a number of important contributions. On Scotland, it is interesting that, between 2004 and 2021, nuclear energy accounted for 25% to 43% of annual electricity generation. Scotland has this hugely rich heritage, and it is a tragedy that, at the moment, we cannot see new nuclear developments in that country. Let us hope that we see a change.
My noble friend’s remarks on the COP declaration on nuclear energy—on the risk of proliferation and the security issues that arise—were very important. The COP declaration itself and the addition of a number of countries—which, as he mentioned, was announced in the previous COP—are to be encouraged.
We are strong supporters of the International Atomic Energy Agency, which has such a vital role to play on nuclear deproliferation. Its work in Ukraine over the past year or two has been amazing and the people involved in that deserve great credit. The UK is one of its strongest supporters and is acknowledged as such. I have had a series of meetings with the agency to talk about these matters.
I totally agree with my noble friend about the UK’s potential with the SMR programme globally. I know that we need to make progress quickly, but we have not missed, and will not miss, the boat. We have a great opportunity.
I very much take the point made by the noble Earl, Lord Russell, about the energy needs of AI, which will make huge electricity demands but can make great contributions to improving our energy efficiency and the efficiency of the whole energy sector. We want AI to be linked to decarbonised energy. That is what is so exciting about what is happening in the US and the support that companies such as Amazon are giving to AI centres linked to nuclear power stations. We are looking at that carefully. Over the next few months, we want to work to ensure we have policies that make it as easy as possible for these to be developed using funding from private finance. The noble Earl asked me a question about one or two SMRs. He does not really expect me to be in a position to answer that. We will just have to be patient at this point.
Geological disposal is important, of course. EN-7 makes a number of points about waste, its importance and how it needs to be factored into the developers’ considerations and applications. I cannot give timelines on geological disposal. The noble Earl will understand that the Lincolnshire position is difficult at the moment, and we are not absolutely certain about where we are going with that. Clearly, the long-term future in relation to waste is geological disposal, but interim storage is of the highest quality and can assure safety. It fits into the general position. I cannot comment on the CNC role and security issues. All I will say is that security at our existing sites and new sites is crucial.
I fear I am going over my time, but I must refer to the important contribution by the noble Baroness, Lady Bloomfield. We are totally agreed on the importance of nuclear energy and safety standards. Let me reassure her that our review of the regulatory system will not put safety at risk. I will make just one point about international collaboration. Surely we can do more to share knowledge and information. If in the US, for instance, a technology has been given approval, there must be ways in which we can have reciprocity. I am convinced of that. In relation to the collaboration between regulators, we need to do much more. A comment was made earlier about the roles of Natural England and the Environment Agency. We have to ensure that these regulators work together and in a timely way.
Perhaps I can pass on oil and gas, as we have debated that many times, but nuclear innovation is very important. The Prime Minister’s visit to the UK National Nuclear Laboratory in Springfields only a couple of months ago was a signal of the Prime Minister’s support for nuclear and our innovation.
I am sorry that I have taken so long, but this has been a really interesting debate. The contributions of noble Lords have been very helpful. They will be carefully considered by my officials before advice is given to Ministers.
Baroness Bloomfield of Hinton Waldrist (Con)
I apologise to the Committee. I should have started my speech by drawing attention to my registered interests. I still have a small legacy involvement with a Canadian nuclear company.
Energy Grid Resilience
Debate between Baroness Bloomfield of Hinton Waldrist and Lord Hunt of Kings Heath(3 weeks, 6 days ago)
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Lord Hunt of Kings Heath (Lab)
My Lords, Mighty Oak was a successful programme to test plans for full electricity restoration in the event of a national power outage. It was very successful and generated a number of learning points, and we now have a strong governance framework for oversight of the implementation of those recommendations. That work will also feed into the resilience review that my right honourable friend the Chancellor of the Duchy of Lancaster announced in July 2024.
I assure my noble friend that there is absolutely no complacency whatever, and nor is there any in relation to the energy security system and cybersecurity threats he referred to. It is certainly a key priority for the Government. We work closely with the National Protective Security Authority and the National Cyber Security Centre and we are certainly not complacent on this.
Baroness Bloomfield of Hinton Waldrist (Con)
My Lords, I can reassure the noble Earl, Lord Russell, that I do not wish to denigrate the contribution of renewables but, with the increasing electrification of heating and transport, can the Minister explain how the grid can remain resilient without more reliable baseload power, such as that provided by nuclear?
Lord Hunt of Kings Heath (Lab)
My Lords, I agree with the noble Baroness that the baseload that nuclear provides is very important indeed. She knows that we are rapidly approaching the final investment decision on Sizewell C, and the conclusion of the current work of Great British Nuclear in relation to small modular reactors. We are very keen to see the contribution of nuclear recognised. I agree with her that it provides an essential baseload to the system.
Wales: Nuclear Power Generation
Debate between Baroness Bloomfield of Hinton Waldrist and Lord Hunt of Kings Heath(1 month ago)
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Lord Hunt of Kings Heath (Lab)
My Lords, I agree with the last statement by the noble Lord, but I do not agree with what he said. The Government are very focused on development of new nuclear. He knows that, in relation to small modular reactors, we have a process by Great British Nuclear, which is going through a detailed series of negotiations, with final decisions to be made over the next few weeks. We were bequeathed that process by the Government that the noble Lord supported. His party did not open a single nuclear power station. I can tell him that, as far as SMRs are concerned, I have been to many fora discussing this with companies. They are clearly awaiting the outcome of the GBN process, and we will make progress following that.
Baroness Bloomfield of Hinton Waldrist (Con)
My Lords, I welcome the Question from the noble Lord, Lord Jones of Penybont. The Minister needs absolutely no reminder from me of how important Wylfa is to the people and economy of north Wales, but, since the Government’s own calculations say that the delay is costing £90 million a year in lost revenues and lost opportunities in the supply chain and others, can he tell me what steps the Government are taking to prevent further delays at Wylfa?
Lord Hunt of Kings Heath (Lab)
My Lords, I think I have said that we will set out our future ambition for plans in due course. We have focused very much on getting Sizewell C over the line, and we hope a final investment decision will be made over the next few weeks. We have the SMR programme, we are very keen to see the development of AMRs as well, and we will set out our ambitions in due course. But there is no question about our commitment to taking this forward; we took the decision in 2007 to go back to nuclear. What is so disappointing is that the last Government had 14—it is all very well for noble Lords to shake their heads, complaining about what I am saying. They do not want to hear the facts. They had 14 years to sort this out, and they did not.
Heat Networks (Market Framework) (Great Britain) Regulations 2025
Debate between Baroness Bloomfield of Hinton Waldrist and Lord Hunt of Kings Heath(3 months, 4 weeks ago)
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Lord Whitty (Lab)
My Lords, could I ask the Minister one question? I apologise to him: I realised this was being done today only about 20 minutes ago.
A significant number of existing heat networks are run by local authorities or hived-off organisations owned by local authorities. The aim of this legislation, as far as consumers are concerned, I have strongly supported for a long time, including during the proceedings of the Energy Act. I am very much in favour of consumer protection and consumer redress as spelled out in part of these regulations, but I have been told elsewhere that those protections and certainly those forms of redress are different if they are for consumers of heat networks run by local authorities, compared with a private sector or mixed ownership of the heat network. I would like to know whether that is true in principle. If it is at all true, perhaps the Minister could write to me and explain what the situation is.
Lord Hunt of Kings Heath (Lab)
My Lords, I am most grateful to noble Lords who have taken part in this short but none the less interesting and, I think, important debate. As the noble Earl, Lord Russell, the noble Baroness, Lady Bloomfield, and my noble friend Lord Whitty have suggested, the development of heat networks is a very important one, and we want to see considerable progress over the next few years.
I also think it is important that the sector itself has broadly supported the regulatory proposals. I believe, and I think it was explicit in what the noble Baroness said, that that confidence will allow them to invest in the future and develop the market, which is what we earnestly hope for and wish to see.
In response to the noble Baroness, Lady Bloomfield, I accept that this is another responsibility that is being placed on Ofgem. I have had quite considerable experience in dealing with regulators in my time in government. I think Ofgem discharges its responsibilities very seriously, and I have confidence in its ability to discharge this new responsibility. In a sense, it is simply extending the principles of the current regulation of gas and electricity to network heating, so it is something I am confident it will be able to do.
In response to the noble Earl, Lord Russell, I make it clear that from April this year, heat network consumers will also be able to seek redress from the Energy Ombudsman scheme and, through Citizens Advice and Consumer Scotland, will have access to advice and advocacy services afforded to the gas and electricity markets. In answer to the noble Baroness, we think this will be particularly helpful to the vulnerable customers she mentioned.
The noble Earl asked me about retrospection. The new arrangements will not be able to be applied retrospectively. The fact he raised this shows why it is so important that we get a move on in introducing these new regulations, and how customers were at risk under the previous arrangements.
As far as fair competition is concerned, again, I very much accept that point. Indeed, this work arose from the Competition and Markets Authority, and Ofgem is well used to intervening in areas where it feels that competition is not being fairly adopted. I am confident that it can deal with that. The data gathered by Ofgem—and, of course, it will have this ability to require data to be provided to it—will enable it to identify emerging issues and trends and adapt regulation as the heat sector develops and grows. As I see it, regulation will be proportionate and organic, marching in step with the way the market itself develops.
I inform the Committee that we will be introducing further regulations this year: first, to introduce protections against insolvency and debt management; and, secondly, to create an entity to implement mandatory technical standards. Putting those together will provide the foundation for this market to grow in future. Market growth seems to me to be a fundamental question, so we are working to expand the existing heat network market through capital funding via the green heat network fund, which will establish heat network zones in key locations. This will allow heat network developers to deploy large-scale district heat networks in dense urban locations, where, as I have said already, they are best suited to provide low-carbon heat.
On support for smaller heat networks, my understanding is that, first, Ofgem will take a proportionate and outcomes-based approach to regulation, providing guidance and supporting small operations.
To come back to the legacy issue and add a bit more information, on legacy issues with existing heat networks, we will take action to guide heat networks through legacy challenges that they face with existing heat networks, with remedial works implemented over time. One advantage of giving authorisation to current schemes is that, once they have been given an authorisation, they then come under these regulations. In one way, if there are pre-existing issues, at some point they will be authorised, and then they can be dealt with under these regulations. So, in fact, although strictly speaking it cannot be retrospectively applied, I hope that that can bring comfort to customers who are really concerned about the situation as it is.
I understand also, in relation to vulnerable customers, that a priority services register will enable vulnerable consumers to access additional support relating to their heat network, including receiving communications in an accessible format, assistance reading their meters and the ability to nominate another person to act on their behalf when dealing with their heat provider.
In relation to the point raised about regulation and customer prices, Ofgem will have direct powers to intervene on prices with a general authorisation condition, to set prices fairly, with data-driven interventions proceeding from January 2026.
On the point raised by my noble friend Lord Whitty, first, I acknowledge the work of local authorities of in some ways even pioneering district heating systems. My noble friend may know that in the heart of the city of Birmingham we had a district heating system that ran right through the city centre, and we can see the potential area. I have also been informed about the South Westminster Area Network, which is being established through close working between Westminster Council and Westminster business improvement districts. That is a new approach to procurement; it took four months to bring forward a partner, which is much quicker than for many of the schemes and developments.
The point that my noble friend raised is a new one to me, and I hope that he does not mind me just checking it out and coming back to him on it. On the face of it, it seems puzzling, but I think that I need to find out some more information about it. But I take his point that we want local authorities to continue to take a lead in developing some of these network heating schemes and, clearly, the public must have confidence in how that is done.
Finally, the noble Earl, Lord Russell, asked me about Great British Energy. He will know that we believe that, in the development of local plans and the role of GBE in doing that, there is clearly potential to give encouragement to community energy schemes and network schemes. I cannot really say any more about that, but I shall draw those remarks to the attention of the start-up chair of Great British Energy.
Baroness Bloomfield of Hinton Waldrist (Con)
I should just clarify my remarks about Ofgem. In no way was I intending to imply that its work was anything other than exemplary—I was just commenting on the increasing workload that we are putting on Ofgem.
Lord Hunt of Kings Heath (Lab)
I did not take it as a criticism at all. The noble Baroness is absolutely right that we are asking Ofgem to do a lot—but her experience and mine is that it is very capable of doing that.
Small Modular Nuclear Reactors
Debate between Baroness Bloomfield of Hinton Waldrist and Lord Hunt of Kings Heath(4 months, 1 week ago)
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Lord Hunt of Kings Heath (Lab)
My Lords, it is a little early to give a definitive view to my noble friend but clearly the role of the Civil Nuclear Constabulary is a very important one. I reassure him that in the 14-year gap since I was last responsible for that force, there have been huge improvements in the way in which the constabulary works. I keep this matter under very close oversight.
Baroness Bloomfield of Hinton Waldrist (Con)
My Lords, it is welcome news that the Minister has indicated there will be a decision by Great British Nuclear on SMR technologies in the spring. However, we still await any guidance on advanced modular reactors, let alone details on how they can come to the market and generate much-needed clean energy here in the UK from the early 2030s. A number of privately funded developers—newcleo, X-energy, TerraPower and others—are ready to go and want GBN to have a parallel process alongside the SMR competition to help them realise their ambitions in the UK as soon as possible. Will the Minister please give a clear indication on when a plan for AMRs will be published? Will His Majesty’s Government support those that want to get on with things in the meantime, invest in the UK, boost economic growth, and create thousands of jobs through their supply chains?
Lord Hunt of Kings Heath (Lab)
My Lords, I am grateful to the noble Baroness for her questions and we certainly take account of what she said. We all see the potential of AMRs. We have also seen that some of the major west coast companies in the US are interested in reaching agreements with project developers for AMRs to be sited near data centres in order to produce decarbonised energy. The noble Baroness’s Government produced an alternative routes to market consultation. We are currently considering the results of that and will make announcements in due course. I understand what she said about the role of GBN. These matters are all under earnest consideration at the moment.
Great British Nuclear: Modular Reactors
Debate between Baroness Bloomfield of Hinton Waldrist and Lord Hunt of Kings Heath(6 months ago)
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Baroness Bloomfield of Hinton Waldrist
To ask His Majesty’s Government what progress Great British Nuclear has made with its plans to deploy small modular reactors and advanced modular reactors, and what assessment they have made of the process for evaluating their design and manufacturing.
The Minister of State, Department for Energy Security and Net Zero (Lord Hunt of Kings Heath) (Lab)
My Lords, Great British Nuclear is pushing forward the SMR competition for UK deployment and is now in negotiation with bidders, with final decisions to be taken in the spring. The Government are also actively exploring how we can enable alternative routes to market for advanced technologies, including AMRs, and we will set out our policy position in due course.
Baroness Bloomfield of Hinton Waldrist (Con)
I thank the Minister for that Answer. Will he explain exactly what has caused the damaging schedule slippage within GBN? Is it the shortage of staff, underfunding, underestimating the workload required or the many layers of approval—11 separate Whitehall approval committees at the last count—in order to allow GBN to announce the latest download of SMR technologies?
Lord Hunt of Kings Heath (Lab)
My Lords, I think the noble Baroness will know the answer, because 16 months of the lifetime of GBN occurred under her party’s Administration. The fact is that we are working very closely with GBN. It has to go through considered processes. It has done two rounds of assessment and, as I have said, four technologies have been shortlisted, all of which are viable options for development. Crucial talks are now taking place. Companies will be invited to make final bids, and decisions will be made in the spring. I am confident that GBN will ensure that we get to that final decision as soon as possible.
Domestic Solar Panels
Debate between Baroness Bloomfield of Hinton Waldrist and Lord Hunt of Kings Heath(6 months, 1 week ago)
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Lord Hunt of Kings Heath (Lab)
I am very grateful to my noble friend for that very helpful suggestion. I will make sure the taskforce gives it earnest consideration.
Baroness Bloomfield of Hinton Waldrist (Con)
My Lords, as the Government’s Great British Energy Bill enters Committee in the coming weeks, can the Minister confirm whether this will include the deployment of solar panels as part of its strategy? Given that I have the Minister’s attention, and following on from the questions from the noble Baroness, Lady Winterton, and the noble Viscount, Lord Hailsham, I draw his attention to GB-Sol, a spin-out from Cardiff University, which manufactures Welsh slate-looking tiles, which are suitable for both listed and heritage buildings.
Lord Hunt of Kings Heath (Lab)
That is a very interesting point. It is worth making the point also that a number of British companies are assembling some of the solar panels imported from China. I agree that we need to look at all these areas.
In relation to the GB Energy Bill, the noble Baroness will know it is not our intent to place in the Bill the exact amount of energy generation we require from each source. That will be a matter for the GBE board in light of the Government’s overall priority-setting towards clean power and net zero.
Drax Power Limited: Ofgem Investigation
Debate between Baroness Bloomfield of Hinton Waldrist and Lord Hunt of Kings Heath(6 months, 3 weeks ago)
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Lord Hunt of Kings Heath (Lab)
My Lords, on the issue of data, I have checked with Ofgem. At the moment, it has no reason to think that Drax is not compliant, but it will not hesitate to act if required. On the question of subsidy to Drax, the noble Baroness is referring to the ROC system of subsidies, which the last Government oversaw for many years. The ROC comes to an end in 2027. The last Government issued a consultation on whether there should be transitional subsidy arrangements. We are considering the results of that work at the moment.
Baroness Bloomfield of Hinton Waldrist (Con)
Noble Lords will remember the “Panorama” exposé of the illegal sourcing of wood pellets from Canadian forests, a charge vigorously denied at the time by Drax. Our Conservative Government introduced the strict criteria that allowed Ofgem to conclude that there was not “sufficient evidence”. What plans do this Government have to ensure that Ofgem can continue to investigate any company receiving a subsidy?
Lord Hunt of Kings Heath (Lab)
My Lords, it is clearly very important that companies in receipt of the ROC payments—and, indeed, where their biomass electricity generation is classified as low-carbon—are acting according to sustainability criteria. The last Government issued a call for evidence in 2021 and then took two years to publish a strategy, in 2023. On the revision of sustainability criteria, they rather ducked it, saying that they would produce a cross-sector consultation this year, which never happened. We are now working on that. It is clear that sustainability criteria need to be kept up to date. We will ensure that that happens.