(1 month ago)
Commons ChamberI call the Chair of the Energy Security and Net Zero Committee.
Yesterday, the Energy Security and Net Zero Committee looked at the facts and the evidence: Ofgem and NESO told us that the price cap will be in place until June as a short-term protection; that clean power 2030 is indeed the best way to avoid future exposure to the sorts of risks that we are now experiencing; that energy costs as a share of GDP will fall from their current 10% to between 5% and 6% by 2050, according to Government plans; and that there is no prospect of bringing down prices by undertaking activity in the North sea. What plans does the Secretary of State have for short-term support for bill payers? We heard evidence about the reformed national pricing consultation that is under way. May I encourage him to bring that forward, so that bill payers can benefit from the availability of low-demand cheap electricity as soon as possible, as an immediate response to this crisis?
My hon. Friend speaks wisely on these issues. I agree with what he said about how we get energy security and the right thing to do. On the question of bill payers, across Government and across the House, we are incredibly alive to and vigilant about the potential impact of the crisis. I believe there is cross-party support for the price cap, which I think is very important. In a world without the price cap, we would see much more immediate effects. That does not mean that everyone is protected, but the vast majority of domestic consumers are protected by the price cap.
My hon. Friend asked about short-term action, including through RNP. As he would imagine, across my Department, there is intensive work under way, looking at all the options that we have. As the regulator said to the Committee yesterday, much of this will depend on how long the crisis lasts, but the Chancellor and the Prime Minister have both shown their willingness and determination to act on bills, and I am sure that will remain.
(2 months, 3 weeks ago)
Commons ChamberBefore I call the first Back-Bench Member, may I remind Members that we have an important debate on Ukraine later this afternoon? We will look to finish this statement at about 4 pm, which leaves us with around 30 minutes. Please keep questions and answers short.
The Energy Secretary deserves enormous congratulations on moving from the “botched” auction round 5, to use the words of the right hon. Member for East Surrey (Claire Coutinho), to the record success of auction round 7. The strike price will see no increase in consumer bills—indeed, Aurora says that it is likely to see a reduction in bills—and it is 40% cheaper. The Secretary of State set out in great detail how this will be cheaper than gas. Does he agree that demonstrates once and for all that renewable energy is good for bills?
(4 months, 1 week ago)
Commons ChamberI call the Chair of the Energy Security and Net Zero Committee.
My right hon. Friend rightly reminded us of the progress that was made at COP. The recommitment to limiting global warming to no more than 1.5° is hugely important. He was honest in saying that we did not get everything we wanted, and that is sensible. However, he also reminded us of the absolute seriousness of climate breakdown, and that we must take every action possible. That goes beyond COP, and I hope he agrees that that work should continue whether or not it is in relation to a COP.
The Secretary of State started to talk about energy security, and I want to link this subject to that, because there is a worrying tendency towards a loss of support for the transition. Does he agree that it is really important, especially in the light of the ongoing aggression from Russia—and we have just had a statement, including on Ukraine, demonstrating it—that we make it clear to people that energy security and climate breakdown are very strongly linked, and that the answer to both of them is the energy transition?
My hon. Friend makes a really important point. The reason we have seen a movement of support for the transition away from fossil fuels is not simply climate-related, but energy security-related. Lots of countries, including Britain, recognise—unwittingly helpfully, the hon. Member for South Suffolk (James Cartlidge) said this from a sedentary position—that Putin’s invasion of Ukraine showed our vulnerability due to our reliance on fossil fuels. At a very striking roundtable hosted by Marina Silva, the Environment Minister in Brazil, many countries from the global north and the global south said the same thing, which is that, for them, the move away from fossil fuels towards home-grown clean energy is the route to energy security, so he makes a very important point.
The only other point I would make is that my hon. Friend is right that these negotiations are hard and painstaking. We have to look at the progress that has been made over the course of the 30 years. It is tough, and different countries are in different positions, but that is what these talks are all about.
(1 year, 1 month ago)
Commons ChamberI call the Chair of the Energy Security and Net Zero Committee.
I congratulate my hon. Friend the Minister on his marathon stint and on the pragmatic and well-crafted analysis of how the Government’s energy policies will address the security of supply and provide the best deal for bill payers. This is in stark contrast to what the Conservatives did, and in particular to what my hon. Friend described as the terrible deal with Drax that they presided over while in office.
Today’s statement is a timely reminder of the challenges with Drax, not least given the news over the weekend of further misreporting of the burning of primary forest. NESO, in its future energy pathway, predicted a reduction in the use of biomass as part of the UK becoming more energy independent. Does the Minister, with his announcement, foresee that the cuts in subsidies and in the reliance on Drax will contribute to the Government’s clean power plan, to energy security and to reducing bills for all our constituents?
The Chair of the Select Committee is absolutely right about where Drax, and biomass generally, fits in our wider energy system. What we want to build at pace is a clean power system that takes us off the volatile fossil fuel markets. That is important, but there are short-term issues around ensuring we have the dispatchable power we need when we need it.
The Government have taken long-term decisions, for example in the first funding scheme for long-duration energy storage in 40 years. We hope to see modern new technologies of long-duration energy storage but also some classics from the history books, with pumped storage hydro playing a critical role in the system and delivering the dispatchable clean power we need. But there is a short-term question we need to answer that the previous Government did not have an answer for: how we get to 2031. We can build new gas units. Our analysis and the advice from NESO was that that was more likely to deliver energy security and in the end be cheaper for bill payers, who ultimately pay the bill. Our long-term ambition is to build towards that clean power system. This is an important step to get us the energy security that we need in the system.