Electricity: Cost-competitiveness

Debate between Lord Callanan and Baroness Fox of Buckley

Thursday 16th May 2024 Lords Chamber

[Lord Callanan (Con)]

The costs that I quoted are what are called the levelised costs, which are an industry standard, and they take account of other system costs. But, as I said, we will of course need back-up and storage. What the noble Lord said is true: gas will play an increasingly marginal role, but it will play a role in ensuring that we have energy security going forward. The estimates are that we will have about 7% of gas generation by about 2035.

[Baroness Fox of Buckley (Non-Afl)]

My Lords—

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[Lord Callanan (Con)]

There is already some wind generation, but of course the waters are deeper, which is one reason why we are developing floating offshore wind, which I referred to earlier.

[Baroness Fox of Buckley (Non-Afl)]

On the hidden costs of harnessing wind power, which seems to be a theme, will the Minister acknowledge that, in any wind turbine, there is a huge amount of steel, fibreglass, resin, plastic, copper, aluminium, iron and cast iron? Therefore, does the Minister acknowledge that, for decades to come, these materials will be extracted and manufactured only with the help of fossil fuels? As is often the case, fossil fuels are invaluable, but that is never part of the public discussion.

[Lord Callanan (Con)]

My Lords, I am happy to acknowledge the noble Baroness’s point, but, if she is attempting to say that other forms of generation—gas-fired power plants, nuclear power plants or whatever—do not have many of those materials, she would be wrong.

Limiting Global Temperature Increase

Debate between Lord Callanan and Baroness Fox of Buckley

Wednesday 13th December 2023 Lords Chamber

[Lord Callanan (Con)]

I repeat the answer I gave earlier: these statements demean the noble Baroness. The UK provided fantastic leadership. We have an official, Alison Campbell, who co-chaired a number of the panels. She was the penholder on a number of these negotiations. We succeeded in all of our aims. There was robust political leadership; Graham Stuart was there. For a lot of the time, our own Minister, my noble friend Lord Benyon, was there. There were many other Ministers who were also there. There was no gap in UK representation or in the agreements that we achieved.

[Baroness Fox of Buckley (Non-Afl)]

My Lords—

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[Baroness Fox of Buckley (Non-Afl)]

My Lords, whatever about the lobbyists from the fossil fuel companies, do the Government have any assessment of the cost in terms of CO₂ used to travel to Dubai, or in terms of public money paid to facilitate the tens of thousands of pro-net zero lobbyists, NGOs and consultants who attended COP 28? Can the Minister reflect on the impact for developing countries of not using fossil fuels when they are so essential for enabling their citizens to achieve the prosperity of western economies?

[Lord Callanan (Con)]

On this issue of lobbying, tens of thousands of people were at COP, representing a whole series of different shades of opinion. Of course, there were lobbyists from all sides, but that does not mean you have to agree with the position that they take. A wide range of views were represented; I said to the noble Lord, Lord Foulkes, when he asked me something similar last week, that you listen to the views, and there are lots of people having meetings around it, lobbying groupings and so on, but the negotiation is done by committed teams of officials who probably do not watch any of the TikTok videos that the right reverend Prelate referred to. However, as I said earlier, the needs of countries are also different in different environments. We are fortunate, being a relatively wealthy country, that we can transition away from fossil fuels. It is much more difficult for some third-world countries, which is why we are offering them considerable amounts of finance—we have £11.6 billion of international climate finance with which to help them with the transition. We are leading on initiatives such as the Powering Past Coal Alliance, which helps developing countries to move away from coal-fired power stations as well. So we are taking a range of different initiatives in collaboration and co-operation with a number of different other countries.

Strikes (Minimum Service Levels) Bill

Debate between Lord Callanan and Baroness Fox of Buckley

Committee stage
Thursday 9th March 2023 Lords Chamber

[Baroness Fox of Buckley (Non-Afl)]

I completely support the Minister’s aspirations for the public to be able to conduct their lives without disruption. They want to be able to use transport and health services. But when the minimum service levels are decided by whoever it will be—we are unclear—will the Government be penalising those employers who do not provide them on non-strike days as well? I just wondered. We do not know what the minimum service levels will be. If 50% of the trains need to run, that would mean all signalpeople would have to work. I would like to be able to use the same Bill to have a go when I cannot get a train, the ambulance does not come or what have you, but it is the fault not of the strikers but of the organisations or institutions. Can the Minister extend this Bill so that I can use it to sue the people who do not deliver the services I need to live my life?

[Lord Callanan (Con)]

The noble Baroness says that these regulations will be imposed by whoever feels like it. They will be imposed by this Parliament because we are consulting on minimum service levels in three areas that will be subject to regulations. Each sector is different, which is why we have laid some consultations on the regulations; we are interested in hearing views. Again, the noble Baroness is getting ahead of herself. The noble Lord, Lord Fox, has amendments in later groupings similar to what the noble Baroness wishes to bring about; perhaps if she restrains her enthusiasm, we will get to these points later.

Prepayment Meters

Debate between Lord Callanan and Baroness Fox of Buckley

Tuesday 24th January 2023 Lords Chamber

[Lord Callanan (Con)]

As I said, people pay slightly more for prepayment meters because of the cost to suppliers of servicing those customers. The issue of social tariffs is of course different. I have had this debate with my noble friend before. We had a system of social tariffs that was replaced by the warm home discount, which was found to be a better way of supporting vulnerable customers. But, of course, we will continue to look at the issues.

[Baroness Fox of Buckley (Non-Afl)]

My Lords, I feel as though I have to state the blindingly obvious, which is that being asked to pay more for servicing a prepayment meter that you do not want is not fair. To anyone in the normal world, saying that the tariff is the same just makes the Minister sound like someone who does not understand the normal world. Ordinary people are paying more for a prepayment meter that they do not want but which is being imposed on them, and they are the people who have the least money. It is ludicrous.

[Lord Callanan (Con)]

The noble Baroness says I do not understand, but I have lived in properties with prepayment meters and I very much understand the issues. No one is forced to have a smart meter or a pre- payment meter, either, except in the limited circumstances that I have outlined, particularly for customers who are in levels of debt, and we have put in place a number of measures to try to reduce that as much as possible. I have outlined the steps that we are taking with suppliers to make sure that those are imposed on customers only in the last possible circumstances.

North Sea Oil and Gas

Debate between Lord Callanan and Baroness Fox of Buckley

Thursday 10th February 2022 Lords Chamber

[Lord Callanan (Con)]

The noble Lord makes an excellent point. Regarding energy, first, it takes many years to develop new sources—sometimes even tens of years—and, secondly, we need diversity of supply. Yes, we need continued oil and gas production during the transition period; yes, we need to encourage new renewables; and, yes, we need to encourage nuclear. We need a diverse mixture of supplies.

[Baroness Fox of Buckley (Non-Afl)]

My Lords, can I press the Minister? People have stressed the importance of reliable domestic energy sources. In response to the question on fracking, the Minister raised all sorts of problems of safety and so on. These are contentious but could it be possible for the Government to lift the moratorium or at least commit themselves to looking again at this important issue? Nobody suggests that shale gas will solve all the problems but in an energy crisis that is really serious, we want to look at nuclear, fracking and all reliable energy sources. Fossil fuels should not be demonised so that we move away from them, and safety fears should not be used to stop what would be sensible for the British economy.

[Lord Callanan (Con)]

The noble Baroness makes some good points. As I said in response to my noble friend earlier, we keep these matters under review. If it can be demonstrated that fracking can be carried out in a safe and reliable manner, then of course we need to consider it. But we have to be realistic about this: it is not going to be the answer to our short-term difficulties. In preparation for this, I was chatting to some specialist officials and they said it could easily be 10 years—even if we got rid of the moratorium tomorrow and overcame all the environmental problems that were caused—before any fracked gas came on stream.

Net-zero Emissions Target: Fossil Fuel Extraction Projects

Debate between Lord Callanan and Baroness Fox of Buckley

Wednesday 3rd November 2021 Lords Chamber

[Lord Callanan (Con)]

The UK is indeed engaged in the process to modernise the Energy Charter Treaty to ensure that it is aligned with our climate objective and advances UK and global energy transition. So, through our COP 26 presidency we are working closely with global leaders to meet the goals of the Paris Agreement, including supporting the accelerated phase-out of coal and the wider decarbonisation of the energy sector.

[Baroness Fox of Buckley (Non-Afl)]

My Lords, in view of the importance of allowing the UK steel industry to survive and even thrive, and the obvious and immediate need for steel to manufacture those wind turbines we hear so much about, can the Minister explain the delay in opening the Cumbria coal mine? Is it sensible to allow all new fossil fuel extraction projects to be demonised and indiscriminately written off to fulfil net zero, when other urgent priorities, such as the imminent energy crisis, mean that the Government should be more pragmatic and look at all energy options, including shale gas?

[Lord Callanan (Con)]

The noble Baroness makes some valid points. The steel industry is integral to building the infrastructure, such as offshore wind farms, that we need to tackle climate change. While there has been a decline in coal mining in the UK for some time, there is a global market for coking coal. This reduction in the mining of coal in the UK will have no impact on UK steel production. I would remind the noble Baroness that we published the UK’s first ever industrial decarbonisation strategy, which will help in this area.

Net-Zero Carbon Emissions

Debate between Lord Callanan and Baroness Fox of Buckley

Monday 7th June 2021 Lords Chamber

[Lord Callanan (Con)]

The noble Baroness is right that this will indeed be a challenge. If she will be patient, we are planning to publish our heat and buildings strategy in due course. That will set out how our industry and consumers can take the immediate actions they need to take in order to reduce emissions from all buildings, both industrial and commercial.

[Baroness Fox of Buckley (Non-Afl)]

My Lords, according to a summary report from the Public Accounts Committee, as much as 62% of the reduction in future carbon emissions will rely on individual choices and behaviours such as replacing boilers or buying electric vehicles. Have the Government told the public that they are relying on such behaviour change and what it will mean ultimately for individuals if they have no choice but to comply? When will the Minister tell the public how much net zero will cost them? As we have just heard, gas boilers cost a great deal less than the heat pumps being proposed, which produce a lot less heat. For an ordinary home to achieve net zero will cost approximately £90,000. Whether they are carrots or sticks, they are very expensive regardless.

[Lord Callanan (Con)]

I do not recognise the figures given by the noble Baroness. It will be an expensive change, but I do not think that it will cost that much per home. However, she is right in theory. We need to educate people about the changes required and to take them with us, and of course the policy will be brought about by a mix of regulations and grant assistance.

Covid-19: Financial Support for High Street Retailers

Debate between Lord Callanan and Baroness Fox of Buckley

Tuesday 27th October 2020 Lords Chamber

[Baroness Fox of Buckley (Non-Afl)]

My Lords, will the Minister ask colleagues in the Welsh Assembly if the distinction between buying essential and inessential retail goods is a scientific one or an arbitrary political one? For retail in general, beyond financial support, a dangerous dose of puritan moralism will not help shops if it means that a care worker who has worked long shifts and might want to treat themselves to a dress is now treated as a criminal. The Minister said to shop early for Christmas—not in Wales, where I am from, because you are not allowed to shop at all, apparently.

[Lord Callanan (Con)]

The noble Baroness makes a powerful point, and I point out that we do not have these restrictions in England. I almost felt sorry for the Welsh Government yesterday in trying to navigate a way through this self-imposed error.