Byers Gill Solar Farm
Amanda Solloway Excerpts(9 months, 2 weeks ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
indicated assent.
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
I thank my hon. Friend the Member for Stockton South (Matt Vickers) for securing this debate relating to the development consent order for Byers Gill solar farm. I also acknowledge the contribution of my hon. Friend the Member for Sedgefield (Paul Howell). They have both shown incredible commitment today and previously in raising awareness of this case within the House.
I must say from the outset that for propriety reasons, I am unable to comment on the specifics of the proposal. Byers Gill is considered a nationally significant infrastructure project, as defined in the Planning Act 2008, and any application would be determined by the Secretary of State. I understand that an application for the Byers Gill solar farm was received by the Planning Inspectorate on 9 February 2024. The Planning Inspectorate is responsible for considering whether the application should be accepted for examination and, if accepted, will carry out the examination on behalf of the Secretary of State, who will review the report and make the final decision. Given the quasi-judicial role of the Secretary of State in determining applications, I hope the House will appreciate that I cannot comment on the specifics of Byers Gill solar farm or any other proposed infrastructure project, as that could be seen as prejudging the outcome of any proposal subsequently submitted for decision through the planning process. I can, however, set out in general terms how planning works for large solar projects.
There are established routes in the planning system to consider the impacts of solar projects and to enable communities to raise concerns about developments in their areas. Developers taking projects through the nationally significant infrastructure projects regime must complete considerable community engagement before any approval is granted, giving communities and local authorities ample opportunity to feed in their views.
When a developer submits an application to the Planning Inspectorate, it must be accompanied by a consultation report. In that document, the developer must demonstrate that it has complied with the statutory pre-application consultation requirements and that it has had regard to the responses it has received. Among other things, the report must provide a description of how the intended application was informed and influenced by those responses, outlining any changes made as a result, and provide an explanation as to why responses advising on major changes to a project were not followed, including advice from statutory consultees on impacts. If an applicant has not followed the advice of the local authority or not complied with guidance published by the Planning Inspectorate, it must provide an explanation for the action taken or not taken.
On submission of an application, the Planning Inspectorate will write to relevant local authorities and ask for their views on whether the consultation has been adequate. The Planning Inspectorate will consider the consultation report alongside any representation made by a local authority on the adequacy of the developer’s consultation and the other application documents before deciding whether to accept the application for examination.
The planning system sets out how applicants and decision makers should consider the impact of solar projects on land use, the local environment, wildlife, biodiversity and, of course, landscapes. That should also include consideration of cumulative impacts: for example, where several solar projects are deployed in close proximity.
The Infrastructure Planning (Environmental Impact Assessment) Regulations 2017 require all large solar developers to complete an environmental statement as part of any application. The environmental statement requires developers to consider all potential impacts during a project’s life from pre-development to construction, operation and decommissioning. The environmental statement must be conducted by a “competent expert”, which means that all surveys and studies, including soil surveys, must be conducted and overseen by experienced members of their relevant professional field, such as ecology or geology, and comply with relevant codes of conduct.
As set out in the recently designated national policy statement for renewable energy infrastructure, while land type should not be a predominating factor in determining the suitability of a solar site location, applicants should where possible utilise suitable previously developed land, brownfield land, contaminated land and industrial land. Where the proposed use of agricultural land has been shown to be necessary, poorer quality land should be preferred to higher quality land, avoiding the use of “best and most versatile” agricultural land where possible.
In terms of the safety of battery storage, it is a priority of the Government to ensure that an appropriate, robust and future-proofed health and safety programme is sustained as the industry develops and storage deployment increases. The framework is kept under review to respond to changing circumstances. Recent reviews have considered both the planning system and the environmental permitting regulations.
The United Kingdom was the first major economy in the world to introduce legally binding net zero legislation. We cut emissions by half between 1990 and 2022 while growing the economy by two thirds, decarbonising faster than any other G7 country. In 2021, the Government adopted their sixth carbon budget for the period of 2033 to 2037, to reduce emissions by circa 78% by 2035 compared with 1990 levels.
The Government have also committed to decarbonising the electricity system by 2035, subject to security of supply. That will require deployment across a range of homegrown green technologies at an unprecedented scale and pace. Renewables such as solar and wind, alongside other low-carbon technologies such as nuclear, will underpin the UK’s transition from reliance on fossil fuels to the new secure clean energy system. Solar deployment is a key part of the Government’s net zero strategy, energy independence and clean growth. We are aiming for up to 70 GW of solar capacity by 2035, which would be more than quadruple our current installed capacity. We need to maximise the deployment of both ground mounted and rooftop solar to achieve that ambition.
I again thank my hon. Friends the Members for Stockton South and for Sedgefield for raising this issue and for championing their constituencies. I will ensure that the points they have raised are brought to the attention of the Ministers who cover solar and planning within the Government. Although I have not been able to discuss the specifics of this case, I assure them when taking a decision on any development consent application, the Secretary of State will follow the relevant requirements in the Planning Act 2008 and have regard to a wide range of matters that are important and relevant to her decision.
Question put and agreed to.
Oral Answers to Questions
Amanda Solloway Excerpts(9 months, 3 weeks ago)
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Afzal Khan (Manchester, Gorton) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
Fuel poverty is a devolved matter. The latest figures, published on 15 February 2024, showed that 3.17 million households were in fuel poverty in 2023. The Government continue to deliver financial support to low-income homes and vulnerable households through the warm home discount scheme and cost of living payments.
Kate Hollern
As I am sure you are aware, Mr Speaker, the cost of living crisis is far from over for constituents in our area. The Government’s latest energy efficiency policy, the Great British insulation scheme, was supposed to insulate 100,000 homes a year, but so far just 3,000 families have been helped in eight months, including only 35 homes in Lancashire and just six in Blackburn. Will the Minister explain why currently it will take 60 years to meet their three-year target?
Amanda Solloway
Energy efficiency is incredibly important to this Government and we have many schemes available. The Great British insulation scheme alone has committed £592 million.
Paul Blomfield
I hear what the Minister says about the Great British insulation scheme. It comes after the green deal and the green homes grant, but frankly it looks like another failure. There are 1.4 million people living in South Yorkshire, but just 137 of their homes have been upgraded under the GBIS. My constituents want their bills cut, emissions reduced and their homes insulated, but Government incompetence is standing in the way. When will the Minister get a grip?
Amanda Solloway
We are spending £6 billion in this Parliament and a further £6 billion up to 2028 to make buildings, including private rented properties, cleaner and warmer. That is in addition to the estimated £5 billion that will be delivered for ECO4—the energy company obligation—and the Great British insulation scheme up to March 2026.
Marion Fellows
Over the past two years, my constituents in Motherwell and Wishaw, as well as the disability groups that I engage with, have told me harrowing tales of dire fuel poverty and energy debt, while the energy giants post record profits. Even with the new price cap, National Energy Action estimates that there will be 6 million UK households in fuel poverty, with energy debt sitting at £6 billion. After April, the only support available will be the £150 warm home discount, which has barely been increased in a decade. When will the Government take meaningful action and finally consult on an energy social tariff?
Amanda Solloway
Last winter, this Government delivered £40 billion for households and businesses. We also have the warm home discount, the winter fuel payment and the disability cost of living payment. We are committed to ensuring that affordability is top of our list in relation to energy security.
Liz Twist
We have had 14 years of fiasco after fiasco with energy saving schemes from this Government. Frankly, my constituents are fed up with it. In Gateshead, just seven homes have been upgraded under the Government’s latest energy efficiency scheme. Can the Minister say why this is such a disaster and why progress is so slow?
Amanda Solloway
We continue to drive energy efficiency improvements for lower-income and fuel-poor households, through schemes including the energy company obligation, the social housing decarbonisation scheme and the homes upgrade grant.
Afzal Khan
A recent report from the Energy and Climate Intelligence Unit exposes the Government’s record on insulation and says that the Government’s false claims about their success mostly involved taking credit for schemes that were a legacy of the last Labour Government. A record low of around 80,000 measures were installed in total under the Government’s programmes in 2022. Is not the truth that this Government are failing millions of people in fuel poverty?
Amanda Solloway
This Government have provided unprecedented support for people in this country. I have regular meetings with stakeholders, charities and different organisations. Undoubtedly, we are making sure that people have support through, as I have mentioned, the warm home discount, the energy price cap and lots of other payments, such as the cost of living payment of £900 per annum.
Dame Andrea Jenkyns (Morley and Outwood) (Con)
Talking of fuel poverty, the boiler tax results in consumers paying an extra £150 when they purchase a new boiler. Does the Minister agree that it is now time to ditch these unworkable and unaffordable net zero policies and let the British people decide how to heat their homes and what cars to drive so that they can keep more of their own money?
Amanda Solloway
No decision has yet been taken on that, but we have a commitment to ensure that we get the very best deal for all our constituents.
Kerry McCarthy (Bristol East) (Lab)
A year ago, the then Energy Secretary said that if suppliers had wrongly installed prepayment meters in any home, they would have to recompense their customers for the way they had behaved. One year later, can the Minister tell the House how many individuals who had a prepayment meter wrongly installed have had compensation, how many are yet to receive it and, of those still waiting, when they will get the compensation?
Amanda Solloway
One thing on which we can all agree across the House is that it was absolutely abhorrent that people had prepayment meters forced on them. We are working our way through the compensation, but I can assure Members that we are doing everything we can to ensure that, when prepayment meters are installed, we are doing exactly the right thing to make sure that everybody is kept safe.
Kerry McCarthy
I asked the Minister three questions but did not get an answer to any of them. Perhaps she can put the figures in the House of Commons Library, because she clearly does not have a clue what they are.
More than 3 million households are in debt to their energy suppliers and almost 10 million households are living in cold, damp and poorly insulated homes. The Great British insulation scheme is proving to be a great Tory insulation fiasco. Will the Minister tell me why the insulation scheme is proving to be such a disaster?
Amanda Solloway
We have taken great steps to support people. For example, last winter we gave unprecedented support to households and businesses. Of course, debt is a major concern, and I have regular meetings with stakeholders to ensure that we are doing the very best not only to get people out of debt, but to prevent them getting into debt in the first place.
Kevin Foster (Torbay) (Con)
Grahame Morris (Easington) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
The setting of tariffs, including standing charges, in the non-domestic market is a commercial matter for suppliers. The Secretary of State and I have met suppliers and Ofgem multiple times over the past year to urge them to support businesses and keep bills down, and Ofgem has recently called for input and views on standing charges.
Grahame Morris
Mr Speaker, I associate myself with your earlier remarks about the sad passing of my dear friend Ronnie Campbell, and indeed Lord Cormack.
For months now, East Durham Trust in my constituency has been in dispute with its supplier, TotalEnergies, after TotalEnergies raised its standing charge from 40p a day to £20 a day—an increase of over 4,000%. Remarkably, after making complaints to the Department, Ofgem, Northern Powergrid and TotalEnergies, I found out just yesterday that TotalEnergies has agreed to remotely reconfigure the meter in question. Can the Minister explain why energy companies and distributors do not seek to address customer issues sooner, and does she agree that we have a failing regulator and an energy system that seeks to maximise profits?
Amanda Solloway
I am pleased to hear from the hon. Gentleman that the situation has been resolved, and I suggest that exactly the right recourse is to contact the relevant parties. We are now launching the ability of the ombudsman to help small businesses as well, which reassures me that such cases will be seen to more quickly and resolved sooner.
Dave Doogan (Angus) (SNP)
In the UK, electricity standing charges will balloon by 12%, meaning that people in Scotland who were paying £90 a year in 2021-22 will soon need to find £216 a year—a 138% increase under this Tory Government. That removes the incentive to curb excessive use, and presents a disincentive to economise on energy usage. If costs and charges were redistributed to the unit price, consumers would be empowered to pursue reduced usage, knowing that that would translate into lower bills. What assessment has the Minister made of the savings that would be made, in terms of both carbon emissions and the need for vast pieces of new energy infrastructure, if the standing charges were rolled into unit prices?
Amanda Solloway
Standing charges, as I mentioned, are a matter for Ofgem. However, Ofgem has listened to public sentiment, and it has recently launched a call for input on standing charges. My understanding is that to date, it has had over 40,000 responses. The call for input closed on 19 January, and Ofgem’s paper aims to ensure a greater understanding of how standing charges are applied to energy bills and what alternatives should be considered.
Andrew Jones (Harrogate and Knaresborough) (Con)
Theo Clarke (Stafford) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
Last week, we launched a consultation, closing on 12 March, on requiring petrol stations to report a change in price within 30 minutes. Pumpwatch will enable drivers to make informed decisions on where to buy fuel and will reignite competition.
Theo Clarke
I thank the Minister for her answer, but my constituents in Stafford remain concerned about the price of fuel, particularly given the pressures on their household budgets. I welcome the fact that the price of a tank of fuel is lower than it was when prices were at their peak, but what is she doing to ensure that my constituents get the best price for their fuel?
Amanda Solloway
We are committed to making sure that consumers get a fair deal. That is why fuel retailers must remain transparent and not overcharge drivers. The Pumpwatch consultation will require all petrol stations to report prices within 30 minutes of their changing. That will enable tech companies to develop new ways for UK drivers to search for the cheapest fuel.
Richard Foord (Tiverton and Honiton) (LD)
In rural communities across Devon, people feel the pressure of high fuel costs. The cost of fuel in towns such as Honiton is almost 20p a litre higher than at petrol stations just 30 miles away. What steps will the Government take to ensure fairness, and to introduce rural fuel duty relief of the sort that we already have in some parts of north Devon?
Amanda Solloway
Pumpwatch will help with those things, but it is unacceptable for any fuel retailer to overcharge drivers. That is why the Secretary of State held a roundtable in December with fuel retailers to make it clear that we expect them to pass on savings to consumers when prices fall.
Helen Morgan (North Shropshire) (LD)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
I pay tribute to the hon. Member for her committed work to support her constituents living in rural areas. We have a proud record of energy efficiency. We are encouraging, rather than forcing, people to make the right choices, and we pushed back the ban on gas boilers while increasing the boiler upgrade scheme to £7,500, which is one of the most generous grants in Europe.
Helen Morgan
There are 1,858 listed properties in North Shropshire, according to the Listed Property Owners Club, and 24 conservation areas across our historical market towns and villages. That means that there is a large number of buildings that owners find it difficult to upgrade to make them energy-efficient. What conversations has the Minister had with her colleagues in the Department for Levelling Up, Housing and Communities and the Department for Culture, Media and Sport on enabling people to bring those homes into the 21st century and make them energy-efficient?
Amanda Solloway
The hon. Member makes a good point. We have those consultations across Departments, and local authorities in rural areas in England are eligible for grants. I can give my assurance that we have those cross-government meetings.
Steve Double (St Austell and Newquay) (Con)
Many off-grid homes across Cornwall cannot convert to energy-efficient heating schemes without incurring huge costs. One option for them is to use hydro-treated vegetable oil. Can the Minister lay out what plans the Government have to support those using renewable liquid heating fuels, and will she back the campaign by our excellent candidate for Camborne and Redruth, Connor Donnithorne, to axe the tax on HVOs?
Amanda Solloway
I thank my hon. Friend for raising that point. We have begun developing a consultation on the role of renewable liquid fuels in heat. We expect Department for Energy Security and Net Zero Ministers to receive detailed information on the shape of the consultation in the coming weeks, and aim to publish in the summer of 2024.
Andrew Selous (South West Bedfordshire) (Con)
Kevin Foster (Torbay) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
I thank my hon. Friend for that important question. Wholesale energy prices have fallen compared with last year. The Government have been supporting eligible businesses locked into high contracts through the energy bills discount scheme, until they can take advantage of lower fixed-price rates. My hon. Friend will be interested to hear that the Government delivered more than £7.4 billion to non-domestic energy users last winter, covering around half of many businesses’ energy bills.
Mr Toby Perkins (Chesterfield) (Lab)
Amanda Solloway
I could not agree more that we should not be paying different prices at different petrol stations. That is one of the reasons why we have launched a consultation on Pumpwatch, and why we have very regular meetings with the suppliers to make sure that they are not doing this. They should not be doing it and we are very clear about that.
Peter Aldous (Waveney) (Con)
Sir Mark Hendrick (Preston) (Lab/Co-op)
Amanda Solloway
The Government are already committed to ensuring that households have the necessary energy efficiency. We have introduced the social housing decarbonisation boiler upgrade scheme, the home upgrade grant and many other initiatives, and we are of course helping all our constituents with affordability.
Trudy Harrison (Copeland) (Con)
We have made huge progress in decarbonising our electricity sector, but decarbonising transport and heat is much more tricky. Will the Minister encourage our plans in Copeland to harness any power that can be obtained from new nuclear for that purpose, and will he meet us so that we can discuss those plans?
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
Every single winter, the village of Altnaharra in Sutherland is the coldest community in the whole of the United Kingdom. Some parts of the United Kingdom are colder than others—that is geography. May I ask that this fact be taken into consideration when the Government look at schemes to help people with the cost of paying their electricity bills?
Amanda Solloway
I thank the hon. Gentleman for his question. As he will know, the Government delivered over £40 billion in support last winter. We expect the warm home discount to support around 3 million households this winter, with the final figures to be published later. Since 2011, the warm home discount has delivered over £3.5 billion in support for eligible low-income households.
Dr Luke Evans (Bosworth) (Con)
I welcome the news that Ofgem has put the price cap down by 12%, which represents a discount of about £20 for every average home. There is one problem, though: the standing charge is still relatively high. I know there is an open consultation, but would the Government consider transparency about the standing charge on bills so that the public understand exactly what it does?
Amanda Solloway
I thank my hon. Friend for his question. Clearly, it is vital that we had the call for input on the standing charges, and we await with anticipation how we will react to the over 40,000 responses that we have had so far.
Imran Hussain (Bradford East) (Lab)
I have recently been inundated with correspondence following the collapse of SSB Law, a legal firm that took thousands of defective cavity wall insulation cases to court. It has left constituents with tens of thousands of pounds in costs that they cannot afford during an unprecedented cost of living crisis. Can the Minister assure me that the Government have a plan to address this scandal? What compensation will my constituents be offered to remove faulty cavity wall insulation so that they can finally be free of its devastating consequences?
Amanda Solloway
It is always awful to hear of these cases. I will write to the hon. Gentleman on the issue.
Consumer Protection in the Green Heating and Insulation Sectors
Amanda Solloway Excerpts(10 months ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
The Under-Secretary of State for Energy Security and Net Zero, my noble Friend Lord Callanan, has today made the following statement:
Today, I am announcing the work that the Government are undertaking to improve consumer protection in the green heating and insulation sectors.
This announcement is in response to today’s progress update from the Competition and Markets Authority’s green heating and insulation review’s update on the standards landscape. The CMA’s update highlights actions by standards bodies in response to the good practice principles developed by the CMA alongside its report “Consumer protection in the green heating and insulation sectors”, published in May 2023.
In 2022, the CMA commenced a review of consumer protection focusing specifically on business practices, consumer experience and standards in the green heating and insulation sectors. They published a report of their findings on 31 May 2023, suggesting actions to both Government and businesses to help raise the level of consumer protection.
The Government welcome the research that the CMA carried out and acknowledge the concerns raised in its original report about business practices in the sector, including the finding that some businesses are making misleading claims about products, as well as concerns about limited transparency of price information. The Government expect businesses to ensure that their practices always remain lawful.
The Government acknowledge the findings on consumer experience, where some consumers may face difficulties when carrying out retrofit work, and on standards, where the landscape offering protections for consumers can be seen as complex and confusing to navigate.
I am pleased to see swift engagement from the industry in response to the CMA’s findings on standards and the lack of protection for some consumers having green heating and insulation measures installed in their homes, highlighted in the update published today.
The Government are committed to protecting all consumers undertaking home retrofit work as well as improving the overall consumer journey. Our work with the CMA and across Whitehall includes:
Engaging with standards organisations such as the Microgeneration Certification Scheme (MCS), the leading standards and quality assurance organisations for small-scale renewable technologies such as solar panels and heat pumps in the UK. To participate in a Government incentive scheme such as the boiler upgrade scheme, the installation must be carried out by an MCS-certified installer, to the relevant MCS installation standard for that technology, using an MCS-certified product. This helps to ensure that the renewable system is safe and installed properly, and that the appropriate protections are in place for consumers if things go wrong. MCS is currently implementing a series of reforms that are intended to improve the operation of the scheme, including improving consumer protection. We are closely monitoring the implementation of these reforms. Further detail of the reforms can be found in the MCS consultation and response https://mcscertified.com/mcs-scheme-redevelopment/.
An update of the mandatory technical competencies for installers working under competent person schemes, establishing clear competency requirements for everyone carrying out building work to meet the building regulations. Self-certification, through competent person schemes, provides an alternative and cost-effective means of delivering compliance with the regulations.
A review of the conditions of authorisation1 to ensure they are fit for purpose. The conditions of authorisation are the requirements that a scheme operator must meet to be authorised as a competent person scheme under building regulations.
Continued work alongside industry stakeholders such as TrustMark to improve vital financial protections, such as extending the length of loft guarantees in Government schemes and a clearer redress process for consumers should they need to raise a concern about the work.
Improving access to impartial advice and information to ensure consumers have the necessary information to make informed choices regarding energy efficiency measures and clean heating options. This includes digital tools to highlight what measures a consumer can take to make their home more energy-efficient and how to decarbonise their heating and then find sources of grant funding to help with the cost of installation. There is also access to a phoneline for those needing digital assistance or more bespoke support, and a series of in-person advice pilots running across the country.
Consideration of progress against the recommendations in the “Each Home Counts” report2 published in 2016, to ensure that implementation of the recommendations to improve consumer advice, protection and industry standards in the home retrofit sector has been successful and learn any lessons from that implementation.
This is all in addition to around £20 billion allocated by the Government during this Parliament and the next to support households, businesses and the public sector drive improvements in energy efficiency and clean heating to bring down bills and emissions.
The Government will update the House on progress and further work to improve consumer protection in the normal manner.
1 https://www.hse.gov.uk/building-safety/strategic-plan.htm
2 https://www.gov.uk/government/publications/each-home-counts-review-of-consumer-advice-protection-standards-and-enforcement-for-energy-efficiency-and-renewable-energy.
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Cavity Wall Insulation: Government Support
Amanda Solloway Excerpts(10 months ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
It is a great pleasure to serve under your chairmanship, Mr Henderson. I thank the hon. Member for Arfon (Hywel Williams) for his passionate speech and for his case studies reminding us of the individuals affected in these houses, who have to live with these issues daily. I thank him sincerely for raising the matter.
As the Minister responsible for energy affordability and fuel poverty, I have often said that the greenest energy is the energy that is not used. That is why insulation is so important. We must ensure that customers do not see their money vanish literally through their walls while they are living in cold properties. Improving the energy efficiency of homes is central to the Department, as are helping people out of fuel poverty and achieving net zero.
When correctly installed, cavity wall insulation can reduce the amount spent on keeping a house warm, which is critical to alleviating fuel poverty. It can also make homes readier for a clean heat source. Insulation is one of the most cost-effective means of improving household efficiency. The Government have an ambition to reduce by 15% on 2021 levels the UK’s final energy consumption from buildings and industry by 2030. We also plan to ensure that as many fuel-poor homes as possible achieve an energy performance certificate rating of C by 2030.
I will cover three areas—schemes, safeguards and standards—and the questions that have been posed. Cavity wall insulation has been installed under previous Government schemes and continues to be installed under the home upgrade scheme, the social housing decarbonisation fund, the energy company obligation and the great British insulation scheme. According to the great British insulation scheme’s final impact assessment:
“At the end of December 2022, it is estimated that there were around 5.1 million homes without cavity wall insulation in Great Britain, of which 3.8 million are easy to treat standard cavities”.
I turn to safeguards. As the hon. Member quite rightly pointed out, we debated cavity wall insulation in 2017 and 2020, with many examples occurring before the change to consumer protections.
Stephen Kinnock (Aberavon) (Lab)
The Minister is being generous in giving way. Several of my Aberavon constituents are fighting to get justice after cavity walls have been incorrectly or inappropriately installed, and real damage has been done to their homes. The companies have disappeared and no longer exist, and this Cavity Insulation Guarantee Agency does not seem to be working at all. It has cost my constituents tens of thousands of pounds, and years of stress and worry. Will the Minister set out what is going wrong with the CIGA and what steps the Government will take to help my constituents to sort out this absolutely appalling problem?
Amanda Solloway
The hon. Member makes an important intervention. Although it is not within my portfolio, I will absolutely get back to him with as much detail as I can on individual cases and pass them on to the relevant places.
I am sympathetic to the points raised by the hon. Member for Arfon and others about the need for a better understanding of the scale of the problem. At the moment I do not have those figures, and in all honesty I am not sure whether I will be able to get them, but I will certainly endeavour to find out the number of people affected by the issue.
As hon. Members have rightly mentioned, the issues have arisen as a result of poorly executed installations of cavity wall insulation, of which I am very much aware. Unfortunately I do not have a full view of the number of failed installations. Our understanding is that it is a relatively small proportion, but that does not justify it; even if it is a small amount, we should be looking at it. We need to take on board the situation and think about how we can improve. I will refer later to what we have done to make improvements so that this does not happen again.
I want to address the genuine concerns raised by the hon. Member for Bradford South (Judith Cummins). Claims management companies and firms of solicitors have contacted consumers offering to represent them in return for compensation for the damage caused to their homes by the installation. It should be noted that not all those companies have the consumer’s best interests at heart, and some have left consumers facing extensive legal fees. I thank the hon. Member for bringing that to my attention.
To assist consumers who suspect that they have had faulty cavity wall insulation installed in their homes, the Department published guidance in October 2019. I urge customers to follow that guidance to avoid becoming victims of fraudulent cavity wall insulation claims, and for information on organisations that can offer support if a problem arises.
We have put standards in place for the protection of consumers. Energy-efficient measures installed under current Government schemes include the energy company obligation and the great British insulation scheme, and they must comply with the requirements outlined in the British Standards Institution’s good practice standards, set out in the PAS 2035 document. That requires installers to be certified to PAS 2035 standards for any energy-efficient measure including cavity wall insulation, demonstrating a high level of competence. Those standards will help to ensure that an installation is suitable for the property, as the hon. Member for Arfon described when he talked about the way the wall was facing. They will ensure that it is to the highest standards, while also improving the service provided to the consumers.
Hywel Williams
I commend what the Minister is saying and what has been done. One of the problems that has bedevilled this matter is the unwillingness of anybody with any power to look at historical cases. The 2016 Bonfield report specifically said that it was not looking at historical cases, but it is the historical cases that are egregious and difficult. I commend the Minister, but eventually we must look at historical cases as well.
Amanda Solloway
I thank the hon. Member for making that point. Where consumers have concerns or are unhappy with work that has been carried out, they should contact the installer, although I recognise that some of the installers in the historical cases that we are talking about no longer exist. The insurance-backed guarantee provider offers a second layer of protection, for example in cases in which the installer has ceased to trade. We agree that the industry does not always get it right, and I encourage the industry to provide appropriate remedy for the affected customers.
By mandating the requirement for installations under Government-backed schemes, and ensuring that TrustMark and PAS 2030 businesses undertake the work, we have helped to improve the quality of installations since 2019. We are fully committed to protecting all consumers who have insulation products installed in their homes, as well as improving the overall consumer journey regardless of housing tenure or how installation work is funded.
I thank the hon. Member for Arfon for raising questions about individual cases. I will follow them up in writing; if there any we could look at specifically, I am happy to take them away. I encourage other hon. Members to raise such cases.
I also welcome recent research by the Competition and Markets Authority and other organisations such as Which? and Citizens Advice on consumer protection in this sector. Today the CMA published an update to its report on consumer protection in the green heating and insulation sectors. In response, the Government have announced the work that we are undertaking to improve consumer protection in the green heating and insulation sectors.
I thank the hon. Members for Arfon, for Bradford South and for Aberavon (Stephen Kinnock) for their contributions. As I say, we must remember that these are people’s houses that we are talking about—they are the homes that people live in. If there are any individual cases that we should look at, I encourage hon. Members to send them on to me.
Local Industrial Decarbonisation Plans and Industrial Energy Transformation Fund
Amanda Solloway Excerpts(11 months ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
My noble Friend the Parliamentary Under-Secretary of State (Lord Callanan) has today made the following statement:
I am pleased to inform the House that two announcements will be made today regarding Government support for industrial decarbonisation: winners of the local industrial plans (LIDP) competition, and publication of guidance documents for phase 3 of the industrial energy transformation fund.
Dispersed industrial sites account for approximately half of the UK’s industrial emissions. In the 2021 net zero strategy, the Government committed to explore opportunities for faster decarbonisation of dispersed sites in the 2020s, including funding for mini-cluster industrial decarbonisation plans to develop shared infrastructure and integrated decarbonisation solutions in local areas.
To fulfil this commitment, the Government, in partnership with Innovate UK (IUK), have today announced the 12 winners of the local industrial decarbonisation plans (LIDP) competition, worth up to £6 million. This supports collaborative working between groups of industrial manufacturers and other businesses to start their journey towards a low-carbon future.
The competition provides grant funding to support place-based industrial decarbonisation plans, driving benefits from collaborative partnerships across industries and sectors as they develop plans for the introduction of low-emission technologies. The programme of work will last until March 2025.
The projects which have been offered grants—subject to contract—are:
Bradford Manufacturing Futures—Up to £726,729
DECODE Corby—Up to £453,590
Decarbonising Dalton Industrial Estate—Up to £129,063
Decarbonising the Midlands Aerospace Cluster (DMAC)—Up to £444,739
Decarbonising the Port of Poole Maritime Industrial Cluster—Up to £184,487
Industrial Decarbonisation for Northern Ireland—Up to £595,905
Making A Better Tomorrow: Decarbonisation of Stakehill Industrial Estate in Atom Valley—Up to £612,376
NEW-ID (North East Wales Industrial Decarbonisation)—Up to £711,784
Shoreham Port Industrial Cluster: Local Industrial Decarbonisation Plan—Up to £226,803
The Solent Cluster: Local Industrial Decarbonisation Plan—Up to £757,601
West of England Industrial Cluster Local Industrial Decarbon-isation Plan—Up to £607,571
ZCOP I-RMAP: Zero Carbon Oxford Partnership Industrial Roadmap and Action Plan—Up to £265,032.
Companies across England, Wales and Northern Ireland can also benefit from the support offered through the industrial energy transformation fund (IETF). The IETF provides grant funding towards the costs of studies and deployment projects that reduce the energy consumption and emissions produced by industrial sites, including sites in dispersed locations. Phase 3 of the IETF will allocate up to £185 million in 2024. Today we are publishing the guidance documents ahead of the spring 2024 application window which will open on 29 January and close on 19 April.
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Oral Answers to Questions
Amanda Solloway Excerpts(11 months ago)
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Liz Twist (Blaydon) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
The Government remain focused on providing help where people need it most. We are already providing a package of support totalling over £104 billion, or £3,700 per household on average, from 2022 to 2025.
Liz Twist
Last year, the Government promised action to help the most vulnerable with their energy bills. In April 2023, the Secretary of State’s predecessor, the right hon. Member for Welwyn Hatfield (Grant Shapps), said that
“a social tariff could be very helpful”.—[Official Report, 18 April 2023; Vol. 731, c. 111.]
Nearly a year on, we have heard absolutely nothing about a social tariff. Will the Minister explain to the House why the Government have abandoned plans for a social tariff?
Amanda Solloway
As the hon. Member will know, we are continuing our support for vulnerable households, and it is important that we help households as best we can. As an example, we have the £900 cost of living payments and the warm home discount payment. Obviously, we will constantly monitor where we are and will ensure that we continue to support all those vulnerable households.
Angus Brendan MacNeil (Na h-Eileanan an Iar) (Ind)
There is indeed a need for a social tariff, whether it is a cost of living crisis or a lack-of-wages crisis, given that the Resolution Foundation reported at the beginning of December that average wages across the UK were £10,700 lower than they should be compared with other comparable countries, following the past 15 years. There probably is a lack-of-wages crisis hitting the UK.
Regardless, the Energy Security and Net Zero Committee said in our “Preparing for the winter” report, in paragraph 24:
“We urge the Government and energy suppliers to consider implementing a form of social tariff and other measures to protect vulnerable households from being cut off from their energy supplies.”
That was a unanimous report across Labour Members, Tory Members and, of course, the pro-Scottish independence voice on the Committee, but will we see some movement on this from the Government? It is important and needed by everybody, and it would be particularly welcome to my constituents in Na h-Eileanan an Iar.
Amanda Solloway
As I have indicated, we are doing a lot of things to help people, including the most vulnerable in society. It is worth pointing out that it was announced recently in the autumn statement that the national living wage will be worth £1,800 for a full-time worker and that benefits will increase by 6.7%, which is worth £470 a year.
Kate Osborne (Jarrow) (Lab)
Ruth Jones (Newport West) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
Fuel poverty is devolved. Statistics for England are published annually by the Department. The next English statistics will be published on 15 February and will include estimates of the number of households in fuel poverty in 2023 and 2024.
Kate Osborne
Just under a third of people in my Jarrow constituency are now living in fuel poverty, like Maureen, who told me she is struggling to find an extra £975 per month due to the disability price tag. That will be made worse by the recent news of the energy price cap rise. Can the Minister explain why the Government still insist on giving subsidies worth billions to the oil and gas industry through loopholes in the windfall tax? Would that money not be better spent cutting people’s bills?
Amanda Solloway
I must point out the work the Government have been doing to help vulnerable people. Not only that, but we have halved energy bills. I have constant meetings with all stakeholders, including Citizens Advice and all the disability groups, and we are ensuring that we are supporting all vulnerable people in the cost of living crisis and as we go through this winter.
Beth Winter
I also have increasing numbers of constituents with significant levels of energy debt coming to my office seeking fuel vouchers. Why are the Government pursuing the Offshore Petroleum Licensing Bill, which the Minister herself has said will not bring down bills, when economic forecasters warn that delays in decarbonising will leave consumers with higher prices? Is it not time the Government dropped the focus on fossil fuels and delivered instead the public investment in renewable energy that will bring down bills and go some way to averting the climate catastrophe?
Amanda Solloway
We are committed not only to helping vulnerable people, but to making sure we are providing the best energy security we can. That is why we are committed to all the policies we have introduced.
Ruth Jones
I listened very carefully to the answer the Minister gave to my hon. Friend the Member for Blaydon (Liz Twist), but I am still none the wiser, so I will ask again: can the Minister set out what recent discussions she has had with the Welsh Government about the social tariff, which the previous Secretary of State described as “very helpful”?
Amanda Solloway
Just to reiterate, I have been having conversations with all stakeholders, and when I say stakeholders, that does not just mean Citizens Advice or Disability Rights UK, but across Government and with different devolved Departments.
Derek Thomas (St Ives) (Con)
I am sure the Minister will agree that energy security and supporting the most vulnerable in fuel poverty go hand in hand. The way to address security is by both securing supply and cutting waste. Can she set out what the Government and her Department are doing to reduce the waste of energy from people’s homes?
Amanda Solloway
I want to acknowledge how hard my hon. Friend works for his constituents. Of course those are the things we are most mindful of: making sure we get energy efficiency not only in production, but in the way we use that energy.
Bill Esterson (Sefton Central) (Lab)
Imran Hussain (Bradford East) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
I have met Ofgem and suppliers to reiterate my expectations that the new rules will be followed. Ofgem has announced that if a supplier wrongfully installs a prepayment meter, it will be expected to compensate its customers appropriately.
Imran Hussain
Forcing the installation of prepayment meters in the homes of some of our poorest and most vulnerable constituents is, frankly, a scandal. Although the Government rightly paused forced installations last year, some energy companies have been allowed to resume this outrageous practice under a new rules regime, which the Minister referred to, that still faces many questions. Does the Minister think that in the middle of winter—in a week when we have seen temperatures drop dramatically—we can trust energy suppliers that have a history of unscrupulous practices in force-fitting energy meters in the homes of vulnerable people to, in effect, self-regulate? Will the Government instead legislate to ban the scandalous forced installation of prepayment meters once and for all?
Amanda Solloway
I acknowledge how awful it was that people had their homes broken into to force fit prepayment meters, but there is also a place for prepayment meters to enable people and to support people out of debt. I reassure the House that I have scrutinised every level of the regime for prepayment meters, now that we are going back to reinforcement, to absolutely ensure that we will not see all the scandalous practices that happened before.
Alun Cairns (Vale of Glamorgan) (Con)
Alex Cunningham (Stockton North) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
As chair of the all-party group on carbon capture, utilisation and storage, the hon. Member will know that the Government have committed £20 billion to support the early development of carbon capture, usage and storage, and up to £500 million for the industrial energy transformation fund to help industry to decarbonise, with phase 3 opening shortly.
Alex Cunningham
I welcome the investment in carbon capture—we just need to get on and make something happen there. Teesside is home to some of the most energy-intensive industries in the country, but instead of attracting more of those industries, including primary steel making, we are seeing plants closed down and jobs lost because investors do not see any industrial strategy from the Government. High energy costs mean that it is cheaper to import many of the goods that until now we have made at home. Why are the Government content to see this managed decline, rather than back the kind of strategy that will protect existing industries and drive investment and job creation?
Amanda Solloway
This Government invest throughout the country with our levelling-up agenda, but we have of course been investing in the steel industry, and we are mindful to ensure that we have the skills that will take us forward for those future requirements.
Sarah Jones (Croydon Central) (Lab)
My hon. Friend the Member for Stockton North (Alex Cunningham) was of course absolutely right: we have seen managed decline under this Government, with no coherent industrial strategy, total failure to get the grid connected where we need it, and different Departments giving mixed messages and providing complicated processes to access any support.
On top of all that, our industry has to pay twice as much on its energy bills compared with European competitors. A recent report by UK Steel stated that our steel producers have to pay £117 million more per year on electricity, forcing the Government to deliver a subsidy through the supercharger, which in turn raises bills for everybody else. Instead of such short-term policies, is it time for Labour’s industrial strategy, Labour’s grid reform and Labour’s mission to become a clean energy superpower, so that we can permanently cut bills for everyone, grow our economy and give Britain its future back?
Amanda Solloway
This Government have demonstrated our commitment to help across the domestic and non-domestic sectors. However, we also recognise the vital role that the steel sector plays in our economy. In fact, the 2021 net zero strategy reaffirms our commitment to continue to work with the steel industry on decarbonisation.
Mary Kelly Foy (City of Durham) (Lab)
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
I will have to write to the hon. Member with the figure, but the Government remain firmly committed to new builds as well as to retrofitting.
Vicky Ford (Chelmsford) (Con)
Samantha Dixon (City of Chester) (Lab)
Amanda Solloway
I am aware of the challenges facing all the industry. I have ongoing talks with UKHospitality and other groups. There are things that we can do, such as blend and extend, and we are looking at the brokers, and ensuring that third-party intermediaries are doing their jobs correctly.
Dr Luke Evans (Bosworth) (Con)
Driving down to Parliament, I pass petrol stations. In my constituency, prices were 136.9p and 137.9p. However, at the service stations, they were 164.9p and 167.9p. That is a massive difference, which the public just will not tolerate and want something to be done about it. What will the Government do?
Amanda Solloway
Road fuel prices are down for a second consecutive month. Petrol prices are now at a level not seen since early October 2021, following our work to bring transparency to the market. Today, we launched the consultation to require petrol stations to report real-time prices, which will mean that drivers can compare prices and get the best deal, and prices will fall through greater competition.
Energy Infrastructure Planning Projects
Amanda Solloway Excerpts(11 months, 1 week ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
This statement concerns an application for development consent made under the Planning Act 2008 by Equinor New Energy Ltd for the extension of two offshore wind farms with associated onshore electricity connections, located respectively 15.8 km and 26.5 km north of the Norfolk coast.
Under section 107(1) of the Planning Act 2008, the Secretary of State must make a decision on an application within three months of the receipt of the examining authority’s report, unless exercising the power to set a new deadline under section 107(3) of the Act. Where a new deadline is set, the Secretary of State must make a statement to Parliament to announce it. The current statutory deadline for the decision on the Sheringham and Dudgeon extensions offshore wind farm projects application is 17 January 2024.
I have decided to set a new deadline of no later than 17 April 2024 for deciding this application. This is to ensure that there is sufficient time for the Department to consider further information and to conduct any necessary consultation.
The decision to set the new deadline for this application is without prejudice to the decision on whether to grant or refuse development consent.
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UK Emissions Trading Scheme
Amanda Solloway Excerpts(1 year ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
My noble Friend the Parliamentary Under-Secretary of State (Lord Callanan) has today made the following statement:
The Government and our partners in the devolved Administrations are today delivering on commitments to continue the development of the UK emissions trading scheme (ETS), a key part of our approach to achieving net zero by 2050. The scheme puts a limit on the emissions of the power, industrial and aviation sectors, and requires participants to obtain carbon allowances to cover their emissions. In doing so, it creates a carbon price signal that incentivises investment in decarbonisation.
In July the UK ETS Authority published an ambitious package of reforms to the scheme, to ensure it supports our net zero goals.
Today, building on those reforms, the UK ETS Authority has launched consultations on changes to market and free allocation policies within the scheme. It has also published a statutory review of the scheme’s operation since its launch in 2021, and a joint response to the UK ETS recommendations in the independent review of net zero.
Review of market policies
The markets consultation explores how to strengthen the functioning of the scheme by supporting market stability and providing long-term confidence for participants. Following a call for evidence last year, it seeks views on a range of potential market policies, including a new supply adjustment mechanism to support the long-term operation of the scheme.
The consultation also considers potential changes to the existing auction reserve price, which sets a minimum auction price of £22 for carbon allowances; and the cost containment mechanism, which allows the UK ETS Authority to intervene if the carbon price rises rapidly over a sustained period.
Free allocation review
The consultation on free allocation is the final stage of a comprehensive review of this vital area of the scheme. It offers UK industries an opportunity to shape UK ETS policy and ensure the scheme can support them in the transition to net zero.
Industries that face a risk of carbon leakage are supported under the UK ETS through free emissions allowances, to ensure their efforts to decarbonise are not undermined. Carbon leakage refers to the movement of production and associated emissions from one country to another, due to different decarbonisation policies, for example carbon pricing and climate regulation.
The consultation explores how to better target free allocations for those most at risk of carbon leakage. It follows the changes to the industry cap (the share of overall allowances put aside for free allocation) announced in July and considers how key UK-specific factors are accounted for when calculating free allocations from 2026. It also consults on new proposals that will ensure closed industrial sites under the scheme do not continue to receive free allocations after they have ceased activity.
Addressing carbon leakage risk to support decarbonisation
In parallel to the free allocation review, this year the Government consulted on a range of potential additional domestic carbon leakage mitigation measures. After careful review, and giving thorough consideration to the potential implications, the Government have today published a response to the consultation. The Government will implement a carbon border adjustment mechanism (CBAM) from January 2027 which will place a carbon price on some of the most emissions-intensive industrial goods imported to the UK from the aluminium, cement, ceramics, fertilizer, glass, hydrogen, iron, and steel sectors.
The UK CBAM will work cohesively with the UK ETS to ensure imported products are subject to a carbon price comparable to that incurred by UK production, mitigating the risk of carbon leakage. The Government will work with the rest of the UK ETS Authority to consider whether free allocation should be adjusted to reflect changes to carbon leakage risk for given sectors.
Alongside a CBAM, the Government will work with industry to establish voluntary product standards that businesses can adopt to help promote their low carbon products to consumers, and we will seek to develop an embodied emissions reporting framework that could serve future carbon leakage and decarbonisation policies.
Delivery of the CBAM will be subject to further consultation in 2024, as will voluntary standards and the embodied emissions reporting framework.
UK ETS pathway and statutory review
The UK ETS Authority has also published a joint response to the independent review of net zero’s recommendations for the scheme. It confirms the authority’s commitment to continuing the UK ETS until at least 2050, and is intended to give businesses in sectors covered by the scheme the policy certainty they need to make the long-term decarbonisation investments.
Finally, the UK ETS Authority has published its first statutory review of the operation of the UK ETS since its launch. The review, supported by independent evaluation, confirms the scheme’s central role in delivering on the UK’s net zero targets, alongside recommendations to enhance its function, such as expansion to new sectors and technical amendments to its operation.
These publications demonstrate our commitment to delivering continued development of the UK ETS, and doing so in a way that works in partnership with affected sectors.
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Draft Hydrogen Production Revenue Support (Directions, Eligibility and Counterparty) Regulations 2023
Amanda Solloway Excerpts(1 year ago)
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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 Hydrogen Production Revenue Support (Directions, Eligibility and Counterparty) Regulations 2023.
The regulations were laid before the House on 8 November. On 26 October, the Energy Act 2023 received Royal Assent. It provides a legislative framework for hydrogen, including provisions that relate to the hydrogen production business model, which is a funding model for supporting the production and use of low-carbon hydrogen in the United Kingdom. Delivering that policy is essential to kick-starting the hydrogen economy and moving towards the Government’s ambition of up to 10 GW of low-carbon hydrogen production capacity by 2030, as set out in the British energy security strategy.
Under the business model, projects will be paid a subsidy for the hydrogen they produce through a revenue support contract, similar to the highly successful contracts for difference for low-carbon electricity generation. The business model contracts for hydrogen will be managed by a hydrogen production counterparty. Initial projects are to be selected through allocation rounds run by the Department for Energy Security and Net Zero. To receive business model support, a project must be an
“eligible low carbon hydrogen producer”.
Where such a project is allocated support, the Secretary of State will issue a direction to the hydrogen production counterparty to offer to contract with that project.
Hydrogen projects have already been shortlisted through the track-1, phase-2 cluster sequencing process and invited to negotiations for the 2022 hydrogen electrolytic allocation round.
I will now outline the detail of the regulations and their important role in all that. Fundamentally, the regulations satisfy the duty in section 66(4) of 2023 Act by determining the meaning of “eligible” in relation to a low-carbon hydrogen producer. They tell the world who can be eligible for support.
The regulations set out that only new hydrogen production facilities, or existing facilities that add new production capacity, which can demonstrate that their proposal for the production of hydrogen is capable of complying with the UK low-carbon hydrogen standard, will be considered eligible. That ensures that eligibility will keep pace with the way in which the Government define low-carbon hydrogen.
I recall that several amendments that were tabled during the passage of the 2023 Act sought to ensure that regulations on eligibility referred to the low-carbon hydrogen standard. I therefore hope that the regulations will be welcomed.
The regulations also set out the process whereby the Secretary of State may direct a counterparty to offer to contract with an eligible low-carbon hydrogen producer. That follows a similar approach to the contracts for difference, with which industry is very familiar.
Similarly, the regulations include requirements for a counterparty to publish the full contracts entered into and to establish a public register of key information. As we would expect, such publication is, of course, subject to redaction of confidential information and personal data.
The regulations set out various requirements in respect of the Secretary of State’s directions to a counterparty. They also include the circumstances in which directions cease to have effect, and enable the Secretary of State to revoke a direction before it has been accepted.
Furthermore, the regulations require a counterparty to promptly notify the Secretary of State if it is—or considers that it is likely to be—unable to carry out its functions. Committee members may think that such a provision sounds familiar, and indeed it is. It is a similar approach to that in the Nuclear Regulated Asset Base Model (Revenue Collection) Regulations 2023.
The Department has considered the content of the regulations extremely carefully. It carried out a full public consultation earlier this year, seeking views on the principles enshrined in the regulations and satisfying the statutory requirement to consult, as set out in the 2023 Act. We received 28 responses from various organisations and members of the public. We carefully considered all responses, though I am pleased to say that the majority supported our proposals.
Accordingly, in our Government response, published on 30 October, we set out plans to proceed largely as proposed, albeit with some amendments in response to the feedback received.
This secondary legislation represents an essential step towards implementing the hydrogen production business model to ensure that we can support the deployment of low-carbon hydrogen projects to achieve our 2030 ambitions, improve energy security and help achieve net zero.
I commend the draft regulations to the Committee.
Amanda Solloway
I thank right hon. and hon. Members for their valuable contributions. I will try to answer the questions succinctly and appropriately. If anything remains outstanding, I will write, as usual, with further information.
The hon. Member for Southampton, Test talked about the low-carbon hydrogen standard. Projects that seek support under the hydrogen production business model are required to show, as part of their application for revenue support, evidence that they are capable of meeting the UK low-carbon hydrogen standard.
The hon. Gentleman asked about the standard evolving over time. Regulation 2(6) makes clear that once a producer is deemed eligible under the regulations, they will not be subsequently rendered ineligible merely because of the publication of a new version of the low-carbon hydrogen standard. However, a direction issued by the Secretary of State pursuant to section 66(1) of the 2023 Act—
Amanda Solloway
Yes! The direction may require a hydrogen production revenue support contract to be offered on terms that require compliance with the later version of the standard.
To provide certainty for investors, we intend any review and updates to the standard to occur in advance of allocation rounds rather than during them. Where it is considered necessary to introduce updates during an allocation round—that is, in the period between the launch of the application window and contracts being awarded—we would aim, as part of the allocation or negotiation process, to provide projects with plenty of notice about any potential changes.
We propose that the review points for the low-carbon hydrogen standard should coincide with future contract awards through the hydrogen production business model. We would not expect any changes to be applied retrospectively to contracts that have already been awarded through these schemes. That means that the hydrogen production business model contract will not require producers to comply with any amendments made to the low-carbon hydrogen standard after the date on which the contract was signed. That will give producers confidence that the rules with which they will need to comply to receive support under the contract will not be changed retrospectively. Subject to the final contract terms and conditions, we expect that producers will be able to follow, where relevant, future changes to the LCHS, should they choose to.
Our ambition for the United Kingdom to have up to 10 GW of low-carbon hydrogen is both stretching and credible, and positions us at the front of the pack internationally. It will help us to realise a hydrogen economy that could potentially support over 12,000 jobs and result in up to £11 billion in private investment in the UK by 2030. Low-carbon hydrogen is considered to be an essential part of our future energy mix, and the hydrogen production business model seeks to address one of the key barriers to deploying low-carbon hydrogen: the higher cost of low-carbon hydrogen relative to high-carbon counterfactual fuels. We intend to launch the second hydrogen allocation round this year, following the announcement of the projects that were successful in the first hydrogen electrolytic allocation round.
The regulations are vital in enabling contracts to be awarded, so that projects can take investment decisions that will kick-start the deployment of low-carbon hydrogen production in the UK. I commend them to the Committee.
Question put and agreed to.
COP28
Amanda Solloway Excerpts(1 year ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Caroline Lucas (Brighton, Pavilion) (Green)
(Urgent Question): To ask the Secretary of State for Energy Security and Net Zero if she will provide an update on the UK Government’s commitments in relation to COP28.
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
I am glad to come to the House to discuss this important subject today. The upcoming COP hosted by the United Arab Emirates is an important moment in the climate crisis. Amid record temperatures and emissions, the first comprehensive stocktake of progress against the Paris agreement at COP28 will show that the world is badly off-track. We have made significant progress through the Paris agreement, with temperature projections shifting from 4°C before Paris to between 2.4°C and 2.7°C after Glasgow through nationally determined contribution commitments, but we know that that is not enough.
In Glasgow, we cemented the goal of limiting global temperature increases to 1.5°C as our north star. That has been carried forward by the UAE presidency. The latest science and the impacts we are seeing, even at 1.1°C, show us why. A top priority for the United Kingdom is to leave COP28 with a clear road map towards keeping 1.5°C in reach from the global stocktake. The UK heads to COP28 with a record at home and internationally that we can be proud of. The Prime Minister recently affirmed our commitment to net zero and set out our new approach to get there. At home, we have decarbonised faster than any other major economy—by 48% since 1990. Looking forward, our 2030 target requires the largest reduction in emissions of any major economy.
Two years on from Glasgow, the need to accelerate action is more urgent than ever. The world needs to decarbonise more than five times faster than we have done in the last two decades. At COP28, we want to see progress against five areas: ambitious new commitments and action, including a pathway to keep 1.5°C within reach from the global stocktake; scaling up clean energy through commitments to triple renewables, double energy efficiency and move beyond fossil fuels; progress on finance reform, delivering $100 billion for developing economies; building resilience to climate impacts, including by doubling adaptation finance and establishing a loss and damage fund; and, finally, progress on restoring nature. Action to deliver net zero is not just a matter of doing the right thing by avoiding harm; it is crucial to our security and prosperity here in the UK now and in the future.
The global net zero transition could be worth £1 trillion to UK businesses between 2021 and 2030. UK businesses are in the vanguard in recognising the opportunity. More than two thirds of FTSE 100 companies, and thousands of small businesses, have pledged to reduce their emissions in line with the 1.5°C goal under the Race to Zero campaign. More than half the signatories to that campaign are from the United Kingdom. Net zero is already an engine for growth and revitalisation of formerly deindustrialised areas in the United Kingdom. At COP28 we need to show progress in delivering the historic agreement that we landed in Glasgow, and we must use our UK expertise to scale green finance.
Caroline Lucas
I thank the Minister for her response. COP28 will be the most consequential climate summit since COP21 in Paris, yet we are way off track. The UN’s recent emissions gap report warns that current pledges under the Paris agreement would see temperature rises of between 2.5°C and 2.9°C this century. Ministers are fond of saying that the UK has the most ambitious nationally determined contribution for 2030 of any major economy, yet the Minister will also be aware of the Climate Change Committee’s recent assessment that
“the UK is unlikely to meet its NDC”.
That is not least because the committee calculates that just 28% of the required emission reductions for 2030 are covered by credible Government plans. She will know that targets without plans are cheap. What concrete plans do the Government have to urgently close that gap? Does she agree that we must see an ambitious outcome from the global stocktake, with significantly strengthened 2030 NDCs and new economy-wide targets by 2025 that see the richest countries going further and faster?
Does the Minister share my outrage over reports that the UAE plans to use its role as COP28 president to secure oil and gas deals? What assessment has she made of the impact of that on trust in the negotiations? Will she explain why the UK is pushing for the phase-out of unabated fossil fuels, rather than of fossil fuels in their entirety? Does she recognise the view of the High Ambition Coalition, which says that we cannot use abatement technologies to “green-light” fossil fuel expansion? How will she ensure that any agreement that includes language on abatement has real teeth, delivers real cuts in fossil fuel production, and does not simply allow for the continuation of business as usual?
The Minister will know that a properly resourced and operational loss and damage finance fund must be a litmus test for success at COP28, but there are reports that the Government will be contributing to that fund from their existing climate finance pot. Does she agree that we cannot tackle ever-increasing challenges from an ever-depleting pot of money? What plans do the Government have for new and additional finance? What innovative sources of finance are they looking at? What assessment have they made of the impact of the UK’s reclassification of climate finance on climate vulnerable countries? If the Government are serious about leading by example, will they finally reverse the greenlighting of the obscene Rosebank oilfield?
Amanda Solloway
I reiterate that the Government take this issue incredibly seriously, and there are two ways of demonstrating that: the Minister for Energy Security and Net Zero, my right hon. Friend the Member for Beverley and Holderness (Graham Stuart), who usually deals with such issues, is at COP28 and ready for the conference; and we now have a distinct Department for this issue, the Department for Energy Security and Net Zero. We know that we are leaders in the field. I take this issue seriously, not just for the people of the United Kingdom, but for the planet as a whole. Thinking about my granddaughter, we really do have a commitment to ensuring that we are doing everything that we can.
Mr Speaker
I call Dr Thérèse Coffey. [Interruption.] Order. Ms Lucas, I have given you an urgent question. If you have a problem—
Dr Thérèse Coffey (Suffolk Coastal) (Con)
Thank you, Mr Speaker, for granting this second opportunity for the House to discuss COP28. At the debate on 16 November, when the Government granted a full day’s debate, only three Back Benchers spoke—me, and the hon. Members for Putney (Fleur Anderson) and for Strangford (Jim Shannon). There was not a sign of the hon. Member for Brighton, Pavilion (Caroline Lucas), who is now complaining about the responses to her questions. By the way, the debate on 16 November finished early because of how few people spoke.
Does my hon. Friend agree that “vote blue, go green” is the best way to deliver net zero? Does she recognise that nature-based solutions are vital to achieve net zero? Does this not just show again that the Green party is all talk and absolutely no action?
Amanda Solloway
As I have said, it is incredibly important that we head towards our commitments. Between 1990 and 2021, we cut UK emissions by 48% while growing the economy. I agree with my right hon. Friend that if we trust this Government to deliver, we will ensure we are heading on the right path. The other thing to mention is that net zero is an engine for growth and the revitalisation of formerly industrialised areas of the UK. Cutting emissions is important not just for the climate, but for our economy.
Kerry McCarthy (Bristol East) (Lab)
The UN has warned that the world is on course for a catastrophic 2.8°C of warming, in part because promises made at COP26 and COP27 have not been fulfilled. We are running out of last chances. We know what we need to do and we know how to do it, but where is the sense of urgency? The Prime Minister was shamed into attending COP last year. I would have thought he would be ashamed to be there this year, after his climate climbdown last month derailed momentum at exactly the wrong time. The world needs climate leadership.
Does the Minister think it is acceptable for the Prime Minister to sabotage the UK’s history of climate leadership with his cynical backtracking on net zero? Labour will be going to COP with a message that the UK can be a climate leader again and that, in doing so, we will cut energy bills and boost energy independence at home, which this Government have conspicuously failed to do. Labour will put the UK back in a position of leadership and establish a clean power alliance. We will pledge to issue no new oil, gas or coal licences and set an example with our mission for clean power by 2030. What example does it set if the current UK Government ignore the science and global consensus on fossil fuels, especially when the Energy Secretary admits that her policy will not even cut bills?
Labour will also be working for multilateral development bank reform to help developing countries access capital, as well as championing the UK as the future green finance capital of the world, with mandatory 1.5°C-aligned transition plans for FTSE 100 companies and financial institutions. Can the Minister tell me what the Government will be doing to advance that agenda?
There is so much more that the UK can and must do to reduce emissions and deliver energy security, to cut energy bills and to back British industry. With Labour, Britain would lead the world at COP. Labour is ready to lead; is the Minister?
Amanda Solloway
As I have mentioned, we do take this issue incredibly seriously. If I think about some of the facts, as the hon. Member rightly mentioned, at the G20 the Prime Minister announced $2 billion to the green climate fund. That is the biggest single funding commitment that the UK has made to help the world tackle climate change. Half of that contribution will go to adaptation. We are committed, and that is why we have a presence at COP28. The House will see that senior members of the UK Government are there, as well as King Charles.
Theresa Villiers (Chipping Barnet) (Con)
This country has one of the strongest records in the world on reducing emissions, not least given our very successful COP26 summit in Glasgow. What progress is being made on delivering the historic commitment to tackling deforestation made by the leaders at that summit?
Amanda Solloway
I pay tribute to the work that my right hon. Friend has done on this subject. I will need to get back to her with the exact figures on deforestation, if I may. One of the things that the UK Government are doing at COP28 is making sure that we hit the five key areas of progress: finance, global stocktake, mitigation, adaptation, and loss and damage—and, within that, nature.
Steven Bonnar (Coatbridge, Chryston and Bellshill) (SNP)
The UK Government’s series of U-turns on net zero targets has put our ability to meet them at risk. The Scottish Government are committed to meeting our more ambitious targets, but Europe and the United States are leading the way as this place lags behind, in turn holding Scotland back. Can the Minister confirm whether the new Foreign Secretary, who famously decided to “cut the green crap”, will be attending COP26? That move cost UK households £2.5 billion in extra energy costs.
Amanda Solloway
I reassure the hon. Gentleman that we are committed to ensuring we hit all those targets. As of September 2022, more than 130 countries, accounting for around 85% of global emissions and more than 90% of global GDP, were covered by net zero commitments. We are committed to making sure that we hit those targets, and that is demonstrated by our attendance at COP28 and the measures we are taking to ensure we meet the climate challenges.
Nigel Mills (Amber Valley) (Con)
The Government’s “Mobilising green investment” strategy, published in March, set out that we need $1 trillion a year in green finance by 2030. What are the Government’s ambitions at COP28 to agree funding anywhere close to that level? What more can we do to get our private sector and pension schemes to contribute to that?
Amanda Solloway
My hon. Friend makes an important point. We will have those discussions over the two weeks of COP28. We are trying to ensure that we hit all the global targets, too. I am sure that those conversations will come up, and we can have a discussion on them later.
Anna McMorrin (Cardiff North) (Lab)
The Minister can talk the talk, but it is action that counts. Businesses across every sector, as well as experts in the field, have reacted with horror to this Government’s backsliding and roll-backs on climate action and net zero. In fact, Aviva’s chief executive, Amanda Blanc, said that the Government were putting our climate goals as a country “under threat” and therefore jobs, growth and investment at risk. Does the Minister recognise the damage that is doing both at home and to our global standing?
Amanda Solloway
One of the things that this Government are committed to is ensuring that we have skills in place and that the economy is going in the right direction. We are proud of our record, and our commitment to making sure we get to net zero is demonstrated in all the things we have been doing. We are international leaders—world leaders—in our commitment to ensuring that we hit those targets.
Derek Thomas (St Ives) (Con)
I welcome that two of the 34 new landscape recovery schemes are in west Cornwall and on Scilly, and I credit the Cornwall Wildlife Trust, Farm Cornwall, the Duchy, other organisations and in particular the landowners for their incredible work to achieve that. At previous climate change conferences, specifically the Paris summit, we agreed to fix our leaky homes. Will the Minister meet me to discuss how we can accelerate that effort, especially for low-income families?
Amanda Solloway
I know what a champion my hon. Friend is for his constituents. I will of course meet him, although perhaps a meeting with the relevant Minister would be more appropriate. We are committed to making sure that we have that extra security. That is why we are making such an investment in working towards energy security, while at the same time working towards net zero.
Wera Hobhouse (Bath) (LD)
The UK was a leader in offshore wind development but is now falling seriously behind. Costs to offshore wind developers have increased by as much as 40%. The recent offshore wind auction failure will have cost the UK 5 GW of new renewable energy, and that was entirely predictable. How will the Prime Minister be able to look in the eye the leaders of countries that are suffering most from the impact of climate change and say, “The UK does everything it can”?
Amanda Solloway
First, we are world leaders on offshore energy. That is one of our commitments, but we do not just rest on our laurels and think about offshore wind; we are also looking at other ways to generate electricity, which is much needed, including fusion and small modular reactors. The hon. Lady suggests we are not taking into account where we should be going on energy, but we are world leaders and we are ensuring that we have an impact on our futures.
Vicky Ford (Chelmsford) (Con)
I am looking forward to going to COP as one of the members of the Energy Security and Net Zero Committee. Last week the Committee went to see the world’s first green hydrogen neighbourhood project in Fife in Scotland. Local people were given the choice to switch to innovative clean green hydrogen heating and nearly half of them have taken that choice. Does the Minister agree that one of the biggest challenges to achieving next zero is achieving that consumer change, and that this is why it is so important that we offer consumers innovation and choice rather than the top-down “tax and ban” approach that the Opposition so often promote?
Amanda Solloway
My hon. Friend makes an important point. It is about education; ensuring that people are educated and thinking about how we use our future energy. However, it is also incumbent on us to ensure that we offer choices, which is why we are committed to offshore and to making sure that we are investing in science and technology and getting all of that technology available, thus making energy available in lots of different forms.
Jeremy Corbyn (Islington North) (Ind)
After the last COP, the Prime Minister at the time, Boris Johnson, assured the House that there would be no funding whatsoever from British sources for fossil fuel developments anywhere in the world. Since then, the UK Government have announced their own fossil fuel developments with oil and gas extraction, so how on earth does the Minister expect to be taken seriously at COP when Britain itself is investing more in fossil fuels and then lecturing the rest of the world that they should not do so? Can she assure us that this COP is not just going to be an exercise in greenwash with a sideshow of oil dealing, and that it is going to be a serious attempt to deal with the serious, fundamental issues that this planet faces?
Amanda Solloway
Yes, UK production is declining. When we think about oil and gas, it is important that we think about having a balanced approach and making sure that we keep our supply going as it should. One of the things we are committed to is making sure that, on balance, we also have other options available. It is important to remember that, from an economic point of view, the jobs that are created are really important, from an oil and gas point of view, and of course that will be invested in green energy as well, so it is a cyclical thing to make sure that we are investing in our future.
Dr Luke Evans (Bosworth) (Con)
Having spent a year in the Energy Department, it has been an absolute pleasure to see how civil servants, businesses, the public and, indeed, Ministers are at the forefront of ensuring that the UK is the major economy that has decarbonised furthest and fastest in the world. We account for only 1% of emissions. We have the biggest offshore wind farm in the world, as well as the second biggest and the third biggest. We have more solar panels than France. We really are leading the way. So when we go to COP, we need to make sure that others see that there is an advantage in doing this and join us on that journey. What will the Minister’s message be at COP to make sure that the world joins us on this journey?
Amanda Solloway
I thank my hon. Friend for making those points. He has worked closely with the Department and seen at first hand the work that we have been doing, and it is good to hear that reiterated in the House. One of the things that we are looking for is success at COP28, and success would be making sure that we are supporting those five measures but also progressing and making sure that we have a commitment to the world’s future and making a greener climate.
Richard Burgon (Leeds East) (Lab)
The Government are going into these global climate talks having announced new North sea oil and gas fields. If every country copied this Government’s approach of squeezing out every last drop of oil and gas, we would risk extreme global temperature rises of 3°C. Every respected climate body has warned of the dangers of this approach, so at the climate talks why should any other country listen to this Government when their policies are not compatible with the UK’s own climate commitments?
Amanda Solloway
Of course we are committed to doing other things as well, which is what I am reiterating. We have a commitment to making sure that we learn from research and development, and that we are looking at offshore wind, but we also need to be realistic, which is why we are looking at oil and gas. It will have an impact on the economy and it will help towards a greener economy because of the investment that will be made through the oil and gas finance.
Mr Tobias Ellwood (Bournemouth East) (Con)
Climate change is the single biggest threat to humanity, and I will be looking forward to attending COP28 myself. I am pleased that it is taking place in the middle east, given the need to transition away from fossil fuels. We seem to forget our own history, because it was us—in Persia, in Mesopotamia and on the Arab peninsula—that got the middle east on to the road of oil and gas exploration. Does my hon. Friend agree that we are able to get our CO2 emissions down today because of the offshore wind farms in the English channel, and that those are the result of a lot of investment from the United Arab Emirates?
Amanda Solloway
It is always a great pleasure to listen to my right hon. Friend, who reminds us of the history and of how we got to this point. However, we need to acknowledge all the good things that we are doing, and I reiterate that we are looking at ensuring sure that we have a secure energy future.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
Is it not just a little bit embarrassing that as Ministers head to the Gulf for COP, the European Marine Energy Centre in my constituency is having to consult on downsizing and restructuring because the Minister’s colleagues in the Department of Levelling Up, Housing and Communities have been unable to provide the three-year funding stream that they had previously undertaken to provide? Will she speak to her colleagues in DLUHC to ensure that some certainty on that money can be given, and that the centre can continue its genuinely world-leading work on the development of marine renewable energy?
Amanda Solloway
That is obviously not my Department, but I would be happy to take that away and facilitate a meeting, or indeed have a meeting myself.
Claire Hanna (Belfast South) (SDLP)
New research by Ulster University finds that over 60% of homes in Northern Ireland will need to be retrofitted if we are to have a chance of meeting our net zero targets, and that at the current rate of retrofitting we have no chance of meeting our 2030 goals. Does the Minister believe that the support available to providers, such as the Northern Ireland Housing Executive and housing associations across the region, is adequate to allow them to tackle the climate breakdown and fuel poverty? Further, knowing the impact of climate change on the poorest countries in the world, will the Government finally make real the loss and damage fund to help those most affected to adapt and mitigate, and will she ensure that that fund is new money and not just a raid on existing pressed aid budgets?
Amanda Solloway
With the hon. Lady’s permission, I would prefer to write to her, because parts of those questions are slightly outside my remit. However, I reiterate that one of the things we are determined to do is tackle fuel poverty. That is one of the reasons why we have a commitment to do this. Also, there is a lot of support that people can get, and I would encourage everybody to get what they are entitled to.
Alistair Strathern (Mid Bedfordshire) (Lab)
I have some great green innovators in my constituency, but it has been heartbreaking speaking to them over the last few months about the impact that the Government’s supposed reset on net zero is having on their businesses. They include new fuel cell producers, green aviation leaders, companies providing key supply chain parts to the car industry and renewable energy companies. Their businesses may be different, but the story is the same. The lack of action from the Government is making it harder for them to get investment, harder for them to create jobs and harder for them to bring growth to Mid Bedfordshire. My constituents ultimately saw through the Government’s shallow positioning on this issue, hearteningly for me, but it is unfortunate that this issue continues to hang over their prospects. How can we show leadership on this issue at COP28 at a time when the Government cannot even get out of the way of people looking to bring growth to my constituents?
Amanda Solloway
This Government have demonstrated a commitment to investment in all these areas. Particularly from a science and technology point of view, I know that UK Trade and Investment has immense commitment and gives out support for this. But there are many things that we have been doing. We have not just been investing in R&D from a science point of view. What we are doing is investing in offshore wind, in alternative fuel and in all those things that will enable us to get to where we need to be.
Richard Foord (Tiverton and Honiton) (LD)
In the UK, heating homes accounts for 14% of carbon emissions, and in England our homes produce more emissions than cars do. That is not only costing the environment in the future; it is also costing taxpayers now. A decade ago, the then Prime Minister Cameron’s “green crap” riddance resulted in uninsulated lofts and in cavity walls being left unfilled. Given that that decision is now adding billions in additional costs to taxpayers and making it harder to meet the 2030 decarbonisation target, can the Minister ask the Foreign Secretary whether he regrets it?
Amanda Solloway
We are investing in making sure that homes are insulated and energy efficient. It is worth pointing out that between 1990 and 2021 the UK cut emissions by 48%, while growing the economy by more than 70%. I can, of course, pass on the hon. Gentleman’s message to the Foreign Secretary.