Great British Energy Bill (Fourth sitting)

Debate between Andrew Bowie and Wera Hobhouse

Committee stage
Thursday 10th October 2024 Public Bill Committees

[Andrew Bowie]

It is a pleasure to serve under your chairmanship, Sir Roger. The amendment would bring to the Bill a concrete objective for Great British Energy to reduce the wholesale price of electricity. I am pleased to move this amendment, which will introduce a specific strategic priority to reduce wholesale electricity prices and to require that an annual report is produced on how Great British Energy’s activities are affecting wholesale energy prices and therefore consumer electricity bills.

Further to the discussion earlier about the impact of Great British Energy on bills, notable by its absence, sadly, is a purpose for GB Energy to reduce wholesale electricity prices. As we noted earlier, the Bill states that the objects of GB Energy are only to facilitate, encourage and participate in the production of energy, the reduction of greenhouse gas emissions, improvements to energy efficiency, and measures for ensuring the security of supply. It would be remiss of the Government not to include the ambition to reduce the wholesale price of electricity as a strategic priority of the company.

Why is reducing wholesale electricity prices important? Wholesale costs account for about 60% of a customer’s energy bill and are a major consideration in suppliers’ retail pricing decisions. In the two years since Vladimir Putin’s invasion of Ukraine, we have seen the sizeable impact of the international energy crisis on bill payers in the United Kingdom. Tensions rising in the middle east could very much affect our domestic energy costs, so it is more significant than ever that we take into account the impact that Great British Energy could have on wholesale electricity prices to reduce consumer bills as much as possible.

It should be incumbent on Great British Energy, through its investments and its part and full ownership of projects, to drive down wholesale electricity prices to the benefit of UK bill payers and businesses. In winter 2022-23, the Conservative and Unionist Government paid half the country’s energy bills to protect households from the worst of the energy shocks triggered by that war in Ukraine. Energy bills, alongside the pressures of inflation, have been a consistent worry for all our constituents. We also have the highest energy costs for industry in Europe.

The Government have outlined that their plans to tackle future energy security, to reduce bills and to lower wholesale prices for electricity hinge on the creation of GB Energy. Therefore, it would be prudent to write into the Bill the strategic priority to reduce wholesale electricity prices. On Tuesday, we heard from the chair of GB Energy that

“Every megawatt and gigawatt of renewable energy that we put on the grid will help to bring bills and prices down.”––[Official Report, Great British Energy Public Bill Committee, 8 October 2024; c. 6, Q5.]

I agree. Therefore, it has been intimated that that is indeed a strategic priority for GB Energy, and the Bill ought to reflect that.

This group of amendments also introduces the requirement for the Secretary of State to give a specific direction to Great British Energy that it must report on its progress.

[Wera Hobhouse (Bath) (LD)]

I have an honest question. Since energy is sold in a daily, 10-minute or whatever market, and that market operates, how can the Government ensure that the market behaves in the way they want it to behave? Is that question useful? I want to understand what the hon. Gentleman’s amendment will actually do to guarantee the price, since British energy operates in a market.

[Andrew Bowie]

That is an important question. I think we all agree that the reason the United Kingdom was so exposed to the energy price shocks that the entire western world has experienced over the past two years was our overreliance on the highly volatile fossil fuel market. Building new technologies to drive us towards a cleaner future and lower bills is therefore important. Our exposure to the market to which the hon. Lady refers had an adverse impact here in the United Kingdom. Just as stating in the Bill that a reduction in bills is important, the reduction of wholesale electricity prices should also be a stated object in the Bill. If GB Energy is to do anything, alongside all its other strategic objects, surely it must be working towards a reduction in electricity prices. We would therefore like to see that on the face of the Bill.

[Wera Hobhouse]

The hon. Gentleman is being generous in giving way. Would that not be a clear state intervention in the market?

[Andrew Bowie]

I do not think so, but the creation of the company is a state intervention in the market. That is one reason we on the Conservative Benches disagree with the Bill. We think that we can drive up investment in renewables and new technologies in this country by allowing companies the freedom to invest and by creating the best environment for private investment in this country. That is what we did when we were in government. That is why we have the first to the fifth-largest offshore wind farms in the world, and that is why we cut emissions faster than any other country in the G7, at the same time as growing the economy. That is a record that I am very proud of, and I worry that this state intervention in the market will have a negative effect.

We are debating the creation of GB Energy and this Bill. As part of that, a reduction in electricity prices should be one of the strategic aims.

Oral Answers to Questions

Debate between Andrew Bowie and Wera Hobhouse

Tuesday 21st May 2024 Commons Chamber

[Andrew Bowie]

I would be delighted to meet my hon. Friend to discuss this matter. Indeed, I am determined to ensure that ports that were not successful in the FLOWMIS process can take advantage of the huge increase that we expect in the deployment of floating offshore wind capacity off the coast of the United Kingdom. I am happy to meet my hon. Friend and, indeed, any other Member of Parliament who represents a port that was not successful through the FLOWMIS procedure to discuss how we can move this forward.

[Wera Hobhouse (Bath) (LD)]

Community energy can deliver so many renewable energy products and save on energy bills. Last year in Bath, a community energy project putting rooftop solar on schools saved schools £130,000. When will the Government remove the barriers to community energy?

[Andrew Bowie]

As a result of the Energy Act 2023, we launched a consultation and a multimillion-pound fund to help to support the expansion of community energy across the United Kingdom. It would be great to have the Liberal Democrats’ support in the effort that this party and this Government are making to ensure that the benefits of community energy are felt up and down the length and breadth of the country.

Oral Answers to Questions

Debate between Andrew Bowie and Wera Hobhouse

Tuesday 27th February 2024 Commons Chamber

[Andrew Bowie]

I understand the concern and frustration of my hon. Friend and his constituents. That particular project is at the pre-application planning stage. The application is expected to be submitted to the Planning Inspectorate between January and March 2025. However, as I know he understands, owing to the quasi-judicial role of Ministers in determining applications, it would not be appropriate for me to comment on any specific matters in relation to that project, but I can reassure him that all applications are judged on their individual merits, and I encourage him and all his affected constituents to engage with the planning process at every stage as it continues.

[Wera Hobhouse (Bath) (LD)]

With all due respect to Conservative Members, who always represent the farming industry, as do we in the Liberal Democrats, farmers are not stupid. They will not take high-quality agricultural land out of production, and that is not happening, so I really worry about the argument being made here. We are far behind our renewable targets for solar, so what incentive can the Government provide to get more, not less, UK solar off the ground?

[Andrew Bowie]

I can reassure the hon. Lady that the solar taskforce will publish its recommendations imminently, and we have an ambitious target of deploying 70 GW of solar across the UK by 2035.

Civil Nuclear Road Map

Debate between Andrew Bowie and Wera Hobhouse

Thursday 11th January 2024 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

I do apologise for having called two Members in a row from the same side. I shall immediately correct myself by calling two from the Opposition side.

[Wera Hobhouse (Bath) (LD)]

Thank you, Madam Deputy Speaker—I took no offence at all; it is fully understood.

The best route to affordable energy security is renewables. Nuclear power is blighted by delays and rocketing costs, and the Government are never honest about its much higher costs compared with renewables. On the Government’s watch, renewables have faced long delays and the costs for offshore wind development have increased by 40%. Will a renewables road map soon follow the statement to address those challenges and ensure that the Government do not lose their competitive advantage in offshore wind development?

[Andrew Bowie]

I lose track of where the Liberal Democrats sit on nuclear. I know that their current leader was against it, then he was for it, and then against it again. Right now, I am not quite sure.

I do take issue with the hon. Lady’s insinuation that we are not leading the world in renewables. We have the first, second, third, fourth and fifth—and, soon, the sixth—largest offshore wind farms in the world generating power right now for Great Britain. We are investing at pace in solar and in a host of new and emerging technologies because, unlike some parties, we believe that we should not invest all our time and money in one technology. We need a broad range of technologies if we are ever to meet our legally binding net zero commitment. I look forward to the day when the Liberal Democrats can hold a policy for more than five minutes and come to the House and actually support us on the journey to our net zero future.

Energy Bill [Lords]

Debate between Andrew Bowie and Wera Hobhouse

Consideration of Lords message
Wednesday 18th October 2023 Commons Chamber

[Wera Hobhouse]

Unfortunately, the Government are unwilling to see the potential of community energy. Community energy schemes currently generate just 0.5% of the UK’s electricity. That is because—we know all this; we have said it many times—the financial, technical and operational requirements involved in becoming a licensed supplier put initial costs at more than £1 million. That is a massive risk for any new start-up or small scheme. Any community energy projects such as the one in Bath can exist only because it has reached a certain size. That is one of the problems.

The Government are aware of that fact, but voted to remove Lords amendments to rectify it. The Government need to start matching their supportive words about community energy with action. The most effective step that they could take would be to enable local supply and remove the regulatory barriers that prevent community energy schemes from selling their power to local customers. That could include a community right to connect to the grid ahead of commercial projects that deliver little or no social and community benefit. I am sure that I have answered the question that the right hon. Member for Wokingham (John Redwood) was about to ask.

Community energy schemes are ready to provide clean, green energy that helps local communities. They are not asking for a huge amount of public money, just for the Government to stop blocking the system. In this time of energy uncertainty, having a reliable local supplier can only be positive. I fully support Lords amendment 274B to hold the Government’s feet to the fire on community energy. I urge everyone in this House to do the same.

[Andrew Bowie]

I thank all right hon. and hon. Members for contributing to this afternoon’s debate. I will first respond to some of the comments made by my constituency neighbour, the hon. Member for Angus (Dave Doogan). I know that he does not like it very much, and would like it if it were not the case, but he is absolutely wrong and I have to correct him: this is not the English Government; this is the British Government. We are the Government of the entire United Kingdom—a United Kingdom of which Scotland remains a part and, if the opinion polls are anything to go by, will continue to remain a part of for quite some time.

The hon. Member has an obsession with decrying the nuclear industry as something that the Tories alone are obsessed with. Tell that to the Governments of France, Sweden, Finland, Italy, Poland, the Czech Republic, Slovakia, Canada, the United States of America and more, who are reinvesting and restarting their own civil nuclear industry, as is the Labour Welsh Government, who are very much in favour of further investment in, and development of, nuclear. He raised the lack of funding for community energy projects; £10 million over two years is an incredibly generous offer. That is alongside other UK growth funding such as the UK shared prosperity fund, which community energy groups can access by working in partnership with their local authorities.

The hon. Member for Bath (Wera Hobhouse) asked when the community energy fund will be launched. It will be launched as soon as possible. We are aiming to launch applications to the fund as soon as we physically can.

My opposite number, the hon. Member for Southampton, Test (Dr Whitehead), is right that we have had a productive and constructive relationship when it comes to discussion of the Bill. The 72 hours that we spent together in Committee were beneficial to everybody’s health, I am sure, and to the development of Government policy on this matter. We have come some way from where we were when we started discussing how we would support community energy. He rightly praised the role that the sector has played during the passage of the Bill. The community energy sector has been incredibly receptive to our commitment to a consultation and to the £10 million fund.

[Andrew Bowie]

My right hon. Friend is absolutely right. I also noticed that—

[Wera Hobhouse]

Will the Minister give way?

[Andrew Bowie]

Two seconds. I will respond to the first intervention before I give way to the hon. Lady. I also noticed that she managed to answer a question that had not even been asked by my right hon. Friend.

[Wera Hobhouse]

The amendment also says that the Government should respond to the barriers and put forward proposals. That is really what we want to know: what is the response to any consultation? The Government have failed to give any response to that.

[Andrew Bowie]

We cannot respond to a consultation that has not been launched yet. We are in the process right now of working with the community energy contact group. In fact, it has already met. Work is under way right now to develop the consultation, identify what the barriers to market are, and get out there and support the community energy sector, as the Government are determined to do.

Independent Review of Net Zero

Debate between Andrew Bowie and Wera Hobhouse

Thursday 9th February 2023 Commons Chamber

[Andrew Bowie]

This Government are committed to incentivising investment in renewables across the piece, working with the energy sector and others. In the full response to this report, which I assure Members will come later in the year, we will set out more plans in that regard. The hon. Gentleman is right; that is something we need to do.

New technology will be critical to the transition, and this comes back to the point made by the hon. Member for Bath (Wera Hobhouse) about phasing out fossil fuels. Of course we need to move away from a reliance on fossil fuels as our energy baseload. That is why we are transitioning. That is why Offshore Energies UK has its “Vision 2035” to make the North sea the first net zero basin in the world. We continue to work with the oil and gas sector as it produces the energy we require and will need for many years to come, and as it invests in the new technologies of the future, including carbon capture and storage—a technology in which there are many projects across the country.

[Wera Hobhouse]

Is the Minister not aware that the biggest investment is still in oil and gas exploration and extraction? How does that fit with what he just said?

[Andrew Bowie]

Exploration and drilling will continue. We will be reliant in some way on oil and gas for years to come. At the same time, we are working to increase our investment in renewables, as well as new technologies, including the developments in hydrogen and e-fuels that I have seen myself. This is a transition. It is not a case of simply turning off one form of energy and turning on another. We need to transition away from fossil fuels. That is why it is really important that we work with the oil and gas companies operating in the North sea to achieve that, as well as increasing our investment in new technologies being developed in this country.

We are a world leader in green and clean tech, as I saw just last week. We are delivering green and clean tech to countries across the world, but we must also work with our existing industry. The net zero research and innovation delivery plan will set out the Government’s current portfolio of research and innovation programmes that are backing Britain’s most innovative businesses to develop the next generation of technologies needed to deliver net zero. We expect to set out the next steps in a range of other critical areas, from energy efficiency to carbon capture and storage, very soon.

Agriculture Bill

Debate between Andrew Bowie and Wera Hobhouse

Consideration of Lords amendments & Ping Pong & Ping Pong: House of Commons
Monday 12th October 2020 Commons Chamber

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

It is a pleasure to be called to speak in this vital debate, much of which has understandably focused on Lords amendment 16. I am sorry to disappoint the House, but being as unoriginal as I am I, too, will be restricting my remarks to that amendment.

I have the pleasure of representing a constituency in Aberdeenshire, which is, as I am sure the House will agree, home of the best beef, lamb, berries and cereals produced anywhere in the United Kingdom. Of course these Lords amendments have given me pause for thought, just as the amendments tabled by my hon. Friends the Members for North Dorset (Simon Hoare) and for Tiverton and Honiton (Neil Parish) did. I have listened to representations about the Bill—by email, phone, over social media, and in person yesterday at the door of the church—from farmers and food producers in my constituency. I want to put Scottish and specifically north- east farmers first—first in the queue to benefit from the trade deals that we are negotiating right now. In the next 30 years, the supply of food needs to rise by about 50% to meet the needs of a wealthier, growing global population. I do not want anything that would stand in the way of our high-quality, world-leading Scottish products reaching the shelves of consumers around the world.

In attempting to enshrine in law, as this well-meaning amendment would, that food imported to the UK

“be equivalent to, or exceed, the relevant domestic standards and regulations”,

we would put at risk our ability to sell our products overseas and put in serious jeopardy our ability to carry on importing many of the foodstuffs we do at the moment. We already import a large quantity of goods from developing countries. This includes products sold directly to consumers, such as bananas from the Dominican Republic, and goods processed into final products, such as tea from Kenya, coffee from Vietnam and cocoa beans from Ghana. We do all this under existing European Union rules, and as my hon. Friend the Member for North Herefordshire (Bill Wiggin) pointed out, we should not even get started on Danish bacon.

None of the transition EU FTAs has exported domestic welfare production standards. This amendment would mean that the existing mandate for our European Union trade deal—a deal we all, goodness me, want to see succeed—would have to be altered. No current imports to the UK are required to meet our domestic production standards. It is precisely our high standards and high quality of produce that make our produce so attractive to the outside world. Because of that and because we believe in high welfare standards, the Government have given their commitment that in negotiating these trade deals, we will not allow our domestic welfare production standards to be in any way diminished. We will protect, defend and enhance our food safety, environmental and animal welfare standards, and we will actively seek to export these world-leading standards and our expertise to new partners around the world.

This country is a world leader on animal welfare and food production standards. We are champions, or at least should be champions, of free trade. These two principles are the foundation of what I believe global Britain seeks to be. These are the pillars of who we are. Therefore, for all these reasons, and because I support Scottish farmers and want to see our produce sold and enjoyed across the world, I cannot support the Lords amendments before us.

[Wera Hobhouse (Bath) (LD)]

This Bill could well be among the most significant pieces of legislation that we debate in this Parliament. It covers our farming practices, environmental protections and food supply chains. If the food shortages in supermarkets at the beginning of lockdown have taught us anything, it is the importance of food security and traceability. Our constituents know this. Recent polling by Which? shows 95% support for maintaining existing food standards, and over 1 million people have now signed the NFU’s petition—yes, the NFU: that radical and dangerous organisation, according to the hon. Member for North Herefordshire (Bill Wiggin)—calling for food standards to be enshrined in law.

The most frequently raised issue recently by Bath constituents has been the Agriculture Bill. They want reassurances about the quality of the food they eat. They care about animal welfare standards and environmental protections. They want to know that British farmers will not be undercut by cheaper, lower quality products from countries with fewer regulations. Like many others, I have been supporting local businesses during lockdown. We are lucky in Bath to have an excellent supply of locally produced food from Somerset, and it will be British families like these who will be left unsupported.

This pandemic has also underlined the importance of healthy eating and good nutrition for our general health and wellbeing, yet we risk exposing hundreds of thousands of families to low-quality food, undermining the Government’s own obesity strategy. We must be mindful, too, of the agricultural sector’s role in getting to net zero. Lower food standards encourage poor production practices, and the result is massive damage to the environment. Unless these standards are legally enshrined, the risk remains that this Government will compromise on environmental protections and food and welfare standards, as they head out in a desperate search for trade deals after Brexit. Just last week, the US Agriculture Secretary said:

“We absolutely will not agree to policies that restrict our methods of production to any other standards outside of this country”—

the US. How can we ask our constituents to rely on nothing more than ministerial assurances?

The Government argue that enshrining food standards in the Bill would undermine trade negotiations. That is not true. This morning, the Future British Standards Coalition published its interim report, with evidence that it is possible to reject low food standard imports, remain WTO-compliant and still strike trade deals. The Government want Britain to be a global leader in trade. Why not be a leader that encourages trading partners to adopt higher standards? I urge Members across the House to support the Lords amendments, particularly amendment 16.

Universal Credit: Private Rented Sector

Debate between Andrew Bowie and Wera Hobhouse

Tuesday 9th January 2018 Westminster Hall

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

It is a pleasure to serve under your chairmanship, Mr Gray. I congratulate the hon. Member for Eastbourne (Stephen Lloyd) on securing today’s debate. What we are debating this morning is a serious component of the debate around universal credit, and it is right that we dedicate appropriate time to its consideration.

Colleagues from all parties and of all positions on universal credit will have been as concerned as I was to read research conducted by the National Landlords Association in the second quarter of last year that found that only 20% of UK landlords surveyed say that they are

“willing to let to tenants in receipt of housing benefit or universal credit”.

That comes on top of evidence received in September last year by the Work and Pensions Committee, on which I serve, from the Residential Landlords Association, which stated that 38% of the landlords surveyed said that they were having issues with tenants receiving universal credit going into rent arrears. The same survey found that almost a third of landlords had, in the past year, evicted a tenant in receipt of housing benefit, and that more than two thirds of the evictions had taken place due to rent arrears. That is obviously very worrying and undoubtedly gives Members of Parliament cause for concern.

It is important to recognise that these are not in every case new problems created by universal credit. Many tenants in receipt of housing benefit have been paid housing costs directly for a very long time. Around 70% of housing benefit claimants in the private rental sector have had their housing benefit paid directly rather than to a landlord. The housing element of universal credit is paid in exactly the same way. If people need extra support, their rent can be paid directly to landlords through alternative payment arrangements, and budgeting support can be made available. Claimants whose housing benefit was previously paid directly to a landlord will be offered that option automatically. However, as we have heard in the debate, there are issues with the system. Improvements can be made, and I believe that they should be.

Since the beginning of the universal credit roll-out, the DWP has proven that it is taking a “test and learn” approach, slowly and steadily rolling out the system while fixing and replacing problematic elements. That is why the Government have scrapped the seven-day wait, extended the deadline for repayment of advances, made advances easier to obtain and ensured that all DWP headlines are freephone numbers. For tenants, the DWP has taken numerous steps to prevent claimants from falling into arrears, including improving the processes for verifying housing costs and improving the support given to work coaches in jobcentres so that they can resolve housing issues as they arise.

The Government continue to work closely with landlords, local authorities and other organisations to ensure that claimants are supported. Crucially, it must be noted that when a private sector landlord asks for managed payment of rent to be arranged, it can be done on the provision of documentation evidencing two months of rent arrears. That should prevent unnecessary evictions on grounds of rent arrears, and I hope it does.

It is right that we should debate these issues today; they are incredibly important for our constituents. However, it is also right that we should recognise how cautiously and sensibly the DWP has moved throughout the entire roll-out of universal credit.

[Wera Hobhouse]

Will the hon. Gentleman give way?

[Andrew Bowie]

I will not, because there are many speakers to come and we are short on time.

The Government have listened to concerns brought by Members and the Work and Pensions Committee, and have acted on them, where necessary, in a calm and considered fashion. I have full confidence that that will continue as we debate the issues surrounding the private rented sector.