Electricity and Gas (Energy Company Obligation) (Amendment) (Specified Period) Order 2026

Baroness Bloomfield of Hinton Waldrist Excerpts

Monday 9th March 2026 Grand Committee

With the SI, we have the extension, and then we have a hard end to that. What happens if, during the period when all the remediation work is being done, there are problems with that work itself? Obviously, we all hope that there will not be any further problems but, if there were—particularly with trying to fix cavity-wall insulation, given where that has gone wrong and where the fixes do not work—where would recompense and fixing all that fit in, considering that this scheme ends in December 2026?

[Baroness Bloomfield of Hinton Waldrist (Con)]

I thank the Minister for his introduction of this statutory instrument. This order extends the energy company obligation end date by nine months to ensure an orderly transition for consumers and suppliers to help meet existing targets. This extension was determined following consultation and following the calls of business. On that basis, we on these Benches support the order.

The ECO was established to help households reduce energy consumption and lower heating costs. Since it was launched in 2013, around 4.4 million measures have been installed in 2.6 million properties, up to the end of September 2025. ECO4 is the latest version of that scheme, beginning in 2022. It has meant that approximately 949,800 measures have been installed in around 281,000 households.

It is of course right that, where there were non-compliant installations, installers fund the repair work, overseen by Ofgem and insured by further on-site audits. We have already committed to working cross-party to ensure that affected households receive the remediation they deserve. We understand that the Government now seek to end this scheme and replace it with their warm homes plan to provide loans and grants to households instead; indeed, they have claimed that this will result in a £150 cut from the average household bill.

However, although the end of the ECO scheme means that households will no longer pay the levy through their energy bills, the new plan will be funded through taxation. There is no clarity, therefore, that this will end up saving taxpayers money in the long term; indeed, the new taxpayer funding initiative, coupled with rising energy costs—particularly now—and already high installation costs, mean that it looks increasingly unlikely that the Government will be replacing the ECO with an improvement. Have the Government made any assessment of how much taxpayers will save overall? To what extent are these projections reliant on projected energy costs, which will now be redundant? Oil prices are already 50% higher than in the OBR’s projection last week.

I appreciate that these questions are about issues that are outside the Minister’s control, but they have ramifications for the Government’s policy. Is it really wise to push forward with tax-and-spend green policies, which will likely do little to reduce costs, at a time of global instability? I understand that these are also developing events and that they do not directly relate to the functioning of the ECO.

Returning to that, it would be helpful to clarify how much money taxpayers will now be expected to pay to cover the cost of this new extension period. As I have stated, I support the extension to ensure an orderly transition, but the public must know what they will pay. I restate our support for this order to help consumers and suppliers but, more broadly, we remain concerned that the Government’s plan will, ultimately, not save taxpayers money. I look forward to hearing the Minister’s response.

[Lord Whitehead (Lab)]

I thank noble Lords for their constructive contributions to this afternoon’s debate; I hope to respond to their points in a similarly crisp and succinct fashion.

First, the noble Baroness, Lady Bloomfield, asked how much taxpayers will pay for the extension of the ECO. The answer is: nothing. The ECO will continue exactly as it has previously, except it will be extended by nine months. There will be no new obligations, only the continuation of obligations that are already in place. Of course, there will be an opportunity to make sure that the remediation that will be necessary for a number of treatments is carried out in good time, and will be sorted out and finished by the time the ECO comes to an end.

Of course, the ending of ECO4 will in itself save bill payers a considerable amount of money. Indeed, as the noble Baroness knows, ECO4 is, in effect, an obligation on energy companies, which they passed on to customers in the form of bills. Alongside the cost of some other legacy obligations, such as the renewable obligation, the removal of that obligation and the end of ECO4 will remove, as I said, around £117 of costs on average from household energy bills across Great Britain.

It is true that the new warm homes plan is underwritten from general taxation, but it is a substantial transfer from direct customer bills to general taxation, with the resulting saving that I have outlined. The warm home scheme is a far more far-reaching programme over a longer period, with a substantial investment of up to £15 billion in it. In the long term, that will be judged by the difference between what has been put in it and what has resulted from the energy savings coming about as a result of the warm homes plan— this will, obviously, be further savings to customers’ bills—as well as by the efficiency with which the warm homes plan is put into place.

The noble Earl, Lord Russell, asked about the arrangements for remediation in properties that the Government consider should be undertaken during the period of the extension of the ECO4 programme for nine months. As I am sure he will know, the NAO report considered that almost all of the external wall insulation measures had major issues requiring remediation; to put that into context, that is about 40,000 treatments, as compared with the 1 million-plus treatments that there were in ECO4 overall, but external wall insulation was a particular problem for the scheme. To a lesser extent, that applies also to internal wall insulation: 29% had major issues requiring remediation, and the NAO considered that a smaller number of treatments had possibly falsified claims attached to them.

Part of the task of this extension is to ensure that those remediations, which are down to the installers to put right, can be done during the period of the ECO extension. The noble Earl raised the possible issue of what the position is if we have got to the end of the period of extension and some of the remediations have not been done. I emphasise that these remediations are being done by obligated installers, first, but also under a strengthened trust mark arrangement for oversight, with increasing audits, site inspections and various other things as regards non-compliance detection and enforcement. So, the people who have to do that remediation will be known about, clearly, and Ofgem has taken the action of writing to all of the people who are possibly in a position where they can have remediation undertaken in order to offer them the opportunity to go on a register for remediation.

This is driven to some extent by installers and to some extent by customer demand for that remediation, and it is backed up by a strong code that makes sure that it gets done. Even if that strays beyond the end of the extension of ECO, it is not the end of the story as far as that remediation is concerned. It will be done. If it is in danger of life and limb it has to be done immediately, but if it is less serious, as it were, it has to be done during the course of that extension.

We think the Government have a good belt-and-braces position as far as those remediations are concerned, and that ECO can come to an end in an orderly fashion. That is quite important in terms of the issues that both the noble Earl and the noble Baroness mentioned about whether there is a cliff edge between what is happening with the end of ECO4 and the beginning of the warm homes plan. Among other things, this extension will mean that there is less of a cliff edge. Indeed, in conjunction with industry, the Government are active in holding round tables to enhance the ability of industry that has invested in ECO4 to transition to activity under the warm homes plan. I hope that it will not be such a cliff edge as the noble Earl mentioned and will run reasonably smoothly—if not necessarily entirely smoothly—into the warm homes plan itself, and therefore a lot of the investment that various companies have put into ECO4 can be realised through the warm homes plan.

High Temperature Gas-Cooled Reactors

Baroness Bloomfield of Hinton Waldrist Excerpts

Monday 19th January 2026 Lords Chamber

Asked by

[Baroness Bloomfield of Hinton Waldrist]

To ask His Majesty’s Government what plans they have for the National Nuclear Laboratory to work with the Japan Atomic Energy Agency to achieve early deployment of high temperature gas-cooled reactors in a mutually beneficial manner.

[The Minister of State, Department for Energy and Net Zero and Department for Science, Innovation and Technology (Lord Vallance of Balham) (Lab)]

The Government will publish very soon the advanced nuclear framework, setting a pathway for privately led advanced nuclear projects. The framework will introduce an assessment process, identifying credible projects that are potentially deliverable within the UK. We would welcome a proposal regarding deployment of a Japanese HTGR, Japanese-led or alongside a UK partner. UKNNL is open to proposals from any country, including Japan. Any developer can approach UKNNL to discuss support.

[Baroness Bloomfield of Hinton Waldrist (Con)]

I thank the Minister for that encouraging Answer and welcome him and all Peers to nuclear in Parliament week—my happy place. The Minister will know that HTGRs are classed as AMR technology and the UK is on track to be the first country outside Russia to produce HALEU, the base fuel for AMRs. I think the Minister will agree that the MOC between NNL and JAEA signed in 2023 is too modest. Does the Minister agree that it would be highly desirable in terms of securing the UK supply chain and employment to accelerate the commercial development of Japanese HTGR technology in the UK? In this regard, would he perhaps undertake to engage with his Japanese counterpart to provide the necessary commitment to progress this technology?

[Lord Vallance of Balham (Lab)]

We have two MOCs with Japan. One, as the noble Baroness rightly said, was signed in 2023, and a second, on HTGRs and fuel, was signed in 2024. We have regular meetings with our Japanese counterparts. Japan has long been held as an important collaborator for us in nuclear. The last of those meetings, the 14th, was held on 3 December last year, and we will continue with regular interactions with the Japanese, who we certainly view as extremely important partners, particularly in this area.

Net Zero: Civil Society and Faith-based Organisations

Baroness Bloomfield of Hinton Waldrist Excerpts

Thursday 8th January 2026 Lords Chamber

[Lord Whitehead (Lab)]

The noble Earl will be aware of the many actions that the Government are undertaking to ensure that young people are committed, involved and energised as far as climate change and net zero are concerned. That is among the reasons why we have developed the Youth for Climate and Nature panel, which is part of our Energising Britain plan. It is also the case that some of the highest commitment to the green transition to low-carbon energy is to be found among young people, and they therefore need to be fundamentally included at both the community and faith level in the work that we are doing.

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, notwithstanding the Minister’s original Answer referencing the Government’s Energising Britain plan, the Government’s shortened clean energy objective is disfiguring huge swathes of the countryside and alienating local communities. A 180-kilometre transmission line is being built from Norwich to Tilbury; Carmarthenshire residents have been locked in a battle with authorities over pylons for over two years; and most recently a new 71-acre substation is being proposed in north Cumbria despite opposition from locals. Given that by the time many of these projects are completed undergrounding cables will have become far more affordable—already, comparative costs for undergrounding have plummeted from 10 to four times that of overgrounding—does the Minister believe that this approach is the best way to win the support of rural communities for net zero?

[Lord Whitehead (Lab)]

The noble Baroness will be well aware of the tremendous amount of work that needs to be done on the infrastructure changes to bring about net-zero energy for the future. Of course, that entails bringing forward new infrastructure—which, by the way, the previous Administration completely fell down on in terms of the green transition—but that needs to be done, in terms of the theme of our discussion today, with the involvement of local communities and local areas in getting that new infrastructure in place in a satisfactory way. The question of undergrounding or otherwise of cables for the future is something that clearly needs to be considered, as does the overall benefit of that new infrastructure for those communities in terms of bringing their bills down, bringing clean energy to their communities and making sure that the green transition is carried forward as best as possible at local level.

Oil and Gas Authority (Carbon Storage and Offshore Petroleum) (Specified Periods for Disclosure of Protected Material) Regulations 2026

Baroness Bloomfield of Hinton Waldrist Excerpts

Monday 15th December 2025 Grand Committee

[Earl Russell (LD)]

My Lords, we welcome these regulations, which seek to establish a necessary legal framework for the public disclosure of protected carbon storage information and samples. These are crucial steps towards fostering a transparent culture in the UK’s nascent carbon capture, usage and storage—CCUS—industry. As has been said by others, CCUS is essential for the UK to meet its net-zero carbon targets and budgets—particularly as set out by the Climate Change Committee—and the sector is projected to support up to 50,000 jobs and significant future economic growth. As has also been pointed out, the UK’s continental shelf is estimated to hold up to 78 billion tonnes of theoretical CO₂ storage capacity, so this is essential in helping us meet these targets and creating the green jobs and growth of the future.

We support the principles of transparency set out in Parts 2 to 4 of the regulations, which govern the storage data obtained by the OGA, operating as the North Sea Transition Authority—the NSTA. We welcome the approach, as set out, of clarifying data based on levels of commercial sensitivity; this is sensible and pragmatic. We also welcome the decision that non-commercially sensitive items will be published straightaway. For more sensitive material, the NSTA has established clear and time-limited protection periods before disclosure. For example, detailed well information, protected carbon storage samples and computerised model information may generally be disclosed, but only after a period of two years. These two years are designed to protect licensees with sufficient exclusivity for the data they have paid to acquire.

On the regulations that relate specifically to the two-year period for the disclosure of computerised model information—relating specifically to the creation of CO₂ storage models that stimulate flows of fluids in storage complexes—the NSTA has acknowledged the need for further detailed consultation. Does the Minister know when those further consultations might be completed?

Other data is classified as highly sensitive, particularly in relation to storage resource information, quality of CO₂ that could be stored and substrate geology—that kind of thing. I note that the NSTA provides the ability, but not the obligation, to disclose protected material, so licensees will have an opportunity to make representations concerning the delay or withholding of disclosure. That protective mechanism is important, and I recognise the need for it in the regulations, but I simply ask the Minister: what is the minimum timeframe for representations that the NSTA will guarantee to licensees before commercially sensitive protected material is disclosed?

We generally welcome these regulations and think that they are crucial for the development of this sector. This instrument is crucial for safety and for ensuring that there is a balance between the sharing of information and protecting what is commercially sensitive. We feel that, in general, the balance is in the right place here. We support these regulations as they will help underpin the successful, transparent and efficient development of the UK’s potential CCUS industry. But we urge the Government to address these essential questions of implementation, technical definition and scope, in order to ensure that the regulations achieve their full potential.

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, I thank the Minister for introducing these regulations. As has been explained, these are technical measures designed to update the periods during which information relating to carbon storage licences and offshore petroleum wells remain confidential, and to ensure a more consistent and timely approach to public disclosure. We recognise the intention behind the instrument: improving the flow of information, supporting effective regulation and giving industry greater clarity and certainty.

We on these Benches recognise the importance of transparency, accuracy and timely publication of data in the offshore sector. Carbon capture and storage will continue to play an important role in meeting the UK’s future energy needs, and the North Sea will remain central to that effort for years to come. It is therefore right that the regulatory framework keeps pace with technological and operational developments and that that information is accessible and consistent across the sector.

Heat Networks (Market Framework) (Great Britain) (Amendment) Regulations 2025

Baroness Bloomfield of Hinton Waldrist Excerpts

Monday 15th December 2025 Grand Committee

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, I thank the Minister for setting out the purposes of these regulations. We welcome them, so I shall not overburden him with questions beyond those already asked by previous speakers. It is somewhat frustrating that I did not spot the error in the amendments to Regulation 56 in the current Regulation 10; I must do better. These measures represent another step towards the full regulatory framework for heat networks that consumers have waited too long to see. From January 2026, the full authorisation regime and the special administration powers are due to come into effect—a significant milestone that we welcome wholeheartedly.

As the Minister said, we must be clear about the situation facing many people with heat networks. Years of unregulated, decentralised heating have left households paying high and unpredictable costs, receiving confusing bills and unable to switch supplier or seek meaningful redress. Citizens Advice has warned that, for some, bills have doubled or even tripled, which is simply untenable.

Therefore, while we support these regulations, their success will depend entirely on effective implementation. A framework on paper is not enough; consumers need enforceable, practical protections. As the noble Baroness, Lady Bennett of Manor Castle, rightly identified, it is essential that Ofgem is fully prepared and properly resourced to take on its new responsibilities from 27 January. It must be able to intervene when prices are unfair, when service standards fall short and when vulnerable households are at risk of disconnection. Clear complaints processes must be in place, and operators must be held to account. Like the noble Earl, Lord Russell, I would be grateful if the Minister can provide assurances today that Ofgem will be ready from day one, with no gaps or uncertainty for existing heat networks customers.

The introduction of a special administrative regime is similarly welcome. But, again, the test will be in its delivery. Consumers must have confidence that, should a provider fail, essential heating will continue uninterrupted, particularly for households in the winter months. The demand and use of heat networks will continue to play an increasingly important role in our energy system, and it is vital that this regulatory framework is implemented swiftly and effectively. Consumers must be able to rely on heat that is affordable, transparent and properly overseen. Without that assurance, the sector will not expand at the scale required.

These regulations take us closer to a regime that commands consumer confidence; the task now is to ensure that the protections set out in the Energy Act are delivered in practice for the half a million households that depend on these networks.

[Lord Whitehead (Lab)]

I thank noble Lords for their valuable contributions to this debate. A number of them go to the heart of why we are doing what we are doing today: the question of the state of many of the older heat networks that exist in this country. They are very far from the sorts of standards that we would expect to bring forward in new heat networks, and they have often operated with very sub-optimal arrangements for many years, to the considerable detriment of customers.

Therefore, the regulatory regime that we are introducing should give an enormous amount of succour to those who have suffered under those heat networks over a long period. As mentioned by the noble Baroness, Lady Bennett, there are heat networks from the 1960s and the 1970s which simply have not updated what they do, and they will be held accountable for what they do in these networks by the new regime under Ofgem. Ofgem can introduce fines for the systems if they are found wanting and, as a measure of last resort, can ensure that those networks are transferred to the running of another organisation entirely.

The noble Baroness, Lady Bennett, also mentioned the report encompassing a number of these issues from Citizens Advice, and that is why its work as a consumer champion is so important. I can assure the noble Baroness that Ofgem will be ready for regulatory commitments. It has raised no questions about its capacity to introduce these regulations and to make sure that they work to maximum capacity from day one. Ofgem will, however, take action such as collecting pricing data and various other things to refine how the regulations may work over the early period of their operation.

I can assure the noble Baroness, Lady Bloomfield, and the noble Earl, Lord Russell, and all the noble Lords who raised concerns, that Ofgem will therefore be ready for regulatory commencement. Ofgem will be publishing what methodology will be used to determine reasonable pricing. This has recently been consulted on by Ofgem. However, the exact benchmark of what is considered fair pricing will not be published first, so that heat networks do not move their prices to the top of that benchmark.

Overall, therefore, I assure noble Lords that the scheme will work to the best of its design and ability from the word go and will properly encompass all the many and varied types of heat network we have in operation, with a view to bringing them all up to the same standard, rather than down to the same standard, for the future. Indeed, the instrument simply builds on previous regulations by introducing amendments that will expand the authorisation regime that Ofgem will implement. We have also heard mention of deemed contracts, which will be in place to ensure that the rights of households and their supply of heat are protected, even when there is no formal contract in place.

I am sure noble Lords will want to join me in thanking the District Energy Association heat authority, which tried to put a voluntary system into operation to secure compliance and uprating of systems. That has worked for 10 years. In itself, it has worked very well, but it encompasses only part of the heat network arena. This will cover everybody, so it will be a great step forward in that respect.

On the question of consultation, I understand that the four public consultations that have already taken place, dating back to February 2020, have informed the regulations, but the detailed Ofgem authorisation conditions and associated guidance are still being consulted on and will certainly be published before the authorisation regime commences on 27 January.

In conclusion, I consider that these regulations, which will include the most vulnerable, will now make sure that pretty much everybody enjoys statutory protections. Heat networks are indeed the future, and we must do everything we can to support their growth and instil confidence in that growth as it takes place. Sound and proportionate regulation is therefore central to delivering this and I beg to move.

Drax

Baroness Bloomfield of Hinton Waldrist Excerpts

Wednesday 10th December 2025 Lords Chamber

[Lord Whitehead (Lab)]

We did that because the conclusion of a contract for 2027-31 ensures that Drax continues to produce a very large amount of energy, which is very important for the country; that it does so under enhanced sustainability requirements; and that it moves from being a baseline producer to a dispatchable producer, with a top level of 27% of output within that contract. There is also the implied understanding that the contract will pave the way towards moving to CCS on the back of the contract, making Drax a net-negative producer in the long term.

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, in 2021, Drax was axed from the S&P green bond index over doubts that its practices were carbon neutral. That decision seemed to be endorsed by that famous “Panorama” programme. I bow to the noble Baroness, Lady Jones of Moulsecoomb, for her detailed knowledge of forestry, but it appears that Drax has been importing wood pellets from old-growth forests, even before accounting for the emissions caused by transporting the biomass here from abroad. Given that this is patently not a green company, does the Minister agree that the subsidies for 27% of Drax’s generation capacity are unwarranted and should be withdrawn? Further, if Drax is found to be non-compliant and closes down, does he also agree that the land and extensive grid connections could be better used in the Government’s SMR programme?

[Lord Whitehead (Lab)]

No, I do not agree that the various connections relating to Drax could be better used for an SMR programme, because of the particular location of Drax within the cluster in the north-east of the country, which is particularly important for carbon capture and storage, and, indeed, hydrogen. Drax plays a part in that process in that area. The noble Baroness perhaps ought to read the report that is before us very carefully, because it does not actually say that Drax has sourced old-forest timber. Timber is sourced from third parties, goes into the Drax pellet facility, and may or may not to Drax’s knowledge include old-forest material—which, by the way, is outlawed by the Government of British Columbia. There are a number of questions to answer, but not necessarily for Drax. There are a number of people who perhaps have questions to answer as well.

Tropical Forest Forever Facility

Baroness Bloomfield of Hinton Waldrist Excerpts

Tuesday 9th December 2025 Lords Chamber

[Lord Whitehead (Lab)]

No. The particular circumstance surrounding the TFFF itself, as I am sure the noble Lord will be aware, was one of intense UK participation in the setting up of the TFFF. As the noble Lord mentions, we consider it to be an essential and significant initiative as far as the future of forests and biodiversity is concerned across the world. That is why we put so much effort into getting this off the ground and support the continued funding for the operationalisation of that fund. It is just that, at that particular moment, we were not able to produce some additional funding for the TFFF initiative. We very much welcome that other countries have initially put some in. As I have mentioned, it does not mean that the issue is gone and forgotten; it is under continuous review for the future.

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, this might as well have been considered a Defra Question, so I offer my sympathies to the Minister. But here we are, and I am always grateful to be able to ask a DESNZ question, my first to the new Minister. In the COP 30 Statement repeat last week and his initial response today, the Minister did not rule out contributing to the TFFF fund in the future. He may not have had the opportunity to read the letter entitled “Nuclear necessities” in yesterday’s Times, signed by 14 senior academics and luminaries in that industry. Given our country’s current economic situation and the need for large capital investment to meet the Government’s own green targets, can the Minister now rule out funding the TFFF and instead guarantee that future funding will, as the letter requests, prioritise re-establishing our critical domestic infrastructure, perhaps including a medical isotopes reactor and a thermal hydraulics facility—preferably in north Wales?

[Lord Whitehead (Lab)]

I very much welcome the noble Baroness to her new position on the Front Bench opposite, and I hope we will have constructive discussions in the future. She underlines the question of the different priorities that are ahead of us at the moment in terms of where to put money at particular junctures. I must admit that I am not a habitual reader of the Times, so the noble Baroness is one step ahead of me there, but I will have a good look at that letter. What she says underlines that at the moment this country has a huge number of sometimes not always well-anticipated demands on our funding—nuclear is one of them, and obviously defence is another—and that clearly has an effect on where you put money at particular points, however much your heart tells you that you would like to do so.

National Policy Statement for Nuclear Energy Generation

Baroness Bloomfield of Hinton Waldrist Excerpts

Wednesday 21st May 2025 Grand Committee

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, noble Lords will know that I always welcome every opportunity to talk about nuclear power in all its forms. I echo the appreciation by the noble Lord, Lord Wigley, of the Minister’s support for the nuclear industry. Of course, I endorse all the comments of the noble Lord, Lord Wigley, about the obvious opportunities for nuclear power generation in Wylfa and Trawsfynydd in north-west Wales. I hope that this Government will work closely with their colleagues in Cardiff Bay to bring these projects about as speedily as possible.

It has also been good to welcome a new voice on these Benches. My noble friend Lady Maclean of Redditch will certainly prove to be an enthusiastic Member of the House, as evidenced by her barnstorming maiden speech.

The importance of nuclear energy in securing the UK’s future cannot be overstated. It is essential for energy independence, affordability and achieving our climate goals. We must adopt a diverse and balanced energy mix, one that is secure, sustainable and capable of providing affordable, reliable power for generations to come. In this mix, nuclear power plays an indispensable role. It is clean, reliable and can provide the baseload power necessary to complement intermittent renewables such as wind and solar.

The updated national policy statement, EN-7, represents a welcome and crucial step forward in the UK’s energy strategy. It is vital that the future of the UK’s energy generation is guided by a long-term vision grounded in a pragmatic understanding of what the future requires. Nuclear energy is central to that vision.

Of course, we must be mindful that innovation in nuclear technology comes with challenges. The development of SMRs and AMRs requires significant investment, careful regulation and rigorous safety standards. To an extent, the statement acknowledges some of these concerns and I welcome the Government’s commitment to ensuring the highest safety standards. Nuclear power has long been one of the safest and most secure energy sources available, and it will continue to be so with the right regulatory framework in place.

Here I stress that it would be enormously helpful if regulation between the international regulatory authorities could be aligned, as the Minister suggested it might be, thereby cutting down the expensive and time-consuming duplication of processes.

Energy security is one of the most pressing challenges of our time and nuclear energy will play a pivotal role in tackling this reality. The geopolitics of 2025 mean that energy is no longer just an industrial policy but at the very heart of national defence. The UK now imports 70% of its gas, largely from Norway and the USA. Additionally, 20% of peak UK gas comes through the pipeline between Norway and the UK.

Despite this, to achieve the Government’s clean power 2030 target, we are shutting down our domestic production of oil and gas, which supports an entire sector of jobs, brings tax revenue to the Exchequer and encompasses part of that 72% of hydrocarbons which we still rely on and will continue to rely on through the necessary transition period. It is particularly concerning that industry bodies, particularly Energy UK, have questioned whether the Government’s focus on clean power by 2030 could actually divert resources away from nuclear projects in the short term.

The UK completely removed all coal-fired power in 2024. It was largely replaced by both gas and naturally unreliable renewables. Relying on any one technology makes an electricity grid less resilient. However, nuclear power is zero carbon and will be integral in stabilising the grid when so much electricity comes from intermittent renewables. Even the former Prime Minister Tony Blair has argued that:

“Nuclear power is going to be an essential part of the answer”


to net zero. Writing in the foreword of a report by his think tank, the Tony Blair Institute, he rightly acknowledges that small modular nuclear reactors, nuclear fusion and other advanced technologies can help lower the emissions of the electricity sector.

So we welcome the updated EN-7, which emphasises the development of SMRs and AMRs alongside traditional gigawatt-scale nuclear plants. SMRs, in particular, offer significant benefits such as smaller footprints, lower costs and faster construction, making nuclear power viable in areas where large-scale plants are impractical. As the Minister stated, AMR technologies offer the potential to co-locate safely alongside data centres and heavy industrial users of power, such as the Port Talbot steelworks, providing dedicated power outside the grid.

We can also look towards nuclear power’s capabilities in meeting the UK’s ambitious sustainable aviation fuel mandate. This requires 22% of sustainable aviation fuel use in total jet fuel demand by 2040. This must not be overlooked: unlike intermittent renewable sources, nuclear power provides the steady, reliable energy supply demanded by large-scale SAF production. I hope the Minister recognises that significant investment is required to ensure the scalability and sustainability of nuclear energy in this sector.

By supporting nuclear innovation, we can position the UK as a global hub for nuclear expertise and technology, attracting investment from around the world. This is not merely about energy; it is about securing the UK’s future growth and prosperity. It is about ensuring that Britain remains a leader in high-tech industries, while creating jobs and fostering growth in communities across the nation—particularly those left-behind communities in the Midlands, Wales and the north-east. A strong, homegrown nuclear sector is central to achieving this.

We must also acknowledge the UK’s role as a global leader in nuclear innovation. Many of these advanced reactor designs are being developed right here in Britain. With the support of EN-7, we can strengthen the UK’s nuclear sector, positioning the country as a world leader in nuclear energy, but may I first make a few suggestions to the Government?

NESO needs to prioritise the siting work for advanced nuclear technologies. Sites identified as having potential must be reserved as strategic national assets now. Many of these could be currently designated as brownfield, such as those being identified in the Midlands near water and transmission lines; they must not be covered over by houses or solar farms for short-term gain.

The Government need to share the heavy lifting on the production of the appraisal of sustainability. Having to evaluate all possible alternative sites and flood protection for the entire life of the project is an onerous burden for developers, as highlighted by my noble friend Lady Coffey. The Minister will know that I have concerns about the method of gaining community support. While this is important in general terms, as the noble Lord, Lord Ravensdale, outlined, endless contact between developers and communities with potential sites could become counterproductive—unless they are in Wylfa or Trawsfynydd, perhaps. Lastly, the Government should ensure that the Committee for Climate Change has a nuclear advocate—it has long been missing from its mix.

To conclude, the updated EN-7 represents a positive step towards a cleaner, more secure and more prosperous energy future for the UK. By embracing nuclear energy, we can achieve energy independence, stabilise our grid, reduce emissions and create economic opportunities across the country. Finally, I very much look forward to the end of spring—in six weeks’ time—as, I am sure, does the Minister.

[Lord Hunt of Kings Heath (Lab)]

My Lords, the noble Baroness, Lady Bloomfield, is very experienced and knows that departmental spring is not entirely consistent with meteorological science. I very much take the point, however, that we all want to see a final investment decision on Sizewell C—except the noble Lord, Lord Howell—and great progress on the SMR programme.

This has been a really interesting debate, and I just make it clear that the contributions that noble Lords have made today will be fed into the consideration of our final version of EN-7. In a sense, the debate does not finish here; we will make sure that the contributions are considered very carefully by officials before we receive final advice on the contents.

I congratulate the noble Baroness, Lady Maclean, on a very lively, excellent maiden speech. We look forward to her future contributions. She will discover that the West Midlands is not overrepresented in your Lordships’ House, so it is very good to see her here. I did not know about Redditch tights—I now know—but I do know about the potential of Redditch. I also share her view about the need to encourage the aspirations of young people in Redditch, and I know about the work being done on the educational system there to try to improve aspirations, including through access to higher and further education.

This debate has been very encouraging. When I last had this job in 2008 to 2010, there was much more of a mixed view, inside and outside Parliament, about the role of nuclear. There has been a huge change in attitudes and in support for nuclear. We know that from the regular polling that my department has done on public attitude following Putin’s invasion of Ukraine. Among experts and political parties, there is generally now a baseload of support for nuclear, which is really encouraging. Given the long lead times of investment decisions and build for nuclear, having stability for the companies that wish to take this forward is absolutely crucial, as it is in terms of building a UK supply chain. This kind of debate is therefore very encouraging in that respect.

I know that the noble Lord, Lord Howell, was disappointed with EN-7. On future demand, there is clearly a range of estimates for what we need based on assumptions including the extent of electrification, the role of hydrogen and the growth of artificial intelligence. I assure him that we are not wedded to a single estimate, but we clearly have to flex the supply of electricity generation according to how we go forward in relation to the future.

On EN-7 and his argument that it insufficiently mentions SMRs, we believe that EN-7 caters to SMRs throughout. We do not refer to broad categories such as SMRs as planning decisions will reflect the facts of each set of plans rather than what they are called. The different characteristics of SMRs are addressed, particularly when it refers to phased development and cooling, where we recognise that different stations may be cooled in completely different ways.

The noble Lord, Lord Howell, made a number of remarks about Sizewell C that I do not think other noble Lords agree with. I know that he thinks that the replication of Sizewell C in relation to Hinkley Point will not lead to improvements in productivity, but I point him to the improvement in productivity between unit one of Hinkley Point C and unit two. To be fair, we know that Hinkley Point C has had many challenges, and clearly we are all anxious to see further progress made, but it has made progress. There is no doubt that it has learned about how to build on a huge site using the modular approach in many ways. I am convinced that Sizewell C will benefit hugely from it. Pulling the plug on Sizewell C and saying that we will put all our eggs in the SMR basket would be greeted with consternation within the industry. That is not the way to go forward.

I agree with the noble Baroness, Lady Coffey, about the RAB model. That was an important consideration. I was interested in what she had to say about the coalition agreement in 2010, and I still remember the decision made to withdraw support from Sheffield Forgemasters in 2010, which I think was a big mistake. I pay tribute to Sheffield Forgemasters, the work it is now doing and its potential.

On the financing of SMRs, there are plenty of companies which are knocking on our doors saying, “Just give us the green light. We can develop all this. We do not need any public money”. Allow me to be a little sceptical, particularly when it comes to first-of-a-kind development. Coming back to the comments of the noble Baroness, Lady Maclean, about the share of GDP spent on public finances, et cetera, nuclear is one of those areas where you need public and private partnership. Of course we will develop our policies over the next few months, in particular in relation to advanced modular reactors, and look at the best way we can encourage private finance, because clearly we need the private sector to finance the development of AMRs in future. However, at the moment, and we have seen this with Sizewell C, public finance will be involved with the development of SMRs. Public finance is involved.

Clearly noble Lords are impatient for us to get to the end of the current programmes. We have basically inherited GBN’s assessment of SMRs. We cannot intervene now. It is working as hard as it possibly can to get decisions to government very quickly. Of course it is then tied into the spending review process, as it has to be, but the spending review outcomes are going to be known within a very short space of time. I do not accept that we are at risk of falling behind. I know from various discussions that I have had with other countries that there is huge interest in the GBN process. I hope that at the end of the process we will have a decision that will enable us to go forward with confidence and with the huge opportunity of developing a UK supply chain.

On the various contributions of the noble Lord, Lord Ravensdale, I first thank him for all the work he has done in the Midlands, showing the potential that we have in the Midlands, both east and west. He and his colleagues, uniquely, have brought the east Midlands and the West Midlands together, which as he and anyone living in the Midlands will know, is one of the greatest challenges known to men and women. Even though Brum is only a few miles away from Derby and Leicester, pulling them together is hard. He and his colleagues have done that and my department is very interested in the work that he is doing. I have already met him and I hope that he will carry on this work. It is worth saying that we already have huge assets. For instance, at the grid in Warwick, we have great skills and I am sure that we will contribute more in the future. That is probably not a departmental view, but noble Lords will know where I stand on these matters.

On community support, I very much take the point. It is an unknown quantity at the moment. With the existing sites that are listed in EN-6, we know that there was broad support in the local community for the development of new nuclear. We do not really know what the appetite will be in those areas that are new to nuclear. I take the point about the need for communications—mainly by the developers but I accept that the Government have a role. I should say that today we published our Community Benefits and Shared Ownership for Low Carbon Energy Infrastructure working paper for consultation, which may be helpful in encouraging communities to host infrastructure, receiving high-quality benefits in a consistent manner by building on existing voluntary approaches to community benefits.

On the noble Earl’s point about the Strategic Spatial Energy Plan, this will not be limited by EN-6 but will be consistent with it, as it obviously should be in EN-7. He asked about the threshold of 50 megawatts in England and 350 megawatts in Wales. This applies to planning applications, so it would naturally incorporate entire projects and entire sites. We think it unlikely that a developer would split a complex nuclear project into multiple planning applications to try to game the system. If they did, we could call in the applications and treat them as nationally significant infrastructure projects. I think that, given the scale of investment that is concerned, that is very unlikely.

I turn to the comments made by the noble Baroness, Lady Coffey, I take her point on population density. We had a lot of discussions about that before we published EN-7 and we are continuing to look at it in the EN-7 consultation. Any change we make has got to be broad-based and based on strong evidence. There is obviously a balance between safety, certainty of industry and public confidence. We are still considering this point. We are of course reviewing the national policy statement at least every five years and the review will give us an opportunity to revisit this as evidence develops and we gain experience of community attitudes in, say, urban populations, which we do not really know at the moment.

A very important point was made about water. EN-1 requires applicants to consider water quality and resources in detail, covering both construction and operation. Obviously, they need to engage early with the Environment Agency and water companies, but it is a substantive point. Of course, we have the more general issue of the need to build reservoirs, and I am well aware of some the discussions taking place about this at the moment.

My judgment on Sellafield, having revisited it after a gap of 14 years, is that it has made considerable progress. There is a long way to go, but I pay tribute to the work that is being done, the current leadership at Sellafield and the good relationships it has with the workforce. My judgment is that we need to see Sellafield as part of the future rather than just a legacy of the past. The skills developed at Sellafield—and, generally, in nuclear decommissioning—contribute to the industry as a whole. Confidence in the future and new nuclear depends on our being seen to deal with waste and decommissioning as effectively as possible.

We did not know that the noble Lord, Lord Wigley, was such an expert and had such experience. His constructive approach to new nuclear in north Wales is very much appreciated. He has made the point to me, and I very much accept it. He will know that Wylfa offers many attributes; that is why it is listed in EN-6. I also understand the issue about Trawsfynydd and isotope production. Isotopes are a matter for my colleagues in the Department of Health, and I encourage the noble Lord to talk to them about that.

I visited Wylfa in 2009 and met many people in the workforce there. At that point, they were very keen to see nuclear development continue. It is a matter of great regret that the Horizon project fell apart, but we certainly consider Wylfa to be a site that offers many attributes.

On the issue of the sites listed in EN-6 that missed out, we are saying, in essence, that we have those sites and they continue to have much to offer, but we want a more flexible siting to allow more areas to come in. Before this was published, I was very keen not to suggest that, suddenly, the sites we listed in EN-6 were being overlooked, because they are not. Clearly, they offer many advantages.

My noble friend Lord Browne made a number of important contributions. On Scotland, it is interesting that, between 2004 and 2021, nuclear energy accounted for 25% to 43% of annual electricity generation. Scotland has this hugely rich heritage, and it is a tragedy that, at the moment, we cannot see new nuclear developments in that country. Let us hope that we see a change.

My noble friend’s remarks on the COP declaration on nuclear energy—on the risk of proliferation and the security issues that arise—were very important. The COP declaration itself and the addition of a number of countries—which, as he mentioned, was announced in the previous COP—are to be encouraged.

We are strong supporters of the International Atomic Energy Agency, which has such a vital role to play on nuclear deproliferation. Its work in Ukraine over the past year or two has been amazing and the people involved in that deserve great credit. The UK is one of its strongest supporters and is acknowledged as such. I have had a series of meetings with the agency to talk about these matters.

I totally agree with my noble friend about the UK’s potential with the SMR programme globally. I know that we need to make progress quickly, but we have not missed, and will not miss, the boat. We have a great opportunity.

I very much take the point made by the noble Earl, Lord Russell, about the energy needs of AI, which will make huge electricity demands but can make great contributions to improving our energy efficiency and the efficiency of the whole energy sector. We want AI to be linked to decarbonised energy. That is what is so exciting about what is happening in the US and the support that companies such as Amazon are giving to AI centres linked to nuclear power stations. We are looking at that carefully. Over the next few months, we want to work to ensure we have policies that make it as easy as possible for these to be developed using funding from private finance. The noble Earl asked me a question about one or two SMRs. He does not really expect me to be in a position to answer that. We will just have to be patient at this point.

Geological disposal is important, of course. EN-7 makes a number of points about waste, its importance and how it needs to be factored into the developers’ considerations and applications. I cannot give timelines on geological disposal. The noble Earl will understand that the Lincolnshire position is difficult at the moment, and we are not absolutely certain about where we are going with that. Clearly, the long-term future in relation to waste is geological disposal, but interim storage is of the highest quality and can assure safety. It fits into the general position. I cannot comment on the CNC role and security issues. All I will say is that security at our existing sites and new sites is crucial.

I fear I am going over my time, but I must refer to the important contribution by the noble Baroness, Lady Bloomfield. We are totally agreed on the importance of nuclear energy and safety standards. Let me reassure her that our review of the regulatory system will not put safety at risk. I will make just one point about international collaboration. Surely we can do more to share knowledge and information. If in the US, for instance, a technology has been given approval, there must be ways in which we can have reciprocity. I am convinced of that. In relation to the collaboration between regulators, we need to do much more. A comment was made earlier about the roles of Natural England and the Environment Agency. We have to ensure that these regulators work together and in a timely way.

Perhaps I can pass on oil and gas, as we have debated that many times, but nuclear innovation is very important. The Prime Minister’s visit to the UK National Nuclear Laboratory in Springfields only a couple of months ago was a signal of the Prime Minister’s support for nuclear and our innovation.

I am sorry that I have taken so long, but this has been a really interesting debate. The contributions of noble Lords have been very helpful. They will be carefully considered by my officials before advice is given to Ministers.

[Baroness Bloomfield of Hinton Waldrist (Con)]

I apologise to the Committee. I should have started my speech by drawing attention to my registered interests. I still have a small legacy involvement with a Canadian nuclear company.

[Lord Hunt of Kings Heath (Lab)]

I thank the noble Baroness.

Energy Grid Resilience

Baroness Bloomfield of Hinton Waldrist Excerpts

Tuesday 6th May 2025 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, Mighty Oak was a successful programme to test plans for full electricity restoration in the event of a national power outage. It was very successful and generated a number of learning points, and we now have a strong governance framework for oversight of the implementation of those recommendations. That work will also feed into the resilience review that my right honourable friend the Chancellor of the Duchy of Lancaster announced in July 2024.

I assure my noble friend that there is absolutely no complacency whatever, and nor is there any in relation to the energy security system and cybersecurity threats he referred to. It is certainly a key priority for the Government. We work closely with the National Protective Security Authority and the National Cyber Security Centre and we are certainly not complacent on this.

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, I can reassure the noble Earl, Lord Russell, that I do not wish to denigrate the contribution of renewables but, with the increasing electrification of heating and transport, can the Minister explain how the grid can remain resilient without more reliable baseload power, such as that provided by nuclear?

[Lord Hunt of Kings Heath (Lab)]

My Lords, I agree with the noble Baroness that the baseload that nuclear provides is very important indeed. She knows that we are rapidly approaching the final investment decision on Sizewell C, and the conclusion of the current work of Great British Nuclear in relation to small modular reactors. We are very keen to see the contribution of nuclear recognised. I agree with her that it provides an essential baseload to the system.

Wales: Nuclear Power Generation

Baroness Bloomfield of Hinton Waldrist Excerpts

Tuesday 29th April 2025 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, I agree with the last statement by the noble Lord, but I do not agree with what he said. The Government are very focused on development of new nuclear. He knows that, in relation to small modular reactors, we have a process by Great British Nuclear, which is going through a detailed series of negotiations, with final decisions to be made over the next few weeks. We were bequeathed that process by the Government that the noble Lord supported. His party did not open a single nuclear power station. I can tell him that, as far as SMRs are concerned, I have been to many fora discussing this with companies. They are clearly awaiting the outcome of the GBN process, and we will make progress following that.

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, I welcome the Question from the noble Lord, Lord Jones of Penybont. The Minister needs absolutely no reminder from me of how important Wylfa is to the people and economy of north Wales, but, since the Government’s own calculations say that the delay is costing £90 million a year in lost revenues and lost opportunities in the supply chain and others, can he tell me what steps the Government are taking to prevent further delays at Wylfa?

[Lord Hunt of Kings Heath (Lab)]

My Lords, I think I have said that we will set out our future ambition for plans in due course. We have focused very much on getting Sizewell C over the line, and we hope a final investment decision will be made over the next few weeks. We have the SMR programme, we are very keen to see the development of AMRs as well, and we will set out our ambitions in due course. But there is no question about our commitment to taking this forward; we took the decision in 2007 to go back to nuclear. What is so disappointing is that the last Government had 14—it is all very well for noble Lords to shake their heads, complaining about what I am saying. They do not want to hear the facts. They had 14 years to sort this out, and they did not.