(1 week, 6 days ago)
Commons ChamberThe costs of new infrastructure are a pressure on bills, as the Secretary of State knows. He deserves enormous credit for the results of the allocation round 7 auction today, in which the strike price of renewables was less than half what it would have been with new gas. What is the approach to rolling out extra grid—and, indeed, maintaining the existing grid—which is so crucial to the plans, given that there is so much to make up for following the failure to invest over the many years since privatisation?
My hon. Friend is right to draw attention to this morning’s auction, which saw record amounts of solar power. It is the cheapest form of power that we could possibly have in this country, and it costs less than half the price of building and operating new gas. On the point about infrastructure, he is right that we inherited a terrible legacy, and we are building the new infrastructure that we need.
(1 week, 6 days ago)
Commons ChamberI call the Chair of the Energy Security and Net Zero Committee.
Select Committees look at the evidence. The evidence we have heard is that community energy is a great way of bringing down bills and giving people the confidence to take part in the energy transition. The Secretary of State talked about solar in his statement. We heard that golf courses use 10 times as much land as solar farms. Even if the Committee on Climate Change recommendations are adopted, twice as much land will still be used for golf courses. The Country Land and Business Association told us that concerns about land use are a myth: that the planning system protects the best and most versatile land for crop production, and that the roll-out of solar should be encouraged as a way of diversifying for farmers, delivering cheap electricity for both neighbouring businesses and domestic use. Will the Secretary of State say how he intends to ensure as many people as possible in rural areas understand the benefits of community energy and solar more widely? Will he ensure that those myths are finally busted?
My hon. Friend did a very good job of busting those myths in his question and he is absolutely right. The truth is that you cannot, at one and the same time, complain about bills being too high and then reject the cheapest cleanest form of power, but I am afraid that that is the position of the Conservative party. There is no hiding the fact. Nobody can disagree—you can disagree about other things—that solar is the cheapest form of power, but the Conservatives are against it.
My hon. Friend makes a really important point about community energy. Let us be honest, we are in the foothills of what we need to achieve as a country. Germany and Denmark are miles ahead of us. This is about a different conception of energy and who owns it: not just big multinational companies, not just the big companies that the Conservatives seem to want to just leave it all to. We want local people to be able to have a stake in the system. That is what this plan is about.
(1 month ago)
Commons ChamberI call the Chair of the Energy Security and Net Zero Committee.
I congratulate the Secretary of State—very warmly—on the warm homes plan, and not least on the universal nature of the offer: the support for people in fuel poverty, the health co-benefits in addressing cold, damp and mould, and the availability of cheap finance so that everybody can take part in the technical solutions that are available.
The ECO scheme, which failed so badly, has left a legacy. May I encourage the Secretary of State to address the concerns among consumers, industry representatives and the workforce, and also not to lose sight of the benefits in reduced bills through insulation, particularly loft insulation? On the subject of cheaper bills, the Select Committee has heard again and again that if people are to benefit to the maximum extent from the warm homes plan, we have to see reductions in the price of electricity, and a reduction in the gap between the price of electricity and the price of gas. The Secretary of State mentioned some welcome measures in his statement—the £150 off bills in April being a very good start—but can he confirm that more action will be taken to bring down the cost of electricity, so that as many people as possible can benefit from the warm homes plan to the maximum extent?
Let me address my hon. Friend’s questions; he speaks with great knowledge on these issues. On the ECO scheme, I think he refers to the installers, and it is important to emphasise the point I made in my statement: we want the extra money—the £1.5 billion allocated at the Budget—to help the installers, because they are going to face a difficult transition. He raises an important issue.
As I said in reply to the shadow Minister, the measures that my right hon. Friend the Chancellor took in the Budget are important in cutting the cost of electricity. All the evidence I have seen says that, with the right tariff, running a heat pump is cheaper than running a boiler. We continue to look at whether there are other ways we can bring down the cost of electricity, and my hon. Friend is right that we should do so.
On my hon. Friend’s point about insulation, my maxim is that the measures that will cut bills the most are what matters to me. I am not ideological about this. Whether it is insulation, heat pumps, batteries or solar, we should go for whatever can give us most bang for our buck in bringing down bills.
(1 month, 1 week ago)
Commons ChamberBefore I call the first Back-Bench Member, may I remind Members that we have an important debate on Ukraine later this afternoon? We will look to finish this statement at about 4 pm, which leaves us with around 30 minutes. Please keep questions and answers short.
The Energy Secretary deserves enormous congratulations on moving from the “botched” auction round 5, to use the words of the right hon. Member for East Surrey (Claire Coutinho), to the record success of auction round 7. The strike price will see no increase in consumer bills—indeed, Aurora says that it is likely to see a reduction in bills—and it is 40% cheaper. The Secretary of State set out in great detail how this will be cheaper than gas. Does he agree that demonstrates once and for all that renewable energy is good for bills?
My hon. Friend is absolutely right. People can have incredibly short memories in this House, particularly the Opposition. We are only five years on from Russia’s invasion of Ukraine. We know—
(1 month, 2 weeks ago)
Commons ChamberHappy new year, Mr Speaker.
I hope that the Minister, in his new year’s resolutions, will commit to building the case for the energy transition through lower consumer bills, secure jobs, public health improvements through reduced emissions, and indeed energy security. Does he agree that those who oppose climate action are denying our children and grandchildren a future? Will he endeavour to make the case also to fight against the misinformation, disinformation and outright myths peddled by some Opposition Members?
Typically, my hon. Friend is right on these points, and yes, it is one of my new year’s resolutions—and I suspect one of my ministerial colleagues’ resolutions as well—for us to redouble our efforts to make the case for this. Just this morning I was reading about yet another study that shows that we underestimate the level of support in the general public for climate action. We have to remember that while there is a lot of noise around this at the moment, the reality is that the public back action on the climate, and it is the right thing to do not just for future generations, as my hon. Friend rightly says, but for our energy security and for good jobs.
(2 months, 4 weeks ago)
Commons ChamberI call the Chair of the Energy Security and Net Zero Committee.
My right hon. Friend rightly reminded us of the progress that was made at COP. The recommitment to limiting global warming to no more than 1.5° is hugely important. He was honest in saying that we did not get everything we wanted, and that is sensible. However, he also reminded us of the absolute seriousness of climate breakdown, and that we must take every action possible. That goes beyond COP, and I hope he agrees that that work should continue whether or not it is in relation to a COP.
The Secretary of State started to talk about energy security, and I want to link this subject to that, because there is a worrying tendency towards a loss of support for the transition. Does he agree that it is really important, especially in the light of the ongoing aggression from Russia—and we have just had a statement, including on Ukraine, demonstrating it—that we make it clear to people that energy security and climate breakdown are very strongly linked, and that the answer to both of them is the energy transition?
My hon. Friend makes a really important point. The reason we have seen a movement of support for the transition away from fossil fuels is not simply climate-related, but energy security-related. Lots of countries, including Britain, recognise—unwittingly helpfully, the hon. Member for South Suffolk (James Cartlidge) said this from a sedentary position—that Putin’s invasion of Ukraine showed our vulnerability due to our reliance on fossil fuels. At a very striking roundtable hosted by Marina Silva, the Environment Minister in Brazil, many countries from the global north and the global south said the same thing, which is that, for them, the move away from fossil fuels towards home-grown clean energy is the route to energy security, so he makes a very important point.
The only other point I would make is that my hon. Friend is right that these negotiations are hard and painstaking. We have to look at the progress that has been made over the course of the 30 years. It is tough, and different countries are in different positions, but that is what these talks are all about.
(3 months, 1 week ago)
Commons ChamberMy hon. Friend is exactly right. These are political choices and the Government should reflect on them.
When it comes to the North sea, we know that we will need oil and gas for decades to come—even the Climate Change Committee acknowledges that—yet thanks to the Government’s policies, we are paying Norway billions of pounds for gas from the exact same fields they are banning the British industry from drilling.
The right hon. Lady was kind enough to go through her plan with me. I will be honest: I think there is merit in discussing some of the proposals—[Interruption.] No, it is not what Opposition Members think. There is merit in discussing some of the proposals on a cross-party basis, and I am sure the Government will do that. The motion talks about the highest industrial energy prices in the world and the second-highest domestic energy prices, but that was true throughout the Conservatives’ time in office. They grew and became a massive problem. It is something I came across in this place in my time here. What is it about the situation that she found when she was Secretary of State, and her predecessors found, that made it so difficult to address those very high energy costs?
I thank the Chair of the Energy Security and Net Zero Committee for his time and willingness in going through the plan. Costs were not always so high; we actually had the lowest gas prices before the crisis, and we had lower electricity prices as well. What has happened is that we have switched a lot of costs into fixed costs, and those costs are increasing. It is something everybody is looking at, from the Tony Blair Institute to the trade unions—people right across the political spectrum. We need to address this issue because there is a huge amount on the line, whether that is growth or living standards. As I have said, AI is here in the near term; we cannot wait until the 2040s, which is the Government’s plan. Even then, it is not clear that their plan would bring down bills at all.
Andrew Lewin (Welwyn Hatfield) (Lab)
I am pleased to have the opportunity to discuss energy and climate change, although I am still reeling from the speech made by the shadow Secretary of State, the right hon. Member for East Surrey (Claire Coutinho). By my count, she talked more about mushrooms than about climate change.
The debate comes just weeks after one of the most deadly storms on record caused such destruction in Jamaica. The Imperial college storm model concluded that the storm was appreciably stronger and more dangerous because of climate change. We are debating this motion in the shadow of the UN Secretary General’s comment that humanity has failed to keep global heating to below 1.5°C. With that backdrop, it is sad to see such a defeatist motion put forward by the Conservative party
That said, perhaps it is apt that we are debating the subject on an Opposition day, because the Conservative motion before us opposes many of the things that the party did in government. The Conservatives set up the UK emissions trading scheme in 2021, but now they want to scrap it. They introduced the levy on the oil and gas sector, but now they want to scrap that. The Climate Change Act 2008 was a Labour achievement that had cross-party support for many years, but now, most shockingly of all, the Conservatives want to scrap it.
The Conservatives also privatised the national grid. We were warned at the time, in 1989, that that would not lead to massive investment from the private sector, and we are now living with the consequences of that lack of investment over something like 40 years. Does my hon. Friend agree that that Conservative failure is another reason why we face such high energy bills?
Andrew Lewin
I agree entirely with my hon. Friend, and I will go on to talk more about why investment now is good for us, in both the short term and the long term.
We have a genuinely sad state of affairs. There have been Conservatives who have taken the climate very seriously, from Lord Deben, with his leadership of the Climate Change Committee, to the former Prime Minister Baroness May. I am even old enough to remember Lord Cameron, then Leader of the Opposition, imploring people to vote blue to go green. I know I do not look that old. The message is clear that the Conservative party is no longer interested in that, and I will address the rest of my speech to those in this place who are still serious about reducing emissions, protecting the planet and doing what is right for the next generation.
Perran Moon
No, absolutely not. I am talking about why the Conservative Government did not make the investment in critical minerals that this Labour Government identified straightaway. It was there, and has been there for decades—for centuries, in fact—and it has been ignored, so we are now reliant on Chinese imports.
One of the challenges in bringing down energy costs is the up-front cost of the equipment people need to take advantage of cheaper electricity. My hon. Friend knows a lot about electric vehicles because he used to work in the sector, and he knows that the salary sacrifice scheme was the biggest single way of getting electric vehicles on to the road. Does he agree with me that the Government should look at a similar scheme for solar, battery, insulation and potentially heat pumps as a great way of enabling consumers to benefit from cheaper electricity?
Perran Moon
I declare an interest, as the UK’s largest ground source heat pump company is based in my own constituency. I am a big advocate of ground source heat pumps, and I am hopeful that the Government will come forward with plans, particularly for social housing, to support that sector. My hon. Friend makes very valid points.
The opportunities in Cornwall would be scuppered without the likes of the round 7 allocation, and thousands of green job opportunities would be quashed. Opposition parties need to wake up. This Government are committed to transitioning away from fossil fuels, because to do so means that we will break free from the shackles of the wholesale gas price. We can control supply, and in doing so we will reduce domestic and business energy bills, rather than continually being exposed to the whims of the likes of Mr Putin. I know that some Members—maybe they are not here at the moment—quite admire Mr Putin, but this Labour Government, and, I suspect, those who are paying through the nose for Putin’s whims and the previous Government’s failure to invest, do not.
Talking of ideology, I must ask this question: what is it about the oil and gas-backed, climate change denying opposition parties that make them feel so threatened by the green energy transition?
(4 months, 1 week ago)
Commons ChamberLord Stern reminded us just today that
“Investment in climate action is the…growth story of the 21st century,”
while expecting growth from fossil fuels is
“futile because the damage it causes ends in self-destruction.”
The Office for Budget Responsibility confirmed the same thing in the summer, referring to the huge cost of not taking climate action. Is it not the truth that the energy transition is essential, not only to address climate action, but to exactly how we deliver economic success?
The Chair of the Select Committee speaks very wisely on this matter. The net zero economy grew three times faster than the economy as a whole last year. This is the growth opportunity of the 21st century. Now, we could let China or India take that opportunity, but I say that we need that opportunity for Britain.
(7 months ago)
Commons ChamberUrgent 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
The Minister is absolutely right—so was the shadow Minister—to focus on the jobs and the communities affected by the worrying news coming from Lindsey. He was also right to say that the problems are the result of shockingly bad management. My Select Committee will look at the future of refining in this country in a one-off session in the autumn, and we will be able to take further evidence at that point.
In response to what the shadow Minister said about energy prices, will the Minister confirm that the way to get industrial energy prices down—just as with domestic energy prices—is to reduce our reliance on the volatility, uncertainty and high prices that are determined by Vladimir Putin and the petrostates, and that we have to manage the transition, not shut our eyes to it or somehow play into culture wars as Reform wants us to do?
My hon. Friend is right. Separate from all the wider issues facing the refinery sector and the oil and gas sector generally, it is right we recognise that this week there are workers hearing some devastating news. Detailed work will be going on into how much of the site we can utilise in the future, and assessments are under way about how credible some of the bids are. We will do more work on that, and I am sure that his inquiry will be useful.
On energy costs more generally, one of the conversations I had when I met the refinery sector was about how we could do more to bring down its costs. We are looking at how we could support refineries more through including them in the energy intensive industries compensation scheme, which would obviously cut costs and help UK refineries with their competitiveness. That is not straightforward, but we are determined to look at that.
On my hon. Friend’s final point, he is right that the overall context of what we are doing as a Government is driving forward the transition to clean power, because it gives us back our energy security and takes away the volatility in prices that has been so devastating to households and businesses over the past few years. It is also the economic opportunity that helps drive forward refineries into what could be profitable businesses in that transition. They will continue to play a part in that, and we will support them to do so.
(7 months, 1 week ago)
Commons ChamberThe challenges of increasing electricity grid capacity include the ability to get planning consent and to achieve grid connections, as the Minister knows. In the report that the Select Committee published last week, we referred to the problem of inconsistency in some of the guidance and energy plans over which comes first—the grid connection or the planning consent. Will the Minister please address that and ensure that the Government clear up that inconsistency, so that we can move forward with increasing electricity generation and grid capacity?
I thank my hon. Friend for the question and for the work that he and the whole Committee have been doing on this matter. His report has been my bedtime reading every night this week as it is an important piece of work. He is right about two things. First, where processes are not as well aligned as they should be, we absolutely need to look at what we can do to make sure that they work much more coherently. The second point his report made, which we are also looking at, is how we bring together things such as the strategic spatial energy plan, the holistic network design and the land use framework to make sure that we have coherent plans across the country, so that we can plan properly our energy system.