Electricity Market Review

Bill Esterson Excerpts

Thursday 10th July 2025 Commons Chamber

[Madam Deputy Speaker]

I call the Chair of the Select Committee.

[Bill Esterson (Sefton Central) (Lab)]

I am sure the Secretary of State will not be surprised to hear me say that I very much welcome what he has announced. He set out three priorities: fairness, lower bills—including and especially in industry and business, where my Committee heard as recently as yesterday that energy bills are causing real concerns and something of a crisis in certain industries—and attracting investment, not least ahead of auction round 7.

I was saddened that the shadow Secretary of State was so critical of wind generation. I have her letter of 12 March 2024 to my predecessor as the Chair of the Select Committee setting out her terms of reference for the consultation that the Secretary of State has responded to. She placed great emphasis on the importance of investing in renewables, so it is a great shame to see her change of heart.

Under the reformed national system, does the Secretary of State envisage increasing opportunities to use demand flexibility, and to use it as fast as possible, as a key way of bringing down energy costs for domestic and industrial consumers?

[Ed Miliband]

My hon. Friend speaks with great expertise on these matters. I will come to his question, but let me say first that I like to talk about issues on which both parties have been enthusiastic. We have the second largest offshore wind generation in the world. It was started when I was Secretary of State with Gordon Brown as Prime Minister, and it was continued under the last Government. It is extraordinary that the shadow Secretary of State is now abandoning that and saying that offshore wind is somehow the problem. It is not the problem; it is the solution.

My hon. Friend is right about consumer-led flexibility. The key point about that is that it is voluntary, and it is a way for consumers to save money. The shadow Secretary of State mentioned Octopus Energy, which is one of the pioneers of this. We are in the foothills of what we can achieve here, whereby consumers are empowered, through things like batteries, solar panels, heat pumps and smart meters, to control when they use energy much more easily, to their benefit and the benefit of the system.

Heathrow Substation Outage: NESO Review

Bill Esterson Excerpts

Wednesday 2nd July 2025 Commons Chamber

[Mr Deputy Speaker (Sir Roger Gale)]

I call the Chair of the Energy Security and Net Zero Committee.

[Bill Esterson (Sefton Central) (Lab)]

It beggars belief that no action was taken after the risks were identified in 2018 at the North Hyde substation. The NESO report highlights a lack of information-sharing internally at National Grid and externally between organisations. It draws attention to the energy companies not knowing that Heathrow had a 10 to 12-hour arrangement for switching supply, and that National Grid did not appear to know that Heathrow was a customer of the substation. It is a matter of immense luck that the explosion and fire took place at 11 o’clock at night and that no one was present; otherwise, this would have been a very different discussion, with people having died. The Minister highlighted the unacceptable lack of action by National Grid. Will he ensure proper oversight and information sharing internally at National Grid and externally between organisations, so that we have safety and resilience in our national energy system, where it applies to critical national infrastructure and beyond?

[Michael Shanks]

First, on the point about joining up, my hon. Friend is absolutely right. The response that I have seen from National Grid identifies that as one of the points it will take away. It will look at information sharing and joining up the data in various systems, and at how to ensure that is followed through on. It is important to say that there is also learning, not just for National Grid but across the energy system, through looking at what other transmission owners do and at what the Government do around sharing information where we can. There is a lot of learning and a lot of recommendations will be taken forward.

On the question of Heathrow, much was identified in the Kelly review, which looked specifically at these operations. On the question of whether there was a single point of failure at Heathrow, the airport is one of the biggest consumers of electricity in the country and one of our most important pieces of critical national infrastructure. It is important that those at Heathrow reflect on this report and take some lessons from it.

The report has shown—this is a lesson for everyone—the importance of investing in electricity resilience and preparing for the worst, even if we think there is a low chance of the worst actually happening. I completely agree with my hon. Friend’s final point: it is in all our interests to spend time, effort and investment in making sure that our energy system continues to be as resilient as possible.

Prax Lindsey Oil Refinery

Bill Esterson Excerpts

Monday 30th June 2025 Commons Chamber

[Madam Deputy Speaker (Caroline Nokes)]

I call the Chair of the Select Committee.

[Bill Esterson (Sefton Central) (Lab)]

My hon. Friend the Minister recognises the importance to our energy security of securing the fuel supply at Lindsey. He also recognises the importance of engaging with the trade unions to attempt, at least, to reassure the workforce. I thank him for those actions and congratulate him on them, and indeed on the engagement that the Government have had with the sector since the election.

Refinery operations are increasingly challenging, not least because of the volatility and uncertainty in international fossil fuel markets that the Minister just mentioned, but also because of the competition across the world. Phillips 66 and Stanlow, which he mentioned in his statement, are adapting to the changes in our energy system, taking advantage of carbon capture and the production of sustainable aviation fuel and biofuels. Will the Minister ensure that the UK refinery sector is part of the energy transition and a key part of our energy and industrial strategies, so that refineries play a key part in the future for the communities and workers that depend on those jobs at the moment, and so that we do not see a cliff edge?

[Michael Shanks]

I thank my hon. Friend for his question. First, he is right to restate what I said in the statement—when I brought in the refinery industry for a roundtable, it was frankly extraordinary to be told that it was the first time in 13 years that that had happened. That is an extraordinary state of affairs. I am glad that we have now held that roundtable, but what it has highlighted is just how much engagement with the sector is now necessary. I am determined to drive that engagement forward.

My hon. Friend is also right about the nature of the transition. Refineries will be important at all stages of the transition. Clearly, they are critical to delivering our fuel security today, and they will play a really important role in that area in the future—in sustainable aviation fuel, biofuels, and the wider work we need that sector to do. We will support refineries to transition into some of those future technologies.

The bottom line in this case is that we seem to have had a business that was far from doing that—it was not driving forward the investment that was necessary. We will now, at pace, try to get to the bottom of what the directors were doing with this company. It is a shocking state of affairs and a sad day for the workers, but I genuinely believe that there will be a strong refining sector in the future.

Oral Answers to Questions

Bill Esterson Excerpts

Tuesday 10th June 2025 Commons Chamber

[Mr Speaker]

I call the Chair of the Energy Security and Net Zero Committee.

[Bill Esterson (Sefton Central) (Lab)]

Happy birthday, Mr Speaker. Moving from gas to electricity in home heating is an important part of reducing our reliance on fossil fuels. Yet at the Select Committee hearing last week, we heard real concerns that people in energy debt are unable to disconnect from gas and are therefore still stuck paying standing charges. Will the Minister say what the Government’s plans are to remove that problem and ensure that more people can take up the opportunities presented by electrifying home heat?

[Michael Shanks]

My hon. Friend makes two important points. First, on the importance of decarbonising heating across the country, the electrification of home heat will be an important way of delivering cheaper bills for people and reaching our decarbonisation targets. Secondly, on the important matter of debt, I know the Minister for Energy Consumers has been doing work with Ofgem, and we have been looking at a debt relief scheme for exactly those sorts of questions. Clearly, we want to support as many households as possible to move on to cheaper heating in the long term. We will continue to push forward that work.

Nuclear Power: Investment

Bill Esterson Excerpts

Tuesday 10th June 2025 Commons Chamber

[Mr Speaker]

I call the Chair of the Energy Security and Net Zero Committee.

[Bill Esterson (Sefton Central) (Lab)]

I warmly congratulate my right hon. Friend on delivering on his promise from 2009 and confirming Sizewell C, along with the vast array of commitments to a bright nuclear future for this country. The Select Committee looks forward to our inquiry in the autumn into the future of nuclear; we will be taking evidence and making recommendations to support the work that the Secretary of State has set out. We visited Sizewell C, and I also visited the nuclear physics department at the University of Liverpool. I learned in both cases about the jobs that will be available across the country. Can the Secretary of State confirm that he sees this as the start of both gigawatt construction of new nuclear and a big expansion into SMRs and AMRs, which are still a nascent technology, to support a very good future for nuclear generation in this country?

[Ed Miliband]

My hon. Friend speaks very well on this subject. I agree with him about the huge jobs potential from new nuclear and the timelines. My priority when we came into office was to get these things over the line, because there had been so many promises made by the last Government. Long-term promises were made under Boris Johnson for 2050, but they did not deliver anything towards the 24 GW target. My priority was to get on and deliver these things and get them over the line, which we are doing. Then we can look at what the energy needs are going forward and how we meet them. I agree with my hon. Friend that nuclear has an essential part to play, alongside all the other clean energy technologies; electricity demand is going to double by 2050, so we need all of them.

Energy Grid Resilience

Bill Esterson Excerpts

Wednesday 30th April 2025 Commons Chamber

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Chair of the Energy Security and Net Zero Committee.

[Bill Esterson (Sefton Central) (Lab)]

There are some inconvenient truths for those on the Opposition Benches who wish to blame low-carbon energy for what happened in Spain and Portugal. As the Minister has said, the cause of the outage is unknown at this stage. In 2003, when there was a blackout in Switzerland and Italy, and in 2006, when the same happened in Germany, affecting the whole of the continent, there were no renewables in the system. That goes to show that it is far too early to speculate.

Gas sets the price for our electricity 98% of the time in this country. Those who oppose the transition to low-carbon energy generation are opposing energy security for this country. They are opposing lower prices for our constituents and good, well-paid jobs. That is what this agenda is really about.

[Michael Shanks]

I thank the Chair of the Energy Security and Net Zero Committee for his question. Let me reiterate the point that he made and that I will, I suspect, make a number of times during this statement. I will not be drawn on unfounded claims and speculation about what the causes might be. It is rightly for the authorities in Spain and Portugal to carry out the investigations, exactly as it would be if any incident happened here, and for them to share that information. Of course we will be in close contact with them about that, but it is far too early to make any hasty conclusions, particularly when they are based on unfounded claims.

The broader point that my hon. Friend makes is right: constituents right across the country continue to pay too much for their electricity. That is because of the role of gas in setting the price in our system. The more renewables that we build, the more that we push gas off as the marginal price setter, the more that we bring those bills down, and also the more that we make sure that they are not subject to the volatility of the fossil fuel markets as they are at the moment. My hon. Friend is right: this is the right journey for us to be on; it is right for the British economy; and it is right for energy security. The Opposition parties should support that.

Oral Answers to Questions

Bill Esterson Excerpts

Tuesday 29th April 2025 Commons Chamber

[Mr Speaker]

I call the Chair of the Select Committee.

[Bill Esterson (Sefton Central) (Lab)]

The overwhelming majority of those at the international energy summit last week said that the transition to low-carbon energy is crucial to energy security. Does my hon. Friend agree that those in this Chamber and beyond who do not support the transition to low-carbon energy are playing fast and loose with this country’s energy security?

Oral Answers to Questions

Bill Esterson Excerpts

Tuesday 18th March 2025 Commons Chamber

[Mr Speaker]

I call the Chair of the Select Committee, Bill Esterson.

[Bill Esterson (Sefton Central) (Lab)]

UK electricity bills are the highest in Europe compared to gas. Evidence given to the Select Committee suggests that the Government are absolutely right to reduce our reliance on fossil fuels, and it is a shame that some Opposition Members have abandoned an evidence-informed approach to policymaking. Can the Minister confirm whether the Government are considering rebalancing the infrastructure levies on our energy bills, as a way of reducing electricity bills in the immediate future and as a down payment towards 2030 and beyond?

[Michael Shanks]

The Select Committee Chair makes an important point. Along with the Minister for Energy Consumers, my hon. Friend the Member for Peckham (Miatta Fahnbulleh), I am looking at all options, because it is important that we bring down bills and that we are building an energy system that protects us from the volatile fossil fuel markets in the future. There are trade-offs to be made when rebalancing that we need to be aware of, in particular whether a diminishing number of gas customers can pay bills if we were to transfer levies, but we are looking at all options and are, of course, looking at how we review with Ofgem the wider question of standing charges to make sure we bring down bills. My hon. Friend is right to say of the journey that we are on—and that the Conservative party used to be on, and on which there used to be consensus—that our transition to net zero is important for energy security and for the climate, but also for protecting bills in the long term.

Energy Infrastructure: Chinese Companies

Bill Esterson Excerpts

Wednesday 12th February 2025 Commons Chamber

[Mr Speaker]

I call the Chair of the Select Committee.

[Bill Esterson (Sefton Central) (Lab)]

I was pleased to hear the Minister confirm the importance of our energy security, in contrast to what we saw under the previous Government. [Interruption.] Opposition Members can groan all they want, but that is the reality of what was inherited in July last year.

As we extend energy infrastructure in this country, can my hon. Friend the Minister confirm how this Government will ensure that we have control of the operation of that infrastructure? Does she agree it is vital that through the industrial strategy we see a renaissance in our manufacturing and greater resilience in our supply chain, all of which adds to the energy security of this country?

[Kerry McCarthy]

My hon. Friend is absolutely right that dealing with capacity issues in our supply chain is a crucial part of getting this investment into infrastructure. It is one of the reasons why, through the national wealth fund, we invested in lithium in Cornwall last week. Through the critical minerals strategy, we want to maximise the natural resources that we have, where we can. As I have said, we want to make absolutely sure that security concerns are addressed as well when we look at which investors invest in our new economy.

Rosebank and Jackdaw Oilfields

Bill Esterson Excerpts

Monday 10th February 2025 Commons Chamber

[Mr Speaker]

I call the Chair of the Select Committee.

[Bill Esterson (Sefton Central) (Lab)]

I thank my hon. Friend for confirming the Government’s commitment to supporting production in existing North sea oil and gas fields and for confirming the desire to partner closely with industry and workers on the transition away from fossil fuels. Does he agree that the workers and communities that rely on the North sea would be in a much stronger position if we had not witnessed over the last decade a chaotic mismanagement of the decline in the basin that he has just referred to, and the failure to plan for the loss of 70,000 jobs in that decade alone?

[Michael Shanks]

The Chair of the Select Committee makes an important point, which is that the failure to acknowledge that the transition is already under way is to bury your head in the sand and pretend that everything will carry on as it was. The reality is that in the past decade a third of the oil and gas workforce—70,000 workers, as my hon. Friend says—have already lost their jobs and the transition is under way. We are determined to ensure not only that the transition leads to a future in the North sea energy sector that, yes, involves oil and gas for many years to come, but that we build the industries of the future now so that there is no gap. The alternative is to do what the previous Government did, which was to pretend that the transition was not under way and then somehow deal with the shock that would come when North sea oil and gas inevitably declined to the point where workers’ jobs were not protected. We are determined to build what comes next and to protect good, well-paid jobs in the North sea for many decades to come.