Oral Answers to Questions

Claire Perry Excerpts

Tuesday 20th November 2018 Commons Chamber

[Richard Graham (Gloucester) (Con)]

24. What progress he has made on his proposals on the solar export tariff.

[The Minister for Energy and Clean Growth (Claire Perry)]

The Government and my Department remain enthusiastic about the role of solar generation and its role in decarbonisng power in the UK. However, as the market matures and installation is now possible without Government subsidy, we believe that it is the right time to close the feed-in tariff scheme. We already have 13 GW of solar capacity supported under current schemes. Indeed, at one point in May this year, solar provided more power generation than any other source.

[Kevin Hollinrake]

Rooftop solar is set to lose support from the feed-in tariff and the export tariff, which help to pay for clean power to the grid. Does my right hon. Friend agree that householders should expect some form of payment rather than simply subsidising large energy companies?

[Claire Perry]

My hon. Friend will know that the FIT scheme has been a huge success, supporting over 800,000 installations nationally, including almost 3,000 in his constituency. It has cost consumers over £4.5 billion to date and is scheduled to cost more than £2 billion a year for at least the next decade. It is therefore right that we consider a new scheme, as the cost has fallen. However, I do completely agree that solar power should not be provided to the grid for free, and that is why I will shortly be announcing the next steps for small-scale renewables.

[Mr Speaker]

I call Daniel Kawczynski. He is not here. Mr Richard Graham. Not here. I hope that neither of the Members concerned is indisposed. It is most unlike them not to be present, but they were informed of the grouping, I am sure, by the Government. [Interruption.] Okay—thank you. Well, never mind—they are not here and we cannot take them, but other Members are here, and we are delighted to see it. Mr David Hanson.

[David Hanson (Delyn) (Lab)]

Thank you, Mr Speaker.

The number of installations under solar has fallen by 90% in the past two years. Taking up the point made by the hon. Member for Thirsk and Malton (Kevin Hollinrake), what steps is the Minister taking to ensure, first, that providers are still in place next year to continue to grow this sector; and secondly, that customers are not subsidising large energy companies?

[Claire Perry]

The good news, as I mentioned, is that we have moved from a position of heavy—very expensive—subsidy for many of these small-scale schemes. Because the cost of solar installations has dropped by more than two thirds, we think it is right to change that. I am sure the right hon. Gentleman will be pleased to welcome the news that a string of private sector subsidy-free solar funds is set to open this year, particularly with business premises now taking advantage of the benefits that solar can provide in balancing their own systems. We are going through that transition with the expectation that we will see more solar deployed next year than we have previously.

[Mr Philip Hollobone (Kettering) (Con)]

If we are really serious about rooftop solar, why do we not insist that it is fitted on all new build properties?

[Claire Perry]

My hon. Friend is a doughty campaigner for all forms of renewable energy in Kettering, and he is right. There are many ways to bring forward better low-carbon generation—but, equally, better energy efficiency measures—in new builds. We have set out plans under the clean growth strategy to try to achieve those ends, and I am looking forward to delivering them.

[Sir Edward Davey (Kingston and Surbiton) (LD)]

I invite the Minister to be far more ambitious for rooftop solar as PV prices continue to fall and as batteries to store surplus solar power become ever more competitively priced. The opportunity for many homes to become their own power station has arrived. Should we not therefore be planning and encouraging such an exciting outcome?

[Claire Perry]

I pay tribute to the right hon. Gentleman, whose activities in coalition contributed to a boom in some of the cheapest forms of renewable energy, including offshore wind. We are now able to generate over 30% of our energy supply from renewables, which is much cheaper than putting it on individual rooftops. He raises a really important point. As our energy system migrates to a much more decentralised, much more intelligent system—helped, I might add, by the roll-out of smart meters—there is real value in that micro-generation, and that is what I am hoping to support when I bring proposals to the House shortly.

[Mr Speaker]

It is very heartwarming to see that the hon. Member for Gloucester (Richard Graham) has now beetled into the Chamber. I am sure that the House and an expectant nation wish to hear him.

[Richard Graham]

I am very grateful, Mr Speaker.

I think my right hon. Friend the Minister, who has done a lot to support renewable energy, may have covered my key point. However, does she agree that there are hundreds of churches, schools, local authorities and co-operative groups around the country, not least in my own constituency of Gloucester, that will benefit hugely from her announcement of what will replace the current system, and that it would be totally wrong for energy companies to benefit from free energy were there not to be a replacement system?

[Claire Perry]

I hope my hon. Friend caught my point that I agree it would be wrong to have power provided to the grid for free. In his constituency, there are now more than 1,300 feed-in tariff installations, and he should be proud of that. He is right; there are many such organisations. I was lucky to meet a group of people from all different faiths who were really committed to a zero-carbon future in many places of worship. That is happening right across the country. There is value in that, and we want to see it continue.

[Carol Monaghan (Glasgow North West) (SNP)]

Scotland is the home of energy innovation, and a lot of that is down to EU funding for the innovation and research that is taking place. What steps will the Minister take to ensure that funding for the Scottish renewables sector is protected after Brexit?

[Claire Perry]

I encourage the hon. Lady to move away from defining success as the amount of subsidy that renewable energy receives. In fact, thanks to incredible policy work and innovation by the suppliers, Scotland, like other areas, has benefited from a rapid decline in energy costs. We will continue to invest in clean growth—more than £2.5 billion over the course of this Parliament—and we will all benefit from those jobs and the renewable energy that those installations provide.

[Mr Speaker]

Before I call the shadow Minister, I know the House will want to join me in welcoming Speaker Elisabetta Casellati of the Italian Senate—a distinguished parliamentarian and the first female holder of that office. Madam Speaker, we wish you and your colleagues well on this visit and in all the important work that you do.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

The Government say in their clean growth plan—indeed, the Minister has said it this morning—that they want to see more people investing in solar without Government support. I cannot think of a better way to discourage people who might be thinking of investing in solar than telling them that they will be expected to give away to the national grid half the electricity they generate from their investment. When we talk about the export tariff, we are not talking about a subsidy; we are talking about a payment for goods supplied. The Minister has elided the feed-in tariff and the export tariff. Can she just accept that she has messed things up on this occasion, call off talk of removing the export tariff and get on with using that tariff to support future subsidy-free solar investment?

[Claire Perry]

I am invited to say buongiorno to our visitor in the Gallery.

The hon. Gentleman and I are, as in many cases, in violent agreement. We signalled clearly several years ago the closure of this scheme. It is a very expensive scheme; it was going to cost £2 billion a year for decades to come to bring forward microgeneration. We now have much more energy-efficient and cost-effective ways of generating renewables. As I said, I absolutely agree that people who have gone through the installation process should not be captive takers, should someone want to buy their energy. I look forward to announcing further deliberations on this shortly.

[Trudy Harrison (Copeland) (Con)]

2. What steps he is taking to secure the future of nuclear power in the UK.

--- Later in debate ---

[Mr Jim Cunningham (Coventry South) (Lab)]

10. What steps he is taking to help reduce the incidence of seismic activity caused by hydraulic fracturing.

[The Minister for Energy and Clean Growth (Claire Perry)]

It is always a pleasure to answer a question from my mother-in-law’s MP. As he knows, we have always made it clear that any hydraulic fracturing that takes place under current licences must be consistent with our regulatory regime, including the traffic light system, which is the toughest in the world. The Preston New Road site is the most monitored site for seismic activity, and among the 36 events recorded, the 1.1 local magnitude event was the equivalent at the surface of a bag of flour being dropped to the floor.

[Mr Speaker]

I hope that the hon. Gentleman is looking after the Minister’s mother-in-law, because I have a feeling that he will hear about it if he is not.

[Mr Cunningham]

I always do my best for all my constituents, Mr Speaker; I do not have any favourites. On fracking in the Blackpool area, there have been 47 minor earthquakes in that area and Cuadrilla has now ceased operations. Does that signal a change in Government policy?

[Claire Perry]

Not at all. Thanks to the superb seismic monitoring and the work of some excellent students at Liverpool University, it is clear that the most significant of the micro tremors that we are seeing is the equivalent of dropping a kilogram of flour on my mother-in-law’s floor in Earlsdon and feeling the vibration from that.

We are calmly and soberly going through the process of seeing whether this potentially valuable resource that can reduce our energy dependency on imports can be exploited, but it has to be done in a way that is consistent with our world-beating and tough regulatory regime.

[Sir Desmond Swayne (New Forest West) (Con)]

How come we have been using exactly the same technology without difficulty, fracking at hundreds of sites, for years for thermal energy?

[Claire Perry]

My right hon. Friend makes a valuable point. It is said that fracking is this new thing, but in fact we have been doing it for many years, including using it to extract oil from sites close to both of our constituencies. It is a perfectly safe technology. We have to be clear, however, that we are doing this in an environmentally sensitive way. Of course nobody wants environmental regulations that they cannot defend to their constituents, but we are going through this calmly and soberly; we have excellent science and so far the process is delivering shale gas from these very exploratory fracks, which is something we should all welcome.

[Barry Gardiner (Brent North) (Lab)]

On 21 May this year the Minister met a number of renewable energy companies. That meeting was properly recorded on the ministerial register of meetings to ensure transparency. On the same day the Minister also met all the key fracking companies including Cuadrilla, INEOS, iGas and Third Energy. That meeting somehow failed to make it on to the transparency register. Would the Minister like to take this opportunity to apologise for the concealment of that information, and by way of penance would she like to confirm when she will finally visit local residents at Preston New Road to explain why the 36 earthquakes that have occurred since Caudrilla began fracking operations are simply the equivalent of dropping a bag of flour on their kitchen floors?

[Claire Perry]

I am glad the pantomime season is coming up as there is some good auditioning going on. Let me explain. I know that the hon. Gentleman is aware of the ministerial code, and I am told by my officials that when they did not disclose the meeting of 21 May it was because the ministerial code does not require Ministers to disclose meetings that they drop in on, as opposed to host in their office. I have made it clear to my officials that any meeting ever held with anyone related to shale gas should be recorded, whether or not that is in accordance with current guidance. The hon. Gentleman will also know that at that so-called secret meeting with the fracking companies were the Coalfields Regeneration Trust, the GMB union, representatives of local government and UK100 chaired by the doughty Polly Billington, former special adviser to the right hon. Member for Doncaster North (Edward Miliband). The idea that I would hold secret meetings with an industry that is so potentially vital is, frankly, ridiculous. I have also appointed a superb former colleague of the hon. Gentleman’s, Natascha Engel, as my commissioner for shale gas, and she has been out there very consistently meeting local groups and residents in all of these fracking areas. I would be delighted to visit Preston New Road. Unfortunately, however, as I was aggressively approached by a protestor who threatened to visit my home because he knew my children were home alone, I have been advised for security reasons to be very careful about engaging with the protestors. Of course when I go, unlike some Opposition Members, I will make sure to visit the protestors and also those exploiting the resource to create jobs. Those of us on the Government Benches believe in jobs, not mobs.

--- Later in debate ---

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

T2. Which?, the consumer champion, points out that large suppliers need to install 30 smart meters a minute every day for the next two years to meet the Government’s 2020 roll-out target. How does the Minister think this is going?

[The Minister for Energy and Clean Growth (Claire Perry)]

I applaud the hon. Gentleman for his long-standing interest in this important area. It is going better by the day. Over 400,000 smart meters are now being installed every month. As of the end of October, some 97,500 SMETS2 meters, including one in my home in Devizes, have been installed. He will know better than many about the long-term benefits that this brings, both to people’s ability to control and reduce their energy use, and to delivering the most efficient and digitised energy system in the world.

[Rebecca Pow (Taunton Deane) (Con)]

T5. Taunton would be the ideal place for the one of the Geospatial Commission’s geospatial hubs, building on the expertise of the UK Hydrographic Office’s oceanic data-gathering skills. Will the Minister agree to visit Taunton to consider this proposal?

--- Later in debate ---

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

The Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Watford (Richard Harrington), has given us a welcome update on progress on the tourism sector deal, and I was wondering whether we could get a similar update on the oil and gas sector deal.

[Claire Perry]

My hon. Friend will know from the recent visit to Aberdeen that these conversations continue, as this is a vital sector. Let me pivot slightly by saying that in this Offshore Wind Week—that sector is equally vital to the Scottish economy—I wanted to announce to the House that we are in the final stages of concluding our offshore wind sector deal. It will include both £60 million for the contract for difference auction next spring and a series of substantial commitments from the operators in the sectors to increase the UK content that will be spent—

[Mr Speaker]

I call Dan Carden.

--- Later in debate ---

[Melanie Onn (Great Grimsby) (Lab)]

T9. The Minister for Energy and Clean Growth mentioned that it is Offshore Wind Week this week, and her comments will be welcome news. What are the Government doing to increase local employment opportunities in this very innovative sector?

[Claire Perry]

I was worried that the hon. Lady would not be called; I wanted to save the announcement up for her.

The hon. Lady will know, along with her neighbours, the vital role this industry has played in rejuvenating businesses in her constituency and next door. One ask of this sector deal, on which we are in the final stages, is to ensure that the operators, which are benefiting from the Government’s contribution to the auctions, are making substantial commitments to bring back technology and investment, as we see with the Siemens wind turbine factory in her next-door constituency and today’s announcement on the Vestas plant, with another 1,100 jobs being created thanks to the expansion of this industry.

[Martin Vickers (Cleethorpes) (Con)]

Ministers might have been too busy to see last night’s TV reports about the port of Immingham in my constituency and the opportunities that have been created there. Would the Secretary of State or one of his Ministers care to comment on how we can promote free port status for Immingham post Brexit?