Energy Security Strategy

Dan Poulter Excerpts

Tuesday 5th July 2022 Westminster Hall

[Mick Whitley]

I have only the information that we have received, and it has all been fact-checked. Quibbles about the costs of tidal power look frankly laughable when we consider the strategy’s proposals for new nuclear capacity. The Prime Minister’s refusal to unleash the full force of the renewable revolution has left him with no choice other than to bet big on nuclear power, with a target of more than tripling our current capacity by 2050. That is perhaps the most radical segment of the strategy, requiring as many as eight new facilities to be given approval in as many years and calling for the roll-out of new nuclear—including small modular reactors that are as yet commercially untested—at an unprecedented rate.

I want to be clear: I have never been opposed to nuclear power. It has a vital role to play in meeting new electricity demand in the coming decades, and it is right that we begin to undo decades of under-investment and invest again in jobs and skills in the nuclear industry. However, we must question the viability of the plans. The Government are calling for the roll-out of new nuclear at a speed and scale never before seen in this country, and the risk of falling short, without having adequately invested in alternative forms of energy, is enormous.

Even more dangerous to our future are the strategy’s proposals for the future of North sea gas and oil. For the UK, the question of how we end our reliance on Russian gas and oil is critical; however, for the millions of Ukrainians whose homeland is being devastated by a Russian war machine fed largely by energy exports to the west, it is truly a matter of life and death. That is why I fully support the Government’s commitment to phase out Russian oil imports by the end of the year.

However, we must be careful that in standing up to Putin’s aggression we do not end up dealing a devastating blow to our efforts to tackle the threat of climate change. It is quite frankly absurd that instead of using the crisis to begin to end our fossil fuel addiction once and for all, the energy security strategy instead looks to authorise the North Sea Transition Authority to begin a new round of licensing this autumn. It will take an average of 28 years for these installations to begin production, meaning that they will do nothing to improve our energy security or reduce prices in the short term, while locking us into new fuel consumption that the UN Secretary-General has correctly described as “moral and economic madness”.

I warn the Minister: future generations will not forgive this Government for failing to lay the foundations for a fossil-free future. They will not look kindly on Conservative Governments’ abysmal record on improving energy efficiency, from the Cameron Government’s decision to cut the “green crap”, which sent the number of loft and cavity wall insulations plummeting by 92% and 74%, to the collapse of the green homes grant scheme, which ended up costing precious jobs in my region of the north-west.

Our country has one of the oldest and least energy-efficient housing stocks in Europe, and that is costing millions of people dearly every month when they get their energy bills. The energy strategy is totally devoid of any credible solutions to make mass insulation a reality. I urge the Minister, in the national interest, to reach out to the shadow Secretary of State for climate change and net zero, my right hon. Friend the Member for Doncaster North (Edward Miliband), and get to work to implement his proposals to insulate 19 million homes over the next decade.

Another issue that the energy security strategy ignores is the enormous potential for community energy to contribute to a more secure and resilient energy supply in the UK. Had the Government backed community energy schemes back in 2014, we could now be producing up to 3 GW in community energy. Instead, there has been almost no growth over the past eight years. That is the consequence of the Government’s fundamental failure to reform energy markets and licensing rules, which forced community energy schemes to assume around £1 million in up-front costs if they wanted to build renewable generation infrastructure.

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

I agree with some of what the hon. Gentleman says and disagree with other points. I represent a largely rural constituency in Suffolk where many homes are reliant on heating oil. Does the hon. Gentleman share my concern that more needs to be done to support those homes to transition to a different type of energy, with more incentives in the system to do that?

[Mick Whitley]

I agree. We need to look into hydrogen as well as oil for people living in rural areas of the country. It is a problem, but one that we can overcome.

There can be no more secure a form of energy than that owned and produced by local communities and sold directly to local residents. With the energy security strategy soon to come before Parliament, I urge the Minister to take on the proposals of last year’s Local Electricity Bill and to empower community energy schemes to sell their power to local consumers.

I want to mention something that I know is anathema to the Minister and his colleagues, but which is essential to deliver the fundamental changes to our energy system that are so desperately needed. We need to recognise that the sector should be a service working for the public good. It should be taken back into public ownership. The handover of gas and electricity in the 1980s to Sid the shareholder and his mates down the street was always a cruel deception. The energy companies were bought and run by corporate giants. They were privatised to provide profits for the big stock market players, and poor Sid was bought out before he could turn a penny. It resulted not in a shareholders’ democracy but a corporate plutocracy.

At the very beginning of the current crisis, the chaotic system of private ownership was a serious blow to our energy security. Not only has it meant that ordinary people are victims of soaring energy prices in a way unseen anywhere else in Europe, but it left the whole energy market in the hands of private monopolies with little concern for the interests of our country or its people. It has tied the hands of successive Governments when developing the responses to the climate crisis that we desperately and urgently need.

By taking energy back into public hands, we can plough profits into driving the decarbonisation of our energy grid and funding a state-owned renewables company to pioneer technological innovation in the sector. We can ensure that the British people get to decide what happens to resources that should belong to us all. We can ensure that the pace of the green transition is dictated by the demands of the crisis we face and not by the whims of private shareholders.

I am looking forward to what I hope will be a lively and wide-ranging debate. Let me reiterate that the decisions that Ministers make in the coming months will not only have implications for whether we can keep our country running during the approaching winter and whether we can defeat Putin’s use of gas as a ransom demand in his war against the Ukrainian people; they will determine the existential question of whether we leave future generations a planet ravaged by climate and ecological breakdown, or one that is greener and more secure than ever before.