Oral Answers to Questions Debate
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(2 days, 10 hours ago)
Commons Chamber
Ms Polly Billington (East Thanet) (Lab)
The 2023 generation costs report published under the previous Government shows the levelised cost of electricity to build and operate a new gas-fired power station to be significantly higher than the cost of onshore wind, solar and offshore wind in the most recent renewables auction round. Renewables are a cheaper technology to build and operate than new gas-fired power stations.
Tom Collins
The National Energy System Operator’s clean power 2030 plan relies on unabated gas power stations, without a clear plan for their decarbonisation after 2030. The forthcoming hydrogen strategy presents a natural opportunity to set long-term goals for the wider integrated energy system, including hydrogen-fired combined cycle gas turbine generation, and long-term salt cavern energy storage at scale. Will that strategy include a quantified pathway with delivery milestones for transitioning dispatchable power, and will NESO be required to incorporate that pathway into its planning?
My hon. Friend asks an important question. In our 2030 clean power plan, we talk precisely about the importance of low-carbon dispatchable power as a way forward. I am really proud of what is happening with our carbon capture and storage plans and Net Zero Teesside. Additionally, it will be an important part of our forthcoming hydrogen strategy, as he says.
Ms Billington
Current global instability, from Ukraine to Venezuela, has shown the vital importance of having domestic energy security. Does the Secretary of State agree that investing in renewables will help with both security and cost, particularly because they are cheaper to build and operate, as well as providing us with vital energy security in an uncertain world?
My hon. Friend is right. The figures that came out from NESO over Christmas show that we had extra renewable power in 2025 equivalent to powering 2 million homes; that is 2 million homes that will not be powered by imported gas. That gives us the price stability that we never had under the previous Government. The fundamental lesson at a time of geopolitical instability is that home-grown clean power is what gives us the certainty we need.
According to Government figures, output from new solar projects costs around £41 per megawatt-hour compared with roughly £140 per megawatt-hour for the lifespan costs of new gas power. I know the Secretary of State agrees with me and RenewableUK that clean energy remains the energy with the lowest cost, but how do we ensure that the British public agree with us?
The hon. Lady has just done a good job of highlighting the importance of this matter, and she gets to the crucial point. The Opposition parties that reject solar, onshore wind and offshore wind are rejecting cheap, clean, home-grown power for the British people, which we on the Government Benches are in favour of.
I thank the Secretary of State very much for his answers. Not only is cost important when it comes to looking at gas-fired power stations; it is also important to ensure that communities have an input into the planning process. Has that been central to the formation of any policy on gas-fired power stations? Has he had the opportunity to share those thoughts and that information with the Northern Ireland Assembly, which wishes to look at the possibilities for Northern Ireland?
We have regular discussions with the Northern Ireland Assembly and the Executive on a range of issues. On the hon. Gentleman’s point about nationally significant projects, it is absolutely right that communities have input into these questions. Certainly in the case of home-grown low-carbon power, we want communities to see the benefit, because by hosting infrastructure, including low-carbon infrastructure, communities are doing a service to the country.
Happy new year, Mr Speaker.
This is just nonsense on stilts from the Secretary of State, and we know this because the biggest AI company in the world has said that it will need gas power to succeed in Britain. If a company wants to build its own gas plant here, at no cost to the British taxpayer, the warped green ideology of this Secretary of State, who is obsessed with domestic emissions above everything else, will block it. Those emissions will still exist, as that company will start somewhere, just not here in Britain. Does he agree that that is a completely mad reason to block the growth we need in Britain?
I do not really understand what the question was about, but we are in favour of AI and we are working with our colleagues on AI. I have to say that I am glad the right hon. Lady rose to speak on this question, because she has been rumbled by the figures I produced; they came out when she was the Energy Secretary. She goes around saying how much more expensive renewable power is, but the figures that she produced show that renewable power is cheaper to build and operate than gas-fired power stations. She used to believe that, until she jumped on the latest passing bandwagon to suddenly be a net zero sceptic.
Freddie van Mierlo (Henley and Thame) (LD)
The decision by my right hon. Friend the Chancellor to take an average £150 of costs off people’s energy bills from April is a reflection of this Government’s commitment to tackling the cost of living crisis. It will make a difference to families across the country and is estimated to reduce by over 1 million the number of people paying more than 10% of their income in energy costs.
Perran Moon
Kensa, based in my Camborne, Redruth and Hayle constituency, is the largest manufacturer of ground source heat pumps to neighbourhoods and council flats, and I know that the Secretary of State and the Chancellor have both visited that company. This technology delivers low energy bills for family finances, but the sector requires policy certainty and a plan to grow. Ministers have been very generous with their time to date, but will the Secretary of State meet me again to discuss how we can provide the certainty and commitment to public funding that will support this technology?
I really enjoyed my visit to Kensa—I would recommend that all Members go—which is a really innovative company that is leading in heat pump manufacture. As my hon. Friend knows, we will shortly be publishing our warm homes plan, which will be really important in driving forward heat pump uptake and helping companies such as Kensa, because there is also a massive jobs story that is part of this.
Socialists do have a habit of taking money from people and then asking them to be grateful for getting some of it back, so could the Secretary of State tell us how much the £150 reduction in fees will actually cost taxpayers?
I will tell the hon. Lady. We are proud of the fact that in the Budget we raised taxes on the wealthy so that we could cut bills for millions of families across this country. I am so grateful to her for her question, because it illustrates the difference between our parties. This was not an easy thing to do; it was a decision made by this Government, because for too long this country has been run for the wealthy and powerful by the Conservative party. We are changing that and cutting bills for millions of families across Britain.
Bradley Thomas (Bromsgrove) (Con)
This Government’s promise to cut energy bills by £300 is dead in the water, as bills are now £190 higher than when they took office. Now their big idea is to pull the wool over the eyes of the British public by moving some of the costs of net zero from people’s energy bill to their tax bill. Can the Secretary of State answer a very simple question: after the Government’s supposed bill cut takes place in April, will the average energy bill be higher or lower than when Labour came to power?
I can tell the hon. Gentleman that bills are going to be lower. [Interruption.] If he just listens, I will tell him. If we compare 2025 to 2024, energy bills are lower in real terms than they were in 2024, and the price cap is also lower. Because bills are still too high, we will make that situation better by taking £150 off bills. The Conservatives opposed every measure in my right hon. Friend the Chancellor’s Budget, yet they also say that they want £150 off bills—they cannot have both. It is this Government who are delivering on the cost of living crisis.
I am intrigued, because question 6 has been transferred. It has even got on to the Order Paper. Why did the Department suddenly find out so late that it has been transferred? I do not think it is good practice, and I hope it will not happen again.
Peter Lamb (Crawley) (Lab)
The Government inherited a legacy of huge under-investment in the grid, which piled up constraint costs and created a chaotic system for grid connection, which left crucial projects facing decade-long delays. We are tackling this with a programme of investment and reform, include sweeping changes to the grid connections process, which saw the National Energy System Operator last month set out a massive overhaul of the queue, cutting its size by two thirds and giving priority to the generation projects that we need.
Peter Lamb
Despite its rural setting, Crawley’s travel-to-work area has a larger economy than many of the UK’s core cities. Despite that, it has been held back over recent years due to a lack of grid capacity at its major connection point with the national grid, resulting in the loss of several major investments under the previous Government. Will the Secretary of State look into what can be done to upgrade the connection point and unleash that restrained economic growth?
My hon. Friend makes a crucial point. There was this terrible backlog, where the queue had something like five times as much capacity as was required and the wrong priorities. We also had massive problems for demand connection. Our significant reform to overhaul the queue, which had not been done for years and years, will free up demand projects to connect, and I very much hope that projects in his constituency can benefit.
John Milne (Horsham) (LD)
Access to the grid for new energy suppliers is patchy across the country, and it leads to an overconcentration of solar farm and battery energy farm applications in unexpected places, such as the village of Cowfold in my constituency. What action will the Government take to ensure a fair distribution of renewable energy developments?
I know that my hon. Friend the Minister for Energy has had discussions with the hon. Member for Horsham (John Milne), and it is important that we have those discussions with Members. One of the important things for this year—it is slightly for the trainspotters, or energy-spotters—is the strategic spatial energy plan, which will set out a pathway for where we need power in the coming years well beyond 2030. As part of that, we should definitely be looking at where in the country are the right places to put the power we need.
Noah Law (St Austell and Newquay) (Lab)
Mr Luke Charters (York Outer) (Lab)
Our clean energy mission offers a transformative opportunity to deliver thousands of high-quality jobs and drive prosperity across the country. In Yorkshire and the Humber, we estimate that there will be up to 20,000 additional jobs by 2030. There are opportunities in offshore wind, hydrogen and nuclear, as well as in many other areas.
Mr Charters
Happy new year, Mr Speaker.
I am proud of York College in my constituency, where talented students are mastering apprenticeships that will power our clean energy future. York College is considering becoming a clean energy technical excellence college under the outstanding leadership of Ken Merry. Will the Secretary of State welcome that and visit the college to see how it leads the way in further education in preparing for the clean energy jobs of the future?
I congratulate York College on its work. I know from my constituency in Doncaster, where we are to get a second university technical college specialising in green skills, the importance of that and the excitement of young people about this future. By turning their backs on clean energy, the Opposition turn their backs on young people. Clean energy is the future—it is one of the fastest growing sectors. We want it for Britain, we want it for York and we want it for Doncaster, and we will make it happen.
Sadly, it is not job creation that faces many of my constituents, particularly those who work at the Lindsey oil refinery. The Secretary of State knows that Axiom and others submitted bids that would have continued production at the refinery. Instead, we now have a deal with Phillips 66 that transfers the assets but not the business. Will he undertake to make a statement to the House and to answer the many unanswered questions that surround the deal?
First of all, what happened at Lindsey—we should be clear that the responsibility lies with the owner, which ran the business into the ground—is tragic for the workers and their families, and I have talked to those workers. The hon. Gentleman will know—my hon. Friend the Energy Minister has spoken to him about this—that the process involved the official receiver, who looked for the best and most viable bid, but there was no viable bid to keep refining going at Lindsey. That is why P66 was chosen, and we are determined to work with the company to maximise the number of jobs that it can deliver for the local community.
Carla Denyer (Bristol Central) (Green)
The affordability crisis is the No. 1 issue facing families across our country. That is why we have acted to take £150 of costs off bills for all families, with an additional £150 through the warm home discount for 6 million households this winter. Thanks to our decisions, last year was a record year for wind and solar power, and we have embarked on the biggest nuclear building programme for half a century. That is what it means to deliver on lower bills, good jobs and energy security.
Carla Denyer
Climate change made 2025 the UK’s hottest year on record and fuelled deadly extreme weather events across the globe. We know that every drop of oil and gas used makes those events more likely, so will the Secretary of State confirm how much more new oil and gas could be extracted via the tiebacks that the Government have decided to allow, despite the new oil and gas ban? When developers apply for permission for those tiebacks, will they be required to include scope 3 emissions in their environmental impact assessments?
I wish the hon. Lady a happy new year, but I find that question a bit churlish. We have produced a world-leading plan for the North sea, which combines the just transition—the just and prosperous transition—with environmental leadership, while keeping to our manifesto commitment not to issue new licences to explore new fields. It is absolutely right that we have tiebacks to ensure that existing oil and gas fields are kept open for their lifetime. Obviously, the North Sea Transition Authority will consult on the details of how that will work, but it is absolutely the right thing to do for jobs and the environment.
I congratulate Hackney council—Labour-led Hackney council—on the brilliant job it is doing on green energy. Unlike some who just talk about it, the council is actually delivering, and I congratulate it. I see Hackney as being at the forefront of our local power plan, which will be coming out in the coming months.
It is freezing cold outside, and people are worried about their energy bills, yet on top of all the other costs the Secretary of State has lumped on to people’s bills, it is reported that he is about to tax people with gas boilers to pay for people having heat pumps. Can he definitively rule this out for the rest of this Parliament: no new taxes on people heating their homes?
I can absolutely rule out that we are going to introduce new levies to the energy system in the warm homes plan. Those reports are complete nonsense. I can tell the shadow Secretary of State that the warm homes plan is going to turn the page on a decade of the Conservatives’ failure, because we are going to invest where they did not, we have a plan where they did not, we will have proper oversight and regulation where they did not, and we will tackle the cost of living crisis they caused—
Order. Secretary of State, we are on topicals. I know you want to get carried away, but, please, the new year does not allow for it.
The rumours are that the Secretary of State is pitching himself to be the next Chancellor. He did not rule out taxes on people heating their homes for this Parliament, he is shutting down the North sea, there is a disastrous EU energy deal and a secret deal with China, the industry is fleeing in its droves and energy bills have risen five times on his watch. Does this not show that he has to be the only person in the country who could do a worse job than the current Chancellor?
Don’t tempt me, Mr Speaker—don’t tempt me!
I want to briefly make one point. In the warm homes plan, which will come soon, we will be making £15 billion of public investment to help people cut their bills. The Conservatives can oppose that if they like, but I think it will be supported across the country, because they were an absolute failure on energy efficiency and all of that, and we are going to succeed.
Luke Murphy (Basingstoke) (Lab)
Pippa Heylings (South Cambridgeshire) (LD)
Brexit excluded us from the EU’s internal energy market, costing the UK a huge £350 million annually. Will the Secretary of State confirm how he will accelerate progress towards the UK-EU internal electricity trading agreement to bring down costs and ensure energy security in these volatile times?
The hon. Lady makes an important point, which is that we need to make sure we take advantage of co-operating with our European neighbours. One way we can do that is the internal electricity market, and we will be negotiating on that basis. We will obviously look at the costs and benefits for the UK, but anything we can do to lower costs, lower bills and co-operate with our European neighbours to our advantage is what we should be doing.
Michelle Scrogham (Barrow and Furness) (Lab)
It sounds like a really interesting project. My hon. Friend is absolutely right that there are huge opportunities. Opportunities abound when it comes to co-operation with our near neighbours and across the world to help our energy security, deliver clean power and bring down bills.
Vikki Slade (Mid Dorset and North Poole) (LD)
The hon. Lady asks an important question. As part of the warm homes plan, we are putting in an additional £1.5 billion of public investment and replacing the ECO scheme, which I am afraid had failed in a number of different ways—no disrespect to some of the installers. That will be designed to help bridge the transition for companies like the one that Andrew runs.
Mr Peter Bedford (Mid Leicestershire) (Con)
The hon. Gentleman is wrong, if he listened to my answer earlier, because actually bills across 2025 were lower than in 2024. He should welcome our measures to cut bills by £150, but I am afraid that those on his Front Bench do not support us.
Alex Mayer (Dunstable and Leighton Buzzard) (Lab)
Chris Webb (Blackpool South) (Lab)
Blackpool and The Fylde college has excellent courses that are training young people in the area in use of the vital renewable energy equipment that we need to go forward, but there are no jobs for those young people locally. Will the Secretary of State meet me to discuss how we can create those jobs? He is welcome any time to come to a sunny and slightly chilly Blackpool to see those students and the excellent work that they are doing.
My hon. Friend is a brilliant advocate for his constituency, and indeed for Blackpool. I would be very happy to meet him to talk about how we can ensure that the jobs that those young people want come to Blackpool.
Yes; my hon. Friend is entirely right. Home-grown clean power is what will give us energy security.
Helen Maguire (Epsom and Ewell) (LD)
An estimated 50,000 diesel-powered transport refrigeration units operate across the UK, consuming around 235 million litres of fuel annually. These generators emit up to 400 times as many particles as truck exhausts do. High-emitting diesel engines face no real regulation and create a significant burden on the NHS and the environment, but there is a solution. Zero-emission renewable transport refrigeration technologies are commercially available and being manufactured in the UK today. Government intervention would help. Will the Secretary of State come and see the fantastic work of Sunswap, which is championing this technology in my constituency, and can he—
In November last year, the Energy Secretary and his entourage attended COP30 in Brazil. That was an event where a rainforest was chopped down so that the Energy Secretary could talk about saving rainforests. Does he understand the hypocrisy of it all?
I do not understand the hon. Gentleman, if I am honest. The truth is that he would give up on young people. He would sell them down the river, as he would today’s generation, the future generation, and all generations to come. I do not think that is a very good platform to stand on.
Some 25% of the houses in my constituency were built before 1900. They are expensive to heat and very difficult to insulate. When will there be a bespoke plan for insulating those properties, using the right materials, and, crucially, for the insulation to be installed by specialists?
Andrew Lewin (Welwyn Hatfield) (Lab)
Happy new year to you and your team, Mr Speaker. It was a happy start to the new year, because we learned that in 2025, more renewable energy was generated in this country than at any time on record. That was driven by growth in solar in particular. Will my right hon. Friend make it a new year’s resolution that the Government will continue to drive that growth forward, and will surpass that amount in 2026?
Absolutely. This is about delivering what we promised when we were elected: home-grown clean power, so that we can get bills down, create jobs, get energy security and, crucially, do the right thing for future generations.
Darren Paffey (Southampton Itchen) (Lab)
Southampton is Europe’s leading cruise port and the second-biggest container terminal in the country. Our industry stands ready to invest millions in decarbonisation, but that is being held up by grid constraints at the Nursling supply point. Will the Minister meet me and local industry leaders to see how we can unlock the obvious environmental and economic benefits that this change would bring?
Our team would be happy to meet my hon. Friend. That question, and so many others, shows the huge opportunities arising from home-grown, clean power, including in fantastic Southampton.
Bradley Thomas (Bromsgrove) (Con)
On a point of order, Mr Speaker. In response to my question about whether bills in April 2026 will be lower than in July 2024, the Secretary of State claimed that they would be. However, the price cap would suggest otherwise: it was £1,568 in July 2024 and is projected to be £1,620 in April 2026. Can you advise on how the House can seek a correction of the record?
You have certainly put that on the record. We are not going to continue the debate unless the Secretary of State wants to respond, which I doubt.
Further to that point of order, Mr Speaker. I am happy to respond, because we are going to deal in the facts. Bills were lower in 2025 than in 2024 in real terms, and the price cap was lower—and, of course, making a seasonal comparison makes no sense. We are going to trade in the facts.
On a point of order, Mr Speaker. I asked the Secretary of State a direct question about his former statements and how they conflict with current Government policy. Would you agree that the Secretary of State should have directly answered me?