Setting the Seventh Carbon Budget
Ed Miliband Excerpts(1 week, 1 day ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
Today, I am laying before the House the draft carbon budget 7 order, which sets the seventh carbon budget, for the period from 2038 to 2042, at 535 MtCO2e (equivalent to a ~87% emissions reduction from 1990 levels). This budget represents the next interim target for the UK on the way to achieving net zero greenhouse gas emissions by 2050.
Against the backdrop of heightened geopolitical instability, including the ongoing crisis in the middle east and its implications for global energy markets, the case for setting a clear and credible long-term pathway for the UK on clean energy and climate action is stronger than ever.
The Government have agreed with the independent advice of the Climate Change Committee to set the budget at the level it has advised. This level has been chosen because it:
Reduces the UK’s exposure to volatile international fossil fuel markets and protects billpayers;
Delivers the benefits of clean energy and climate action for jobs and growth, health and our natural environment;
Aligns with the Paris agreement’s 1.5°C goal to avoid climate disaster for future generations.
This level provides a clear basis and early signal for the pathway and pace of action required to remain on track for net zero by 2050.
Parliamentary scrutiny and transparency of the proposed carbon budget 7 level is important, and I support this through the publication of an accompanying impact assessment. The impact assessment sets out the evidence on the likely impacts of different carbon budget levels and the necessary investment required to meet them— much of which reflects upgrades to the UK’s energy system, homes and transport that would be needed in any case to modernise ageing infrastructure and meet future demand.
The impact assessment also shows that even under higher technology-cost assumptions, meeting net zero continues to represent value for money, with strong net benefits relative to alternative pathways. It concludes that the CCC’s recommendation for the seventh carbon budget is the preferred option, as the most credible and balanced option with the strongest overall case.
The detailed evidence in the impact assessment sets out how delivering this ambitious level is a major opportunity to improve people’s lives in the UK today, while protecting our children and grandchildren:
Energy security and lower bills: clean power and electrification will significantly reduce our exposure to volatile international fossil fuel markets across the economy: by 2050, our economy’s overall dependency on fossil fuels will reduce from ~75% of our total primary energy today to ~15%. Electrification will also help consumers benefit from technologies that can cut their bills. Even before the Iran war, it was often cheaper to run a zero-emission vehicle than a petrol or diesel car, and with the right tariff, running a heat pump can be cheaper than a gas boiler.
Good jobs and growth: clean energy and climate action is the economic opportunity of the 21st century. Clean energy industries are already creating good jobs across the UK in roles ranging from offshore wind turbine technicians and solar panel installers to nuclear and grid engineers, heat pump engineers, and hydrogen fuel cell researchers. Earlier and more ambitious action generates reinforcing effects that reduce overall costs over time and strengthen long-term growth prospects.
Improved quality of life and health: from warmer homes to cleaner air, decarbonising the UK’s economy will reduce air pollution and ease long-term pressures on the NHS. Improving air quality alone could deliver £80 billon of health-related benefits between now and 2050, avoiding between 39,000 and 119,000 life years lost. This would result from improved air quality in 2050, against a no-net-zero baseline.
Protecting our natural environment: the climate and nature crises are fundamentally linked and contribute to each other. Reducing domestic emissions will contribute to restoring and protecting our wildlife, landscapes and ecosystems that provide our food and water. This will also help improve access to nature now and for future generations.
Tackling the climate crisis: the UK has already helped drive global efforts to tackle climate change, including by passing the world’s first Climate Change Act, which has been emulated by nearly 60 countries, and by being the first major economy to legislate for net zero by 2050. It has helped drive a global shift towards net zero targets, which now cover 80% of global GDP. The UK’s climate framework has provided a model that others have followed, and domestic ambition strengthens our credibility and influence as we work with other countries to drive global action.
The Government are committed to meeting our carbon budgets, in line with the Climate Change Act 2008. Existing carbon budget 6 delivery policies will drive substantial abatement into the carbon budget 7 period. The carbon budget growth and delivery plan, published just last October, sets out a cross-Government policy package to enable carbon budgets 4, 5 and 6 to be met up to 2037. These policies will continue to deliver the bulk of emissions savings needed for carbon budget 7. This provides a strong and credible starting point for carbon budget 7, reducing delivery risk and giving confidence that the transition can be delivered in an affordable and manageable way.
Environmental Audit Committee Inquiry on Carbon Budget 7
I would like to thank the Environmental Audit Committee for its inquiry on the seventh carbon budget, which was opened in September 2025, following an invitation from Government. The EAC recommended that the Government accept the CCC’s recommended level for its seventh carbon budget. The Government response will be published by the Committee soon after the laying of the CB7 order.
The Government’s response highlights the need for carbon budget 7 to combine ambition with deliverability, affordability and public confidence, underpinned by a robust evidence base. It welcomes the Committee’s report, and sets out the positive case on public engagement and the Government’s approach to delivery.
The pathway to deliver the carbon budget targets through to the seventh carbon budget will be set out in a future delivery plan, to be published as soon as is reasonably practicable after the budget level has been set. This statutory sequencing recognises the time needed to develop and agree an ambitious and robust package of policies for meeting the target.
I welcome parliamentary scrutiny of the proposed level as an integral part of the democratic process for setting carbon budgets in accordance with the requirements of the Climate Change Act.
[HCWS75]
Oral Answers to Questions
Ed Miliband Excerpts(1 week, 1 day ago)
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Dame Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
The price cap increase announced last week as a result of the war in Iran was deeply concerning news for families in my hon. Friend’s constituency. Tackling the cost of living crisis is the Government’s top priority, which is why we have acted to take £150 of costs off bills in the coming years and expanded the warm home discount, and why we are accelerating the warm homes plan. We will do everything we can to help protect her constituents in the face of this fossil fuel price spike.
Dame Chi Onwurah
In the local elections, Reform told my constituents, who are worried about rising fuel bills, that drilling new wells in the North sea would bring down energy prices. Will the Secretary of State explain how long it would take for the oil to flow if we permitted drilling new wells tomorrow, who would benefit the most from that oil, and how that would bring down prices at the pumps or energy bills in Newcastle? Given that, I suspect, big oil companies would benefit the most, is he surprised that 70% of Reform’s funding comes from fuel investors?
Ed Miliband
My hon. Friend makes a very important point, and does so in her articulate way. The big choice that we in this House face is this: is the way out of a fossil fuel crisis to double down on fossil fuels, in a way that would make no difference to bills and prices, or is the answer to drive further and faster for clean energy, as this Government are doing? We have made our choice.
Dr Kieran Mullan (Bexhill and Battle) (Con)
Jacob Collier (Burton and Uttoxeter) (Lab)
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
The two renewables auctions under this Government have secured power for the equivalent of 23 million homes, and we are embarked on the biggest nuclear building programme for 50 years. The war in Iran shows that we need to go further and faster, so we will open our next renewables auction next month. We recently signed contracts for a fleet of Rolls-Royce small modular reactors. Clean power is already reducing wholesale electricity prices by up to a quarter, and those steps will do more to protect families and businesses across our country.
Mr Dhesi
For my Slough constituents, the crisis in Iran and the naval blockade have had a profound impact on household budgets, but we have also been left vulnerable by previous Conservative-led Governments who ran down our energy system for over a decade, leaving us on the fossil fuel rollercoaster and susceptible to global fluctuations. Unlike our Tory predecessors who failed to invest and did not provide for our constituents, what measures are the Government taking to invest in cheap, clean, home-grown energy so that my Slough constituents, and others across the country, can be protected from those spikes in the cost of living?
Ed Miliband
My hon. Friend is absolutely right. The central fact that we cannot get away from is that we are price takers not price makers when it comes to oil and gas, and that is the fundamental contradiction at the heart of where the Opposition are. We are going to drive further and faster on clean power, including electrification across the economy. Indeed, customers are already better protected as a result of the renewables in our system, but we must go further and faster.
Jacob Collier
The US-Israel war has pushed up prices for my constituents and is yet more evidence that we need to be energy self-sufficient with clean power, so I greatly welcome the £2.6 billion investment in Rolls-Royce for small modular reactors. That is great news for my constituents, as well as those in Derby and the wider region, and those reactors will help with Britain’s energy security. Will the Secretary of State say more about how GB Energy will invest in such projects?
Ed Miliband
My hon. Friend is absolutely right, and I was pleased to sign that contract with Rolls-Royce in the past few weeks. We are world leaders in small modular reactors and this is a massive innovation, not just for Britain but for the world. It is not just the jobs constructing the SMRs that are really important, but the jobs in the supply chain too. I look forward to working with my hon. Friend and Members across the House on ensuring that their constituents benefit from those good, well-paid jobs.
John Milne (Horsham) (LD)
To get the best out of intermittent energy producers such as wind and solar, we need to invest in battery energy storage systems. However, these face new safety challenges. The National Fire Chiefs Council recently issued guidance that understandably concentrates on firefighting techniques rather than design. The Minister has kindly met me in the past, but will he agree to a further meeting to specifically address the unmet needs in national construction standards?
Ed Miliband
The hon. Gentleman raises an important point. I know that the Energy Minister has met him and the National Fire Chiefs Council to discuss this issue. We take the safety of battery technology incredibly seriously, and I am sure that the Energy Minister will be happy to meet him again for further discussions.
Robert Jenrick (Newark) (Reform)
The Government say that less than 1% of the countryside will be covered in solar farms, but if the 7,000-acre Great North Road scheme, which is now before the Secretary of State, the 2,000-acre Steeple scheme, which is also now before the Secretary of State, and the 4,000-acre One Earth scheme, which will be before the Secretary of State shortly, are all approved, almost 10% of the land mass of my constituency—one of the most rural and largest in England—will be covered in solar farms, with good-quality agricultural land in Nottinghamshire and Lincolnshire lost. How on earth is that fair to local communities?
Ed Miliband
For reasons that the right hon. Gentleman will understand, I am not going to comment on individual planning decisions, because they have to go through the proper process, but I say to him that solar is the cheapest, cleanest form of power that we have. We can decide to bury our heads in the sand and stay on the fossil fuel rollercoaster, but the people who will pay for it are his constituents, because they are paying for it now in higher energy Bills. This Labour Government will keep going with the drive for clean power.
Olly Glover (Didcot and Wantage) (LD)
Adam Dance (Yeovil) (LD)
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
Today we have set out our proposal for the seventh carbon budget, as new research from CBI Economics shows that over a million workers are now supported by the UK’s net zero economy. This comes after 2025 set a new record for solar generation, and we have already set a new record in 2026 for offshore wind generation. We are taking these steps because they are the right choice for energy security, and for investment in good jobs and growth, and because it is the right thing to do for future generations and to prevent climate breakdown.
Adam Dance
Red diesel costs have rocketed from 78p a litre on 26 February to around 98p a litre now. For Nick, who farms in South Petherton, price rises mean an extra £7,000 per week cost that he basically has to take on the chin. Can the Secretary of State tell Yeovil farmers what steps he is taking to support them with the cost of red diesel?
Ed Miliband
We take this issue incredibly seriously, and we are talking to the Competition and Markets Authority to make sure that the pricing is fair. We continue to monitor this, and to look at what further action may be necessary.
Euan Stainbank (Falkirk) (Lab)
Claire Coutinho (East Surrey) (Con)
I would like to offer my condolences to the Secretary of State on the death of his mother. It is clear that she was a remarkable woman, clearly much loved by her family.
I have a yes-or-no question for the Secretary of State: can he guarantee that not a single solar panel put on a British primary school by his Government has been produced by Chinese slave labour?
Ed Miliband
First, I thank the shadow Secretary of State for her kind words about my mum. If you will allow me to say so, Mr Speaker, I feel incredibly sad to have lost her, but very lucky to have had 56 years with an amazing mum, who taught me values of kindness, warmth, love and justice. It is a reminder to me of what really matters most in our lives. I sincerely thank the shadow Secretary of State for the message she sent me.
On the question about the use of forced labour, we take this incredibly seriously. We inherited a regime from the last Government, which we applied in the early stages of what GB Energy was doing, but the shadow Secretary of State will know that, through the passage of the Great British Energy Bill, we have strengthened GB Energy’s commitment to this. Frances O’Grady is now the champion of dealing with slave labour. I can absolutely assure the shadow Secretary of State that we will do everything we can to prevent the use of forced labour.
Claire Coutinho
Well, there were words there, but there was no guarantee, so let me just remind the House that the Secretary of State has sold his entire agenda as being one of providing moral leadership to the rest of the world, but there is no moral leadership in sending British children to schools powered by Chinese slaves.
On 2 May, our electricity grid almost breached its frequency limit. That has the potential to cause nationwide blackouts. The Secretary of State’s plans are making it harder and harder to balance the grid—there is no denying that—so can he confirm who is legally accountable if we have a blackout, thanks to grid instability, and what repercussions would that person face?
Ed Miliband
I am afraid that the shadow Secretary of State is indulging in the worst sort of scaremongering to justify her anti-clean-energy agenda. It is incredibly sad what has happened to her. She used to believe in clean energy. Today, a report comes out from CBI Economics, showing 1 million jobs in net zero, and what does she do? She starts quibbling about the small print, and saying that the report does not represent the views of CBI, when the CBI chief economist is actually advocating for clean energy.
Daniel Francis (Bexleyheath and Crayford) (Lab)
Dr Ben Spencer (Runnymede and Weybridge) (Con)
Ed Miliband
Tony Blair has lots of interesting views. I am actually old enough to remember when Tony Blair was a great advocate of climate leadership in this country. Fundamentally, this Government and I believe that unless we get off the fossil-fuel rollercoaster—I think all Members have to confront this—we will never get the energy security and lower bills that all our constituents want.
Alex McIntyre (Gloucester) (Lab)
The River Severn holds incredible potential for tidal energy, with the Severn Estuary Commission finding that it has the potential to generate up to 7% of the UK’s electricity. Will my right hon. Friend meet me to discuss how the Government plan to take that forward, and how we can ensure that some of the resulting good-quality green jobs come to Gloucester?
Tom Hayes (Bournemouth East) (Lab)
Had the 8.3 GW of offshore wind secured at the start of this year through allocation round 7 been in place last year, we would have seen gas generation cut by a third, and wholesale prices down by 13%. It is clear that we have to double down on the clean energy revolution. We cannot be distracted by yet more fossil fuel work. Will the Secretary of State outline how we will push forward the clean energy transition, and offshore wind in particular?
Ed Miliband
My hon. Friend makes a really important point. If I might actually praise the previous Government, some of what they did on renewables has helped to reduce wholesale costs. The problem is that the Conservatives have now abandoned their position. My hon. Friend is absolutely right: the only answer to the crisis we face is to go further, faster, on getting off fossil fuels and on to clean power.
Robin Swann (South Antrim) (UUP)
Northern Ireland is home to some innovative carbon capture businesses with real export potential, but many UK clean technologies face a gap between successful pilot innovation and that first commercial deployment. What steps are the Government taking to ensure that high-value opportunities can be scaled, thereby supporting jobs, investment and growth? Will the Secretary of State accept an invitation to visit Nuada?
Jenny Riddell-Carpenter (Suffolk Coastal) (Lab)
The Secretary of State just praised the previous Government’s role in rolling out renewables, but what they did not do is seek to co-ordinate energy projects, in particular nationally significant infrastructure projects. In Suffolk Coastal, that is a huge issue, and one that I have raised at length and continually with the Minister. Will the Secretary of State meet me to talk about what we can do to seek better co-ordination, including introducing an energy levy to enforce co-ordination?
Ed Miliband
My hon. Friend raises an important point. The strategic spatial energy plan, which will be coming out later this year, is designed precisely to ensure the kind of co-ordination that she is after. I am very happy to meet her to talk about it.
Ben Obese-Jecty (Huntingdon) (Con)
By now, the Secretary of State will be well aware of my opposition to the 1,900 acre East Park Energy solar farm in my constituency. We are now at the business end of the planning process; the application is before the Planning Inspectorate, ahead of a decision by the Secretary of State later this year. Will he outline roughly when he expects to have to take a decision on the application? Ahead of that, will he meet me and my hon. Friend the Member for North Bedfordshire (Richard Fuller) to discuss our concern that it is not the right solution for our area and our constituents?
Richard Tice (Boston and Skegness) (Reform)
Once again, those on the Government Front Bench have inadvertently misled the House in saying that there is a single price internationally for gas—gas is 80% cheaper in the US than it is here in the UK. When will the Secretary of State grant oil and gas licences in Jackdaw, Rosebank and other fields in the North sea to increase supply and bring down bills?
Ed Miliband
No matter how many times I tell the hon. Gentleman, he does not seem to get it: we are price takers, not price makers. Even the Conservatives, who want to drill every last drop, do not claim that that would reduce bills. The truth is, he said he would— [Interruption.] If the hon. Gentleman calms down for a minute, he will hear my answer. He said he would wage war on clean energy—that is waging war on jobs across our country and on energy security.
Mr Jonathan Brash (Hartlepool) (Lab)
Today, X-energy and Centrica’s proposals for advanced modular reactors at Hartlepool reached another major milestone with the submission of an application for a generic design assessment. Given the importance of retaining Hartlepool’s world-class nuclear workforce and ensuring that there is no cliff edge when the existing power station approaches the end of its operational life, will the Minister reassure me that every effort will be made to maintain the outstanding momentum to build this project and, wherever possible, to accelerate progress?
Ed Miliband
I am incredibly excited about this project between X-energy and Centrica—I have met both to talk about it. It is part of this Government overseeing the biggest nuclear building programme in half a century, and that is absolutely part of the clean power mission.
Mr Andrew Snowden (Fylde) (Con)
I thank the Secretary of State for not approving the Morgan and Morecambe wind farm cable corridor and for deferring the decision for six months for further consultation. I know how much he wants to achieve his target, so I know how difficult that decision will have been. Together with cross-party local councils, I have written to him to articulate the available alternative routes. Will he use these six months to consider those alternatives?
Mr Speaker
Order. Come on, you’re not playing the game at all. I call the Minister.
Ed Miliband
The right hon. Gentleman and I go back a long way, so I thought I would answer this one. It is important to look at the whole context of carbon emissions in projects, but if he shares our desire to reduce carbon emissions, renewable energy and nuclear energy are the right way forward.
Suella Braverman (Fareham and Waterlooville) (Reform)
I, too, offer my condolences to the Secretary of State.
The Secretary of State will be familiar with the Russian-backed AQUIND application for a submarine interconnector that will cut through Portsmouth naval dockyard, affecting my constituency, and go on to France. The Ministry of Defence has raised national security concerns. We have been waiting over a year for a decision from the Secretary of State on the application. When will he issue one?
Ed Miliband
I thank the right hon. Lady for her kind words about my mum. Unfortunately, I cannot comment on the progress of planning applications, as she will know, but I will definitely pass on her comments to my Department.
Energy Security
Ed Miliband Excerpts(3 weeks, 1 day ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
It is a privilege to speak in support of this Gracious Speech. This debate takes place in the shadow of the second fossil fuel shock in four years. Families and businesses across the country are deeply concerned about the impact of the Iran war on the cost of living—a war which this country did not start and this Government chose not to join, but which is having significant effects here at home, just like when Russia invaded Ukraine in 2022 and energy bills rocketed, and the British people and firms paid the price.
The argument at the heart of this Gracious Speech is that there is one overriding lesson of these two crises: while we remain exposed to the fossil fuel rollercoaster, we are deeply vulnerable as a country. Our sovereignty, our security and the British people’s living standards are undermined by this dependence and exposure, for a simple reason: we do not control the price of oil and gas, which is set on international markets. It is different from what it was like in the 1970s when we had fossil fuel shocks. There is an answer staring us in the face: energy independence through clean home-grown power that we control—clean home-grown energy that comes from our own wind, sun and nuclear resources that cannot be disrupted by foreign wars, that cannot be controlled by the whims of petrostates and dictators, and that means that our national security and energy security cannot be held hostage.
One commentator put it incredibly well in 2023, after Russia invaded Ukraine:
“Moving to home-based, clean power mitigates risks to bill payers, now and in the future”,
protecting consumers from
“volatility in international fossil fuel markets.”—[Official Report, 16 November 2023; Vol. 740, c. 53-54WS.]
I agree with that commentator—it was the right hon. Member for East Surrey (Claire Coutinho), the shadow Energy Secretary, in Hansard on 16 November 2023. I agree with her. The problem is that she no longer agrees with herself. Where the evidence says we need more renewables, not less, she opposes them. Where the evidence says we should electrify as much as we can, she says we should abandon support for people to get heat pumps. Where the evidence says electric vehicles can protect consumers, she opposes action for their take-up—not because the facts have changed, not because the evidence has changed, but because she has jumped on the anti-clean energy, anti-net zero bandwagon. I am very happy to give way to her, so that she can tell the House whether she agrees with herself.
Claire Coutinho
I will very happily ask the Secretary of State the question—[Interruption.] Well, he said he would happily give way; he does not look so happy now. In government, I started work on the true costing of renewables, because the Department does not have an accurate costing of energy—it does not have an accurate costing of clean power 2030. Why has he not published one?
Ed Miliband
It was not worth giving way after all. The shadow Secretary of State cannot answer the question.
Ed Miliband
I will not give way. [Interruption.] I will later on.
What a sorry state of affairs: the shadow Secretary of State cannot even agree with herself. There was a gaping contradiction at the heart of the shadow Secretary of State’s speech just now. For all the verbiage—for everything she said—she has no answer to the crisis before us, because even she cannot seriously believe what she is putting forward. The idea that new exploration licences for oil and gas will solve our energy security challenges is obviously nonsense. According to the National Energy System Operator, new licences will make no material difference to capacity and therefore security of supply. Nor will new drilling take a single penny off bills. Members should not take my word for it. When asked if new oil and gas would cut bills, the shadow Secretary of State said new licences
“wouldn’t necessarily bring energy bills down, that’s not what we’re saying.”
Several hon. Members rose—
Ed Miliband
I will not give way for a minute.
The shadow Secretary of State comes to the House with a plan which will not take a penny off bills, which will not give us energy security and which rejects the things she used to believe.
Ed Miliband
I am not going to give way again.
This is the difference with Labour: we are learning the lessons of the fossil fuel crises we face, and we are acting.
Dave Doogan
I am grateful to the Secretary of State for giving way. He is accused of being messianic in his approach to proscribing new oil and gas licences in the North sea. If it can be demonstrated that UK consumption of oil and gas is not falling at a rate that is equal to, or faster than, the rate of production in the United Kingdom, will he release his screeching U-turn on new oil and gas licences in the North sea?
Ed Miliband
The SNP has had more positions on this than the Kama Sutra, so it is genuinely hard to keep up. We have a very simple position: we want to keep existing oil and gas fields open for their lifetime. One of the things that the energy independence Bill will do is introduce transitional energy certificates—so-called tiebacks—which is what industry has called for. We are not in favour of a “turning off the taps” position, but I will be honest with the House: nor are we in favour of a “drilling every last drop” position.
Ed Miliband
Because if we did that, we would end up in climate disaster. That is the truth.
Ed Miliband
I am not going to give way.
Don’t take my word for it. This is what the Energy Transitions Commission, which includes energy companies, says:
“Any national strategy which assumes that all fossil fuel reserves must be exploited is incompatible with limiting global warming to safe levels”.
The truth is that new licences are totally marginal to the North sea.
Ed Miliband
I am going to make some progress, and then I will give way.
For nearly two years, we have been moving at speed on our mission to make Britain a clean energy superpower. We came to office amid a legacy of the irrational onshore wind ban; the fiasco of the allocation round 5 auction, with no offshore wind secured; and years of dither and delay on nuclear—the shadow Secretary of State amused me on nuclear, and I will come to that in a second. The Conservative Government left us exposed through 14 years of neglect, and we are clearing up their mess.
In less than two years—opposed every step of the way by the Conservative party—we have secured enough clean energy for the equivalent of 23 million homes through two record-breaking renewables auctions, but the lesson of these two fossil fuel crises is that we need to go further and faster.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
Will the Secretary of State give way?
Ed Miliband
I will make a bit more progress.
That is why we have already brought forward our next renewables auction and taken steps to fast-track the roll-out of renewables on public land. But renewables are only part of the story, and I want to come to nuclear, because this is going to be fun. Those drafting the Opposition amendment obviously have a real sense of humour. Here is the truth about their record. They promised a final investment decision on Sizewell C in the last Parliament and did not deliver. They promised SMRs and never delivered. They promised fusion and never delivered. We have delivered them all, and they have the cheek to complain when we are delivering the biggest nuclear building programme in half a century—delivered by this Labour Government.
I should welcome the fact that the shadow Secretary of State supports our nuclear regulation Bill, but I am bound to ask: why did her party not do it? Was it incompetence, idleness, ideology or a combination of all three? There is always a great quote from the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) that we can read out. This is what he said following the last general election: “After 14 years of Conservative Government, we are now in a position where it’s more difficult to build critical infrastructure than it was when we came into power”. It is a Labour Government clearing up their mess.
Mr Jonathan Brash (Hartlepool) (Lab)
Included in that list of achievements is the £12 billion deal signed last September to bring new nuclear to Hartlepool, making Hartlepool one of the biggest clean energy economies in this country. Does the Secretary of State agree that as we secure energy security, we must also secure economic security for those parts of the country that are left behind?
Ed Miliband
My hon. Friend is absolutely right, and this is what is so exciting. Contrary to what the shadow Energy Secretary said, we are seeing a renaissance of nuclear in this country, and not just through the Rolls-Royce programme—although we were very pleased to sign the agreement with Rolls-Royce alongside the Chancellor recently; there are also other routes to markets. We are very encouraging of the efforts of my hon. Friend, and others.
Ed Miliband
I will give way to the right hon. Gentleman, because he and I go back a long way.
Sir John Hayes
The Secretary of State and I do go back a long way, and we agree, actually, about the crisis of capitalism, in terms of the sacrifice of domestic production for imports; he and I have lot in common in that regard. He will understand that the economic uncertainty he describes and the need for greater national economic resilience applies to food too, so—while accepting that we should put solar on buildings and have offshore wind—surely he understands that by putting solar plants at scale on the most productive farmland, which is needed to deliver food security, his argument about economic resilience falls flat. Will he look at that again? There is a middle way. He and I do indeed go back a long way, so for heaven’s sake let’s compromise.
Ed Miliband
Well, we may agree on some things, but not on this. I have great respect for the right hon. Gentleman, so let me say this. Even the most ambitious plans for solar involve less than 1% of agricultural land—something like 0.6%. I say to Conservative Members that it is somewhat irrational that in relation to nuclear, they want to be builders not blockers, but in relation to everything else, they want to be blockers not builders. If we support the nuclear power plant, we have got to support the grid to connect that nuclear power plant. If we want to get away, as the right hon. Gentleman says he does, from our dependence on international fossil fuel markets, we need to support the cheapest, cleanest form of power, which is solar power. What an array of choices.
Jim Shannon
I want to see nuclear power in Northern Ireland, although unfortunately that is down to the Northern Ireland Assembly and it looks like there might be some obstacles. I welcome the Secretary of State’s commitment to tidal power, battery storage and green hydrogen. He has always been keen to ensure that Northern Ireland can also be part of the growth that is coming from here. Will he give Northern Ireland some encouragement that when it comes to moving forward with green energy, we are part of that plan across this United Kingdom of Great Britain and Northern Ireland?
Ed Miliband
I am always happy to work with the hon. Gentleman, for whom I have great respect, as are my team of Ministers.
Mr Perkins
The shadow Secretary of State did not take my second intervention when I attempted to get an answer from her. We know that Conservative Members propose to get rid of the energy profits levy, costing the Government about £12 billion, and they want to get rid of VAT, costing about £5 billion or £6 billion. We know they have a plan for oil or gas that might be here in four or 10 years, although it is owned by somebody else, and they believe they will use that collection of policies to reduce people’s energy prices. Does my right hon. Friend see any credibility in the plans from Conservative Members that he can share with us, because we have not heard it from them?
Ed Miliband
My hon. Friend makes his point incredibly well, and I do want to say something about renewables before I move on. At the time of the AR7 auction, the right hon. Member for East Surrey said that we should cancel that auction. As I said, that auction secured power for the equivalent of 16 million homes—[Interruption.] Perhaps Opposition Members could listen for a second. That included offshore wind at prices that are 40% cheaper to build and operate than new gas. At the time, the right hon. Lady shouted out from a sedentary position “Gas is falling!”, as a justification for her position—[Interruption.] She did say that. Today, the gas price is around 50% higher than it was then.
There is a really important point here: there can be no clearer demonstration of the gamble that Conservative Members wanted us to take. What a terrible call; what a foolish position. We are at a time of the greatest geopolitical instability in generations. Anyone who would rationally learn the lessons from when Russia invaded Ukraine would say, “We cannot gamble on low fossil fuel prices, because this is what happens.”
Ed Miliband
I am going to make some progress. By contrast, we stand for national security through energy security and energy independence.
How we protect consumers is very important. My right hon. Friend the Chancellor showed at the Budget last year that she took decisions to raise taxes, including on the wealthiest, so that we could cut bills for everyone, and we saw that happen in April. The Gracious Speech also includes legislation to raise the rate of the electricity generator levy from 45% to 55%, as part of our plan to break the link between electricity and gas prices, and act on the excess profits that arise from that link. We are also making a big call: keeping in place the windfall tax on oil and gas profits during this conflict. In the last few weeks, we have seen profits from major oil and gas companies soar.
Ed Miliband
No, I am not going to give way. These are unearned profits as a result of the war.
Ed Miliband
I will just make a bit of progress. We say tax those profits to help the British people.
Ed Miliband
No, I am not giving way. The energy profits levy has raised £12 billion since it was introduced in 2022.
Several hon. Members rose—
Ed Miliband
I am not giving way, no. Let me quote the right hon. Member for Richmond and Northallerton (Rishi Sunak), the former Prime Minister, who was the Chancellor at the time. These are not my words—this is not Red Ed; it’s Red Rishi! He said:
“The oil and gas sector is making extraordinary profits, not as the result of recent changes to risk taking or innovation or efficiency, but as the result of surging…commodity prices,”—[Official Report, 26 May 2022; Vol. 715, c. 450.]
He was right.
Ed Miliband
No, I am not giving way.
At this moment, what have the official Opposition, alongside the SNP, decided to call for? They have called for the Government to dump that policy. Let us get this straight: at the precise moment that the British people struggle with the effects of the war, those parties say that the priority with scarce resources is to cut taxes for the largest oil and gas companies making record profits. Let us be clear: no amount of false accounting or fuzzy maths can hide the facts about the idea of cutting these taxes at this moment of windfall profits to improve revenues.
Harriet Cross
I thank the Secretary of State for giving way. Just so that no one is under any false interpretation of what that tax does and how it works, does the Secretary of State understand that the tax does not apply to trading nor to overseas production? It is on production from the North sea, which is not where those profits are being made, is it?
Ed Miliband
The hon. Lady obviously does not understand that prices are going up, including from the North sea. Let us look at the amount that the tax raises. According to the Office for Budget Responsibility, even before this crisis the windfall tax was forecast to raise £5 billion by September 2027. Conservative Members—the official Opposition—have to explain: where is the money going to come from, then? They are going to cut that tax of £5 billion for the biggest oil and gas companies. By contrast, we believe that we should tax fairly and use the resources to help the British people.
Ed Miliband
I am not going to give way as I need to finish soon.
The energy independence Bill will legislate to help deliver the biggest investment in home upgrades in British history through our £15 billion warm homes plan. As part of this, we will act to help private renters. This is important, because it is about how we make sure that, in the drive to clean power, we help everybody in our society. It is a scandal that 1.6 million children living in private rented homes are suffering from cold, damp or mould, according to Citizens Advice. We say it is time to act. Minimum energy efficiency standards for renters were promised by the previous Government, then scrapped. The energy independence Bill will legislate for them by cutting bills for renters, and lifting 400,000 families out of fuel poverty by 2030.
Part of this goes to the question asked by the hon. Member for Strangford (Jim Shannon), who is no longer in his place. We believe that the drive for energy independence can deliver for workers and communities. We are already seeing the jobs that clean energy is creating across the country: 11,000 more workers in nuclear, according to the industry’s latest estimates, 8,000 more in offshore wind, with thousands more upgrading the grid, on the way to 400,000 extra clean energy jobs by 2030, and £90 billion of private investment announced since the election.
Ed Miliband
I am not going to give way.
We want to ensure that those jobs are good jobs, so we will amend employment rights legislation, as part of the energy independence Bill, to enable us to bring the rights of offshore renewables workers in line with those working in oil and gas. It is by driving forward in clean energy that we have the best chance of a fair transition in the North sea. Some 70,000 jobs were lost in less than a decade under the last Government. We are determined to lead the world in industries such as offshore wind, hydrogen and carbon capture, and we will continue to use North sea oil and gas for decades to come by keeping existing fields open for their lifetime. That is why the energy independence Bill will legislate to introduce transitional energy certificates, something the industry has welcomed. I also say to Reform Members that we look forward to debating their plans for fracking during the debate on the EIB, because fracking will make no difference to bills. It is dangerous and roundly opposed by local communities, and we will act on it.
Lizzi Collinge
Part of my constituency is in Lancashire, where fracking testing took place. We suffered earth tremors as a result. Does the Secretary of State agree that the British people do not want fracking in our communities, and do not want the risks that we saw in Lancashire?
Ed Miliband
My hon. Friend puts it well. There is something ironic about the fact that Reform says nationally that it wants fracking, but its representatives in Scarborough and Lancashire seem to say that they are against it. From now until the general election, we are going to be asking where Reform candidates stand: is it with their local community, or is it with the fracking industry?
Ed Miliband
No.
I have set out the approach to energy security that underpins this Gracious Speech. Above all, we will learn the lessons of the fossil fuel crises of our age. We will build our energy independence, tackle the affordability crisis, deliver good jobs and investment in our communities, and make the right decisions for today’s generation and future generations. I commend the Gracious Speech to the House.
Several hon. Members rose—
Clean Power
Ed Miliband Excerpts(1 month, 2 weeks ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
As the world faces the second fossil fuel shock in less than five years, the lesson for Britain is that exposure to volatile international fossil fuel markets cannot give us the energy security we need. For Britain and many other countries, clean energy is the only route to financial security, energy security and national security. That is why today the Government are setting out how in response to this crisis we will double down on our mission for clean energy.
First, we will speed up our drive for clean home-grown power that we control. In less than two years, we have secured enough clean, home-grown power for the equivalent of 23 million homes through two record-breaking renewables auctions, invested in the biggest nuclear building programme in half a century, and broken down the barriers in the way of building, from planning reform to fixing the grid connections queue.
In response to this conflict, we have already announced that we will bring our next renewables auction forward to July. Today we go further. We will intensify efforts to build renewables on public land with a cross-Government sprint to identify opportunities and actively bring projects forward. My Department will work hand in hand with public land owners and managers, such as the Ministry of Defence, Network Rail and Forestry England, as well as Great British Energy, to harness untapped public assets, from railway warehouses to unused brownfield sites, to significantly expand the pipeline of renewables. This could unlock up to 10GW of capacity even using only a fraction of Government land, powering the equivalent of around 5 million homes.
We will also step up our work to get critical clean energy projects built across the board. This includes accelerating vital grid infrastructure with a package of reforms from land access rules to networks consenting, as well as plans to extend permitted development rights and expand self-build for grid connections.
Secondly, we are also accelerating our efforts to drive electrification across the economy. We will support the British people to access technologies such as solar, batteries, heat pumps and electric vehicles, which can help shield them from fossil fuel shocks, ensuring that everyone, not just the richest in our society, can see the benefits.
We will accelerate our £15 billion warm homes plan wherever we can to protect families before next winter. That starts today with bringing forward £100 million of funding, in addition to existing plans, as we upgrade tens of thousands more social homes this year. We will also support families and small businesses who use heating oil and liquefied petroleum gas, who have been particularly exposed to rising prices, by increasing heat pump grants available to them to £9,000 this financial year.
Following our announcement that we will bring plug-in solar to shops in the UK, we have earmarked £25 million with a view to piloting support for low-income families for plug-in solar and a vision of a house-by-house, street-by-street roll-out. We will make it easier than ever for families and businesses to adopt these technologies, including removing barriers to on-street electric vehicle charging, which will particularly help those living in flats and those without a driveway.
Today we also announce that Great British Energy will put solar on the roofs of 100 more schools and colleges, in addition to the 250 schools and 260 NHS sites already confirmed, to cut their bills and save money that can be reinvested in public services.
Thirdly, these measures come alongside decisive action to break the link between gas and electricity prices, so that families and businesses see the benefits of the clean power we are building.
We have already moved from gas setting the price of electricity around 90% of the time in the early 2020s, to around 60% today. Thanks to our mission, we estimate that gas will set the wholesale price around half of the time by 2030. By building clean power, we are expanding the proportion of generation on long-term fixed price contracts from around 20% today to over 60% by 2030, which is crucial because for those generators it breaks the link with volatile gas.
Today the Chancellor and I set out decisive action to go further. From next year we will seek to transfer legacy low-carbon generators, which supply about a third of our power today, on to fixed-price contracts that deliver value for money for consumers. This will be a voluntary decision for those generators. Alongside this, the Chancellor has today announced changes to the electricity generator levy that will change the economic incentives for generators to move on to these fixed contracts.
Together, these measures will accelerate the delinking of gas and electricity prices: increased revenues mean we can support businesses and households with the impacts of the conflict in the middle east on the cost of living.
Alongside these steps, we are also publishing our reformed national pricing delivery plan, which will ensure that families businesses benefit from a cheaper and more efficient energy system.
This package of measures represents a significant acceleration of our mission to take back control of Britain s energy, so that we can protect the British people from this and future fossil fuel shocks and bring down bills for good.
[HCWS1530]
Solar and Wind: Bills and Clean Energy
Ed Miliband Excerpts(2 months, 2 weeks ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
Today the Government are announcing a package of clean energy measures, making solar panels more accessible and trialling a new way to deliver discounted power from wind. These measures will help to cut energy bills, reduce carbon emissions, and support energy security by making the UK less reliant on imported fossil fuels.
First, we are driving to make plug-in solar panels available to buy in the UK within months. These panels are cheaper than traditional rooftop solar panels and do not require professional installation, making solar power a more accessible option for flat owners and renters.
Secondly, the Government are publishing the future homes standard, which will include solar panels on new houses in England by default. The future homes standard will also see homes built with low-carbon heating such as heat pumps and heat networks.
Thirdly, we are committing to consult on changes to the smart export guarantee. This will look at how we can make it quicker and simpler for households and businesses to get paid for the electricity they export to the grid, and to get the best value from their clean power.
Fourthly, the Government are publishing a call for evidence on their £5 billion warm homes fund, which was announced in the warm homes plan earlier this year. The warm homes fund includes £1.7 billion for a new consumer loans scheme to support home upgrades including installation of solar panels. This call for evidence will explore options for using the remaining £3.3 billion, and includes solar as a key area of focus.
Finally, a new trial offering discounted power for households and businesses in constrained areas near wind turbines—expected predominantly in Scotland and the east of England—will begin this winter. Wind farms are currently paid to switch off their turbines when there is not enough capacity on the grid to transport wind generation to where demand is. This trial will instead allow companies to offer this “wasted wind” cheaply or for free to consumers of participating energy suppliers or flexibility service providers who live or operate their business in grid constrained areas when it is cheaper than turning off turbines. The trial will be funded by up to £20 million and delivered jointly by UK Research and Innovation and the Department for Energy Security and Net Zero. It will invite energy suppliers and other flexibility service providers to put forward offers for consumers that deliver discounted power.
Measures will be brought forward when parliamentary time allows to enable the Government to make this change permanently based on the results of the trial. This legislation will allow final consumption levies, which are policy costs that consumers pay for through their bills, to be removed from energy usage by consumers near to wind turbines at times when they are generating abundant wind power that would otherwise need to be turned off.
Relying on imported fossil fuels puts our energy security at risk. We are addressing that through our clean energy superpower mission, and this package of measures is one example. We are building a future energy system that is both secure and clean while also ensuring consumers will save money on their energy bills by bolstering cheap renewable energy.
[HCWS1444]
Oral Answers to Questions
Ed Miliband Excerpts(2 months, 2 weeks ago)
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Peter Fortune (Bromley and Biggin Hill) (Con)
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
Families will be deeply concerned about the impacts they are facing as a result of the Iran conflict. This Government are determined to fight the people’s corner. As a result of actions in the Budget, the energy bill price cap will fall from next week and is guaranteed till the end of June. We have already provided £50 million of immediate support for vulnerable customers who use heating oil and will act to prevent unfair practices like price gouging. Above all, we will work to end this conflict, which is so essential and urgent for our national interest.
Sonia Kumar
Given that around one in five households in Dudley are in fuel poverty and that electricity levies fall disproportionately on low-income families, I welcome the Chancellor’s decision to remove some social and environmental levies from electricity bills. That has helped to shield some of my constituents from the impact of the war in the middle east. Does my right hon. Friend agree that rebalancing these levies can both support households and accelerate cleaner heating?
Ed Miliband
My hon. Friend is absolutely right about that. It is an important reassurance for understandably worried families that, from 1 April, the energy price cap will fall by £117 thanks to this Government’s actions. That happened not automatically, but because the Chancellor made decisions in the Budget to raise taxes on the wealthiest, which was opposed by the Conservative party. That decision is making possible that relief for families, including those in her constituency.
Liz Jarvis
Before Trump’s illegal war, we had Putin’s illegal war. Both have meant soaring energy bills for families and businesses in my constituency. Citizens Advice Eastleigh tells me that more than 2,000 households are in fuel poverty. Does the Secretary of State agree that, so long as the price of wholesale electricity is directly linked to volatile gas, we will be at mercy of despots and dictators, and that decoupling is essential if people in my constituency and across the UK are to have energy security?
Ed Miliband
The hon. Member is right about this country’s exposure to fossil fuels, and that is the legacy of the previous Government. I am incredibly proud to say that, as a result of our two record-breaking renewables auctions, we will power the equivalent of 23 million homes. She is also right to say that the decoupling of gas and electricity prices is an important issue, on which we are working intensively.
James Wild
Twenty thousand households across North West Norfolk and 140,000 across the county are off the gas grid and paying much higher prices for heating oil. Ministers are creating an expectation that support will be there for those who need it. What action will the Government take if Norfolk county council is unable to meet the demand and provide support through the crisis and resilience fund to those who are struggling?
Ed Miliband
The hon. Gentleman asks an important question. The reason why we decided to put the money into the crisis and resilience fund three weeks after this crisis began was to get the money out the door quickly. During the previous crisis, that took 200 days. He asks an important question about local authorities’ provision of support and also what happens if they do not have the funds. That is something on which we are working intensively, and we are keeping closely in touch with local authorities. We want the help to go to those who need it and we want to work with local authorities to make sure that that happens.
Charlie Dewhirst
The latest wind auction has signed us up to sky-high prices for the next 20 years, but Ministers are claiming that their internal analysis proves that this will bring down bills. Will the Secretary of State publish those calculations in full so that we can see exactly how prices will be lowered?
Ed Miliband
We published the levelised cost analysis, which showed that new renewables were much cheaper to build and operate. As gas prices are soaring across the world and hitting us here at home, the idea that the Conservative party still opposes our renewables auction, which gives us clean home-grown power on which we can rely, is absolutely nonsensical.
Wendy Morton
The Prime Minister stood on the steps of Downing Street and promised families that energy bills would fall by £300, yet, since the general election, bills have already gone up by £73 and are forecast to go up more. It is hardly surprising that my constituents do not believe a word that they hear from the Government. Will the Minister explain to me when families in my constituency will actually see that £300 saving delivered?
Ed Miliband
Families in the right hon. Lady’s constituency will see savings on their bills from next week thanks to the actions of this Government. She is wrong on her facts, because, if we look across 2025, we will see that bills were lower in real terms than in 2024. We remain absolutely committed to our manifesto commitment to cut bills by up to £300 by 2030.
Peter Fortune
The Secretary of State promised that Great British Energy would lead to a “mind-blowing” reduction in bills. Can he confirm how much the average family has saved as a result specifically of Great British Energy?
Ed Miliband
Public services across the country, including schools and hospitals—I hope this will come to the hon. Member’s constituency—are seeing reductions in their bills, and money is being transferred to the frontline. We on the Government Benches support those proposals. We support lower bills. As I said to the right hon. Member for Aldridge-Brownhills (Wendy Morton), he can look forward to his constituents having lower bills as a result of this Government’s actions.
Bill Esterson (Sefton Central) (Lab)
There are people who are saying that the way to bring down bills is to reach agreement with the oil and gas companies to charge less for gas in the North sea. Is not the problem with that argument that there is absolutely no way that those privately owned companies will agree—or that their shareholders will allow them to agree, to be more accurate—to a lower price than they can get elsewhere in the world?
Ed Miliband
My hon. Friend makes the really important, and relatively basic, point that gas is priced and sold on the international market. Whether it comes from the North sea or is imported, it is charged at the same price. And do not just take my word for it; when the shadow Energy Secretary was in post she said that more drilling would not necessarily lead to lower energy bills.
Ms Polly Billington (East Thanet) (Lab)
My right hon. Friend will be aware that this energy crisis offers the opportunity to shift further and faster on clean energy. Will he consider an energy social tariff linked to the warm homes plan to support those who are most exposed to the volatility of fossil fuel prices, not just those on benefits, but other vulnerable communities like the disabled?
Ed Miliband
My hon. Friend raises a really important point, and no doubt the Chancellor will cover this in her statement shortly. It is incredibly important that we protect the most vulnerable, particularly at this time. I am proud of the action we have taken to nearly double the number of people getting the warm home discount to 6 million people. This very important action will take another £150 off people’s bills, so in a sense, we have a form of a social tariff, but I assure my hon. Friend that we will keep looking at how we can expand that and help more families.
Catherine McKinnell (Newcastle upon Tyne North) (Lab)
I am pleased to chair the newly formed all-party parliamentary group for warm homes. Newcastle is leading the way with its hugely impactful warm homes local grant scheme run by Warmworks in conjunction with Newcastle city council. Does the Secretary of State agree that we need to see more of these locally led grant schemes, which are helping people to insulate their homes so that they can protect themselves from any incoming global insecurity that might affect their ability to heat their homes?
Ed Miliband
First, let me congratulate my hon. Friend’s council on its great work. The Government are putting hundreds of millions more this coming year into warm homes as part of our record-breaking investment. I hope we can agree across the House that investing in home upgrades is a way to not just have more energy efficiency but cut people’s bills. We are committed to going as far and as fast as we can.
Mike Reader (Northampton South) (Lab)
Does the Secretary of State share my concern, or dismay, perhaps, that at a time when families are concerned about the cost of energy and the price at the pumps, the Conservatives have become obsessed with oil and gas licensing and not taking any action at all to reduce bills?
Ed Miliband
My hon. Friend makes a really important point. The Conservatives come here month after month making the same argument about something that will not reduce bills by a single penny. It was they who said that during the last crisis and when they were in government. This Labour Government are about reducing people’s energy bills, which is the priority of the British people.
Claire Coutinho (East Surrey) (Con)
This Government are taxing people up the wazoo and piling cost after cost on to their energy bills. People on £30,000 or £40,000 a year, who are not well off, are being hammered to pay for welfare when they are already working all hours to support their own families. Now we hear that the Government are about to go back to the taxpayer again to subsidise those on welfare, but their first port of call should be to adopt our cheap power plan. It would cut electricity bills by 20% for everybody by cutting green taxes and levies, and it would not cost the taxpayer a penny. Why will they not do that?
Ed Miliband
The Conservatives’ plan is totally incredible, and the shadow Secretary of State knows it. Their plan on renewables is just to tear up the contracts. They had 14 years to do it, and they did not do it. Why? Because they know that they cannot. I have to say, it is quite extraordinary that her position is now to abolish the windfall tax, which has raised £12 billion since it was introduced in 2022. The difference between us and them is that we are willing to tax the oil and gas companies to help ordinary families.
Gideon Amos (Taunton and Wellington) (LD)
Despite solar and wind being freely available, only 15% of renewables are subject to contracts for difference, which effectively control prices. Given that the conflict in the middle east is set to add up to £300 to bills, is it not time that the Government addressed this Trump tax by transferring all renewables on to contracts for difference, as part of the Liberal Democrat’s plan to halve energy bills?
Ed Miliband
We are driving forward with contracts for difference, and we are looking at that proposal. On the hon. Gentleman’s more general point, though, he is absolutely right that rolling out renewables at speed—solar, wind, all types of renewables—is the best way to insulate ourselves from global economic shocks. That is a point that we have consistently made, which sadly is being borne out by the events we see around the world.
Gideon Amos
As a former member of the zero carbon homes task force, I well remember the Conservatives cancelling the zero carbon homes programme—presumably they want homes to be colder, more difficult to heat and more expensive. The Liberal Democrats welcome the enactment today of the requirement for solar panels on all new homes, as proposed by my hon. Friend the Member for Cheltenham (Max Wilkinson). My constituents Jan and Jeanette of the Campaign to Protect Rural England Somerset have pointed out that were that extended to car parks and commercial buildings, that would generate as much electricity as 15 Hinkley Point power stations. Will the Secretary of State extend the solar panels requirement to car parks and commercial buildings?
Ed Miliband
First, I accept the hon. Member’s congratulations on our announcement of the future homes standards today, which are a really important measure—they should never have been abolished by the last Conservative Government. On warehouses and car parks—particularly on the warehouse question—we are looking at how we can roll that out more swiftly. There is so much unused space that could be used to help cut bills right across the country.
Jo White (Bassetlaw) (Lab)
Chris Murray (Edinburgh East and Musselburgh) (Lab)
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
The UK benefits from a strong and diverse energy supply, with only 1% of our crude oil and gas coming from the Gulf, but the essential lesson of this conflict is that while we are dependent on fossil fuel markets, we are exposed as a country, because prices for oil and gas, wherever it comes from, are set on the international market, affecting families and businesses. For our energy security, the answer must be to go further and faster towards home-grown clean power that we control.
Chris Murray
Our energy security is so exposed to events in the middle east because we have relied on oil and gas for too long. Not only do fossil fuels cause climate change, but we buy them on the open market, so no further drilling in the North sea would help to mitigate prices. The only true path to energy security is through renewables and nuclear, so can the Secretary of State set out how this country will do that, so that in future energy crises our country’s security is less exposed?
Ed Miliband
The North sea will continue to play an important role in our energy mix for decades to come, which is why we said in our manifesto that we will keep existing oil and gas fields open for their lifetime, including, as we announced last autumn, the use of so-called tiebacks. My hon. Friend is absolutely right in the wider point he makes. That is why we have the largest nuclear building programme in half a century, it is why we have had two record-breaking renewables auctions, and it is why we recently announced that we will bring forward our next renewables auction to July, because we need to get away from our dependence on fossil fuel markets as soon as possible.
Esther McVey (Tatton) (Con)
Given the recent jump in the price of oil, would it not be good for the UK economy, jobs and the Government’s tax receipts to maximise drilling for North sea oil, as Norway does, rather than phasing it out and closing those sites down because of this Government’s, and in particular the Secretary of State’s, left-wing dogma?
Ed Miliband
I disagree with the right hon. Lady on that one. As I said in answer to my hon. Friend the Member for Edinburgh East and Musselburgh (Chris Murray), we are going to use existing North sea oil and gas fields for their lifetime. I think the right hon. Lady is referring to the question of exploration licences. What everybody says is that exploration licences make no material difference to production levels. On the tax question, I hope she will carry on supporting the windfall tax and will tell her Front Benchers that this would be the wrong time to abolish it.
Perran Moon (Camborne and Redruth) (Lab)
I do not think I have ever been called an extreme left winger, but there is always a first time. In rural and coastal Britain there is deep worry among families about the effect of the conflict in the middle east on oil prices. We welcome the £53 million that has been announced to support them, but does the Secretary of State agree that those calling for an expansion of our reliance on oil and gas wholesale prices offer absolutely no long-term solution to energy security?
Ed Miliband
My hon. Friend is right. Those people offer no short-term or long-term solution to the problems of energy security, and they want to fly in the face of all the evidence. As I have said before, it was the last Government who said that more UK production of North sea oil and gas would make no difference to the global price of gas, and it is important that the House understands that.
Richard Tice (Boston and Skegness) (Reform)
The Secretary of State has just misled the House—inadvertently, I am sure. Can he explain why the price of gas in the United States is about a third of the price of gas in the UK? It is because the Americans use it domestically, is it not?
Ed Miliband
No, it is not. The hon. Gentleman is entitled to his own opinions, but he is not entitled to alternative facts. What the last Government said, what this Government said and what every sensible economist says about more production is that his idea of more drilling—“drill every last drop,” or “drill, baby, drill”— would be precisely the wrong thing for our country because it will make no difference to the price. The answer is home-grown clean renewables that we control.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
Thank you, Mr Speaker.
“In the face of further geopolitical turmoil, now is the time to alter our approach to energy… Drilling in the North Sea and scrapping carbon taxes on British manufacturing would kickstart economic growth, tackle unemployment…as well as prevent further deindustrialisation.”
Does the Secretary of State agree with those comments from the Labour Member of Parliament, the hon. Member for Mid and South Pembrokeshire (Henry Tufnell)?
Ed Miliband
This party and this Government are taking a pragmatic approach to these issues. We are using existing oil and gas fields for their lifetime, including with tiebacks, which is welcomed by industry, but we are not going to fly in the face of the evidence. The answer to a fossil fuels crisis is not to double down on fossil fuels, but to double down on clean home-grown power that we control. The Conservatives used to believe that, before they jumped on another bandwagon.
Andrew Bowie
This is extraordinary—mad, even. No other country on Earth would deprive itself of the vast natural resource we are lucky enough to have at our disposal underneath the North sea. The Jackdaw field alone could provide 250 million barrels of oil equivalent in natural gas to the UK, and it could be up and running by Christmas, but because of the Secretary of State it is stuck in limbo. It is utter insanity. His inaction is an act of national economic self-harm. When will he make a decision and act in the national interest?
Ed Miliband
Before the hon. Gentleman self-combusts, let me tell him that, as a result of the court decision, those projects are proceeding at risk. I will tell him the way we will make a decision. I am not going to comment on a live planning issue, but I will say in general that we will make a decision that is legally watertight. The last Government made a series of decisions that were found—[Interruption.] Conservative Members say “No, no”, but they do not care about the rule of law. We saw that when they said that we should rush headlong into a war with no regard for the impacts on our constituents.
Sarah Gibson (Chippenham) (LD)
Dr Roz Savage (South Cotswolds) (LD)
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
Since conflict broke out in the middle east, we have acted to prevent price-gouging, help those who rely on heating oil, and ensure that businesses get a fair deal on their bills. The energy price cap will fall by £117 next week, with savings locked in until the end of June. We have also sped up work to take control of Britain’s energy, accelerating our next renewables auction and our warm homes plan. We will do whatever it takes to fight people’s corner and learn the right lessons from the crisis.
Dr Savage
To go back to heating oil, 20% of households in my South Cotswolds constituency rely on heating oil—that figure is four times the national average—and many of them face high up-front costs. Will the Secretary of State consider supporting more flexible payment or credit schemes, and pooled purchasing models, which would enable villages to combine orders, secure bulk discounts and spread costs over time?
Ed Miliband
The hon. Lady raises an important issue, and I am sure that many Members will empathise as our constituents face difficult times. The Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Inverclyde and Renfrewshire West (Martin McCluskey), tells me that the Competition and Markets Authority is considering all those issues. If Members encounter practices relating to heating and other things, they should bring them to the attention of my hon. Friend, because we want to work as speedily as possible with the CMA to stamp them out.
Claire Coutinho (East Surrey) (Con)
Will the Secretary of State be honest and tell the country why he is ideologically obsessed with shutting down the North sea? Is it because he does not think we need the £25 billion of tax revenue it would generate? Is it because he prefers to import gas with higher emissions, or is it because he has never bothered to speak to the thousands of workers who are losing their jobs right now because of his policies?
Ed Miliband
I am not. As I said earlier, we are using existing oil and gas fields in the North sea for their lifetime, and we have introduced tiebacks for existing fields. While the right. hon Lady comes here month after month with proposals that will do nothing to cut energy bills for people, this Government are actually taking action: reducing the energy price cap next week; making plug-in solar available to all families; the warm homes plan to drive down bills; and crucially, a renewable power auction, which she said that we should cancel, to help 12 million homes.
Claire Coutinho
RenewableUK, the unions, Tony Blair and the Secretary of State’s own handpicked chair of Great British Energy—the biggest advocates for an energy transition—have said that he has got this wrong. Is his ideology so rigid that he is incapable of admitting when he has got things wrong and that he will put us on a pathway to higher emissions and fewer British jobs?
Let us try again. Can the Secretary of State be clear with the House? He knows that we will need gas for decades to come, so why does he prefer to import dirtier gas from abroad than to use the gas that we have in the North sea?
Ed Miliband
I do not. We continue to use the North sea, and ours is a pragmatic position. But there is a wider lesson that the House has to focus on. Is the lesson of this crisis—a fossil fuels crisis—to double down on fossil fuels, or is it to drive forward with clean energy? We believe clean, home-grown power that we control is the answer.
John Cooper (Dumfries and Galloway) (Con)
Ed Miliband
The Chancellor will have heard the hon. Member’s question, because she is in the room. My right hon. Friend is providing support for people but on a platform of fiscal stability, which the Conservative party would do well to understand.
Leigh Ingham (Stafford) (Lab)
The Minister knows that Stafford residents are passionate about solar power, and they would like to see the Government go further, with a commitment to solar panels on all new car parks and industrial buildings, like they see in Europe and in France particularly. Does the Minister agree that this policy would help to reduce energy bills for homeowners, as well as protect our rural land, and will he meet me to discuss my campaign?
Mohammad Yasin (Bedford) (Lab)
For as long as the UK depends on oil and gas, global conflicts will continue to drive price hikes for my constituents in Bedford and Kempston, who face soaring bills when the price cap ends in June. Does the Secretary of State agree that lower bills should come before company profits, and will he levy a windfall tax on the fossil fuel companies, which are making billions from this crisis?
Ed Miliband
As a result of decisions made by my right hon. Friend the Chancellor, we are raising significant sums from the windfall tax. We do not agree with the Opposition parties that now is the time to abolish the windfall tax; we think that is really important revenue that can help many of our constituents.
Harriet Cross (Gordon and Buchan) (Con)
We keep hearing the argument that it will take five to 10 years for new oil and gas to flow, and that therefore there is not point to starting new drilling, but the operators of Jackdaw and Rosebank say that both could be producing by the end of the year—it only needs the Secretary of State to approve that. Why is he denying the UK that supply of domestic fuel?
Tristan Osborne (Chatham and Aylesford) (Lab)
Medway Maritime hospital in my constituency is benefiting from a £25.9 million investment to introduce heat pumps and other measures. Does the Minister agree that we could invest in public sector provision to reduce bills in schools, hospitals and other buildings across the country?
Ed Miliband
I congratulate my hon. Friend’s local hospital. He rightly shows the way that cheap, clean, renewable power can cut bills not just for families, but for our public services, as GB Energy is doing, so that we can transfer money to frontline patient care.
Mr Gregory Campbell (East Londonderry) (DUP)
The Secretary of State will be aware of the very high dependence in Northern Ireland on home heating oil. Although the Government have offered some help in the past 10 days, has consideration been given to what happens beyond the summer period if the crisis in the middle east continues over the next few months?
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
I thank the Minister for his focus on securing UK private investment in critical minerals—it is fantastic to see. I know the Secretary of State agrees that Cornwall is vital for future UK energy security. One test and demo model in the Celtic sea has come forward in auction round 7, but I want to ask the Secretary of State about the timing of AR8, and whether he will look again at test and demo models in the Celtic sea, so that we can really use that energy base.
Ed Miliband
We all love Cornwall and its incredible clean energy potential. I can confirm that we will be opening the new renewables auction in July. We see an incredibly bright future for floating wind, and we see Cornwall absolutely at the centre of that.
IEA Co-ordinated Oil Stock Release: UK Participation
Ed Miliband Excerpts(2 months, 4 weeks ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
My thoughts are with British citizens and those across the world affected by the events in the middle east of recent days. Since the conflict began, we have seen Iran target energy production and export infrastructure across the Gulf. Traffic in the strait of Hormuz, through which around 20% of global oil and liquefied natural gas is shipped, has declined very significantly, and the Iranian regime has issued reckless and unjustified threats to all ships using it. As a result, we are seeing significant disruption to international fossil fuel markets. While the UK’s energy supplies remain resilient and stable because of our diversity of supply, we are exposed to global oil and gas prices. This is yet another example of why we must end our reliance on volatile fossil fuel markets and switch to clean, home-grown energy. We are accelerating towards clean power by 2030, which will protect bill payers from future fossil fuel shocks and bring down bills.
Over the last week, I have had multiple meetings with the executive director of the International Energy Agency, with counterparts in the Gulf and the G7, and with our major UK oil and gas companies. The G7 Energy Ministers’ meeting and the exceptional IEA governing board on 10 March were crucial opportunities to assess security of supply and market conditions, and the response available to Governments.
Following the IEA governing board, and reflecting the global market conditions, members, including the UK, decided to take co-ordinated action to release emergency oil stocks. IEA members will release a total of 400 million barrels to the market. The UK will contribute the requested 13.5 million barrels, reflecting our share of oil consumption across IEA members.
The UK’s participation in this co-ordinated action demonstrates our commitment to the stability of global energy supplies and protecting consumers. This is an appropriate measure, taken alongside IEA partners, to protect bill payers and our economy while the situation in the middle east continues. Although co-ordinated action on an oil stock release is an important step towards stability, we are clear that ensuring the safe transit of tankers through the strait of Hormuz is the crucial enduring solution.
I would like to thank the IEA for its co-ordination and expert analysis, underlining its vital role in global energy security, and fellow IEA members for their allyship and collective resolve.
[HCWS1395]
Energy Markets
Ed Miliband Excerpts(3 months ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
With permission, I will make a statement about the situation in energy markets in the light of the unfolding conflict in Iran and the middle east. My thoughts are with the British citizens and those across the world affected by the events of recent days, and I thank members of our armed forces serving in the region and elsewhere.
Let me update the House on the situation in global oil and gas markets and the impact on the UK. In the days since the conflict began, we have seen Iran target energy production and export infrastructure across the Gulf. Traffic in the strait of Hormuz, through which around 20% of global oil and liquefied natural gas is shipped, has declined very significantly, and the Iranian regime has issued reckless and unjustified threats to all ships using it. LNG production has also been halted in Qatar, following unjustified and indiscriminate Iranian attacks at the start of the week.
The UK benefits from strong and diverse energy supplies, including our own North sea production, pipelines with Norway, interconnectors with continental Europe and three LNG terminals. While Qatar is a major supplier of LNG globally, last year it provided the UK with 1% of our gas supply. I have been in touch with National Gas and the National Energy System Operator, which are confident about our security of supply. On oil, we hold substantial emergency and commercial stocks and stand ready to work with the International Energy Agency to support the stability of oil markets if needed. As when Russia invaded Ukraine, though, we will be exposed to price competition in international oil and gas markets, which is pushing up wholesale prices as other countries seek to replace lost supplies from the region. That reflects our position, regardless of our domestic production, as a price taker not a price maker in these markets, leaving us exposed to their volatility, no matter where the fossil fuels come from.
The Government continue to monitor the situation closely and work with our international partners. In recent days I have had multiple conversations with the executive director of the IEA, as well as with my counterparts in Qatar, Saudi Arabia, the EU and our major UK oil and gas producers. I will be having further calls with our international allies and partners over the coming days. This is a fast-moving situation, and we continue to work with our allies to seek to minimise the impact of disruption to markets and support the safe passage of oil and gas across the world.
I know that families and businesses across the country will see these global events and be concerned about the impact on their energy bills and the cost of living. It is important to say that the energy price cap will provide protection for households until the start of July, regardless of developments in the middle east. Last week, Ofgem confirmed that as a result of the Chancellor’s decisions in the Budget, the price cap will fall by 7%, or £117 annually, for the period covering April to June. The price cap for that period is fixed and will not change. That is a direct result of decisions in the Budget by my right hon. Friend the Chancellor to raise taxes on the wealthiest, and to cut bills for families across Britain. In addition, around 6 million families are benefiting from our expansion of the £150 warm home discount, and we are delivering the biggest investment in home upgrades in British history through our warm homes plan, to cut bills and shield families from these kinds of fossil fuel shocks.
On business and industry, we are taking action to expand the British industry supercharger from April to reduce costs for the most energy-intensive businesses, and a significant proportion of businesses are on fixed-term contracts that shield them from market volatility for the contract duration. However, we recognise that at the point of contracting, businesses are exposed to international fossil fuel markets, and clearly, for both businesses and consumers, much will depend on the length of this crisis.
On Tuesday in her spring statement, my right hon. Friend the Chancellor reaffirmed her commitment to prioritise families and businesses, whatever turbulence we see around the world. She showed her determination to act on bills in the Budget last year, and as we continue to monitor the effects of these events, the House and country should be in no doubt that the Prime Minister’s No. 1 priority is to tackle the cost of living crisis that affects families across Britain. However long this crisis lasts, we must learn the right long-term lessons. The events of recent days are yet another reminder that the only route to energy security and sovereignty for the UK is to get off our dependence on fossil fuel markets, whose prices we do not control, and on to clean home-grown power that we do control.
Only several weeks ago, some people were suggesting that we should gamble on low fossil fuel prices and cancel the allocation round 7 renewables auction. When I made my statement on that auction, I warned the House that people can have incredibly short memories, given that we are just four years on from Russia’s invasion of Ukraine. I warned at the time that it was a foolish and dangerous gamble to bet on geopolitical stability during greater geopolitical instability than at any time for generations. I warned that the Opposition had failed to learn lessons from the Ukraine crisis, which caused the worst cost of living crisis in memory, and that a dogma of opposing clean energy would damage this country, and risk families and businesses being left to pick up the bill. The events of recent days have unfortunately shown why that would be such a dangerous and reckless strategy, and we will continue to reject it. Instead, our AR7 renewables auction alone will supply enough home-grown, secure, clean power for the equivalent of 16 million homes. That is power we will not have to source from the international gas market, power that will not be at the mercy of international events, and power over which we, not fossil fuel markets, have control.
Of course, North sea production continues to play an important and valuable role in our energy system, but as we learn the right lessons from this crisis, this Government will not succumb to the false arguments peddled by some. It is a maturing basin and accounts for less than 0.7% of global oil and gas production. New exploration licences are completely marginal to that basin, and would make no difference to prices set by international markets and paid by UK billpayers.
“More UK production wouldn’t reduce the global price of gas”—
those are not my words, but those of the former Energy Minister, Greg Hands in 2022, in midst of the last energy crisis. Indeed, the shadow Energy Secretary said in 2023 that new licences
“wouldn’t necessarily bring energy bills down”.
This Government have taken the decision to keep existing fields open for their lifetime, including through transitional energy certificates in our North sea future plan, as called for and welcomed by industry. They have also decided not to issue new licences to explore new fields, which the science tells us is the right thing to do, because this Government will not ignore the biggest long- term threat multiplier to our security and stability that we face: the climate crisis.
As the Prime Minister said yesterday, for Labour Members the lesson of Russia’s invasion of Ukraine, and the lesson of recent days, is that our mission is the only route to greater energy independence for Britain, and we will double down on it. Every solar panel we install, every wind turbine we put up, and every nuclear power station we build makes us more secure as a country, and protects families and businesses from those kinds of energy shocks.
This Government have learned the lessons of the geopolitical instability we have seen and continue to see. In an unstable world, we will keep driving for energy sovereignty and abundance with clean home-grown power. We will not gamble with the British people’s money at the fossil fuel casino, and ignore the lessons of the past. We have shown a determination to act to help families, and we will continue to do so. We will work with our allies and partners to defend our national interest, and seek to bring this conflict to an end for the benefit of citizens at home and the stability of the world, and I commend this statement to the House.
Madam Deputy Speaker (Judith Cummins)
I call the shadow Minister, Harriet Cross.
Harriet Cross (Gordon and Buchan) (Con)
I thank the Secretary of State for advanced sight of his statement. Events in the middle east this past week have shown why it is so vital that the Government do all they can to ensure that UK businesses and households have a secure, reliable supply of dispatchable energy—a supply we can rely on. Affordable energy is vital, but just as important is security of supply. There was nothing new in the Secretary of State’s statement—no actions, just notes of some meetings—but there were and are actions that he can take, and he could take them now for both supplies and for bills.
No matter how much the green lobby or the Secretary of State wish that the UK could end its reliance on oil and gas overnight, we cannot. Some 40% of the UK’s energy comes from gas, which is the UK’s single biggest energy source, and 24 million UK homes, and half a million businesses, are connected to the gas grid. Currently, 43% of gas used in the UK is produced in our North sea basin, which is a vital energy source. Every molecule of gas produced by the UK in the North sea is piped on to our shores and into our grid. The oil produced comes onshore either here or in Europe to be refined. It does not, and cannot, get caught in the strait of Hormuz or elsewhere. It is a secure supply of oil for the UK.
Our North sea oil and gas sector has been, is, and should remain vital for our national security and be a national security resource for many years, yet it is a resource that the Government, and this Secretary of State, are actively trying to shut down. The GMB Scotland secretary has called his plans “delusional”, and mean that we are facing
“the most destructive industrial calamity in our nation’s history—a disaster risking untold jobs, communities, even higher bills, and our energy security”.
The North sea oil and gas industry and its workforce must be protected. The Secretary of State knows that that workforce, and those supply chains will, if still here, deliver the roll-out of technologies such as wind and nuclear in the future. The Secretary of State must overturn his ban on new oil and gas licences—will he? He must immediately give confidence to the industry that it has a future in the North sea by finally granting Jackdaw and Rosebank. What is taking so long? To kick-start investment, stem the accelerating fall in production, and secure the skilled workforce and supply chains, he must, with the Treasury, end the energy profits levy now.
Nuclear is the UK’s route to energy security. Nuclear works in the winter, can run 24/7, and latest prices worldwide show that it can also be much cheaper. As the Secretary of State knows, our existing plants are nearing end of life, and the Government are stalling on actions to replace or renew new gigawatt-scale sites. They have ruled out large-scale nuclear at Wylfa, and dropped the previous Conservative Government’s 24 GW target. In light of current events, does the Secretary of State accept that not granting a new gigawatt-scale plant at Wylfa—arguably the best site in the country for a large-scale plant—was a huge missed opportunity? We are still waiting for the Government to accept recommendations in the Fingleton review, which will make nuclear cheaper and easier to build. When will the Secretary of State do so, and will he do so in full?
I will touch briefly on the luddite approach to energy from the Scottish National party in Scotland. SNP Members try to talk a good game and sound as if they support energy workers, energy generation and energy investment, but that is an illusion. They have a ban on new nuclear, and still a presumption against new oil and gas. They are happy to coat the countryside with pylons, turbines and batteries, but they have no plan whatsoever for when the wind does not blow.
Last year the Secretary of State signed a secret energy deal with China. He does not like it to be called a secret, but what other word can there be when he refused to publish details month after month, and only published them after sustained pressure from my right hon. Friend the shadow Secretary of State? It is no surprise that he wanted to keep it a secret. It is agreeing to co-operate with China—a known threat—on batteries, cables, inverters, and turbines, effectively giving a nation that is known to have interfered in numerous sovereign states, and that has placed kill switches in energy infrastructure that it has exported, access to our energy grid. That is at best foolish, and at worst reckless. Whatever we call it, it is another threat to our energy security.
Businesses are struggling with sky-high energy prices, and households are bracing themselves for energy bills that may rise significantly this year. The Conservatives’ clean power plan would reduce bills by 20%. The Secretary of State could take action today, so will he adopt our cheap power plan?
Ed Miliband
I will answer the hon. Lady’s questions in a moment, but first I say to her that the biggest question for this House and for the country is: do we learn the lessons of these crises? Half the recessions that have happened since the 1970s have been caused by fossil-fuel price spikes. We all face a choice: we can either learn the lessons of those crises and drive towards clean, home-grown power—to be fair, at some points, that used to be the policy of the last Conservative Government—or we can pretend that those lessons do not exist, and we can keep repeating the same mistake. I fear that since the general election, the Conservatives, having already moved halfway from learning that important lesson, have moved away from it fully.
That takes me to the answers to the hon. Lady’s questions. On nuclear, we are undertaking the biggest nuclear building programme for half a century. We are doing all the things the last Government promised and never delivered. Where were the Conservatives on Sizewell C? They said that they would have agreement on it in the last Parliament, but they did not; we are doing it. Where were they with small modular reactors? We are actually putting them in place. Yes, we will publish the details of the Fingleton review shortly, and it will be an important step forward in the regulation of our industry that the Conservatives never took.
The hon. Lady said that the North sea is an incredibly “important” resource, which is exactly what I said in my statement. We listened to the industry and took a pragmatic approach on tie-back to existing fields, which was welcomed by the industry, to keep our manifesto commitment of keeping existing oil and gas fields open for their lifetime. I want to pause on the point that she raised about new exploration licences. The truth is, as everybody knows, new exploration licences, particularly in the light of tie-backs, will make no difference to production. It is important to remember that on average it is 10 years from exploration to production.
Last year, an important report by the National Energy System Operator on the security of gas supply said that the biggest single thing that we could do for security of supply is drive towards a clean energy transition. The more we fail to do that, the more we are exposed, given that the North sea is a declining basin that has seen production fall by 75% in last 25 years, and that 70,000 jobs were lost under the Conservatives.
On the hon. Lady’s point about the windfall tax, the Chancellor says that she wants the windfall tax to end, but obviously she has to look at the current circumstances. I notice that the Conservatives have now disavowed their decision to introduce the windfall tax. The windfall tax has raised £12 billion since 2022 because of supernormal profits—the money that was going from our constituents into the pockets of oil and gas companies. It is all very easy to say, “We shouldn’t have done the windfall tax,” but the Conservatives did introduce it, and I think it was the right thing to do. My right hon. Friend the Chancellor listens closely to the industry, and was talking to representatives from the industry about these issues yesterday, but it is important to recognise those other issues.
On the environmental impact assessment process, we will follow the right process because we want to ensure that what we do is legally watertight and not subject to endless judicial review, and that is what the industry wants.
To return to my original point—
Ed Miliband
Last week, I said that what the Conservatives were saying about the memo was a whacky internet conspiracy theory, and they said, “No, it isn’t, so why don’t you publish it?”, so I did, and now they have nothing say. Not only did we publish our memo, but I am glad to say that we published the Conservative memo from 2015. What did that show? That we were going to get the Chinese to build nuclear power stations for us, for goodness’ sake. I urge all Members to look at the facts and the evidence, and to learn the right lessons.
Madam Deputy Speaker (Judith Cummins)
I call the Chair of the Energy Security and Net Zero Committee.
Bill Esterson (Sefton Central) (Lab)
Yesterday, the Energy Security and Net Zero Committee looked at the facts and the evidence: Ofgem and NESO told us that the price cap will be in place until June as a short-term protection; that clean power 2030 is indeed the best way to avoid future exposure to the sorts of risks that we are now experiencing; that energy costs as a share of GDP will fall from their current 10% to between 5% and 6% by 2050, according to Government plans; and that there is no prospect of bringing down prices by undertaking activity in the North sea. What plans does the Secretary of State have for short-term support for bill payers? We heard evidence about the reformed national pricing consultation that is under way. May I encourage him to bring that forward, so that bill payers can benefit from the availability of low-demand cheap electricity as soon as possible, as an immediate response to this crisis?
Ed Miliband
My hon. Friend speaks wisely on these issues. I agree with what he said about how we get energy security and the right thing to do. On the question of bill payers, across Government and across the House, we are incredibly alive to and vigilant about the potential impact of the crisis. I believe there is cross-party support for the price cap, which I think is very important. In a world without the price cap, we would see much more immediate effects. That does not mean that everyone is protected, but the vast majority of domestic consumers are protected by the price cap.
My hon. Friend asked about short-term action, including through RNP. As he would imagine, across my Department, there is intensive work under way, looking at all the options that we have. As the regulator said to the Committee yesterday, much of this will depend on how long the crisis lasts, but the Chancellor and the Prime Minister have both shown their willingness and determination to act on bills, and I am sure that will remain.
Madam Deputy Speaker (Judith Cummins)
I call the Liberal Democrat spokesperson.
Pippa Heylings (South Cambridgeshire) (LD)
The conflict in the middle east reminds us again how dangerously exposed the UK is to volatile global fossil fuel markets. Forecasts by the Joseph Rowntree Foundation have shown that, just as happened after Putin’s illegal invasion of Ukraine, energy bills could go up dramatically, placing further pressure on families and businesses that are struggling, while energy companies make profits. The leader of the Liberal Democrats, my right hon. Friend the Member for Kingston and Surbiton (Ed Davey), asked the Prime Minister yesterday to give a cast-iron guarantee that he would not let energy bills rise by £500 this year, but he did not. Will the Secretary of State give that guarantee?
Why are we so exposed? Because of our heavy reliance on gas, limited storage capacity, dependence on imports, and falling domestic liquefied natural gas inventories. As recently as January, the Conservatives were arguing in favour of continued reliance on gas, due to the price falling at that time, but it has taken less than two months for them to be proven wrong. Meanwhile, given the instability in European energy markets caused by the ongoing conflicts, I am glad to hear that the Secretary of State has engaged with energy counterparts in the EU. I would like to hear more details of their analysis of the potential impact on supply, prices and regional energy security.
Ed Miliband
I agree with the hon. Lady on her fundamental point about why we are exposed. Cost of living support is obviously a matter for the Prime Minister and the Chancellor, but I reiterate to her that the Chancellor showed a willingness to act on these issues in the Budget because she recognised the pressures that families are facing, and that the cost of living crisis is by far the biggest issue facing our country. At Prime Minister’s questions, the Prime Minister again reiterated that we are carefully monitoring the situation. The Government have shown their willingness to intervene, and if necessary, we will intervene again.
On the wider points that the hon. Lady makes, the most important thing to emphasise is that we have to go back to the fundamentals. That means driving forward with clean power and the insulation of homes. Our European counterparts, whom she asked about, face similar challenges. Through the International Energy Agency, we are all engaged on some of the issues around oil stocks that I raised in my statement. She is absolutely right that co-operation with our European colleagues is particularly vital at this time.
Graeme Downie (Dunfermline and Dollar) (Lab)
I thank the Secretary of State for his very clear and measured statement. May I ask him about two points? First, if we see rises in bills in forthcoming months, can we ensure that the blame is placed firmly where it should be—on the actions of the Iranian Government in attacking and threatening the strait of Hormuz?
Secondly, in the Energy Security and Net Zero Committee meeting yesterday, we heard from the chief executive of Ofgem that a prolonged period of closure of the strait of Hormuz would create an upward pressure on prices. He indicated during that evidence session that the market anticipated that it could manage a period of roughly two weeks. As the conflict continues to develop, does the Secretary of State have any sense of what might be meant by a “prolonged period of time” that would create upward pressure? Will he ensure that the Committee and the House are kept informed?
Ed Miliband
I thank my hon. Friend for his excellent questions. On the first point, he is absolutely right. I spoke to my counterpart, the Qatari Energy Minister, and it was the attacks on Qatar’s LNG terminals, and understandable fears for their workforce as a result of indiscriminate Iranian attacks, that led him to make his decisions. Iranian threats to the strait of Hormuz are preventing the passage of shipping, and my hon. Friend is absolutely right to emphasise that point.
I will not speculate on my hon. Friend’s point about how long the conflict will last, but he is right to say that the longer the conflict goes on, the more impact there will be on bill payers and our economy. That is why it is in all our interests for this conflict to come to an end as soon as possible. On his other point, I undertake to keep the House and the Energy Security and Net Zero Committee informed.
Martin Vickers (Brigg and Immingham) (Con)
Representing the constituency of Brigg and Immingham as I do, I recognise that the renewable energy sector is attracting investment and jobs into the area. However, I have thousands of people who work in energy-intensive industries, and their jobs are increasingly at risk. As with everything, compromise and balance are important. May I urge the Secretary of State to recognise that the energy costs for industry are crippling many businesses? We must do something to address that.
Ed Miliband
I absolutely recognise the challenges that many businesses faced even before the crisis. It is important to say that even before the crisis began, fossil fuel prices were still 40% higher than before Russia invaded Ukraine, and businesses were facing the impacts of that.
We are taking action this April on the supercharger, but that is for only 500 or so of the most energy-intensive businesses. We are also taking action next April on the British industrial competitiveness scheme, which is for 7,000 businesses, but I recognise the point that the hon. Gentleman makes. Just as we are looking across Government at the situation that households face, and working on that, we are looking at the impact on businesses; indeed, I was talking to my colleague the Secretary of State for Business and Trade yesterday.
Mr Toby Perkins (Chesterfield) (Lab)
My right hon. Friend is absolutely right to expose the utter folly of responding to the situation that faces us by saying, “We need to stop with renewables and invest more in oil and gas.” It would be utter madness to learn that lesson. When we had the huge price spike as a result of Russia’s invasion of Ukraine, the fact that oil and gas was coming from the UK made no difference to the amount that our consumers paid, because it was all on the global market.
Does my right hon. Friend agree that the marginal pricing system, which was set up at a time when 80% or 90% of energy was being generated by fossil fuels, is far less robust at a time when the figure for gas is down to 40% and shrinking the entire time, and more than 50% of our energy comes from renewable sources? Because renewables are cheaper, should we not look to benefit from that, rather than having a system that allows gas to set the price, even if it accounts for only 1% of our energy?
Ed Miliband
I agree with the first part of my hon. Friend’s question, so I will take the last part on marginal pricing, as that is the challenge, and be as brief as I can. I completely understand the logic of his question. One of the benefits of a clean power system is that gas will set the price much less of the time. One of the benefits of moving from the renewables obligation to contracts for difference is that it gives us a fixed price that is not subject to the marginal price of gas. I am sympathetic to the principle that my hon. Friend espouses, but the truth is that there are significant obstacles to getting to what he wants to see in a timely way and a way that is better for bill payers. Among all the other things, my Department continues to look at that.
Wera Hobhouse (Bath) (LD)
The Energy Security and Net Zero Committee is running an inquiry into the costs of energy, as we have already heard from its Chair. With all due respect, I cannot understand how the Conservative Opposition can with a straight face deplore the cost of energy for bill payers while at the same time advocate prolonging our dependency on oil and gas. That is precisely what keeps our energy bills high.
Let me come back to our inquiry. We heard from one of the witnesses from E3G that there could be costs of up to £500 per household in hidden profits due to the untransparent network charges put on to energy bills. Will the Government ensure that bill payers are given a full picture of the breakdown of profits across the energy sector?
Ed Miliband
I thank the hon. Lady for the point that she makes. It is worth saying that Lord Browne of Madingley, formerly of BP, was on the radio yesterday making precisely the same point that she and I have made. This is a man who used to run one of the world’s largest oil and gas companies, and he said that the lesson of this crisis is that we have to get on to clean power.
On the hon. Lady’s point about networks, it is important to be transparent about that. It is also important to bear down on those costs, and I obviously discuss that a lot with the regulator.
Matt Western (Warwick and Leamington) (Lab)
My right hon. Friend talks about the lessons learned. Despite my youthful good looks, I recall the 1979 Iranian revolution—the last Iranian revolution—which led to a fuel crisis globally. The importance of what we are doing is underlined by the need for the energy transition and the need to improve our domestic energy resilience. That is why we need to see more renewables and to roll out Rolls-Royce small modular reactors urgently and take a lead globally on that.
My right hon. Friend talks about household support. What does he think President Trump was thinking about the impact that this situation would have on businesses and the humble motorist?
Ed Miliband
My hon. Friend was obviously a precocious five-year-old in 1979, with a great knowledge of and interest in politics. I will not speculate on the last part of his question, but what he said about the indiscriminate Iranian attacks is an important point to underline. The fundamental point he makes about driving forward with renewables, nuclear and all the things that get us off the markets is surely the lesson that we must all learn from this crisis.
Sir Julian Smith (Skipton and Ripon) (Con)
I thank the Secretary of State for his update. I echo the calls for support for business and keeping an eye on the impact of this crisis on business. For areas like mine in North Yorkshire, off-grid gas and oil customers do not have the same protection as many other energy customers. Will he and his team focus have regard to those customers as this crisis evolves?
Ed Miliband
I thank the right hon. Gentleman for his points about business and particularly about heating oil. It is a really important point, because people who are using heating oil are exposed to what is happening in the market. Obviously, it depends on when they restock their heating oil and, as I have said a number of times, how long the crisis continues, but he is right to raise that as an area we need to look at.
Ben Goldsborough (South Norfolk) (Lab)
To follow on from that exact question, I, too, represent a very rural constituency, and there will be constituencies up and down the United Kingdom, particularly in Northern Ireland, that are heavily reliant on heating oil as our source of energy. Will the Secretary of State say what action will be taken in the medium and short term to take account of the price shocks? I have already had the chair of the parish council in Thurlton get in touch, along with many other constituents who are very worried about this price shock.
Ed Miliband
Obviously, we are in the first few days of this crisis, but the best thing I can say to my hon. Friend and hon. Members in all parts of the House who are concerned about this issue, and totally understandably so, is that we are very much aware of where the exposure is. The price cap is a guarantee, and I chose my words carefully when I said earlier that, for the vast majority of people, the price cap provides a guarantee for domestic consumers, bearing in mind that those using heating oil are more exposed. We will look at that issue. To go back to the wider point that I made, both the Chancellor and the Prime Minister have shown a determination to act on the cost of living crisis. Obviously, much of this depends on how long the crisis goes on, but the point is well taken.
Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
I appreciate what the Minister has just said about heating oil, because 55% of households in Dwyfor Meirionnydd are off the gas grid. Many rely on alternative heating fuels, and they are not protected by the energy price cap. We also pay the highest standing charges of any region in the United Kingdom and are exposed to global market shocks, in the sense that deliveries can be late and prices are passed straight on. In the energy crisis triggered by Russia’s invasion of Ukraine, off-grid households had to wait months longer for any support, but they did get a one-off alternative fuel payment of £200. Will the Secretary of State consider something similar to the alternative fuel payment at this time?
Ed Miliband
I will not speculate on that, but one of the important things that I have emphasised in all the calls I have had and the discussions in my Department is that we must learn the lessons from what was done right in the previous Government’s response to the Russia-Ukraine crisis and also from where there were challenges. That is one of the emphases I have placed on my conversations with our civil servants, businesses and, indeed, international partners. I have heard what the right hon. Lady has said on this issue and will definitely bear it in mind.
Perran Moon (Camborne and Redruth) (Lab)
It is perfectly reasonable for Opposition parties to espouse the policy of reopening oil and gas fields; it is just the wrong policy, and there is no clearer example of that than a moment like this. The only way that we can generate energy independence is by accelerating our transition to renewable energy. With that in mind, I know that the Secretary of State is very much focused on onshore wind, offshore wind and solar, but will he think again about the Department’s policy on geothermal energy? Our first geothermal energy plant has just opened in Cornwall, and we have vast deposits of geothermal energy, which could be a really useful addition to the renewable energy mix.
Ed Miliband
First, let me celebrate the opening of the plant. Indeed, I sent a video celebrating it—I am sorry I could not be there, but I congratulated my hon. Friend on his brilliant advocacy. I accept the point he makes that we have to look at all the technologies at our disposal. One of the reasons I am very glad that Lord Whitehead has joined our Department is that, as my hon. Friend will know, he has a specific brief covering alternative technologies. My view is, if it can bring down bills and help to get us to cleaner power, we should absolutely go for it.
Sir Julian Lewis (New Forest East) (Con)
I fully accept the argument that energy independence will be enhanced by renewable energy and in particular by nuclear energy, but everyone seems to accept that we will continue to have some dependence on fossil fuels for a considerable period of time. Although it is discouraging to hear that no matter how much we extract from the North sea, it will not lower prices—that does sound rather a strange conclusion, but I am willing to accept that it is true—the fact is that if we are going to need such supplies for a considerable period of time, they may be cut off from other sources. Therefore, security of supply is an important element of the mix. Is that not obvious?
Ed Miliband
That is why we said in our manifesto that we would keep existing oil and gas fields open for their lifetime. Indeed, we did not just say it; we had a good dialogue with the industry, in which it said that one thing that would make existing oil and gas fields competitive was tiebacks to fields with new production. We listened and we accepted that.
I have great respect for the right hon. Gentleman; I think the issue he is adverting to is exploration licences, because the North sea is a declining basin. Obviously, there are tax matters in this regard, which are for the Chancellor, but all the evidence is that exploration licences are entirely marginal to production, and the average time from exploration to production is 10 years, as I said earlier. On the 10-year view, the most important thing we can do for our energy security by far—by many multiples—is to drive towards clean power, which I think he supports and which is the centrepiece of our strategy.
Euan Stainbank (Falkirk) (Lab)
I appreciate the Secretary of State’s incredibly important update to the House, especially on energy security. There have been reports in the media of PetroChina being barred from all exports of diesel and gasoline by the Chinese Government. With PetroChina’s co-ownership of the Grangemouth import terminal, and following its role in the closure of Scotland’s only oil refinery last year, what assurances can the Secretary of State provide my constituents on the security of imported supply coming through Grangemouth?
Ed Miliband
We use negligible amounts of fuel from China, and I can absolutely reassure my hon. Friend, and indeed his constituents, on security of supply.
Claire Young (Thornbury and Yate) (LD)
On nuclear, I note that, had small modular reactors gone to Oldbury, Wylfa would still be available for other options to reduce our fossil fuel dependence. I want to ask about small businesses. On top of a rising tax burden, the fear of further energy spikes causes small businesses in my constituency, particularly energy-intensive ones such as hospitality and manufacturing, to fear for their survival. Will the Secretary of State introduce new measures to support them?
Ed Miliband
The hon. Lady raises an important issue. Indeed, the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Stockton North (Chris McDonald)—who has briefly left the Chamber—is also a Minister at the Department for Business and Trade and has a particular focus on how we can help small businesses to get better deals. Better regulation of the deals they get is one area where Ofgem will have a role in what was previously an un-regulated or under-regulated market. On the wider point about the impact of the crisis on small businesses, I reiterate to the hon. Lady, by way of reassurance, what I have said to other hon. Members. The Government are absolutely focused on the impact of the crisis on households and indeed businesses, and we will not hesitate to act.
Catherine Fookes (Monmouthshire) (Lab)
I thank the Secretary of State for his statement and for the Government’s laser focus on renewable energy in England and Wales. Does he agree that this should deliver basically a triple whammy for us? We will not be at the mercy of foreign states for our energy, bills for consumers will go down and, finally, we will reduce the impact of the biggest threat to our planet, which is climate change.
Ed Miliband
My hon. Friend is so right. I talk to partners around the world, including in Europe, which the Liberal Democrats asked about, and elsewhere, and it is interesting that so many other countries now take this approach. The case for renewables was always a climate case, but for so many it is now as much an energy security case, because they are in a similar place to us: they are price takers, not price makers.
Jim Shannon (Strangford) (DUP)
I thank the Secretary of State for his statement. As soon as the first missiles were launched over Iran, those working in the energy sector were already warning that prices would escalate. The public can little afford the price gouging that took place when Russia invaded Ukraine, so what steps will the Secretary of State take to ensure that any rise is absolutely necessary and will not result in greater profits for certain people and companies? What consideration will be given to implementing energy schemes to help working families meet the cost?
Ed Miliband
The hon. Gentleman speaks with great eloquence on these issues on behalf of his constituents and others. He is absolutely right to say that, in a situation like this, everyone has a responsibility. The Government have a responsibility, and private companies have a responsibility too—he is right to make them aware of that. On the wider question about the impact on families, it is important that the Government are vigilant about the steps we can take to help people.
Alex Sobel (Leeds Central and Headingley) (Lab/Co-op)
One of the first lessons from the Russia-Ukraine war, and now from the war in the middle east, is that oil refineries and fossil fuel infrastructure are primary targets and that energy prices are now part of war strategy. Our race to renewables is important not just here in the UK, but around the world. The price of Urals crude has nearly reached the price of other crude oils, and we need to ensure that other countries are not reliant on Russian oil being delivered by the shadow fleet. Is the Secretary of State working with other countries to ensure that they are taking the same path towards the renewable transformation that we are taking?
Ed Miliband
My hon. Friend speaks with great eloquence on these issues, and he is absolutely right. As I said earlier, it is striking that so many countries now talk about this as an energy security issue. For the 80-plus countries that supported the road map for the transition away from fossil fuels at COP30, it was as much about energy security, about their own situation, about bills and about their fear of exposure as it was about the long-term threat that we face from the climate crisis, as crucial as that is.
Lincoln Jopp (Spelthorne) (Con)
I thank the Secretary of State for his statement, which I read and listened to very closely. Is it fair to summarise the Secretary of State’s statement by saying that he is not going to do anything differently as a result of the conflict in Iran? I listened to and read the statement very closely, and it does not appear to me that we are going to change anything. It was more of a series of things that we are doing already.
Ed Miliband
No, I do not think that is right at all. The truth about these crises is that it is incredibly important that the Government look at everything we can do, particularly to help address the impact on families and businesses, as I said a number of times in my statement. I reassure the hon. Gentleman and the House that this Government have the right strategy on energy policy. The lesson we all need to learn is that exposure to fossil fuel markets is dangerous for the country, and the best thing we can do is speed up our drive to renewables and, indeed, to nuclear. The more help that he can give to support that, the better.
Clive Efford (Eltham and Chislehurst) (Lab)
I welcome my right hon. Friend’s statement—all I can say is more power to his renewable elbow. During my time in Parliament, we have gone through various crises. The price of oil and gas goes up, our constituents and businesses pay higher bills, and the Conservatives learn nothing. They do not realise that the only way to provide secure and cheap energy is to have a secure supply here at home. None the less, we are stuck with oil and gas in the meantime. May I urge my right hon. Friend to be open to assisting our constituents and businesses if they see a severe spike in their energy bills?
Madam Deputy Speaker (Ms Nusrat Ghani)
Order. Before the Secretary of State responds, let me say that I must conclude this session in around 15 minutes. Questions must be shorter and the answers just as sharp.
Ed Miliband
I am glad to hear that my elbow is renewable, and I agree with my hon. Friend that we must be willing to act on behalf of his constituents and others.
Amanda Hack (North West Leicestershire) (Lab)
I thank the Secretary of State for his statement. Households, businesses and charities in North West Leicestershire have highlighted some immediate pressures on the cost of heating oil and fuel costs in recent days. Does the Secretary of State agree that energy security across our country is vital and that cheap, clean power is key to delivering that security, so will he a share what additional work he will be doing to secure that for families and businesses in North West Leicestershire and beyond?
Ed Miliband
My hon. Friend is right to raise the issue of heating oil. As I have said a number of times, it is an important issue and is very much on our radar. On her wider point, she is absolutely right.
Oliver Ryan (Burnley) (Lab/Co-op)
The Secretary of State is right to say that, because of our reliance on oil and gas, we are a price taker, not a price maker. We are exposed, and families in Burnley, Padiham and Brierfield are worried. Will he continue to strengthen our home-grown sovereign energy supplies and production to keep driving down energy bills? Given the potential for future wholesale price volatility, will he look at getting suppliers in the room again to reduce standing charges, which people see as unfair, regressive and unrelated to their energy use?
Ed Miliband
Somebody asked me about standing charges earlier, and I neglected to respond. One important thing that we did was transfer the warm home discount to unit rates, which helped make a difference in bearing down on standing charges. I reassure my hon. Friend, and many of his constituents and others who are concerned about this issue—I talk to Martin Lewis and others about such matters—that we continue to look at it.
Rachael Maskell (York Central) (Lab/Co-op)
I really thank the Secretary of State for all that he is doing, but at times like this, we think about our most vulnerable constituents. Although the energy price cap will protect them for now, we worry about the longer term, not least moving into next winter. Can my right hon. Friend say what he is doing on social prescriptions and social tariffs to ensure that we protect the most vulnerable constituents?
Ed Miliband
An important decision that we took was to extend the warm home discount not only for this winter, but for five years ahead, to give an assurance to 6 million people, including those in my hon. Friend’s constituency, that they would have protection. She speaks so well for the most vulnerable in our society and in her constituency. I reassure her that we know about people’s exposure and continue to look at all the measures that we can take to help them.
Dave Robertson (Lichfield) (Lab)
There is precious little good news around at the moment, but I may have some for the Secretary of State. I have listened to the contributions from those on the Opposition Benches, and I think I have discovered a new renewable energy source: the amount of hot air coming from that side of the House could surely heat 100 homes. At a time when prices are spiking and profits are about to rise, does the Secretary of State think that his constituents in Doncaster North would welcome it if we did what the shadow Minister suggested and cut the energy profits levy? My constituents in Lichfield, Burntwood and the villages would not appreciate it if we let companies off like that.
Ed Miliband
My hon. Friend makes his point in a very eloquent and amusing way. It is so important to recognise that crises like this show that gambling on low fossil fuel prices is dangerous, because the impacts of geopolitical instability on his constituents and those across the country are so great.
Luke Murphy (Basingstoke) (Lab)
I welcome the Secretary of State’s statement, although I will gently disagree with one point. He said that he believes the Conservatives have failed to learn, or somehow forgotten, the lessons from Ukraine. I think that it is worse than that, and nothing more than short-term opportunism. They hoped that nothing like Ukraine would happen again and they forgot to learn the lessons, so bills were driven up and significant damage was done to our economy. Does he agree that the Conservatives’ short-term opportunism on energy security and national security is not in the long-term interest of our country?
Ed Miliband
I agree with my hon. Friend. It is incumbent on all of us to tell people, on the basis of the evidence, what we should be doing as a country. Today we have heard from Members of different parties a recognition that gambling on fossil fuels is incredibly dangerous.
Shaun Davies (Telford) (Lab)
Today’s statement is a stark reminder that energy security is national security and economic security, and those who oppose clean, green British power are handing a gift to people who wish to do us harm. Will my right hon. Friend ensure that it is only the British interest that determines energy policy?
Ed Miliband
My hon. Friend puts it incredibly well: this is about clean, home-grown power that we control. We need to get off the roller coaster of fluctuations in international markets, which does such damage to families across the country.
Mary Glindon (Newcastle upon Tyne East and Wallsend) (Lab)
At a time when the UK is increasingly dependent on and exposed to internationally traded LNG, does delaying the oil and gas price mechanism not risk reducing investment in domestic supply exactly when global markets are least stable?
Ed Miliband
I agree with my hon. Friend that driving to renewables and clean, home-grown power is crucial. I would also say, as I know she takes an interest in these things, that the North sea continues to play an important role in our energy mix and will do so for decades to come.
Brian Leishman (Alloa and Grangemouth) (Lab)
It is interesting to note that, for the duration of this statement and the question and answer session, there has been zero participation from the SNP and Reform, which goes to show exactly how much both parties care about Scotland’s energy security.
I appreciate that the Secretary of State will not be able to give an in-depth response at the Dispatch Box, but can he give any update on Project Willow at Grangemouth? Specifically, I want to know about the future jobs coming to the town and any potential Government ownership to secure our industrial security and Scotland’s energy sovereignty.
Ed Miliband
My hon. Friend is a very important advocate for his constituents and, indeed, for Project Willow. He will know that we have made a number of announcements about Grangemouth in recent months, but I can assure him that we will continue to drive forward on Project Willow. The Prime Minister has set out that £200 million will be available from the National Wealth Fund. We continue to work with private industry, because we are determined to create a future for Grangemouth and its communities.
Andrew Cooper (Mid Cheshire) (Lab)
This will be a worrying time not only for households, but for the energy- intensive businesses in my constituency. Last year, we lost soda ash production from Northwich after 150 years, in part due to the high energy costs. What support does my right hon. Friend intend to provide businesses both to get through this crisis and into the future, so that we can ensure they stay viable and competitive?
Ed Miliband
The step forward we are taking is to give more help to the energy-intensives, both this April and when we get to help 7,000 businesses next April. However, I acknowledge—as I did to, I think, one of the Conservative Members—that there is further to go on helping businesses. Energy UK and the CBI have formed a joint partnership looking at these issues, and we want to work with them. As always, one challenge is the cost of action, but we recognise the issue that my hon. Friend has raised.
Samantha Niblett (South Derbyshire) (Lab)
The statement, for which I am very grateful, really drives home the importance of energy security and the move to renewables, but food security is equally important. In my constituency of South Derbyshire, we have had a plethora of applications for battery energy storage systems and solar farms, because we have a close connection to two grids. I am not saying that we do not need that, but will the Secretary of State meet me, my hon. Friend the Member for Rushcliffe (James Naish) and other members of the Labour rural research group to discuss the benefits of a local area energy plan?
Ed Miliband
My hon. Friend speaks very well on these issues, and I am sure the Minister for Energy will meet the group’s members and talk to them about these issues. As she will know, we operate under guidance from the last Government about avoiding the best available land where at all possible. Even on the most ambitious plans, solar would occupy a very small fraction of agricultural land, although we had the largest ever solar auction in allocation round 7—
Ed Miliband
I will tell the hon. Member how much: at the cheapest, about £60 per MWh, which is far cheaper than building new gas. The fundamental point of this statement is that we will carry on with our drive to clean, home-grown power, because that is the right thing for our national interest.
Nuclear Decommissioning Authority Direction: Hunterston B Nuclear Site
Ed Miliband Excerpts(3 months, 2 weeks ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
I am today laying a designation direction, which has been given to the Nuclear Decommissioning Authority in respect of the Hunterston B nuclear site. The direction reaffirms NDA’s responsibility for the cleaning up and decommissioning of the site, triggering its powers under the Energy Act 2004. The direction has been given jointly with the Scottish Ministers, with the consent of EDF Energy Nuclear Generation Ltd and Nuclear Restoration Services, in accordance with sections 3 and 5 of the Energy Act 2004.
This direction marks the first nuclear site of the advanced gas-cooled reactor fleet that will transfer to Government for decommissioning. This is a historic moment for nuclear decommissioning.
[HCWS1352]
Local Power Plan
Ed Miliband Excerpts(4 months ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
With permission, I will make a statement about the local power plan and allocation round 7 solar and onshore wind auction results, both of which have been published today.
Britain’s drive for clean energy is about helping to answer the call for a different kind of economy that works for the many, not just the wealthy and powerful in our society. In the last few weeks, our warm homes plan has delivered the biggest public investment in upgrading homes in British history to cut bills for millions of people and to tackle fuel poverty. We have secured the largest offshore wind auction in European history, with a clean industry bonus to drive investment into our industrial communities, and we have agreed a fair work charter with business and trade unions as a first step to improving workers’ rights in renewables.
Today, I can report to the House the results of the AR7 auction for onshore wind and solar. In onshore wind, we secured 1.3 GW of power at a price of £72 per megawatt-hour. In solar, we secured nearly 5 GW at a price of £65 per megawatt-hour. I can inform the House that, together, this onshore wind and solar will provide enough power for the equivalent of more than 3 million homes, further reducing our dependence on international fossil fuel markets. It represents the largest solar and onshore wind auction in UK history.
I have had representations that we should have cancelled the auction and built new gas instead. I can tell the House that the price of this onshore wind and solar is less than half the price of building and operating new gas stations. Indeed, onshore wind and solar are by far the cheapest power sources available to build and operate, so I have rejected those representations. Instead, we have record-breaking results that will cut bills for families across Britain.
As we get off the rollercoaster of fossil fuel markets controlled by petrostates and dictators, we do not want this clean energy simply to be owned by big companies and multinationals. We want every community in this country to have the chance to own our energy future. We know that community ownership is a transformative tool to build the wealth and pride of local areas and give people a stake in the places in which they live. We already see this in pioneering community energy projects across Britain, and I pay tribute to them, including Lawrence Weston in Bristol, where England’s tallest onshore wind turbine, which I have visited, is 100% community-owned and generates tens of thousands of pounds a year to reinvest in the local community; the Geraint Thomas velodrome in Newport, which hosts nearly 2,000 solar panels and is one of the largest rooftop solar projects in Wales, cutting bills in Wales dramatically; and the Huntly Development Trust in Aberdeenshire, where community wind projects generate income that helps fund local charities.
We know that community energy not only spreads wealth and power, but contributes to the resilience of our energy system by generating and storing power closer to where people live, yet despite the individual success stories, Britain has never decisively seized the opportunities of community energy. Around half of wind capacity in Denmark is owned by its citizens, as is almost half of solar in Germany, yet in Britain currently less than 1% of our renewables are community owned. With our local power plan, we will change that.
Today, we announce the biggest public investment in community-owned energy in British history. During the previous Parliament, less than £60 million was spent on Government community energy schemes. Today, we set aside up to £1 billion of funding from Great British Energy to invest. This will offer grants to local authorities and community groups to support projects in their early stages, loans and project finance to support construction and operation, and funding to help communities buy a stake in larger renewable projects in their areas.
This funding will also be targeted at underserved areas of the country where it can make the biggest difference. Great British Energy estimates that this funding will support an initial 1,000 community and local energy projects, but this is just the start. Today, we send out the message to community groups, sports clubs, miners’ welfare institutes and village halls across the country that, in every community of Britain, we want to give people the chance to own their own energy, to transfer money from the pockets of energy companies to their community, and to generate income for the benefit of local people for decades to come. This is a Labour Government enabling every community of our country to own and build wealth for local people.
However, we know that making that happen is not just about providing capital funding, because communities need help to plan and develop their projects. So alongside this funding, Great British Energy will establish a one-stop shop to provide support and advice about local and community energy, with a team of expert advisers to help communities get their projects off the ground. This is Britain’s publicly owned energy company working hand in hand with our brilliant mayors, local authorities and community groups to turn the ambitions of local communities into reality.
Alongside the funding and support, we also know we must confront the reality that for years the rules of our energy system have held back the growth of community energy. Local and community schemes face hurdles that may be straightforward for large developers to overcome, but are too high for voluntary groups with limited time and resources. We are determined to break down these barriers, so we will also work with Ofgem to reform market codes and supply licences to help communities sell the power they generate, and we will ensure community energy projects benefit from our reforms to planning and the grid.
We also want to make it much easier for communities to take a stake in larger projects through shared ownership, building on examples such as the Isle of Skye co-operative in the Hebrides, which owns a share of a local onshore wind farm and has generated over £1.5 million for the local community. We think there is huge potential for many more projects like that, so we will consult on how we could use existing powers in the Infrastructure Act 2015 to mandate an offer of shared ownership. Those powers were passed more than a decade ago, but were never implemented. It would mean that, when companies built big projects, local people and communities would be offered a stake in them. As my hon. Friend the Member for Na h-Eileanan an Iar (Torcuil Crichton) has said, we need to move from a situation where communities can only aspire to be passive beneficiaries of projects owned by large companies to their being owners themselves with benefits in perpetuity. We are moving from community benefit to community share and community stake.
Taken together, this is the most comprehensive package of support to grow local and community energy that our country has ever seen. It builds on the Pride in Place programme, the community right to buy and our world-leading commitment to double the size of the co-operative sector. We know that the local power plan will be delivered not from Whitehall, but place by place and community by community. Today, I issue an invitation to local and community groups: if they come forward with proposals, we will support those groups to help make them happen. This statement is about a stake for the British people in our energy system, generating returns for local communities and local people, with power, wealth and opportunity in the hands of the many not the few, and I commend it to the House.
Greg Smith (Mid Buckinghamshire) (Con)
I thank the Secretary of State for prior sight of his statement.
It is becoming increasingly difficult to tell whether the Secretary of State is at the Dispatch Box as the Energy Secretary or rehearsing for a future move to perhaps No. 11. Once again, he is more distracted by personal ambition than concerned about the bleak reality families are facing across the country with crippling energy bills. Today’s announcement is being sold as a bold shift of power to local communities, but cutting through the fluff, this plan does not make electricity cheaper and it does not offer value for the taxpayer.
This plan does nothing to reduce wholesale prices, nothing to fix the grid connection backlog and nothing to tackle the structural costs. Instead, the Government are asking taxpayers to fund small-scale projects which, optimistically, will provide minor reductions in costs for a few local buildings while leaving families and businesses across this country still paying higher prices. There are no guarantees that the £1 billion committed through the Great British Energy scheme will deliver lower bills, no clear test of value for money and no convincing explanation of why subsidising small, piecemeal projects offers a better return for taxpayers than backing affordable, large-scale nuclear generation that would genuinely move the dial. Spread thinly across the country over several years and funnelled through yet another Whitehall-controlled body, this is not a serious intervention, but a press release masquerading as an energy strategy.
Alongside the local power plan, the results of allocation round 7 this morning raise serious questions that the Secretary of State has yet to answer. In the Government’s own press release, they rely on “internal analysis” to claim that additional solar and onshore wind procured through AR7 could lower bills in the early 2030s, but that analysis has not been published. It looks only at a narrow scenario, excludes wider system costs and does not give a full picture of future bill levels. If Ministers are so confident of their figures, why will they not release the full impact assessment? What exactly is the Secretary of State hiding?
AR7 also underlines the direction of travel under this Government: longer contracts, higher strike prices and greater risk locked in for bill payers. The extension of contracts for difference from 15 years to 20 years means that households will be tied into paying these costs for even longer, regardless of whether circumstances change. At the same time, the Government have relaxed planning requirements so some offshore wind projects can bid before planning consent has even been secured.
All of this points to the root problem, which is that electricity prices are already too high, and the policies pursued by this Government are only pushing them higher. Doubling down on carbon taxes and loading more expensive wind and solar on to a system that is not ready risks driving up costs for both households and industry, making British business less competitive and leaving families to pick up the bill. Families are being asked to pay more, not less. Labour promised to cut energy bills by £300; instead, bills have risen by £190 since Labour came to power. That is the reality behind its rhetoric, and that is the reality every family up and down the land understands as they open their energy bills.
At the centre of all this sits Great British Energy, an £8 billion taxpayer-funded quango that was meant to lower bills for everyone. So far, all we have is the promise of a highly paid chief executive, a new board and more bureaucracy. Why do we need another expensive state body to do what the market and existing institutions should already be delivering? That is the fundamental difference in approach. Our cheap power plan focuses on bringing down the underlying cost of electricity, saving the public sector and everyone else vastly more in the process, and doing so without costing taxpayers a penny. This Government are more focused on their own internal politics than on delivering the one thing people need: energy that is reliable, abundant and, above all, affordable for all our constituents.
Ed Miliband
Well, there were no questions, but I will reply none the less. Let me start with the AR7 auction, because this is very interesting and it will give the House a picture of what has actually changed. What has changed is the Conservative party, not the reality. We had the AR5 auction a couple of years ago, when the Conservatives were in power. In that auction, the price of solar was higher than it was in this auction. The then Secretary of State, the right hon. Member for East Surrey (Claire Coutinho) stated:
“our reliance on gas for electricity production today risks making power prices higher than they would be in a system with a greater share of generation from wind and solar…Moving to home-based, clean power mitigates risks to billpayers—now and in the future.”
What has changed? What has changed is that the Conservative party has gone full MAGA. Let us just be honest about this. It has decided to chase Reform into a ludicrous position, doubling down on fossil fuels and rejecting even solar and onshore wind, the cheapest, cleanest form of power you can possibly have. I guess the hon. Member for Mid Buckinghamshire (Greg Smith) was just reading out the script.
On community energy, I have to congratulate the hon. Gentleman, because he has given a brilliant example of why the previous Government were so hopeless on community energy. He obviously thinks it is a terrible idea. He is very welcome to do so, but he is sending a message to every Member of Parliament and all their constituents that the Conservative party is against community energy projects and against the things that will cut bills for local community groups. To every sports club, community centre and library that will benefit from this funding, there is a very clear answer: the Conservative party says, “No, you don’t deserve it. We don’t want you to have those lower bills. We don’t want you to have that cheap clean power. We don’t want you to have the income and resources to reinvest in our local community.” If the Conservatives want that as a dividing line, bring it on, I say. This Government are on the side of local communities, on the side of cutting bills and on the side of reinvesting money into communities. The Conservative party, in its new incarnation, is against it.
Madam Deputy Speaker (Caroline Nokes)
I call the Chair of the Energy Security and Net Zero Committee.
Bill Esterson (Sefton Central) (Lab)
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?
Ed Miliband
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.
Madam Deputy Speaker (Caroline Nokes)
I call the Liberal Democrat spokesperson.
Ed Miliband
I thank the hon. Lady—I say this genuinely—for her advocacy on this issue ever since we came into government and before. She is a powerful advocate for community energy. I congratulate the group in South Cambridgeshire, too. Let me deal with the points she raised.
On investment, I think that in anyone’s view the scale of the investment we are making is very significant. As I said, it is £1 billion, compared with £60 million in the previous Parliament under the previous Government. This is a massive scaling up and a realist assessment of what can be spent over this Parliament, but obviously this is just the start of our ambitions.
The hon. Lady made a point, I think, on working with local community groups, which is very important. She will know that one of the challenges local groups face is in getting to the stage of having a project that is ready to go. Part of this issue is about working with those groups to make sure that can happen.
On Ofgem and some of the regulatory changes, absolutely we are going to work as quickly as we can to unblock some of the barriers and ensure that can happen as swiftly as possible.
Mike Reader (Northampton South) (Lab)
Northampton is one of the towns across the UK that will benefit from the local power plan. Does the Secretary of State agree that my schools, colleges and universities, the four hospitals in my constituency, and my sports clubs, including the Cobblers—one of the greenest football clubs in the country—will benefit from the plan, and that the wealth generated by local power will be kept in our community?
Ed Miliband
I congratulate the Cobblers and all the organisations in my hon. Friend’s constituency. He is absolutely right. We think there are huge benefits across the country. GB Energy is, I think, now opening its website so that different groups can register an interest and work with it.
Sir Roger Gale (Herne Bay and Sandwich) (Con)
National Grid is one of the large, national, private companies run by the wealthy and powerful in society that the Secretary of State derided in his statement. It is seeking to build, on the edge of an area of scientific interest and a nature reserve, a 90-foot high converter station covering the size of five football pitches. Local people, whom the Secretary of State claims to champion, do not want this. Will the Secretary of State champion the local people and consign this project to the dustbin of history where it belongs?
Ed Miliband
The right hon. Gentleman will know that there is a planning process for all projects. I would gently point out to him—not specifically on his project, because I want to make a more general point—that if we are going to get the benefits of cheap, clean power, we need to build the transmission infrastructure. The biggest threat to the countryside is the climate crisis; it is the single biggest threat to biodiversity and nature. I am sure the right hon. Gentleman feels strongly about the specific issue he talked about, as do his constituents, but I do believe it is right to build the transmission infrastructure we need in order to lower bills for people and tackle the climate crisis.
Rachel Hopkins (Luton South and South Bedfordshire) (Lab)
I thank the Secretary of State for his announcement of the £1 billion in funding for community energy projects under Labour’s local power plan. Will he outline the benefits of community energy for constituencies like mine and set out how local communities can get involved and ensure that any profits are reinvested locally?
Ed Miliband
I thank my hon. Friend for that question. Briefly, there are three important aspects to this: first, communities can have lower bills for their community centres and local institutions; secondly, they can generate a stream of income by selling power back to the grid; thirdly, there is something wider, and perhaps more intangible, which is the matter of giving local communities a sense of stake in the system. I think this is really important, because one of the ways that we gain consent from people is through the sense that it is not simply the big multinationals that will own our energy system, but local people themselves.
Wera Hobhouse (Bath) (LD)
I welcome the publication of the local power plan and I honestly recognise the Government’s commitment to community energy. However, I think there is still a piece missing—namely that properties in the vicinity of a community energy generator can ultimately benefit by being directly supplied, rather than being supplied through a third party. Will the Secretary of State look again at how community energy is defined and include households benefiting from the energy generated within that community? We have been struggling with the definition of community energy on the Select Committee. I think it is important that households can benefit from the energy generated within the community.
Ed Miliband
I thank the hon. Lady for her advocacy on this issue. My hon. Friend the Minister for Energy, who is the world expert on these questions—or at least the UK expert; I will not push it too far—assures me that her important question about the statutory definition, which is, I think, on code P441, is being answered in the plan.
Joe Morris (Hexham) (Lab)
I thank the Secretary of State for his announcement. Community energy is incredibly powerful in rural Britain, particularly in the village of Humshaugh, where Humshaugh Net Zero set up the community-owned solar farm. I restate my invitation to the Secretary of State to join me on a visit to Humshaugh community solar farm, and thank him once again for the statement.
Ed Miliband
I will take up my hon. Friend on his kind offer. I think we will see a powerful example there of community energy in practice, and what is so exciting about today’s announcement is that we can now reproduce that right across the country.
Sir Julian Lewis (New Forest East) (Con)
Does the Secretary of State agree that the Mandelson scandal illustrates the reputational risk and damage that can be done by ignoring aspects of criminal exploitation? Does he know whether there is a difference in the cost of solar panels that are imported from China compared with other possible sources? What sort of safeguards do the Government have to ensure that we are not encouraging people to put on their roofs the products of criminal activity and forced labour exploitation?
Ed Miliband
The right hon. Gentleman and I have had exchanges on this matter before. It is a serious issue, and he is absolutely within his rights to raise it. I would just say two things to him: first, following the Great British Energy Act 2025, GB Energy has pledged to be a leader in this area and has appointed an adviser to work on these issues; secondly, he will know that the industry committed to the solar stewardship initiative as part of the solar road map, which is precisely about having independent monitoring of where solar panels come from. I take this issue seriously and I take his advocacy on it seriously, too. It is a work in progress, but it is really important that we get it right.
Olivia Blake (Sheffield Hallam) (Lab)
The shadow Minister, the hon. Member for Mid Buckinghamshire (Greg Smith), would do well to remember the measly £60 million that the previous Government spent on community projects, and the fact that they were opposed to GB Energy, whereas today’s plan clearly sets out the £1 billion for community projects coming through GB Energy. Community energy can deliver cheaper power, local jobs and, importantly, public support for clean energy and net zero. Will the Secretary of State set out how Great British Energy will remove barriers to community ownership, so that communities can directly share in the benefits of net zero?
Ed Miliband
My hon. Friend speaks with great eloquence on these issues. I am very interested in the power, introduced under the Infrastructure Act 2015, to give local community groups the right to buy a share of large-scale projects. That power has never been triggered—I think it may have been the fruit of the coalition negotiations—but we are very interested in making that power a reality. That is just one of the ways that we can break down the barriers that my hon. Friend talks about.
Sir Julian Smith (Skipton and Ripon) (Con)
The Secretary of State will be aware that small businesses across the UK are really struggling with energy costs, particularly in communities in rural areas like North Yorkshire. What can small businesses get from this plan to lower their costs as quickly as possible? What role will the plan play in that?
Ed Miliband
This plan is mainly about community groups and non-profit organisations, but the right hon. Gentleman raises a serious issue. It is something that we are talking to the National Wealth Fund and others about, because it emphasises the fact that there is low-hanging fruit here. If we can make it possible for small businesses and others to make these investments, there are ways that they can lower their bills. We might as well use the free resources that are available, such as the free resource of the sun. Obviously, the cost of solar panels has come down a long way. That is something for me to take away and work on.
Clive Efford (Eltham and Chislehurst) (Lab)
I am really excited by this announcement, because I am the chair of trustees of the Samuel Montagu youth club in my constituency, which has a roof that would benefit enormously from solar panels, which could generate income and make us more sustainable at a time when local government funding is drying up. We also have 13 acres of land, and I have always thought that we had the potential for ground source heating; if we could get some money to invest in that, we could provide energy to buildings around us as well. Does my right hon. Friend agree that when we delve into this issue, the scope is boundless? There are many projects that we could look into.
Ed Miliband
The two ideas that my hon. Friend puts forward sound absolutely ideal for this fund to me, but as for the eventual outcome, I must not put my thumb on the scale too much. He is right about this. We are starting something that will grow bigger and bigger over time. This is partly about raising our eyes and thinking, “Well, if it works in Germany and Denmark, why shouldn’t it work here? Why shouldn’t local people get the benefits of this?”. It represents a big, transformative shift in our thinking about what is possible.
Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)
The SNP has been very committed to community energy projects for a long time; indeed, we have invested more than the previous Government in community energy projects—over £67 million in nearly 1,000 projects. This announcement on community and renewable energy, while belated, is welcome. When the Secretary of State talks about community energy, does he include in that community heat projects that can be combined with community energy projects? A turbine with a community heat network, for example, can drive a huge amount of benefit to the local community.
Ed Miliband
Yes is the answer to that question. Community energy includes all kinds of innovative projects. As we open these funds for bidding—both from local authorities and community groups—we will find local people coming forward with innovative, imaginative ideas for how to drive this scheme forward. I suspect that we will be overwhelmed with the imaginative innovation that we see, and that is what is so exciting about this.
Terry Jermy (South West Norfolk) (Lab)
It is quite clear that communities that host energy projects should in some way benefit from them. I welcome that principle being incorporated into this plan. I particularly welcome the Government’s support for rooftop solar for Swaffham community hospital in South West Norfolk, not just from an environmental point of view, but as a way of reducing the energy cost of public services; that saving can be reinvested in the frontline. Will my right hon. Friend commit to tracking the financial benefit of these proposals, so that we know the true benefit for communities up and down the country?
Ed Miliband
My hon. Friend makes an important point. As a super nerd, I am very interested in that kind of impact analysis. Sometimes Governments do things but do not track their impact, so they cannot prove the difference that a scheme has made. His point is very important, as is the one about Swaffham hospital. The work that GB Energy is already doing on schools and hospitals is making a difference to public services up and down the country.
Ben Obese-Jecty (Huntingdon) (Con)
The Secretary of State talked about British people having a stake in our energy system, and generating returns for local communities and people. He then went on to say that he was on the side of local communities. I appreciate that he was talking about auction round 7, not nationally significant infrastructure projects, but in my constituency, we have the East Park Energy solar farm proposal. At 1,900 acres, it would have a huge impact on local communities. Residents of Great Staughton and Hail Weston in my constituency are massively opposed to the development. What would he say to my constituents, who feel that he is not on the side of local communities, given that the decision on this project falls squarely to the Secretary of State?
Ed Miliband
I will not go into the details of a planning decision, but areas that host energy infrastructure should see community benefits. What I say to his constituents and others is that there should always be community benefits, but if we want to bring down bills, and if we want energy security, we must build the energy infrastructure that we need. Solar is a really important part of that, because it is the cheapest, cleanest form of power. I am sure that some of his constituents will not like the proposal, but sometimes we have to stand up and say, “We think this is the right thing to do for cheap, clean power.”
Catherine Fookes (Monmouthshire) (Lab)
I thank the Secretary of State for announcing a big investment in local energy. He mentioned the fantastic example of the Geraint Thomas national velodrome in Newport, in my neighbouring constituency, with its 2,000 solar panels. This shows the value of community energy projects, which will cut bills, tackle climate change and literally give power to those local people on bikes going around the velodrome. I am delighted that the Welsh and UK Governments have an exciting vision for community energy, and that the Welsh Government created Ynni Cymru in 2023. What can the Secretary of State tell me about the investment in further local energy plans in Wales, and in my constituency of Monmouthshire?
Ed Miliband
I congratulate the Welsh Government on their important initiatives in this area; they are great leaders in it. I was whispering to the Minister for Energy about whether he and I should be cycling in the Geraint Thomas national velodrome, but he thought that was probably a bad idea. From the look on her face, I see that Madam Deputy Speaker seems to agree. I really hope that the constituents of my hon. Friend the Member for Monmouthshire (Catherine Fookes) benefit from this initiative. They will be able to see, from the velodrome, the benefit that there could be for them. We look forward to working with the Welsh Government on super-charging the benefits of this plan.
Mr Tom Morrison (Cheadle) (LD)
Too often, my constituents, like many in the north of England, have seen such Government schemes ploughing money disproportionately into the south of England. In fact, Government figures show that total investment per job is about £13,000 in London, compared with £9,000 in the north-west. How will the Secretary of State ensure that such regional inequalities are not reinforced by decisions on where projects are funded?
Ed Miliband
As a South Yorkshire MP, I completely agree with the hon. Member on these matters. He makes a really important point, and he has put it on the record. I am sure that GB Energy will be very conscious of the need to ensure a fair balance across the country, when it comes to the allocation of these resources.
Adam Thompson (Erewash) (Lab)
I thank the Secretary of State for explaining very clearly why the local power plan represents the biggest investment in community energy ever. It will help create jobs, develop skills and generate growth. Those are clearly the ambitions behind the redevelopment of New Stanton Park in my constituency. It is creating thousands of jobs and apprenticeships, and is returning industry to Ilkeston. Will the Secretary of State outline how the local power plan, alongside Mayor Claire Ward’s mayoral renewables fund, will support developments such as the New Stanton Park by lowering energy costs, attracting investment and expanding gold-standard apprenticeships?
Ed Miliband
Another really exciting part of this plan is working with local mayors, such as the excellent Claire Ward. There is a real chance here for mayoral vision to combine with the national Government’s vision, and local people’s vision of how they can transform communities and generate resources. I am very happy to endorse the sentiments of my hon. Friend, and I really look forward to working with him and Claire on this plan.
Ann Davies (Caerfyrddin) (PC)
Community energy has an important role to play in Wales. It powers around 17,500 homes, many of which are in my constituency of Caerfyrddin, with Ynni Sir Gâr leading the way. I welcome the local power plan and its funding envelope of £1 billion, and hope that we can rapidly expand on that number. Will the Secretary of State tell me more about how this funding will be fairly distributed across the UK? Will he introduce a ringfence to ensure that Wales and the other devolved nations, Scotland and Northern Ireland, receive, at minimum, their population share?
Ed Miliband
The hon. Lady asks an important question. We will work with the Welsh publicly owned energy company to make sure that Wales benefits from this plan. I made that point about a fair balance of funding across the country to the hon. Member for Cheadle (Mr Morrison), and I think it is very important. I think we will find that this programme will be highly oversubscribed—that is my prediction—because there is such an appetite for this plan and its potential. I hear that in the House. One thing that we will definitely be doing is working with the Welsh Government.
Alice Macdonald (Norwich North) (Lab/Co-op)
I welcome the local power plan, which builds on much clean energy investment in Norfolk, including backing for the Vanguard wind project and £17 million for warm homes in Norwich. I urge the Government to keep backing the east of England as a hub for clean energy. Will the Secretary of State outline in a bit more detail how constituents will be made aware of this project, particularly those who will not hear this statement, or hear about it on the radio, so that the communities that would benefit the most are able to maximise the benefits of this funding?
Ed Miliband
My hon. Friend makes a really important point. Local Members of Parliament have a massive role to play in, for example, approaching their local community groups and others who have the potential to benefit from the plan. I encourage all Members to do that. One of the most important things about Members of Parliament from all parts of the House is that so many of them have a sense of the groups and areas in their constituency that can benefit from the plan. My hon. Friend the Minister for Energy and I will provide resources for MPs across the House, so that they not only know about the plan, but can draw it to the attention of people and community groups in their constituency, so that they can benefit from it.
Clive Jones (Wokingham) (LD)
I thank the Secretary of State for his statement. My Liberal Democrat colleagues and I have long campaigned for community energy, but it is not enough to have a plan to deliver local power projects in the future, when there are projects around the country ready to go now, but sadly not supported by the national grid. In Wokingham, the Barkham solar farm is ready to go, but the National Grid is not yet ready to hook it up to the grid. It has delayed doing that for far too long, and it recently came up with a reason for another long delay. What is the Minister doing to fix this failure and get the Barkham solar farm hooked up to the grid for the benefit of our local community?
Ed Miliband
The hon. Gentleman makes an important point. We have carried out a big overhaul of the grid connections queue, which, as he knows, was sort of like the wild west. There was a chaotic “first come, first served” queuing system. The National Energy System Operator has done a big reordering of the queue, but we still have to put pressure on the transmission operators, to make sure that they deliver. I encourage him to write to my hon. Friend the Minister for Energy about the project, and we will take that up with the National Grid.
John Whitby (Derbyshire Dales) (Lab)
I have spoken to groups across my constituency such as Transition Crich and Derbyshire Dales Community Energy, which are working to create new community-owned energy projects in order to cut bills and drive down emissions. The £1 billion announced today will significantly help with their aims. However, these groups will grow faster if they are able to sell their energy directly to households in their communities. Could the Secretary of State therefore update us on what plans he has to implement local supply rights for community energy schemes?
Ed Miliband
We are right into the nerdery here—and it is really important nerdery. My hon. Friend makes an essential point about the ability to sell this power back into the grid. I assure him that we are working on this with Ofgem to improve the offer to local community groups, because it is an essential part of ensuring that economic value goes to groups, including those in his constituency.
Paul Waugh (Rochdale) (Lab/Co-op)
Rochdale is the birthplace of the co-operative movement, so we know what happens when local people come together to take back control when there has been a clear market failure. That is one of the many reasons I am proud to be the Labour and Co-operative party MP for Rochdale.
The Secretary of State rightly talked about the shift from community benefit, which is crumbs from the table for the big energy companies, to community ownership, and how this shift can sustainably lower bills for community groups and community buildings. Does he agree that the local power plan is all about power to the people—not just in the sense of clean energy, but communities having the power to determine their own bills and future?
Ed Miliband
Power to the people, indeed—it is a great slogan. I really do share my hon. Friend’s sentiments, both about the co-operative movement and Rochdale’s pioneering place in the movement, which is so important in our country, and about the shift in thinking about ownership that this plan represents. We want to move from the idea that this always has to be done by the big multinational companies, which are privately owned, to a different way of thinking. Yes, those bigger companies will continue to play a role, but why shouldn’t local people be able to come together and own their own energy? That whole principle was founded in Rochdale, and this plan will help the doubling of the co-operative movement that this Government are committed to.
Jonathan Davies (Mid Derbyshire) (Lab)
I thank the Secretary of State for his statement, the publication of the local power plan and the £1 billion investment that will support community groups to provide green, sustainable energy and help their financial sustainability. We have considerable expertise in Derbyshire when it comes to using water to create power. In fact, the mills that were built on the Derwent valley over 200 years ago were among the first to harness that opportunity, and now we have a number of hydro projects on that stretch of water. Can I encourage the Secretary of State to come to Derbyshire to see some of those projects and look at where we could add more? If he wants help from local people who have expertise in this space, I am more than happy to put him in touch with them.
Ed Miliband
I thank my hon. Friend for his invitation, and I look forward to doing that. He makes the important point that we can look back at our history, as my hon. Friend the Member for Rochdale (Paul Waugh) also pointed out, and draw inspiration from some of the pioneers who had a vision that is not the same as today’s but that has similar principles. I congratulate his constituents who are working on these issues and look forward to meeting them.
Madam Deputy Speaker (Caroline Nokes)
I thank the Secretary of State for making his statement—and for not doing so in Lycra.