Oral Answers to Questions

Graham Stuart Excerpts

Tuesday 29th November 2022 Commons Chamber

[Selaine Saxby (North Devon) (Con)]

3. What steps his Department is taking to help support the growth of the community energy sector.

[The Minister for Climate (Graham Stuart)]

Ofgem supports community energy projects and welcomes applications from the sector to the industry voluntary redress scheme. We encourage community energy groups to work with their local authority to support the development of community energy projects through UK-wide growth funding schemes.

[Selaine Saxby]

Will my right hon. Friend support measures to enable community energy schemes to sell their clean power directly to local customers, as contained in last Session’s Local Electricity Bill, and look at including them in the Energy Bill?

[Graham Stuart]

Although I am sympathetic to the outcome desired by proponents of, for instance, last Session’s Local Electricity Bill, I am concerned that mandating suppliers to offer local tariffs may be disproportionate and have unintended consequences. But I am delighted to tell my hon. Friend, who I recognise is a great champion in this area, that as part of a wider review of market mechanisms we are considering retail market reforms and responses to the electricity market consultation.

[Anna McMorrin (Cardiff North) (Lab)]

While the Government seem particularly confused about their position on onshore wind—the most tried and tested and easiest to roll out of all renewables—their focus on community energy is even worse. The creation of strong, well informed, capable communities able to take advantage of their renewable energy resources and create community benefits is embraced by the Welsh Labour Government. Why do the Conservative Government not do the same?

[Graham Stuart]

I thank the hon. Lady for her typically partisan contribution. [Interruption.] She is always consistent, and her Front-Bench colleagues rightly point out that I have some things in common with her. The rural community energy fund has provided £8.8 million in development grants for 208 projects focusing on a variety of technologies, which I am pleased to say include solar, wind, low-carbon heating and electric vehicle charging. The Government will be delighted to work with the devolved Administrations and others to drive forward our pathway to net zero.

[Bim Afolami (Hitchin and Harpenden) (Con)]

Referring to the Minister’s response to my hon. Friend the Member for North Devon (Selaine Saxby), energy market reform is critical to ensure the growth of the community energy sector and to splitting out the wholesale gas price from the electricity price and other things. Will the Minister update the House on the Government’s current thinking on wholesale market reform?

[Graham Stuart]

We will update the House as soon as we have announcements to make.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

Community energy schemes such as Hoy Energy Ltd in Orkney perform a really important role in the community by reinvesting their profits in local schemes and projects. Will the Minister assure me that when it comes to devising regulations under section 16 of the Energy Prices Act 2022, there will be exemptions for such companies to ensure that they can continue to put the profits that they generate back into the community?

[Graham Stuart]

The provisions in the Energy Prices Act have been superseded by the announcements made by the Chancellor in the autumn statement, and therefore I do not think that they strictly apply any longer, as the right hon. Gentleman has suggested.

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

Does the Minister accept that the inability of local energy providers to trade within their local community remains one of the biggest obstacles to the development of community energy overall? If he is not willing to take on board the provisions of the community energy Bill that is presently being promoted by community energy supporters, does he have any other ideas as to how that problem could be overcome in the context of the Energy Bill, which I am delighted to see has resumed its parliamentary process today?

[Graham Stuart]

I thank the hon. Gentleman for his question, and for his close interest in this field and knowledge of it. I look forward to sharing with the House further thoughts on how we can deliver precisely that more dynamic situation going forward. As he rightly says, there are provisions in the Energy Bill, which I am delighted to announce is resuming its passage through Parliament.

[Sarah Green (Chesham and Amersham) (LD)]

6. What steps his Department is taking to support off-grid households with their energy bills.

[Andrew Bridgen (North West Leicestershire) (Con)]

19. What steps he is taking to support off-grid consumers with their energy bills.

[The Minister for Climate (Graham Stuart)]

The Government have doubled support to £200 for alternatively fuelled households in recognition of the pressures caused by rising fuel costs. We are committed to delivering that payment to households as soon as possible this winter, and will announce further information on the delivery and timing of those payments in due course.

[Sarah Green]

People living in park homes are concerned that they have had no further information on when support will be available to them, or how they will access it. One representative of the company managing a park home site in my constituency first raised this issue with me in August, yet months on we still have no further information. Can the Minister provide some reassurance that people living in park homes will not slip through the cracks, and give some clarity as to when they will receive the £400 of support that they have been promised?

[Graham Stuart]

I think the hon. Lady has slightly confused the alternative fuel payment for those who are not on the gas grid with the energy bills support scheme—an easy mistake to make in this complex landscape. Those with a domestic electricity supply are already receiving the £400 discount under the EBS scheme that she has talked about. We are looking to come forward with details about timing, but it will be this winter; we are looking to work with local authorities in Great Britain to set up a scheme whereby people in park homes can apply as households, to ensure that they receive that £400 through local authorities as quickly as we can manage.

[Lee Anderson]

Now then. The residents of Ashfield mobile home park do not have a regular energy supplier. They get their gas and electricity sold on by the park owner—who, by the way, marks it up and puts a little bit back in his own pocket. Those residents do not have a great deal of money, so can the Minister please reassure them that help is on the way as soon as possible?

[Graham Stuart]

I thank my hon. Friend for his question; I hope he found my letter yesterday, and the annex to it, helpful. As I said, the Government have doubled support to £200 for alternatively fuelled households in recognition of the pressures caused by rising fuel costs. We are also determined to get support in place for edge cases. It sounds simple, and if I were where my hon. Friend is, I would certainly be shouting at the Minister to get on with it, but we do not live in a central database-driven society; it is necessary to identify these people in a way that protects public money. We are working flat out to deliver this support as quickly as we can.

[Andrew Bridgen]

A number of my constituents live in park homes, and many more have no access to gas mains and so rely on bulk deliveries of kerosene and liquefied petroleum gas. They are all concerned about the rising cost of energy, so would the Minister outline to the House how he is going to communicate to those groups the support that is available, and ensure that it is delivered for them this winter?

[Graham Stuart]

I thank my hon. Friend for his question. As I said, we are very much looking to work with local authorities, which we think are in the best position to help to go through the verification and assessment process and look after public money, and most importantly, to get the funding to heating oil users and others who need support to meet these unprecedented bills this winter.

[Mr Speaker]

I call the Chair of the Business, Energy and Industrial Strategy Committee.

[Darren Jones (Bristol North West) (Lab)]

The Government announced this week that £1 billion will go towards energy efficiency to reduce energy bills. Will the Minister confirm how many new homes will be covered by that £1 billion?

[Graham Stuart]

I cannot give the Chair of the Committee an exact figure, but I hope that very large numbers will be covered by that—[Interruption.] Opposition Front Benchers may find that amusing, but we should remember how few homes had an energy performance certificate C when Labour left power and how many more have had their level raised since then.

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[John Penrose (Weston-super-Mare) (Con)]

13. If he will publish a White Paper on the long-term structure of the UK energy sector after the energy price guarantee ends.

[The Minister for Climate (Graham Stuart)]

The Government have announced changes to the energy price guarantee from April 2023, as well as additional support for pensioners and those on benefits. The Government will work with consumer groups and industry to consider the best approach to consumer protection from April 2024 as part of wider retail market reforms.

[John Penrose]

Does the Minister agree that while subsidies are necessary short-term sticking plasters, investors will not commit the multi-billion pound investments that the energy sector needs to upgrade and modernise energy storage, generation and transmission unless the long-term rules are clear? Will he therefore update the Energy Bill to lay out a sustainable long-term future with investable deadlines and milestones to transition from today’s highly distorted, politicised and bureaucratic sector to a cheaper, simpler, better-value industry with much lower political and regulatory risks?

[Graham Stuart]

I am proud that this Government have led the way, with contracts for difference driving renewables such as offshore wind by driving down costs. I am also delighted that we have the legislative vehicle to deliver the necessary changes, and the Energy Security Bill will be taken forward in this Parliament to transform our energy industry by turbocharging carbon capture, utilisation and storage and our hydrogen industries in pioneering projects from the Humber to the Mersey, and beyond. The Bill will encourage competition in the energy sector, creating opportunity, prosperity and security with clean jobs, new skills and, as my hon. Friend rightly highlights, cheaper bills.

[Sammy Wilson (East Antrim) (DUP)]

The Minister talks about long-term energy support. Will he bear in mind that, despite the promises made here today that everyone in the United Kingdom is already benefiting from short-term support, not one penny has been allocated to consumers in Northern Ireland, even though the electricity companies are ready and the utility regular has told him that the ground has been set. When will payments be made to people in Northern Ireland? We are looking not for promises tomorrow but for payments today.

[Graham Stuart]

The energy price guarantee is benefiting Northern Ireland consumers today, along with pensioners and vulnerable families—they are all being helped. Of course, energy policy is devolved to Northern Ireland, and we have had to step in because of the lack of an Executive. We are working very hard. I held a roundtable with energy suppliers only last week, and another one was held yesterday. We are doing everything within our power to find the right route, while protecting public money in the proper fashion, to get money out to Northern Ireland consumers this winter. We are doing everything for our part, and I hope the right hon. Gentleman will support me in urging others to do the same.

[Andrew Bridgen (North West Leicestershire) (Con)]

T2. If he will make a statement on his departmental responsibilities.

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[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

T3. I welcome the Business Secretary to his place. What assessment has he made of the number of European countries to exit the energy charter treaty on the basis that attempts to modernise the treaty have failed, and will the Government be considering the UK’s position?

[The Minister for Climate (Graham Stuart)]

We consider all those that have left the energy charter treaty, but we have so far supported its modernisation. We keep that under advisement.

[Greg Smith (Buckingham) (Con)]

T6. Does my right hon. Friend share my enthusiasm for synthetic fuels made from green hydrogen and atmospheric carbon capture as part of our route to decarbonisation? If so, what is his Department doing to support the UK pioneers in this sector, such as Zero Petroleum, to compete in what will surely be a multitrillion-pound global industry and huge export opportunity?

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[Caroline Lucas (Brighton, Pavilion) (Green)]

The Rosebank oilfield would produce more than 200 million tonnes of CO₂ when burned, which is equivalent to running 58 coal-fired power stations for a year and more than the combined annual emissions of 28 low-income countries. How does that make any sense in a world where heating needs to be constrained to below 1.5°?

[Graham Stuart]

Our use of oil and gas in this country is falling as part of our pathway to net zero. It is usage that drives the burning of oil and gas, and it is on the downward pathway. Producing our own oil and gas when we will be burning it on our net zero pathway domestically is sensible. It is good for Scottish jobs—although sadly opposed by the Scottish nationalists—it is good for the British economy and it is entirely net zero compliant. That is why we will continue to manage the mature and declining basin that is the North sea.

[Mr Speaker]

I call Henry Smith.

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[David Duguid (Banff and Buchan) (Con)]

I welcome the Government’s recent doubling of the alternative fuel payment and yesterday’s written communication from the Minister confirming that the majority of households eligible for those payments will receive their £200 automatically as a credit on their electricity bill. Can he reassure constituents in Banff and Buchan who are dependent on heating oil in particular that those payments will indeed be made as soon as practically possible?

[Graham Stuart]

I can give my hon. Friend and his constituents that assurance.

[Alex Cunningham (Stockton North) (Lab)]

A few months ago, CF Fertilisers in Billingham ceased ammonia production there because of the high gas price. Now Mitsubishi, just a few hundred yards along the road, is consulting on the closure of one of its plants, with the loss of hundreds of direct and contractor jobs, for the same reason. Is the Minister aware of that latest blow to Teesside, and what is he doing to help firms such as Mitsubishi?

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[Stephen Farry (North Down) (Alliance)]

Households in Great Britain have had access to the £400 energy support payments since 1 October, but households in Northern Ireland have not had any substantial support whatsoever. The energy price guarantee does not really work in Northern Ireland, because 70% of households there use oil. Can the Government give the people of Northern Ireland a firm date by which the £400 payments will be made available?

[Graham Stuart]

As I said in an earlier answer, we are doing everything we can, working through suppliers, to ensure that the money reaches Northern Ireland consumers. The hon. Gentleman will be pleased to know that every single Northern Ireland household is receiving the alternative fuel payment, in addition to the energy bills support scheme. We are looking to make sure not only that that money gets out and is credited to households, but that they are able to access it this winter. There is no point having it as a credit on an electricity bill, as that does not help them deal with other costs this winter. That is the sticking point; that is what we are working on.