Oral Answers to Questions

Graham Stuart Excerpts

Tuesday 28th February 2023 Commons Chamber

[Olivia Blake (Sheffield, Hallam) (Lab)]

2. What discussions he has had with his EU counterparts on the potential scope of a co-ordinated withdrawal from the energy charter treaty.

[The Minister of State, Department for Energy Security and Net Zero (Graham Stuart)]

I have not held discussions with EU counterparts on the scope of co-ordinated withdrawal from the energy charter treaty and note that the EU itself does not have an agreed position as yet. We are closely monitoring the situation on the ECT.

[Olivia Blake]

The energy charter treaty allows fossil fuel companies to sue Governments for loss of profits caused by decarbonising. Does the Minister agree that any treaty that punishes attempts to tackle the climate crisis is fundamentally wrong? Does he also agree with France, Spain, Germany, Poland, the Netherlands, Luxembourg, Slovenia, the European Parliament and the European Commission that modernising the ECT is impossible and that it is time to participate in a co-ordinated withdrawal from this deeply damaging treaty?

[Graham Stuart]

We were firm proponents of modernising the treaty precisely so that it would not do what the hon. Lady described, but, as I have said already, we will continue to watch the situation closely.

[Dan Carden (Liverpool, Walton) (Lab)]

3. How many households had forced installations of prepayment meters in 2022.

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[Mrs Flick Drummond (Meon Valley) (Con)]

7. What steps he has taken to provide energy bill support to households that use alternative fuels.

[The Minister of State, Department for Energy Security and Net Zero (Graham Stuart)]

Alternative fuel users have received significant support this winter: first, by direct subsidy of their electricity bills per unit; secondly, through £400 of additional payments across the winter; and thirdly, by £200 paid automatically, for the vast majority, by their electricity supplier, which began on 6 February and finished, I am pleased to say, today. A small minority will need to apply and that portal will open soon.

[Mrs Drummond]

Many people in Meon Valley use heating oil for their heating, and many have contacted me concerned that they have not received Government support yet. Some are having to wait because they are having to apply by phone. Can my right hon. Friend confirm that support is being rolled out and, crucially, that it will be received by those who are eligible in time for it to be of use this winter?

[Graham Stuart]

I pay tribute to my hon. Friend’s efforts to highlight the issue throughout the winter to make sure that the funding gets to the people who need it, when they need it. It has been challenging to make sure that every group across the country—domestic and non-domestic—gets it. I am pleased that the vast majority of people who are on alternative fuels have received that payment or credit this month, and that the portal will open imminently. We will follow the process for those who do not have an electricity supply for the £400 from the EBS scheme, which we are getting out as quickly as we can.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

Under the scheme to which the Minister refers, the Government have rightly provided £600 to customers in Northern Ireland, where there is a high incidence of off-grid energy users. That statistic is even higher in my constituency of Na h-Eileanan an Iar, which, by dint of being islands, are more geographically distinct. Can we have a consistency of approach from the UK Government? Rather than just paying £400 and asking people to apply for another £200—knowing, as we all do, that some will fall through the gaps—we need a consistency of approach, given the statistics and geography in support of that, which pays my constituents £600 as well.

[Graham Stuart]

The hon. Gentleman has used every corridor and voting Lobby opportunity to lobby me throughout the winter on this issue. I am pleased to say that his constituents will have received, through their electricity supplier, the £200 in addition to the £400. The small minority who do not have an electricity supply will be able to apply on the portal very soon. The net effect will be the same as we have seen in Northern Ireland—I think his constituents are in the same position—where people have each received £600 of direct subsidy with the direct subsidy of per unit energy use to boot.

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[Philip Dunne (Ludlow) (Con)]

10. What steps he is taking to increase renewable energy production.

[The Minister of State, Department for Energy Security and Net Zero (Graham Stuart)]

I am pleased to tell my right hon. Friend that growth in the renewables sector continues year on year, with the latest data showing that 3.4 GW of new renewable electricity capacity was installed last year alone. We will build on that further: we have now taken our highly successful contracts for difference scheme and put it on an annual basis, so allocation round 5 will open next month.

[Philip Dunne]

Oil and gas producers benefit from an investment allowance for investment in renewable projects in the UK, but existing renewable generators do not. Will my right hon. Friend make representations to the Chancellor, so that he can level up that anomaly and enable my right hon. Friend’s admirable renewable energy ambitions to be realised?

[Graham Stuart]

I thank my right hon. Friend for that question. As he knows, tax policy is a matter for the Chancellor, but I am working closely with him, along with the Secretary of State, to ensure that the electricity generator levy strikes the right balance when supporting households and businesses struggling with their energy bills. It is worth remembering that, as I have just mentioned, our main mechanism is the CfD, which provides support for renewable generators in a way that is certainly not true of those in the oil and gas sector.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

Earlier this month, the pan-European EVOLVE project found significantly greater potential for marine energy in British waters, which would obviously help us achieve our net zero targets and offer a quicker route to round-the-clock renewable and carbon-free energy. Why are Ministers being so timid about backing that cutting-edge energy technology?

[Graham Stuart]

I take it that the hon. Gentleman is talking about tidal stream. I am delighted to say that we are the world leader in tidal stream, and that in allocation round 4—the last round of our CfD—tidal stream was included for the first time. We have greater deployment than any other country in the world, but I am like the hon. Gentleman: I share his enthusiasm for that technology, and hope to see even more from it in future.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Following on from that point about tidal stream, MeyGen in the Pentland firth is the largest consented tidal stream site in the world. To date, that site has produced 70% of global tidal stream generation, but inflation pressures have now put that project at a crossroads. It has the chance to remain the world’s leading project through a genuine scale-up, but what is required now is a £40 million ringfenced pot in AR5. Will the Government do the right thing, step up and back tidal stream, allowing Scotland to continue being a world leader?

[Graham Stuart]

I am proud of the fact that we are a world leader, and of course it is only thanks to the CfD scheme, which relies on levies across the whole of GB, that we are able to realise the renewable potential in Scotland. If the separatists had their way, we would not see the development that I hope to see in offshore wind, tidal and other technologies thanks to the whole of the UK, and Great Britain in particular, working together.

[Alan Brown]

I am really disappointed by that answer. I was hoping that the Minister would give some commitment to tidal stream going forward. If he is talking about the whole UK and how Scotland benefits, he needs to start backing the Acorn carbon capture cluster, too. Scotland could generate up to 300,000 hydrogen jobs within the just transition, and part of that relies on the Acorn cluster getting the go-ahead. Also, Acorn is required for Scotland to meet its 2030 emissions targets. Instead of blunder and bluster, when are the Government going to step up and back Acorn?

[Graham Stuart]

We are the world leader, and the largest deployment of tidal stream in the world is in Scotland. We will shortly be making more announcements about allocation round 5. We will also be making announcements in the next few weeks about hydrogen, carbon capture and the future there, and I have already committed in the House to accelerating our approach to that.

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

11. What assessment he has made of the potential contribution of solar power to UK energy security and the 2050 net zero target.

[The Minister of State, Department for Energy Security and Net Zero (Graham Stuart)]

Solar is a cheap and versatile technology. It is a key part of the Government’s strategy for net zero and I share the hon. Lady’s enthusiasm for it. We are aiming for up to 70 GW of installed solar capacity by 2035, and that represents a fivefold increase in our current capacity.

[Caroline Lucas]

I welcome the Minister’s enthusiasm for solar and the progress that has been made so far. According to Solar Energy UK, the rate at which solar panels are being put on to domestic roofs is still only half of what is needed to meet the Government’s own targets. I know that he wants to do much better, so is it not time to pick up the pace and give us a real rooftop revolution by making solar panels mandatory on all suitable new homes? Will he do that?

[Graham Stuart]

More than a million homes now have solar panels installed. According to data from the microgeneration certification scheme, a total of 130,596 solar panels were installed on UK rooftops last year alone, and that is more than 2019, 2020 and 2021 put together, but like the hon. Lady I want to see us go further and faster.

[Greg Smith (Buckingham) (Con)]

Energy security and food security should have equal billing, yet the proliferation of solar farms across thousands of acres of agricultural land is taking away from our nation’s ability to produce food. Warehouses up and down the land want to put solar panels on their roofs, but find they cannot because of the grid connections. What steps are being taken to ensure that the solar revolution can come on rooftops, not agricultural land?

[Graham Stuart]

The planning system is designed to seek that balance with the need to secure a clean, green energy system. It is worth noting that ground-mounted solar has probably the lowest levelised cost of any form of energy in this country. The Government have clarified the definition of “best and most versatile” agricultural land as constituting lands in grades 1, 2 and 3a, and we do everything we can to incentivise that solar should go on brownfield land or land of lower agricultural value.

[Lia Nici (Great Grimsby) (Con)]

12. What progress he has made on meeting the 2050 net zero target.

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[Afzal Khan (Manchester, Gorton) (Lab)]

13. How many onshore wind farms have been established in England since 2015.

[The Minister of State, Department for Energy Security and Net Zero (Graham Stuart)]

I thank the hon. Gentleman for his question. Since 2015, 10 onshore wind projects totalling 30 MW have been consented for development in England, of which three have become operational.

[Afzal Khan]

The Government’s onshore wind ban has raised bills for every family by £150 each. Keeping this ban in place would mean bills are £16 billion higher in 2030 compared with Labour’s plan to double onshore wind. Will the Secretary of State apologise for the dogma of his Government that has led to more imported gas and raised bills, with energy companies making record profits and families paying the price?

[Graham Stuart]

The hon. Gentleman is a very fine Member of this House, but I really would warn him against reading out the screeds produced by his party centre. In 2010, just 7% of our electricity came from renewables; it is now heading its way to half. Onshore wind has an important part to play, and we are looking at ways in which we can enable communities that do support onshore wind to go ahead and deliver it.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

Alongside onshore wind, does my right hon. Friend agree with me that in this country we have a tremendous opportunity in front of us to seize first mover industrial advantage in the new floating offshore wind industry, particularly with respect to the Celtic sea? Does he agree with me that crucial to doing that, and to building domestic supply chains and domestic capability, is alignment of the Crown estate leasing process, the contract for difference and interventions such as freeports?

[Graham Stuart]

My right hon. Friend is absolutely right on every single count.

[Alex Cunningham (Stockton North) (Lab)]

14. If he will have discussions with Cabinet colleagues on the potential contribution of the Tees freeport to meeting the UK’s net zero targets.

[The Minister of State, Department for Energy Security and Net Zero (Graham Stuart)]

I continue to discuss with colleagues the contribution that all parts of the country can make to help meet the UK’s net zero targets, including freeports. I was delighted to visit last year and see the transformation being delivered by Mayor Houchen. For instance, SeAH Wind’s £400 million factory investment for offshore wind monopiles will sit alongside the £107 million South Bank Quay on the Tees.

[Alex Cunningham]

Well, we will see what that transformation really brings. I am actually blocked out from any face-to-face briefings by the Tees Mayor, even from his social media, so I have to rely on news releases and third parties for information about the site, thus my question today. It is absolutely critical that the Government work across Whitehall to support this initiative and ensure that the benefits derived are delivered to the community with well-paid jobs in the net zero sector, not just profits for a few local businesspeople. Can the Minister confirm that, despite countless promises of 30,000 jobs, just one company has so far signed a contract to set up premises at the Tees freeport?

[Graham Stuart]

I have known the hon. Gentleman for a long time, so it is disappointing to hear his words. He is right to say that we need co-ordination across Government, including local government, and that is why it was particularly disappointing—and I hope the hon. Gentleman would condemn them—that Labour councillors voted against plans to bring £18 million of investment to Teesside. [Interruption.] They voted against the establishment of a new body that would bring £18 million of investment to Middlesbrough.

[Mr Speaker]

Stop.

[Graham Stuart]

They put ideology and party difference over the interests of their constituents.

[Mr Speaker]

Order. Minister, when I say stop, I mean stop.

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[Peter Aldous (Waveney) (Con)]

T8. Offshore wind is a great British success story, but fiscal and regulatory action is urgently required if the UK is to remain an attractive place to invest. Can my right hon. Friend thus confirm that, ahead of the Budget, he is working with the Treasury to introduce new tax incentives and to reform capital allowances so that the UK can compete with other countries, such as the US and those in the EU?

[The Minister of State, Department for Energy Security and Net Zero (Graham Stuart)]

I am sure my hon. Friend is as delighted as I am that the United States and the EU are now following our lead in developing renewables, including offshore wind. We work closely with the Chancellor to ensure that the UK remains, as it has been consistently under this Government, the best place in the world in which to invest in offshore wind.

[Dan Carden (Liverpool, Walton) (Lab)]

T3. The Rosebank oilfield in Scotland is the largest undeveloped oil and gas site in the UK. It is set to unleash 200 million tonnes of carbon emissions—the equivalent of the emissions of the 28 lowest-income nations across the world. It is marine-wrecking and climate-wrecking. Will the Government put a stop to it?

[Graham Stuart]

Seventy-seven per cent. of our energy today comes from fossil fuels. We will be using about a quarter of the gas we do today in 2050 under net zero. The idea that importing that, with higher emissions attached to it, rather than producing our own, is ridiculous environmentally, ridiculous economically and ridiculous in terms of maintaining the skills in the North sea that we are going to need for the transition, with hydrogen, carbon capture and other industries coming forward. I ask the Labour party to change its mind.

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[Wera Hobhouse (Bath) (LD)]

In its progress report last June, the Climate Change Committee noted that only about 40% of the Government’s plans for getting to net zero were credible. In some areas, including farming and industrial electrification, they had no plans at all. What are the Government doing to develop credible plans in those areas?

[Graham Stuart]

We are under a legal duty to ensure that we move to net zero, and I am delighted that we are continuing to make progress. The hon. Lady will see announcements from the Government by the end of March on our net zero plans.

[Alexander Stafford (Rother Valley) (Con)]

Domestic heating generates 14% of the UK’s carbon dioxide emissions, but blending natural gas with just 20% hydrogen would be the equivalent of taking 2.5 million cars off the road. We are already lagging behind Germany, France and Chile, which have decided to blend up to 20%, while Italy, Canada and Australia are close behind. Can the Minister assure me that the Government’s decision on blending hydrogen in our gas network will be a positive one so that we can stop tailing our European counterparts?

[Graham Stuart]

A plethora of announcements, on a number of issues, will be coming out of the Department in the coming weeks. Hydrogen is an important area in which we are a world leader; it is my intention, as I know it is my hon. Friend’s, to ensure that we remain in pole position.

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

Analysis by E3G has found that a third of the funding pledged for this Parliament to make buildings energy-efficient and to decarbonise heat has not been spent by the Government. What steps are the Government taking to ensure that that money is allocated and spent, and that leaky buildings are addressed swiftly?

Electricity Transmission (Compensation) Bill

Graham Stuart Excerpts

3rd reading
Friday 24th February 2023 Commons Chamber

[The Minister of State, Department for Energy Security and Net Zero (Graham Stuart)]

Once again, may I thank my right hon. Friend the Member for North Somerset (Dr Fox) for introducing this important legislation? I am afraid that I am not the historian of legislation that I ought to be, so I have no idea whether any Member in history has ever managed to get two private Members’ Bills in a row put into law, but my right hon. Friend is a remarkable man, and he has shown that once again by successfully steering this Bill through. The machine, as ever, always responds by trying to kill it, but such is his dexterity, insight and flexibility that no attempt to kill it is successful, and he finds a way through to deliver something that will be good for everyone. I am pleased that all the amendments were accepted in Committee on 25 January, and I am delighted to offer my support for the Bill as the Minister of State in the Department for Energy Security and Net Zero.

Although the name of my Department may have changed, the position of the Government has not, and I can confirm that the Government are fully supportive of the Bill. One key priority of the new Department is ensuring that the UK is on track to meet its legally binding net zero commitment and support economic growth by significantly speeding up delivery of electricity network infrastructure and domestic electricity generation.

The nation will have been grateful for the speech made by the hon. Member for Feltham and Heston (Seema Malhotra), but it seemed clear from its tone that the Labour party prefers appropriation to the reasonable treatment of people in delivering this. Of course, failing to engage properly with communities will slow down the transformation we need. People thinking they can ride roughshod over communities because they scream, “Climate emergency and urgency” is not the way to do it; we have to go with the grain of communities. We have to explain the narrative. What is our narrative? As my right hon. Friend the Secretary of State has set out, we have a vision of delivering the most competitive, lowest-cost clean energy in Europe by 2035. That will have a transformative effect, not only in terms of our leading the world in reducing emissions, as we have done to date under this Government, but in enabling the re-industrialisation of the north, Scotland and Wales, with all the economic benefits that come with that. It is this Government, not the Labour party, who have delivered. When Labour left power in 2010 only 7% of our electricity came from renewables, but now it is nearly half. We are going further and faster, but making sure we do it in a way that works with the grain of communities, because if we ride roughshod over them, they will come back and will slow us down. To answer the hon. Lady’s point, this Bill will not slow down what we are doing; it will enable us to move at the speed required and make sure that we do so in a way that retains community support.

The Bill is about the building of network infrastructure, and the planning and consenting process. I thought it would be helpful to set out the Government’s commitments in this area and the work that is already under way. It currently takes about 12 to 14 years to build or reinforce new onshore electricity transmission network infrastructure, from the initial planning to the final completion and commissioning. The development of new transmission infrastructure is often on the critical path for the connection of new generation. The wonderful and extraordinary new generation that we have helped bring about, and are going to bring about in the future, is of no use if we do not have the infrastructure to get the electrons to where they need to go. The current position offers an unacceptable timeline when the electricity network is a critical enabler of our domestic energy production targets and our decarbonisation targets. We committed in the British energy security strategy to significantly reduce the timelines by about three years for delivering onshore transmission network infrastructure. We aspire to halve this end-to-end process by the mid-2020s. So we are working with developers and supply chains to increase pipeline visibility and certainty, to help accelerate the procurement.

Work is already under way to improve the strategic planning of network infrastructure, including the holistic network design. We are also improving the planning and consenting process. The Department for Levelling Up, Housing and Communities published its nationally significant infrastructure project reform action plan just yesterday, and our consultation on the revised energy national policy statements is imminent. Additionally, work is ongoing to improve work with communities and to expedite Ofgem’s regulatory approval process, but we recognise that more needs to be done. That is why in July last year my Department appointed Nick Winser CBE to the role of electricity networks commissioner. He is advising Government on how the development process for transmission infrastructure can be accelerated. He has extensive experience in electricity networks and is currently chair of the Energy Systems Catapult, which provides technical, commercial and policy expertise to drive innovation across the whole energy system. The commissioner is tasked with looking at where further improvements can be made beyond what is already in train across Government and will be looking at providing recommendations on crucial issues such as strategic network planning, planning consent and regulatory approvals. His work commenced in September and he continues to work intensively with stakeholders across the development process, within Government and across industry so that his work can deliver a valuable contribution to my Department’s aims. He hopes to submit his final recommendations to the Government for review in June. The commissioner is working in collaboration with the offshore wind champion, Tim Pick, and the offshore wind acceleration taskforce, given the importance of electricity networks to the offshore wind deployment we need. We are also working with Ofgem to speed up its regulatory approvals process. So in December, Ofgem published its decision on accelerating strategic transmission investment, which includes exempting certain strategic projects from being subject to competition. That provided greater clarity and certainty to industry on which projects should be progressed, and by whom.

Communities that host network infrastructure are playing a vital role in ensuring a cheaper, cleaner and self-sufficient energy supply in Britain. It is therefore only right that they benefit from developments in their area. Although benefits to communities are already offered by industry, now is the right time, given the scale and rate of change to which hon. Members have referred, to review how community benefits are delivered. We intend to explore whether there should be a more standardised approach, or whether providing a framework or benchmark offers more flexibility that would be of benefit to the distinct needs of individual communities and projects. We will consult in the coming weeks on options for community benefits regarding onshore network infrastructure.

The Government announced a review of the energy national policy statements to ensure that they reflect the policies set out in the energy White Paper net zero strategy and the British energy security strategy, and that we continue to have a planning policy framework that can deliver the investment required to build the infrastructure needed to ensure an independent, secure energy supply as we transition to net zero. The draft energy national policy statements were subject to parliamentary scrutiny, including by the Business, Energy and Industrial Strategy Committee, which published its report and recommendations on 25 February. When analysing the responses to that consultation, we will take account of those and of any other resolutions as we go forward.

Let me talk now about the Bill. I have set out what we are doing to accelerate the build of network infrastructure, but as I have said, new network infrastructure must be built in a way that protects the rights of local landowners and communities. That is why the Bill has the Government’s support. We believe that it can be a bulwark for the vital transformation that is needed for our electricity network.

Transmission owners need access to private land when installing network infrastructure, and in that situation, the landowner is entitled to compensation. We recognise that in cases in which the landowner and the transmission owner cannot agree on compensation, challenging through the upper tribunal can be expensive for landowners. The Bill presents an opportunity to address that by ensuring access to alternative dispute resolution processes, which can play such a crucial role in offering a quicker and cheaper route to resolving disputes.

We need the right expertise and the right balance of views to develop proposals, as my right hon. Friend the Member for North Somerset said. That is why we will establish an alternative dispute resolution taskforce to take the work forward. I have been asked repeatedly and quite rightly about timelines, and that taskforce will be taken forward this year. Its work will complement the ongoing work within my Department. We are already reviewing the land rights and consents processes for network infrastructure. We published a call for evidence in 2022 and we are reviewing the responses.

To answer my right hon. Friend’s question on whether the scope of the proposals will extend to the distribution network and to the refurbishment of existing infrastructure, the Bill sets out only which cases must be in scope of the proposals. The Secretary of State can decide whether to extend the scope to other electricity network-related cases, including the distribution network and, indeed, refurbishment where a DCO is not in place. We envisage that the taskforce will make a recommendation on scope to the Secretary of State.

Amendments have been made to the Bill since Second Reading. I will now—briefly, I hope—explain the amendments and their purpose. Amendment 1 removed clause 1, which was replaced with new clause 1. The new clause focuses the proposals on electricity-related cases rather than gas-related cases. The new clause also moves away from proposals to establish a new mechanism to proposals to encourage use of alternative dispute resolution processes. That means that we can consider existing practices and whether they can be strengthened to meet the aims of the Bill, as well as whether new mechanisms are required. The new clause retains the key factors that the proposals must consider: that decisions are enforceable and that the process is affordable and accessible, as my right hon. Friend so fluently laid out.

Amendment 2 simply replaced “applies” with “extends” for the subsection dealing with territorial extent in clause 2 —a minor technical amendment to reflect more appropriate terminology. Amendment 3 changed commencement to two months after Royal Assent, bringing the Bill in line with standard commencement procedure for primary legislation. In line with the focus on electricity transmission infrastructure, amendment 4 removed “gas” from the Bill’s short title in clause 2. Finally, amendment 5 edited the Bill’s long title to reflect its contents in clause 1.

I thank all hon. Members who have participated at the various stages of this Bill’s progress through this place. Supporting this Bill is in line with our ongoing objective of ensuring that landowners have access to a clear, fair, affordable and enforceable system for dispute resolution. I am so grateful to my right hon. Friend the Member for North Somerset for introducing the Bill and for working so constructively with the Government to ensure that were able to deliver on this important issue. I hope all Members will agree that the |Bill should now move to the other place, where I hope it will gain the support of peers as it has gained the cross-party support of Members here.

My hon. Friend the Member for Aylesbury (Rob Butler) talked about David and Goliath and about the need to ensure that we have a system of infrastructure that works fairly and equally for people, and reflected on his experience in his own constituency. My hon. Friend the Member for Buckingham (Greg Smith)—there is something of a Buckinghamshire massive here today— talked about solar farms and the need for infrastructure reinforcement, and pressed me on the timeline. I hope I gave a suitable answer.

I am grateful to my officials, those in the Box and those outside: Daniel Boorman, Charles Grant, Alex Chittenden, Louise Sun and Susanna Isola from my private office. I look forward to working with my right hon. Friend the Member for North Somerset to support the passage of the Bill, which I am confident will not only introduce a fairer system but aid rather than break the fast change that we need to deliver in order to have the most competitive energy system in Europe in the 2030s, which I think will underpin the return of the UK—quite properly—to its position as the premier economic power in Europe. I believe that energy is often the foundation and the secret of economic success.