Energy Update

Debate between Greg Hands and Debbie Abrahams

Monday 5th September 2022 Commons Chamber

[Greg Hands]

The hon. Gentleman is inviting me to speculate on the date of future Government announcements, which I am not able to do, but I will say that I do not think he will have long to wait.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

The issue around energy costs for businesses was a key priority for businesses I met in July. We know that business insolvencies are at a 60-year high at the moment. I am also getting a lot of feedback on the doorstep, when I meet constituents, who are concerned about how they will manage with the forthcoming energy price increase. We know that the new Prime Minister is not keen on handouts, but if there is not a reasonable offer from the new Prime Minister, what would be the Minister’s assessment of the increase in debt, homelessness and insolvencies and, as a consequence of all that, the increase in excess deaths?

[Greg Hands]

I thank the hon. Lady for that question. I have already said how well aware we all are of the increase in costs for businesses, but I think she paints an unhappy picture that goes beyond the reality of what businesses are facing in this country. If we consider the amount of support that the Government gave during the pandemic, and the level of employment in this country, including a record high in payroll employment, we see some really good economic figures coming out of that. Of course, we recognise that businesses are facing those big increases in energy costs, which is why I expect announcements to be forthcoming quite soon.

Oil and Gas Producers: Windfall Tax

Debate between Greg Hands and Debbie Abrahams

Tuesday 1st February 2022 Commons Chamber

[Greg Hands]

No, I am going to make a bit more progress.

The oil and gas industry and its supply chain are supporting more than 195,000 jobs, but investment in 2020-21 was at an all-time low of £3.5 billion. Meanwhile, there are £11 billion-worth of opportunities awaiting investment. We would be cautious about the potential implications that any change in the tax regime could have on investment, not just in oil and gas developments but in the development of cleaner-energy technologies. Moreover, continuing investment in the UK continental shelf is needed to support production and our security of supply. That is particularly important this winter, but it is also important in the longer term, because UKCS production can help to mitigate potential supply issues.

When it comes to the sector itself, I heard nothing from any of the Opposition Front Benchers about whether they supported our world-leading North sea transition deal. However, we want to support up to 40,000 high-quality direct and indirect supply chain jobs, including jobs in Scotland and our industrial heartlands in the north-east and east of England, generating up to £14 billion to 16 billion of investment to 2030 and delivering new business and trade opportunities to assist our transition to a low-carbon future.

For the longer term, the Government are looking at how policy costs, which help to fund low-carbon energy infrastructure, support vulnerable consumers and ensure security of supply, are distributed between gas and electricity. Investment in renewable and nuclear energy will be key to achieving that, and we have made and are continuing to make massive progress in both those areas since 2010. As of 2020, renewables contributed 43% of our electricity mix, more than six times the percentage in 2010, when the right hon. Member for Doncaster North (Edward Miliband) was Secretary of State. On 13 December, we launched the latest round of our flagship renewable energy deployment scheme, contracts for difference.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I hope the Minister will forgive me if I point out that an increase in the energy price cap is likely to be announced on 7 February, and ask what he will say to my constituents who will be pushed into fuel poverty as a consequence of that.

[Greg Hands]

I would say this: we are providing support. We have the warm homes discount, we have winter fuel payments, we have cold weather payments, we have the household support fund, and, of course, we have the energy price cap itself to protect customers.

The latest CfD round is the largest yet, with a goal of about 12 GW, more capacity than the last three rounds combined. The offshore wind that this round will deliver could be enough to power up to 8 million homes.

Oral Answers to Questions

Debate between Greg Hands and Debbie Abrahams

Thursday 18th June 2020 Commons Chamber

[Debbie Abrahams (Oldham East and Saddleworth) (Lab) [V]]

Complacency from the Government, and indeed from the international community as a whole, over human rights violations in Kashmir has contributed to the crisis that is unfolding at the line of actual control. The Indian and Chinese armies are now toe to toe, and there has been a Mexican stand-off between Pakistan and India since last August. I do not need to remind anybody that these are three nuclear powers. What economic and other levers is the Secretary of State using to resolve this crisis? Will she urge the Prime Minister to call for a UN Security Council meeting to avert a global disaster?

[Greg Hands]

Obviously the whole of government is extremely concerned by the situation in Kashmir. It is primarily of course a matter for the Foreign, Commonwealth and Development Office. However, I can tell the hon. Lady that trade assists dialogue and assists countries and peoples to come together. In reference to India, we are having a JETCO—India-UK Joint Economic and Trade Committee—shortly to talk about trade between the UK and India. In relation to Pakistan, as I said earlier, we are rolling over the GSP-plus arrangements that the EU currently has with Pakistan, which also include a key human rights element. Making sure that dialogue continues and that trade continues will assist in that.