Oral Answers to Questions

Debate between Greg Hands and Peter Aldous

Tuesday 12th July 2022 Commons Chamber

[Greg Hands]

I completely agree with the hon. Lady in her analysis of the underlying issue: the big rise in global energy prices over the past 12 months. That is exactly why we are taking the action we are taking: £37 billion-worth of support for consumers and bill payers over the course of this year. That is a massive amount of Government support going into ensuring that people get the support they need to be able to pay those bills in the coming months.

[Peter Aldous (Waveney) (Con)]

I am grateful to my right hon. Friend for outlining those measures. I sense it will be a very bleak winter; the energy price cap will play a role, but it would help if it were augmented by a social tariff. Will he advise on whether there have been any discussions in Government about the introduction of such a tariff?

[Greg Hands]

I thank my hon. Friend for that thoughtful question. Obviously, all these things are under review, but I remind him that we replaced the social tariff with other support schemes for bill payers under the coalition. That remains our position, but we—both the Department and the Treasury, and indeed, the whole Government—study these positions and issues very closely indeed.

Community Energy Schemes

Debate between Greg Hands and Peter Aldous

Tuesday 30th November 2021 Westminster Hall

[Greg Hands]

Fantastic. I will leave some time for the hon. Member for Bath to reply.

Finally, earlier this year, we jointly published with Ofgem our new smart systems and flexibility plan and the UK’s first energy digitisation strategy, which was also developed with Innovate UK. Many of the actions set out in those documents aim to improve locational signals and help to enable smart local energy solutions, such as facilitating further growth of local flexibility markets.

In addition, Ofgem’s access and forward-looking charging review seeks to deliver more efficient choices about where users locate on the networks, and how they use the networks on an ongoing basis. The introduction of better price signals is important in ensuring that local generation is rewarded for the benefits it can bring to the system. It is recognised that, in some parts of the country, the costs of connecting to the grid can itself act as a barrier. Ofgem has therefore proposed to reduce connection costs for generation connections, such as community energy, by socialising more of the network reinforcement element of connection charges. Any changes are expected to come into effect from April 2023.

Many Members have argued in favour of local energy suppliers as an option to mitigate global gas price impacts, which I have already referred to, but risks would continue to exist. For example, local energy suppliers are likely still to need to be connected to the grid during periods of low generation. The failure of a local energy supplier without a grid connection would also leave customers without energy supply in the absence of an effective safety net.

The Government continue to support the development of new business models to supply energy consumers and help achieve our net-zero ambitions. In response to the unprecedented rise in energy prices this year, we are working closely with Ofgem to consider broader reforms to the overall energy retail market regulatory framework. We want a market that will support the longer-term transition to net zero, recognising the need for continued competition and innovation while also ensuring that suppliers have sustainable and resilient business models. That includes Ofgem exploring a move towards a more prudential regulatory regime, recognising that energy suppliers are managing complex financial risks and ensuring that the energy sector is resilient against a wide range of future scenarios, including prices rising further or falling sharply.

This debate is testament to the fact that there is clearly extensive cross-party support for the community energy sector, which we very much welcome. Just as importantly, there is a wealth of innovative schemes—

[Peter Aldous]

I am most grateful to the Minister for setting out so clearly the obstacles that need to be overcome to mobilise community energy schemes. Can he confirm that he and the Government are committed to overcoming those obstacles and removing those barriers so that, when we come back in a few months’ time, we can say that we have achieved tangible progress?

[Greg Hands]

I am certainly committed to examining the obstacles and speaking to my hon. Friend; I know his long-standing interest in this, as indeed in all energy questions—he is the Mr Energy of East Anglia. I am very happy to continue to engage with hon. Members, to look at the obstacles and to see what can be overcome, ameliorated or worked around. I am very keen to meet and continue the engagement with hon. Members. It is a little difficult for me to agree to remove the obstacles until we have scoped them out. The Department is well aware of the obstacles, but if my hon. Friend has suggestions for how to overcome some of them, I am interested in working with him and like-minded hon. Members.

Just as importantly, there is a wealth of innovative schemes across the country, run by passionate people who are committed to creating a cleaner and greener future for us all. I close by thanking the hon. Member for Bath once again for securing the debate.

Trade Bill

Debate between Greg Hands and Peter Aldous

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Monday 20th July 2020 Commons Chamber

[Greg Hands]

I thank the right hon. Gentleman for that intervention. The first thing to say is that I have regular dialogue with his colleague the Minister for the Economy. I am meeting her tomorrow—indeed, I am meeting her twice—to talk about these issues. I reiterate that Northern Ireland remains part of the UK customs area and will benefit from UK free trade agreements. We have been absolutely categoric on both those points. As I say, new clause 18 seeks to give Parliament a veto over those arrangements and to ensure that the Government seek approval from the devolved legislatures on the final agreement. I am in regular contact with the Ministers for the devolved Administrations on these issues.

I will now address new clauses 7 to 9, and others in relation to standards. In answer to the intervention from the hon. Member for Westmorland and Lonsdale (Tim Farron), let me say that we have already given cast-iron commitments, during debate on this Bill and the Agriculture Bill, that we will not be diluting standards in any area, or in any way, following the UK’s departure from the EU.

[Peter Aldous (Waveney) (Con)]

I acknowledge the undertakings that the Government have given on agriculture and food production, but will the Minister also assure me that future UK trade policy will be fully aligned with our climate change and environmental policies? Will he also assure me that in striking new trade deals we will, at all times, promote low-carbon industries such as offshore wind and will not undermine UK businesses that are working hard to lower their own carbon footprint?

[Greg Hands]

I absolutely give my hon. Friend those assurances. The Government’s climate change agenda—indeed, the whole country’s agenda—is incredibly important for us at the Department for International Trade. We have put a lot of time and effort into promoting our capability and capacity in things such as offshore wind. I am regularly saying to international investors and trade partners that the UK now has the largest offshore wind capacity in the world. This is something we are seeking to export and it is something trade agreements can be helpful in. We are working with some of our key partners on these aspects of trade agreements, but they can also be something that the whole of government can work together on.

Oral Answers to Questions

Debate between Greg Hands and Peter Aldous

Thursday 18th June 2020 Commons Chamber

[Greg Hands]

Mr Speaker, you will know that on 20 March, which was the start of the UK lockdown, the EU Commission wrote to Her Majesty’s Revenue and Customs and HM Treasury alerting them to the existence of the potential mechanism by which tariffs in VAT could be waived on certain imports in the light of the covid-19 crisis. We have identified more than190 products that are in scope, ranging from PPE to soaps and disinfectants. When these products are imported by an organisation covered by the relief, the tariff will be zero.

[Peter Aldous (Waveney) (Con)]

What steps she is taking to promote UK agriculture exports. [R]