Energy Update

Jacob Young Excerpts
Monday 5th September 2022

(2 years, 3 months ago)

Commons Chamber
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Greg Hands Portrait Greg Hands
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Public services have always been well supported by this Government throughout the 12 years that we have been in power. When it comes to future taxation, that is, of course, a matter for the Treasury and the Prime Minister.

Jacob Young Portrait Jacob Young (Redcar) (Con)
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I am grateful to the Minister for his answers on support for energy-intensive industries such as those in my area. He knows that Teesside is the centre of the green industrial revolution in the UK, with our nuclear power station at Hartlepool, wind power manufacturing on both the north and the south side of the river, and large-scale carbon capture, utilisation and storage and hydrogen production in Redcar and Cleveland. As well as looking at new measures to increase such supply, we must tackle demand. Does he agree that we should invest further in energy efficiency and retrofitting homes, as many families could save hundreds of pounds on their energy bills by simply insulating their homes properly?

Greg Hands Portrait Greg Hands
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My hon. Friend is always a strong voice for Redcar and Teesside. I think that every single question he has ever asked me has included hydrogen somewhere. He is auditioning, I think, to be the UK’s Mr Hydrogen. He has mentioned CCUS as well, which is a big priority of ours, and he is absolutely right to say that energy efficiency is so important. If we can reduce the amount of energy that is used to create the same level of heating in people’s homes, clearly that is a massive gain. That is why we have invested £6.6 billion over the course of this Parliament in energy efficiency.

Future Hydrogen Economy

Jacob Young Excerpts
Tuesday 14th June 2022

(2 years, 6 months ago)

Westminster Hall
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Jacob Young Portrait Jacob Young (Redcar) (Con)
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I beg to move,

That this House has considered the future hydrogen economy.

It is a pleasure to serve under your chairmanship, Sir Edward. Hydrogen is the most abundant element on Earth. The word “hydrogen” derives from “hydro”, meaning water, and “gene”, meaning producing, which is apt, as the product of burning hydrogen in oxygen is pure water. As I will go on to explain, in an era when we are ever more conscious of our carbon emissions and greenhouse gases, hydrogen provides a solution.

The purpose of this debate is, first, to take us on a journey back to the future—we do not need a DeLorean unless it is hydrogen powered—because just as hydrogen is a fuel of the past, it will be a fuel of the future, too. The three primary areas that I want to touch on today are hydrogen for heating our homes, in transportation and freight, and its use in the decarbonisation of industry. This is where I make a link from past to future. For decades, we heated our homes with town gas, containing more than 50% hydrogen; hydrogen was used to power engines throughout the 19th and 20th centuries; and hydrogen, as a by-product in many industrial processes, has been used as a fuel in furnaces since the beginning of the industrial revolution. In recent times, we have turned our gaze to what were once thought to be cleaner and safer fuels, such as methane, and to fuels that have always been easier, such as petrol and diesel, but we know that we cannot go on like this.

The global challenges that we face in relation to climate change and tackling carbon emissions are well worn arguments that I do not intend to go over today. To achieve net zero, we have to realise the hydrogen economy, and even the Government’s own analysis sees 20% to 35% of UK energy consumption being hydrogen based by 2050. To get to that point, a range of vital steps need to be taken to recognise the potential of hydrogen as an innovative solution to our problems, as it was in the past, while realising that technological improvement, increased safety, innovation and popular support make this element even more beneficial than it was before.

An easy first step to take is to ensure that we have the right regulatory regime to support a future hydrogen economy. We must make changes to the gas safety management regulations to allow hydrogen to be blended within the gas network up to 20%. That has already been proven to be safe through programmes such as HyDeploy and the ongoing blend at Winlaton in Gateshead. By blending in 20% hydrogen within the gas network, we can immediately begin decarbonising our gas network, with no impact on consumers and minimal impact on the network, but with a high impact on our emission savings—an estimated 6% saving in heat alone.

That brings me to my next ask of the Government, which is to mandate the roll-out of hydrogen-ready boilers as early as possible. The roll-out of hydrogen-ready boilers, much like that of high-definition-ready TVs, will allow us to install millions of boilers in people’s homes in the coming years, so that we are already ahead of the game when the time comes to decide whether to use 100% hydrogen in the gas network. Some 1.7 million boilers are changed in the UK every year, so if we were to mandate the use of hydrogen-ready boilers today, half of all homes in the UK that are currently connected to the gas network would be ready for the hydrogen switch by 2030, with no additional cost to the taxpayer. This is a no-lose scenario, because even if the Government decide not to go ahead with 100% hydrogen in the gas network, the boilers will continue to function as normal on natural gas.

That brings me to my next ask of the Government, who are rightly seeking evidence through a hydrogen village trial. As the Minister knows, Redcar was successful in receiving Ofgem’s approval for the next stage, alongside Ellesmere Port in the north-west. Over the next year, both Redcar and Ellesmere Port will be putting together their business cases for why their projects should get the go-ahead. Subject to any business case, the Minister should consider greenlighting both proposals. As I said in a debate in this Chamber a few weeks ago, we do not want a hydrogen village; we want a hydrogen UK, and having as much evidence as possible from the trials in Ellesmere Port and Redcar will allow us to progress.

I want to quickly turn to hydrogen in transport, which I believe is vital. Although the Minister is not directly responsible for this area, I would love to see him working alongside the fantastic Under-Secretary of State for Transport, my hon. Friend the Member for Copeland (Trudy Harrison), on amending the renewable transport fuel obligation to include all types of low-carbon hydrogen. Hydrogen has the ability to transform both freight and passenger travel, but it is locked in the same chicken-and-egg situation that we faced with electric cars. Were it not for the roll-out of charging points up and down the country, I do not think we would have seen the electric vehicle take-up that we have.

Today, there are more than 40,000 publicly available electric charging points across Great Britain, compared with a measly 14 hydrogen refuelling stations. Clearly, a key component of expanding the use of hydrogen in both freight and passenger vehicles requires the scaling up of refuelling stations, and I am pleased that decision makers are beginning to recognise this opportunity. In Teesside, we have the UK’s first hydrogen transport hub, which includes an expansion in hydrogen refuelling stations, with one already based at Teesside airport and plans for the UK’s first hydrogen trains to run on the Saltburn-to-Darlington local line.

The final key point that I would like to address is the role that hydrogen can play in decarbonising industry if we provide the storage and distribution networks required to meet its ambitions. I was so pleased to see the Government double their hydrogen targets to 10 gigawatts by 2030, and we in Teesside stand ready to produce a significant portion of that through investments from BP, Kellas Midstream and EDF. There is no use in producing all that hydrogen if it has nowhere to go, however, which is why Project Union—National Grid’s endeavour to create a hydrogen backbone that spans the UK, hopefully starting in Teesside and linking to Humberside—is so important.

As well as distribution, we have to consider storage by looking at underground salt caverns, like those of SSE, and Centrica’s proposal to turn the Rough reservoir—once the nation’s main gas storage—into our future hydrogen store. To do that, however, we need to look at the regulation in this area, and a decision needs to be made this year to avoid having to decommission Rough in line with the North Sea Transition Authority requirements. In my view, the Department for Business, Energy and Industrial Strategy should consider extending Rough’s role in methane storage in the short to medium term, thereby preventing decommissioning, but Rough will be key as the UK’s undersea hydrogen storage in the long term.

I hope I have given the Minister some food for thought. Hydrogen is not a groundbreaking fuel of the past; it offers revolutionary potential for the future. In 1874, Jules Verne wrote:

“Yes, my friends, I believe that water will one day be employed as fuel, that hydrogen and oxygen which constitute it, used singly or together, will furnish an inexhaustible source of heat and light, of an intensity of which coal is not capable.”

We can realise his vision through nurturing innovative and pioneering partnerships between Government and industry to help us to harness the fuel of the future, achieve net zero and build a future hydrogen economy.

--- Later in debate ---
Jacob Young Portrait Jacob Young
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I have not found many points of disagreement during the course of the debate, so I am grateful to everyone who has contributed. I want to put a final challenge to the Minister. He touched on hydrogen boilers and whether we can promise that there will be no cost to the consumer. I say to him that there is no cost to the consumer, because we can make this decision and get ahead with the roll-out. As I said in my speech, it is a no-lose situation, because we do not have to go down the 100% hydrogen route in 2026.

Question put and agreed to.

Resolved,

That this House has considered future hydrogen economy.

Potential for a Hydrogen Village

Jacob Young Excerpts
Tuesday 24th May 2022

(2 years, 6 months ago)

Westminster Hall
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Jacob Young Portrait Jacob Young (Redcar) (Con)
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It is a pleasure to serve under your chairmanship, Ms Bardell, and I thank the hon. Member for Ellesmere Port and Neston (Justin Madders). This will be a brief contribution, because I agree with everything he has just said. I do not know whether that will be politically unpopular for him. He is completely right that the HyNet project, led by Cadent, is helping to lead the world in the hydrogen revolution, just like the H21 project in Teesside and Yorkshire, led by Northern Gas Networks, and the H100 project in Fife in northern Scotland, led by SGN.

We must consider why hydrogen works as an alternative to other ways of decarbonising our homes. The hon. Member said that 85% of homes are connected to the gas network. We need to think of a way to decarbonise that. Let us be under no illusion that both ways end with significant costs, whether we go down the route of heat pumps in every home or hydrogen boilers, or a different one. Every way comes with a significant cost.

I should say that I am chair of the all-party parliamentary group on hydrogen, so I have a vested interest in this field. The reason I am so passionate about the hydrogen village project is that hydrogen represents an opportunity to take the consumer and the taxpayer along with us on the journey towards decarbonisation. With heat pumps, we will have to say to the owners of a terraced house in Middlesbrough, who are on a low income, that they will lose a large portion of their garden because they have to put a borehole in it for a heat pump; they will have to refit all their radiators; they will have to insulate the insides of their home differently; they will have to buy new furniture, because none of their furniture will fit anymore; and, on top of all that, we will charge them £5,000 for the pleasure, even with the Government grant. They will then have to change the way they heat their home altogether, because using a heat pump is more like using an Aga than a boiler. That is why I see hydrogen as representing an opportunity to decarbonise home heating, while taking the consumer along with us.

The hon. Member for Ellesmere Port and Neston mentioned the significant benefits of a hydrogen village project in Ellesmere Port. There are also significant benefits in doing it in Redcar, which is fast becoming the centre of excellence for green technology, whether it be carbon capture and storage, wind power, solar energy, hydrogen production or nuclear power—Hartlepool’s nuclear power plant is on the north side of the river. A hydrogen village project in Redcar will allow someone to wake up in a hydrogen-heated home, go to a hydrogen-heated college, then perhaps go for a swim in a hydrogen-heated pool at the local leisure centre, get a hydrogen-powered ice cream, and even visit the hydrogen-powered office of the MP, because my office in Redcar is included in the proposed trial area.

This represents an opportunity for us to demonstrate decarbonisation, while taking people along with us in the long run. The hon. Member for Ellesmere Port and Neston is right that next year we have an opportunity to decide between Redcar and Ellesmere Port, or we have the opportunity to choose both. That is my argument—it should not be an either/or. Ultimately, we do not want a hydrogen village in the UK; we want a hydrogen UK. To get to that stage, we need as much evidence as possible. To get that evidence, we need both Redcar and Ellesmere Port. We need the Government to focus on how we can take that forward for the whole of the UK. I commend the hon. Member for what he has said today, and I leave the Minister with that thought.

Oral Answers to Questions

Jacob Young Excerpts
Tuesday 16th November 2021

(3 years, 1 month ago)

Commons Chamber
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Kwasi Kwarteng Portrait Kwasi Kwarteng
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The right hon. Gentleman and I have exchanged differing views on this subject over many years now. What I do accept is that our drive—our push—for renewables is leading the world in pursuing a decarbonised economy.

Jacob Young Portrait Jacob Young (Redcar) (Con)
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The Secretary of State is well aware that Teesside is the centre of the green industrial revolution. In building new renewable energy capacity, can he confirm that he is happy to visit Teesside to see our plans for linking that renewable energy with green hydrogen production to power our homes in Teesside?

Kwasi Kwarteng Portrait Kwasi Kwarteng
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Perhaps to the surprise of the House, I can confirm that I am always delighted to visit my hon. Friend. I have done so on many occasions and I look forward to doing so whenever he wants and whenever my diary permits.

Gas Prices and Energy Suppliers

Jacob Young Excerpts
Thursday 23rd September 2021

(3 years, 2 months ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

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Kwasi Kwarteng Portrait Kwasi Kwarteng
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We protect domestic consumers in the way I have outlined, but it is fair for the right hon. Gentleman to raise the issue of industrial users of energy in business. He will know that we have schemes that which protect industrial users of energy: we have the energy industry incentive scheme, and yesterday we launched a new tranche of the industrial energy transformation fund with up to £220 million, which enables businesses to bid in for further support.

Jacob Young Portrait Jacob Young (Redcar) (Con)
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I thank the Secretary of State for his tireless work over the last few weeks, not just on the gas price crisis but on the carbon dioxide shortage that followed. I also pay tribute to CF Fertilisers, which has come back online in Stockton, and to Ensus in Redcar for offering to help and come online too. For the benefit of people across Redcar and Cleveland, however, can the Secretary of State outline how we are supporting people and protecting them from these high prices?

Kwasi Kwarteng Portrait Kwasi Kwarteng
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My hon. Friend has made an excellent point. The carbon dioxide crisis—or question in hand—we dealt with immediately. I spoke to the CEO of CF Fertilisers twice, on Sunday and Monday, and we had a solution on Tuesday. I am very pleased that, as a consequence of that solution, the company has managed to get production up and running, and to get people back to work at its plant. My hon. Friend will know, after my many visits to Teesside speaking to Ben Houchen, that the Government are resolutely focused on helping his constituents to level up and get well-paid, secure jobs.

UK Gas Market

Jacob Young Excerpts
Monday 20th September 2021

(3 years, 3 months ago)

Commons Chamber
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Kwasi Kwarteng Portrait Kwasi Kwarteng
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I thank the hon. Gentleman for his ongoing interest in and passionate support for employment in his constituency. I spoke to him considerably about Stellantis over the last few months. I am very focused on the two CFF plants, one of which is very near or in his constituency. The other, of course, is in Billingham on Teesside. We are looking at both sites and trying to do what we can to support ongoing production in both those places.

Jacob Young Portrait Jacob Young (Redcar) (Con)
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I thank the Secretary of State for his interest in renewables, hydrogen, new nuclear and CCS. He has already referenced the incredibly difficult situation facing CF Fertilisers in Stockton, which has been forced to suspend production because of gas prices. Is he aware of the knock-on effect that that can have on businesses that CF Fertilisers supplies, such as Huntsman in Wilton, and the further knock-on impact to the rest of Teesside’s chemical industry? Can I impress on him just how interconnected our industry is and how losing one player could lead to a domino effect?

UK Steel Production: Greensill Capital

Jacob Young Excerpts
Thursday 25th March 2021

(3 years, 8 months ago)

Commons Chamber
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Kwasi Kwarteng Portrait Kwasi Kwarteng
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The hon. Gentleman makes a very fair point, and he will be pleased to learn that I have spoken to representatives of the Scottish Government. We have mutual and very strong interests in the ongoing future of the businesses under the GFG umbrella, and he will know that my door is always open to conversations with him and his counterparts in the Scottish Government to see a way through. As far as specifics of Government intervention, I have said repeatedly that it is not appropriate now, given where we are, for me to disclose anything of that kind, but of course this is an ongoing situation that we are monitoring extremely closely.

Jacob Young Portrait Jacob Young (Redcar) (Con)
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I thank the Secretary of State for his statement, for his recent visit to Teesside and for all he is doing to support the industry at this difficult time. Under the last Labour Government, steel production in this country fell by almost 50%, so we should take no lectures from Labour on this. In Redcar, we lost our blast furnace in 2015 with the closure of SSI, but the only reason we have any steel manufacturing left at all is that the Government stepped in and saved British Steel at Lackenby and Skinningrove. Will the Secretary of State confirm that he will address key industry concerns such as energy pricing, that he will champion the UK steel charter and that it is our policy to increase domestic steel production, and will he work with me and Ben Houchen on a new electric arc furnace for Redcar?

Kwasi Kwarteng Portrait Kwasi Kwarteng
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I commend my hon. Friend, who, only in his brief time as a Member of Parliament, has made a real impact on these discussions and in representing Redcar. I remember a Redcar that was represented by a Liberal Democrat precisely because of the closure of the SSI plant, and I am delighted to see that it is now represented by an excellent Conservative MP.

Vauxhall at Ellesmere Port and Battery Manufacturing Strategy

Jacob Young Excerpts
Monday 1st March 2021

(3 years, 9 months ago)

Commons Chamber
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Kwasi Kwarteng Portrait Kwasi Kwarteng
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On the specific question, I have met Steve Rotheram a number of times in previous ministerial roles, and I believe I am setting up a meeting with him soon. He has great knowledge of the area, and is interested not only in Ellesmere Port but in the possibilities of the HyNet industrial cluster, and decarbonising that. I am sure I will speak to the Mayor very soon.

Jacob Young Portrait Jacob Young (Redcar) (Con)
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I appreciate that I am the fifth Member to stand up and ask for it, but as regards the gigafactories, my right hon. Friend should look no further than Redcar and Cleveland. In Teesside we have a fantastic workforce. May I invite him to come to Redcar and Cleveland to see a potential site for a gigafactory?

Kwasi Kwarteng Portrait Kwasi Kwarteng
- Hansard - - - Excerpts

I would be delighted. I am clearly going to be a much-travelled Secretary of State investigating all these potential sites for gigafactories. I pay tribute to my hon. Friend for the excellent work that he has done in his short time in the House of Commons. He has really made an impact and got his voice heard, and the people of Redcar are very well served. I would be very happy to visit the constituency, as I have done in the past, to look at the opportunities for the energy transition.

Electricity

Jacob Young Excerpts
Monday 1st March 2021

(3 years, 9 months ago)

Commons Chamber
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Anne-Marie Trevelyan Portrait The Minister for Business, Energy and Clean Growth (Anne-Marie Trevelyan)
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I beg to move,

That the draft Electricity Supplier Payments (Amendment) Regulations 2021, which were laid before this House on 21 January, be approved.

The statutory instrument amends regulations concerning the levies that fund the operational costs budget for the Low Carbon Contracts Company and the Electricity Settlements Company. The Low Carbon Contracts Company administers the contracts for difference scheme on behalf of the Government and the Electricity Settlements Company administers the capacity market scheme. Those schemes are designed to incentivise the significant investment required in our electricity infrastructure; to keep costs affordable for consumers; and to help to meet our net zero target while keeping our energy supply secure.

Contracts for difference provide long-term price stabilisation to low-carbon generators, allowing investment to come forward at a lower cost of capital, and therefore at a lower cost to consumers. The capacity market ensures security of electricity supply by providing all forms of capacity with the right incentives to be on the system and delivers capacity when needed by increasing generation or by turning down electricity demand in return for guaranteed payments.

In both schemes, participants bid for support via a competitive auction that ensures that costs to consumers are minimised. The next contracts for difference auction, the fourth to date, is planned to open in late 2021, and will be available to both established technologies such as solar PV and onshore wind as well as less-established technologies such as floating offshore wind. As the Prime Minister announced in October, we are seeking to secure up to 12 GW of renewable electricity capacity in this round—double that secured in the last round, which was held in 2019. That will allow a broad range of renewable technologies to come forward while delivering the best deal for bill payers.

The capacity market is tried and tested, and is the most cost-effective way of ensuring that we have the electricity capacity that we need now and in future. It facilitates investment in the existing capacity to remain in the market, and drives innovation in financing new capacity to be built. The capacity auctions held to date have secured the capacity that we need to meet the forecast peak demand at 2023-24. The next auctions, which will open tomorrow with the T-1 auction, and on 9 March with the T- 4 auction, will secure most of the capacity that we need in 2024-25.

The Low Carbon Contracts Company and the Electricity Settlements Company play a critical role in delivering the contracts for difference and capacity market schemes. They enter into and manage contracts for difference with low-carbon generators, and collect the supplier obligation levy from suppliers, which they use to make payments to generators under contracts for difference.

The statutory instrument sets a revised operational cost levy for the Low Carbon Contracts Company, and a revised settlements cost levy for the Electricity Settlements Company, which they collect from suppliers to fund their day-to-day operations. It is important that the LCCC and the ESC are sufficiently funded to perform their roles effectively, given their critical role in administering those schemes. However, the Government have made it clear that both companies must deliver value for money, and with that in mind we have scrutinised closely their operational cost budgets to ensure that they reflect their operational requirements and objectives. Savings have been identified in a number of areas. Both the LCCC and the ESC are mindful of the need to deliver value for money, as their guiding principle is to maintain investor confidence in the contracts for difference and capacity market schemes while minimising costs to consumers. They have taken a number of actions to date to reduce costs, and it is because of their actions that costs are falling both per contract and by overall generation capacity despite the growing size of the contracts for difference portfolio.

Jacob Young Portrait Jacob Young (Redcar) (Con)
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My hon. Friend rightly points out that contracts for difference have meant a massive leap forward in our investment in wind technology and a decrease in costs for consumers. Does she agree that this is a perfect way to increase production of hydrogen as well, and will she consider meeting me to discuss how we can use contracts for difference in hydrogen production?

Anne-Marie Trevelyan Portrait Anne-Marie Trevelyan
- Hansard - - - Excerpts

My hon. Friend is, as ever, a champion for Teesside, where, the work under way to help grow the future hydrogen capacity for our country is absolutely cutting edge. I will be absolutely thrilled to meet him to discuss this matter more fully. For now, the CfDs will be for the existing and established technologies, but he is not wrong that the future is bright for hydrogen. I look forward to meeting him to discuss it more fully.

We expect to increase to 55.16 GW of capacity and 546 capacity providers in 2021-22. Despite the increase in those numbers, the operational costs are expected to be marginally lower this year than last. The operational cost budgets for both companies were subject to consultation, which gave stakeholders the opportunity to scrutinise and test the key assumptions in the budgets and, importantly, to ensure that they represent value for money. The budgets remain unchanged save for one amendment, which I will briefly summarise. The consultation was published before the outcome of the 2020 spending review was known. The review had announced a pause in public sector pay rises for the majority of the workforce. Taking into account the outcome of this review and the wider economic landscape, the LCCC’ remuneration committee decided to agree a pay pause for its staff in 2021-22. Consequently, an allowance contained within LCCC’s operational cost budget for pay rises that was included in the consultation has now been removed.

To conclude, taking into account the removal of this allowance, the proposed operational cost budget for the LCCC in 2021-22 is £20,736,000 and £7,472,000 for the ESC. The amendments revise the levies currently in place to enable the companies to collect enough revenue to fund these budgets. Any levy collected that is not spent will be returned to suppliers at the end of the financial year in accordance with regulations. Therefore, subject to the will of Parliament, the settlement cost levy for the Electricity Settlements Company is due to come into force on the day after these regulations are made, and the operational costs levy for the LCCC by 1 April 2021. I commend these draft regulations to the House.

Future of Coal in the UK

Jacob Young Excerpts
Thursday 3rd December 2020

(4 years ago)

Commons Chamber
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Jacob Young Portrait Jacob Young (Redcar) (Con)
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Thank you, Madam Deputy Speaker. You may know that before becoming a Member I worked in trade for nine years in Teesside’s chemical industry. As coalmining is to Durham, so our industry is to Teesside. Both my grandads worked in our steel industry and my grandad Matty actually helped in the construction of the Angel of the North. I remember he would tell us that his signature was on the left wing—I am sure there is a joke in there somewhere. My dad worked in our chemical industry, starting out as a plant cleaner for ICI—Imperial Chemical Industries—and then getting a job as a process operator. I followed in his footsteps as an apprentice and then as an operator myself.

That is not an unfamiliar story to many across Teesside and the north-east. Young lads would follow their dads into industry or down the pit. However, the decline in our industry and the closure of many of our coalmines has meant fewer and fewer people have that connection with previous generations. It is incredibly important that we have this debate on the future of coal as we embark on our green recovery, because we have an opportunity for a green industrial revolution that could mean jobs coming back to areas like mine. How we shape the transition to that and to net zero will determine whether jobs come back or whether industry will be forced overseas for good.

Redcar and Cleveland do not share the proud coalmining history of my hon. Friend the Member for North West Durham (Mr Holden). However, we do have a proud history of ironstone mining and steelmaking. Of course, coal and steel go hand in hand. The production of steel through a traditional blast furnace requires coal, specifically coking coal. Although Redcar no longer has a blast furnace, as a Government we must remain committed to the future of steel blast furnaces in the UK until electric arc furnaces can make the equivalent level of steel. I was incredibly grateful, as were my constituents who work at British Steel at Lackenby, that the Government stepped in and supported British Steel last year in the protection of its blast furnaces at Scunthorpe until a new buyer could be found. Obviously, we now face new concerns about the future of the steel industry in Wales and whether it will have blast furnaces in the long term. It is my belief, as it was in Redcar in 2015, that we should do all we can to help the industry to save our steel. Losing it will not only lead to many job losses; it would be to the detriment of our flexibility and independence. I also think it is important to have a sovereign capability in these foundation industries, were the worst to happen and we found ourselves defending our country.

As long as we have steelmaking in the UK, or rather as long as we have blast furnaces creating steel in the UK, we must have a plan for coal. That is to say nothing of glass manufacturing, cement or bricks. These crucial industries all rely on coal and we must look at ways of producing or obtaining coal with a more limited impact on the environment. In 2019, we imported 6.5 million tonnes of coal, mainly from Russia. That accounted for 73% of the UK’s supply. That proportion was already down by 36% compared to 2018. However, it is clear from what other hon. Members have said so far that there is more we can do to increase coal production in the UK. We should not shy away from that. Too much of our language focuses on eliminating the use of carbon-emitting fuels, rather than reducing their impact. The whole premise of net zero by 2050 is a journey to reduce our carbon emissions, not eliminate all carbon-emitting fuels. If we can open a new coalmine in the UK, far from being against our environmental goals it will aid them: first, through the quasi-elimination of pollution generated by transport—as I said, most of our coal currently arrives from Russia—and, secondly, through the higher environmental standards imposed on production in the UK.

That does not give us a free pass, however. As part of the transition to net zero, we must continue to phase out coal in the industries that do not depend on it. I am incredibly proud of the Government’s achievements on phasing out coal and implementing our long-lasting change to the energy industry.