(1 year, 10 months ago)
Commons ChamberMy right hon. Friend is right to highlight not only the generosity of the support but the issues facing specific sectors. The Treasury recognises that some businesses are highly exposed to both energy prices and international competition, which means that they are unable to pass on or absorb these higher costs. Following the review of the operation of the current energy bill relief scheme, we decided to target additional support beyond April this year at the most energy and trade-intensive sectors, which are primarily manufacturing businesses.
Metal finishing is a vital component of many strategic industries, including defence, aerospace and energy. Although the process is extremely energy-intensive, businesses such as MP Eastern in Lowestoft do not currently qualify for the additional support that is available, and are therefore losing business to overseas competitors. In order to stop that, strengthen our own supply chain and enhance national security, will my hon. Friend review the support that is available to metal-finishing businesses?
My hon. Friend and county colleague is always championing his local businesses in the Chamber—[Interruption.] I am glad that the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil) agrees with me that my hon. Friend is a stalwart champion of his constituency businesses.
We have taken a consistent approach to identifying the most energy and trade-intensive sectors, with all sectors that meet agreed thresholds for energy and trade intensity eligible for ETII support. The firms eligible for the scheme are those operating within sectors that fall above the 80th percentile for energy intensity and the 60th percentile for trade intensity, and those operating within sectors that are eligible for the existing energy-intensive industries compensation exemption scheme. As ever, my hon. Friend is welcome to write to me about the specifics.
(2 years, 5 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve with you in the chair, Mr Stringer. I offer my condolences to my hon. Friend the Member for Harwich and North Essex (Sir Bernard Jenkin) for his loss. I congratulate him on his choreography to secure the debate, which is ultimately about the roll-out of zero carbon renewable energy on what is likely to be the hottest day ever recorded in the UK.
The transition to net zero provides enormous opportunities for East Anglia to be the engine room of the UK, bringing new sustainable and rewarding jobs not just for Waveney and Lowestoft, which I represent, but across the region. If we get it right, we can be a global exemplar of how to deliver the transition. That, in turn, will create enormous export opportunities.
The case for offshore wind is compelling. It is now the lowest-cost technology for generating electricity. Energy bills continue to rise, and being able to transport and deliver more offshore wind across the UK will reduce bills. We need more homegrown green electricity to move away from Russia’s influence. The weather today provides a snapshot of our future if we delay action to reduce carbon emissions.
National Grid’s East Anglia green energy enablement project, known as GREEN, should be set in the context that approximately one third of today’s UK energy demand can be met by the energy that will come into East Anglia by the end of this decade. While much work has taken place to upgrade the existing transition network, it needs significant reinforcement. GREEN is the preferred option that National Grid has worked up in accordance with the existing regulatory framework, which includes the relevant national policy statements and the so-called Holford and Horlock rules.
I acknowledge the desire of all right hon. and hon. Members, on behalf of the communities that they represent, to consider an offshore option, but it would have been disingenuous of National Grid to have consulted on such proposal, knowing that the current policy and regulatory framework within which they operate would have discounted it. In due course the Government might wish to amend the national policy statements.
It should also be emphasised that we are at an early stage of the option appraisal and assessment process, with a statutory consultation and an examination in public to follow. There is therefore an opportunity for those concerned about the proposals to engage further with National Grid, following up the meetings they had yesterday and probably before, to address their concerns.
My hon. Friend is perfectly reasonable and has great passion about offshore wind, as we all do. He is perfectly entitled to make those points, but this is not a parallel universe. There is a sub-sea link going ahead off East Anglia called Sea Link 1. Our view is that we need far more of that. To quote National Grid about the justification:
“By connecting East Anglia and Kent, Sea Link will provide the additional network capacity needed to enable the import and export of wind energy to and from Europe.”
If it is not in policy, how can we be in a parallel universe where we are going ahead with sub-sea link off East Anglia? Our view is that we need more of them to build a connected offshore grid.
I thank my hon. Friend for his intervention and I am about to address his point and highlight why that alternative is not viable under the existing framework. Taking into account the framework within which National Grid operates, I would make the following high-level comments on their proposals. First, they have presented the most economically advantageous solutions, as they are bound by the UK Government to do. To move it offshore not only is technically challenging but will cost an estimated 10 times the current proposal—a cost that will ultimately be paid by the consumer. To bury the cable along the entire route not only would have a huge impact on the environment—as 150-metre-wide trenches are dug—but would increase the cost some 14 times.
While other regions have benefitted from subsea links, the scale of the challenge in East Anglia is much larger, with significantly higher amounts of potential electricity needing to be delivered into the grid. To do that without multiple connections coming ashore, together with East Anglia GREEN, would be similar to redirecting traffic from the M25 on to the A140—that tortuous route, which East Anglians know well, that runs from west of Ipswich, via Norwich, up to Cromer.
On a point of information, as it were, the sea link that I am talking about, which my hon. Friend said cannot go ahead under policy, is approved. National Grid will be going ahead with the link; it will be going from Sizewell to Kent. It will be going ahead partly because it gives more resilience to the nuclear power station, if we are completely frank. The point is that it is a reality. The justification that National Grid uses is the same one that we want to see from Sea Links 2, 3 and 4. “Sea Link 2” was rejected. The sea link that we are talking about has been approved and the current policy framework allows approval of undersea connection off East Anglia. As far as we are concerned, the quantity is too low compared with other parts of the UK.
I thank my hon. Friend for his intervention and I am sure that the Minister will pick up on that in his speech. From my perspective, I think it is wrong to dismiss the concerns of the communities that the new pylons will run through, as we have heard from all colleagues today. The way forward at this early stage of the consultation process is for them to work in partnership with National Grid, developers and local and central Government to mitigate the impact. Developers are showing a willingness to do that.
In Norfolk, Vattenfall is delivering its Norfolk offshore windfarm zone by pursuing a co-ordinated approach to the onshore element of the transmission. Business organisations, such as the East of England Energy Group, Net Zero East, Opergy and the New Anglia Local Enterprise Partnership, together with the East Wind Offshore Cluster, are developing new ideas to help address future connection. That includes collaborative project design with shared or modular grid connections, and encouraging and facilitating hybrid projects such as wind to hydrogen and wind to storage.
I acknowledge the worries that all my colleagues are articulating on behalf of their constituents. However, there must be no holdup or delay in the roll-out of the offshore wind projects off the East Anglian coast. Already, they are making a significant contribution to the local economy. ScottishPower Renewables has a £25 million operations and maintenance base in the Hamilton dock in Lowestoft that is already running and providing jobs for people in my constituency and across Suffolk and Norfolk. ScottishPower Renewables is also planning to invest a further £6 billion up to 2030 as part of its East Anglia hub development. Such projects provide a once-in-a-lifetime opportunity, creating new, exciting and well-paid jobs for local people, which is vital as part of the levelling up process. They are also critical for the overall prosperity of East Anglia and for us to play our role in mitigating the impact of climate change, which we are feeling so forcefully today.
(4 years, 11 months ago)
Commons Chamber