Energy Bill [Lords]

Jim Shannon Excerpts

2nd reading
Tuesday 9th May 2023 Commons Chamber

[Hilary Benn (Leeds Central) (Lab)]

It is a great pleasure to follow the right hon. Member for Kingswood (Chris Skidmore). I agree with every single word he said. If we do not work together on this, we really will be failing our constituents.

I support this big, important and complex Bill, but the test we should apply is very simple: will it give us the tools we need to achieve energy security in a net zero future? As the right hon. Gentleman said, we know exactly what needs to be done. We now need to get on and make it happen.

Some of the policy changes have turned out to be quite simple. The decision to say that petrol and diesel cars cannot be sold after 2030 has been brilliantly effective, because it has led to a huge increase in innovation and to new electric models coming on to the market, but other areas are much more complex.

I will address my remarks to the transition in home heating, which is intensely personal to all our constituents and, indeed, to all of us. There are currently 23 million homes in this country that are dependent on gas for their heating, which we know will have to change because the point will eventually come when no more natural gas comes through the pipes. The policy question is, what will replace that gas? Will it be electric heating, in the form of heat pumps or electric boilers? Will it be district heating? Will it be, for some consumers, hydrogen?

[Jim Shannon (Strangford) (DUP)]

I support what the right hon. Gentleman is saying. The Government should also consider hydrotreated vegetable oil. We have a depot at Carryduff in my constituency, and the National Trust property at Portaferry and properties in Millisle are using it. It is a proven option. Does he feel the Government need to widen the net and consider HVO as a possibility?

[Hilary Benn]

I am grateful to the hon. Gentleman, because I think we will need all the current technologies and all the technologies that have yet to be invented to meet this challenge.

Of course, the advantage of heat pumps is that they are extremely efficient. Provided that the electricity comes from renewable sources, and all our electricity will come from renewable sources in the not-too-distant future, they are genuinely zero carbon. They work very well in some houses, but they do not work in others. I think of a row of 40 back-to-back houses in my constituency. The doors open on to the street, so where exactly would they put a heat pump? Well, they would not.

Hydrogen is also zero carbon when it is burned, but for hydrogen to work it has to be made through electrolysis using renewable electricity—so-called green hydrogen. There are other ways of producing hydrogen. There is the blue hydrogen question. Can we truly capture the CO₂ and hold it through carbon capture and storage?

The other advantage of hydrogen is that it is “boiler out, boiler in”. Nothing else has to be changed, but there are practical issues, which the Secretary of State mentioned, when it comes to safety and operation. The gas companies are working on that, although it is worth remembering that 50% of coal gas is hydrogen. Many of us lived through the burning of a fuel that is 50% hydrogen, but hydrogen will succeed as a long-term replacement in some cases only if we can produce enough green hydrogen quickly enough, which requires a huge increase in renewable electricity, because the disadvantage of green hydrogen is that it is not very energy-efficient to produce. Three units have to be put in to get one unit of heat, although we currently pay turbine operators to turn off their turbines when the grid cannot take the electricity they would otherwise produce. It is obvious—why do we not use it to produce green hydrogen for storage?

As I said to the hon. Member for Strangford (Jim Shannon), I think we will need all the technologies, in all sizes and colours, to succeed. I do not think it is the Government’s job to pick one or another. The Government’s job is to encourage them all. Where I think the Government have a responsibility is in quickly clarifying how plans to decarbonise home heating in particular places will be pulled together, because with great respect to the new Department, it will not come up with a plan for the city of Leeds and its 800,000 people. The sooner it is clear how the local authority, working with Ofgem, the energy companies and others, will decide what are the appropriate technologies to make the transition, and in which places, the better.

My final point is on the important question of who will pay for this change. My right hon. Friend the Member for Doncaster North (Edward Miliband) made this point in his excellent speech. We cannot have a transition to net zero in which some people end up having to pay, or being asked to pay, huge costs. We all have constituents who can barely pay their gas bill at the moment, and we cannot ask them to pay for the cost of a heat pump, even with one of the Government’s 90,000 grants. Those grants will not convert 23 million homes. Frankly, we are way off the pace when it comes to home heating. That means that when a gas boiler dies, the homeowner, social landlord or landlord will put in another gas boiler because it is currently cheaper than a heat pump.

We have to get to net zero in a way that is fair to people, wherever they live and whatever they do. We cannot lumber them with costs that they simply cannot afford. If we seek to do that, those 23 million homes simply will not be converted. That is why, in this Bill and in many other ways, we need more clarity and more speed. When the Bill completes its passage through this House, I hope it will emerge even better equipped, with all the tools we need to do the whole job.