Energy Bill [Lords]

Debate between John Hayes and Alan Whitehead

Report stage
Tuesday 5th September 2023 Commons Chamber

[Dr Whitehead]

My hon. Friend is absolutely right. The campaign that he may be referring to was signed up to by the Minister when he was not a Minister; he may have some other views on that these days, but the new clause is not too far from the original document that he signed a while ago. I am going to have to make some rapid progress, so I am sorry to say that I will not be able to take any further interventions. However, I will try to get through the measures we are proposing as quickly as possible, in order to allow other Members who are bursting to get into the debate the time to do that.

Our new clause 56 deals with delinking renewables and gas prices. A mechanism should be in place to ensure that the dividend from renewable power costs and prices can come through to customers. However, as we have seen in the recent power crisis, that is not the case at the moment. Gas prices surged to nine times the price of renewable power at some stages during the energy crisis and are still substantially more expensive than those of renewables, but they rule the roost as far as energy prices for the retail market are concerned, through marginal cost pricing. We think that needs to change through delinking the process and we wish to put an amendment in that would ensure that that happened, so that the benefit of renewable power can come to customers in the way that the whole House would intend to happen.

New clause 57 deals with onshore wind. Three minutes before the Bill came to the Floor of the House, a written statement on onshore wind was made by the Minister. I have had a chance to read it quickly and it seems to me as though it still treats onshore wind as a special case and not as an ordinary case of a local infrastructure project, which should receive no better and no worse consideration than any other such project. Onshore wind is essential to the decarbonisation of our energy system, but we have just let it collapse over a considerable period by, in effect, banning it. The Government are taking grandmother’s footsteps back from the ban, but this is still not good enough.

[Sir John Hayes (South Holland and The Deepings) (Con)]

I was one of the architects of what the hon. Gentleman described as a ban. He will understand that, when onshore wind was no longer permitted across the UK, this catalysed the offshore industry and we became a world leader in offshore wind precisely because developers then chose to go offshore. Offshore wind has many advantages, not least its scale, the size of the turbines and the single point of connection to the grid. Onshore wind has none of those virtues.

[Dr Whitehead]

That is remarkably like saying I am encouraging you to use your second car because I shot the tyres out of your first car. The right hon. Member makes a quite ridiculous statement.

First, onshore wind is the cheapest form of power available. Secondly, it can be available for community and local energy, in the way described earlier. Thirdly, through CfDs, it can systemically provide a cheaper power environment for the population as a whole. It is a disgrace that only two turbines have been commissioned in this country since February 2022. It is a golden opportunity for decarbonisation that we are missing completely.

--- Later in debate ---

[Dr Whitehead]

Lack of investment does indeed have a direct impact. If we go back and look at what could have been the case and look at what is the case now, there is a direct link between energy prices now and the lack of development of onshore wind. Our amendment, which we hope to push to a vote, would make the way that onshore wind was treated simple and straightforward: it should be treated no differently from any other local infrastructure project. There should be the same protections, safeguards and concerns for people who have that local infrastructure coming their way. It should not be a special case, over and above other projects, which I think will produce an explosion of investment in onshore wind in future.

[Sir John Hayes]

On that point, will the hon. Gentleman give way?

[Dr Whitehead]

No. I have to make progress.

New clause 61—

“National Warmer Homes and Businesses Action Plan (No. 2)”—

addresses another area in which the Government have set out their aspirations. The Minister has said that the Government are making progress on their aspirations to retrofit homes, as set out in their national energy plans and the White Paper, “Powering our net zero future”. Those aspirations include having all homes at an EPC band C standard by 2035 and all private rented properties at band B by 2030. However, nowhere are there any plans about how we are actually going to do that or how homes that are among the worst insulated in Europe can be lifted to the levels needed by 2035. The Government are stuck with aspirations but no plan.

Our new clause puts a plan in place. It puts those aspirations into legislation and requires a Government plan to bring them about, which would be another enormous win for decarbonisation. People’s energy bills will fall, fuel poverty will be tackled and gas supply in retrofitted properties will reduce by perhaps 25%. It would be a win all round.

The Government have no plan. Labour has a substantial plan, which has already been put forward, including a 10-year programme to uprate and retrofit 19 million homes, costing £6 billion per annum by the second part of the next Labour Government, with a local authority and community base getting it done. That will transform the present, pretty paltry progress that has been made. Admittedly, there has been good progress in some areas, including the energy company obligation, the local authority delivery scheme, the home upgrade grant and other schemes, but who can forget the spectacular failure of the Government’s green homes grant a little while ago? Our new clause will transform the way that works and we want it to be added to the Bill.

New clause 62 is closely associated with new clause 61, but addresses the private rented sector.

New clause 59 is very important. We want to see the decarbonisation of our energy, power and electricity systems by 2030. The Government’s ambition at the moment is mostly to decarbonise the power system by 2035, but, again, they have no plan as to how that will actually happen. They have given no indication as to what steps they will take to achieve this, and they are certainly beginning to fail in the implementation of carbon budgets. Bringing forward the decarbonisation of the power system would greatly enhance that and allow us to meet our targets. Labour wants to see the complete decarbonisation of the system by 2030. That does involve massive uplifts in the rate of progress—for example, in offshore wind by five, in solar by three, and in onshore by two—and, indeed, the development of other renewables. In that regard, I recommend that hon. Members have a look at new clause 51.

Large Solar Farms

Debate between John Hayes and Alan Whitehead

Wednesday 9th March 2022 Westminster Hall

[Dr Whitehead]

The hon. Member is quite right. Any form of renewable power—indeed, any form of power—ought to be based on extensive community consultation and the community being on board with the idea of that particular power source coming to their area. Hon. Members have raised a number of issues about agricultural land and its quality, the visual aspects of particular solar farms, and various other things, which need to be discussed in great detail at the local level by communities faced with these proposals.

Solar farms, and particularly the West Burton solar farm, which was the subject of the concerns raised by the hon. Member for Bassetlaw, actually have quite a good grid connection. That solar farm would potentially be based around the West Burton A power station, which as I am sure the hon. Member will be aware is going offline in 2022, as is the Cottam power station just down the road. However, if we had had a discussion when someone decided to build the West Burton A power station and the Cottam power station in the middle of the countryside—which is where they are—a number of years ago, we probably would have had exactly this sort of debate in the Chamber.

That underlines the fact that, although we are transferring what we do as far as power stations and power are concerned, the issue remains just the same: where we put those power stations and renewables into operation, not whether we put them into operation. It is imperative that we have this amount of renewable energy across our country for the future. Be it offshore wind or onshore wind, city-based solar or field-based solar—all of those have to be considered as imperative for delivering our renewable power supplies. Solar happens to be the cheapest power available, and it is one of the quickest to introduce if we are thinking about a dash for renewables in the future.

[Sir John Hayes]

The hon. Gentleman and I have been debating these issues for longer than either of us care to remember. I am sure he will acknowledge that against that backdrop—the objective he set out—it is important to measure the environmental cost of renewables. The manufacture, siting and anchoring, for example, of wind turbines bring an environmental payback period. The same applies to solar. We need to test these things on a specific basis against the very criteria he set out.

[Dr Whitehead]

The right hon. Member is absolutely right that we need to test these things and take the environmental benefits as a whole, but these tests have pretty much been carried out, and there is an overwhelming environmental benefit to solar, which is a cheap and reliable power source. By the way, the batteries associated with it that make it more reliable do not need to be sited in the same place as solar farms, so things can be designed in such a way that the environmental disbenefits are not all concentrated in one place.

Infrastructure Bill [Lords]

Debate between John Hayes and Alan Whitehead

Monday 8th December 2014 Commons Chamber

[Mr Hayes]

That is a fair question, and one which has already been put to me by those in local government. I will look closely at that, but I am anxious—the right hon. Gentleman is a great expert, given his experience as a Minister and, beyond that, his understanding of house building—and keen to ensure that this does not create unnecessarily bureaucratic or over-regulatory delay. The point he makes is a good one and I will certainly go away and consider it during the passage of the Bill. I say to my right hon. Friend the Member for Wokingham—who has intervened twice and might have another go in a minute, who knows?—that this is a very good example of the Government taking action to make the system more straightforward and less bureaucratic, so that decisions can be made in a timely way and be acted on with appropriate promptness. Wise as they are on these things, I am sure the Opposition will not disagree. Likewise, when they reflect on much of the Bill, I suspect they will appreciate it is the right thing to do in the national interest—but we will hear from them in a few moments.

Public sector land is an important source of land for development, and we have already released land with the capacity for 90,000 new homes, but to make that happen we propose to allow a Government arm’s length body to transfer disused surplus land directly to the Homes and Communities Agency or the Greater London authority, rather than having first to transfer it back to the parent Department. This measure will once again reduce bureaucracy in the transfer of land, meaning that disused Government-owned land can be brought to the market more quickly to build homes and improve communities.

As you know, Mr Speaker, the Government are committed to England’s public forest estate remaining in public ownership—[Hon. Members: “They are now.”] I know Labour is in the woods, but we are committed to the past, present and future of our forests. Hon. Members, including my hon. Friend the Member for Forest of Dean (Mr Harper), have raised their constituents’ interests several times in the House and have influenced the decision to amend the Bill to ensure the measure will not apply to them.

The move to digitise and centralise local land charges and free up the Land Registry to take a wider role will ultimately help people buying and selling their homes. The Government aim to make dealing with property quicker, cheaper and easier. The Land Registry is well placed to help achieve that aim because it is already at the centre of the conveyancing process and is the largest single source of property information. The changes in the Bill will stop the wider disparities in charging, currently ranging from approximately £3 to £76, and will lead to a more efficient service for searches as people access a single provider rather than one of 348 separate providers. We need modern systems to underpin the property market.

On zero-carbon homes, we have already tightened building regulations to make new homes more energy efficient. Today’s new homes save people about £200 on average—

[Dr Alan Whitehead (Southampton, Test) (Lab)]

rose—

[Mr Hayes]

I give way to the hon. Gentleman, who is such a distinguished member of the Energy and Climate Change Committee.

[Dr Whitehead]

Given the Minister’s concern for linguistic exactitude, will he reflect that he is talking about “zero-carbon homes”, yet he must be clear that the provisions in the Bill mean that no zero-carbon homes will be built now or in the future? Would he care to rephrase his contribution to something such as “slightly less energy leaky homes”, or some such locution, to make his language exact?

[Mr Hayes]

Even if I believed that, such an ugly turn of phrase would fit ill on my lips, and I could not possibly bring myself to issue it. To that end, I will stick with my own choice of words.

The hon. Gentleman knows, because he is a great expert on these matters—far more expert than I am, I have to acknowledge—today’s new homes save £200 on average on their energy bills compared with homes built before the coalition came to power. He knows that new homes are more energy efficient. I want that energy efficiency to grow, however, so new homes will have net zero-carbon emissions from energy used to heat and light them, and there will be a higher efficiency requirement that may be augmented by on-site renewable energy measures such as solar panels.

Where that is not possible, however, to abate all carbon emissions on-site, the Government will allow developers to offset remaining emissions through off- site carbon abatement measures known as “allowable solutions”—precisely what the hon. Gentleman was referring to—which is a cost effective and practical way of dealing with carbon. I know it does not appeal to the purists, but it is deliverable. Either we want to hit these targets and get to our destination, or we do not.

Oral Answers to Questions

Debate between John Hayes and Alan Whitehead

Thursday 14th March 2013 Commons Chamber

[Dr Alan Whitehead (Southampton, Test) (Lab)]

9. What recent representations he has received on a future route to market for independent power generators.

[The Minister of State, Department of Energy and Climate Change (Mr John Hayes)]

Since our call for evidence last year, Ministers and officials have held meetings with a wide range of independent generators, suppliers and other stakeholders covering route-to-market issues, including the availability of power purchase agreements.

[Dr Whitehead]

Does the Minister recognise the difficulties that independent low-carbon generators will have with the passing of power purchase agreements following the end of the renewables obligation? Is he looking at alternatives to PPAs, such as the green power auction market, and will he seek to implement such a market in consideration of the Energy Bill?

[Mr Hayes]

The hon. Gentleman has been consistent in his advocacy of independent generators. He raised this issue during the Committee stage of the Energy Bill. He knows that I am not unsympathetic to his assertions about the difficulties that independent generators face. I believe that contracts for difference will make it easier for independent generators to access the market, as he knows, because they will remove wholesale price risk and eliminate the requirement to market renewables obligation certificates, which will also reduce risk. I make this commitment: I think that we need to look at this matter more closely and to do more. We need a more plural and a more liquid market to create competition and drive down prices.

Oral Answers to Questions

Debate between John Hayes and Alan Whitehead

Thursday 1st November 2012 Commons Chamber

[Mr Hayes]

Just this morning I had a meeting with my diary secretary in which I prioritised just such a visit. It is vital that we allow new entrants into the market, because that will create the competitive pressure to drive down prices. The right hon. Member for Don Valley (Caroline Flint) told the House only last week that that had not happened over the past 15 years, and who was in charge of energy policy then?

[Dr Alan Whitehead (Southampton, Test) (Lab)]

The Minister will be aware that power purchase agreements are extremely important for the ability of independent low carbon generators to enter the market. Does he share my concern about the fact that power purchase agreements are disappearing from the market and that they will probably totally disappear by 2017? Does that not point to a concentration of generator ownership rather than the ability of low carbon generators to enter the market?

[Mr Hayes]

The Energy and Climate Change Committee, of which the hon. Gentleman is a member, is concerned about that point. We have called for evidence on exactly that subject, too—and for precisely the reasons that lie behind his question. We want to know what the issues and barriers are.

The hon. Gentleman is right to say that a plural marketplace is essential if we are to create the competitive pressure that I have described. Entry to that marketplace is therefore a priority. Actually, I think that that view is shared across the House.

Energy Tariffs

Debate between John Hayes and Alan Whitehead

Thursday 18th October 2012 Commons Chamber

[Dr Alan Whitehead (Southampton, Test) (Lab)]

These proposals did not feature anywhere in the draft Energy Bill, the White Paper, the technical updates or the impact assessments, so I assume that DECC staff have been working hard on the new idea this morning. Can the Minister guarantee that when he has worked out how to do this, it will not impede the progress of the Energy Bill and its delivery to the House?

[Mr Hayes]

The hon. Gentleman is a great expert on these matters, and he is a member of the Select Committee that scrutinised the Bill so carefully. One of the first things that I did when I became the Energy Minister was to meet the Chairman of that Committee to consider the suggestions that it had made about the Bill. I do not think that that will slow things down, but it will certainly ensure that we get things right. I am grateful for the hon. Gentleman’s continuing diligence in these matters.