Oral Answers to Questions

Debate between John Penrose and Graham Stuart

Tuesday 27th February 2024 Commons Chamber

[John Penrose (Weston-super-Mare) (Con)]

T3. Further to the question by my hon. Friend the Member for South West Bedfordshire (Andrew Selous) about the review of electricity market arrangements, I welcome the fact that we are, at last, getting to grips with the clunky old rules that add potentially hundreds of pounds to everyone’s energy bills. May I urge the Minister to go faster? This is chugging along at Whitehall speed, and we need urgent action to reduce energy bills soon.

[The Minister for Energy Security and Net Zero (Graham Stuart)]

I thank my hon. Friend for his continuing interest in this issue. The REMA programme is considering a number of options, including sending more efficient locational signals, which I know he is very knowledgeable about, zonal pricing, reform to transmission charging and changes to network access. The second round of the consultation is imminent.

Oral Answers to Questions

Debate between John Penrose and Graham Stuart

Tuesday 23rd May 2023 Commons Chamber

[John Penrose (Weston-super-Mare) (Con)]

T7. Does the Minister agree that rewiring energy markets through REMA, the review of electricity market arrangements, is the fastest and cheapest way to cut bills by uncoupling them from gas prices? Does he therefore agree that we should speed up and that bill payers would be best served by a Government White Paper on that before the summer recess?

[Graham Stuart]

I thank my hon. Friend for separately sharing his detailed thoughts on REMA and its reform. This is a complex area with multiple interrelated mechanisms; it requires careful consideration to unlock the £280 billion or perhaps £400 billion of investment in generation and flexible assets that could be needed by 2035. While I share his impatience and desire to move fast, it is more important still that we get it right. I aim to publish a second REMA consultation in the autumn, which will narrow the options for reform and detail the direction of travel.

Oral Answers to Questions

Debate between John Penrose and Graham Stuart

Tuesday 29th November 2022 Commons Chamber

[John Penrose (Weston-super-Mare) (Con)]

13. If he will publish a White Paper on the long-term structure of the UK energy sector after the energy price guarantee ends.

[The Minister for Climate (Graham Stuart)]

The Government have announced changes to the energy price guarantee from April 2023, as well as additional support for pensioners and those on benefits. The Government will work with consumer groups and industry to consider the best approach to consumer protection from April 2024 as part of wider retail market reforms.

[John Penrose]

Does the Minister agree that while subsidies are necessary short-term sticking plasters, investors will not commit the multi-billion pound investments that the energy sector needs to upgrade and modernise energy storage, generation and transmission unless the long-term rules are clear? Will he therefore update the Energy Bill to lay out a sustainable long-term future with investable deadlines and milestones to transition from today’s highly distorted, politicised and bureaucratic sector to a cheaper, simpler, better-value industry with much lower political and regulatory risks?

[Graham Stuart]

I am proud that this Government have led the way, with contracts for difference driving renewables such as offshore wind by driving down costs. I am also delighted that we have the legislative vehicle to deliver the necessary changes, and the Energy Security Bill will be taken forward in this Parliament to transform our energy industry by turbocharging carbon capture, utilisation and storage and our hydrogen industries in pioneering projects from the Humber to the Mersey, and beyond. The Bill will encourage competition in the energy sector, creating opportunity, prosperity and security with clean jobs, new skills and, as my hon. Friend rightly highlights, cheaper bills.