Cost of Energy

Joy Morrissey Excerpts

Tuesday 11th February 2025 Westminster Hall

[Joy Morrissey (Beaconsfield) (Con)]

It is a pleasure to serve under your chairmanship, Mr Western; you were a wonderful shadow Minister, and it is fantastic to see you here today. I praise the hon. Member for Bath (Wera Hobhouse) for securing this debate. Hon. Members will rarely hear me heap praise on another political party, but at the risk of sounding as if I am working cross-party, I commend her for her excellent points.

I do not think any of us can argue with some of the points highlighting the exorbitant cost of electricity bills here in the UK, and I find the regressive levies on electricity bills quite shocking. I thought the hon. Member’s innovative and positive policy solutions for reducing the cost of electricity bills were a welcome breath of fresh air; I hope that we can have further debates to bring forward those important points. I am more on the side of scrapping the levy, but I think we could come to a compromise about how to move forward.

Many Liberal Democrat Members brought up the importance of community-owned energy schemes, and I advocate for Marlow community energy. It is important that hon. Members on both sides of the House are advocating for community energy schemes; that theme ran through most hon. Members’ contributions and is an important aspect of energy to take forward.

It was wonderful to hear contributions from the hon. Member for Horsham (John Milne) about the great Horsham energy scheme and from the hon. Member for West Dorset (Edward Morello) with his expertise in energy. It is always welcome when people bring their professional expertise to the House.

We have also heard about the challenges in the highlands; I am sure that the Minister will be able to give further explanation about the plans and challenges for the highlands. Although they are producing renewable energy, and will probably produce even more, it will be interesting to see what capacity they will have.

Of course, I would be remiss if I did not comment on the wonderful hon. Member for Strangford (Jim Shannon) and everything that he contributes to this House—his wonderful contributions and his praise for Members across parties, not only in this debate, but in every single Adjournment debate. We are lucky to have such a wonderful and hard-working Member.

The cost of energy affects every aspect of our economy; few things are more important for our economic success than the cost of energy. It affects the global competitiveness of our industries and therefore the number of jobs and our constituents’ energy bills. The new Labour Government promised to cut energy bills by £300 by 2030—we are still looking forward to that—to create 650,000 jobs from the £8 billion that they are taking off taxpayers for Great British Energy, and to launch the era of clean, cheap, home-grown power. After more than six months in Government, however, it is clear that they will make energy more expensive, with bills going up, not down, and that they risk shutting down swathes of British industry, with jobs lost to more polluting countries. In short, their energy plans will result in lower growth, fewer jobs, higher energy bills and more carbon in the atmosphere.

We are constantly told by Ministers that renewables like wind and sun are the cheapest sources of energy, but that does not take account of the huge hidden costs of increased reliance on renewables. Again, I thank the hon. Member for Bath for bringing the important aspect of renewables to the forefront of the debate. Industry has already warned that trying to quickly produce a record amount of renewable capacity to meet the Government’s 2030 target will push up the price and cost to consumers. The cost also depends on the generating capacity that we need to have in the background to kick in to keep the lights on when the wind does not blow and the sun does not shine.

[Luke Murphy (Basingstoke) (Lab)]

From what I am hearing, the hon. Member is making an anti-renewables, anti-action on climate change speech. She mentioned that electricity prices are some of the highest in Europe, but her party had been in government for 14 years when the Government inherited those high prices. Could you confirm on the record that you think it is the Conservative party’s position that all levies on bills to support renewables should be scrapped?

[Matt Western (in the Chair)]

Order. I remind hon. Members to refer to each other as “the hon. Member” as opposed to “you”.

[Joy Morrissey]

I welcome the hon. Member’s contribution. It is wonderful to hear his commitment to the climate change emergency. We need to move forward as a country to make sure that our energy costs remain low. We did not commit to a £300 reduction in energy prices, nor did we commit to scrapping the winter fuel payment for pensioners. We went into the election without making those promises. I am simply holding the Government to account right now.

[Luke Murphy]

We are not talking about what was committed to in the manifestos. My question was about what the hon. Member said a few minutes ago, that she is committed to removing all the levies on bills related to renewables. Could she repeat that pledge?

[Joy Morrissey]

The hon. Member makes a wonderful point. Personally, I feel very strongly about this, and the glory of being in opposition is that I can hold the Government to account. I can have also a Backbench Business debate or an Adjournment debate of my choosing about my own passion projects. Not to digress, but if the hon. Member looks at the Water (Special Measures) Bill, he will see my passion project flourishing. I do not want to detract from this wonderful debate, but what I am saying is that we can find a cross-party solution to many of these issues. We want to be positive about the UK and its future.

[Wera Hobhouse]

I, too, would like some clarification from the Opposition. Is the hon. Member saying that renewable energy is a solution to lower energy bills and gets us to net zero, but that we do not really want it because it is too expensive? I was not quite clear whether her argument was for or against renewable energy. Could she clarify that?

[Joy Morrissey]

The hon. Lady makes an excellent point. The Conservatives have an excellent track record of putting in renewables. We were the first to bring in the coal-free plan to tackle energy, so that is an important way of moving forward. I would like to continue moving forward with cheaper energy bills to make sure that we protect our energy security while ensuring that costs are low for both the consumer and industry.

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

I apologise for arriving at the debate rather late, Mr Western. Needless to say, as a former Energy Minister, I take an interest in these matters. Anyone who shares that interest will understand that we need a mix of energy between renewables and non-renewables. Renewable energy has to be tested on the basis of whether it is cost-effective. Some renewables are and some are not; it is as simple as that.

[Joy Morrissey]

My right hon. Friend makes an excellent point. Some renewables are cost-effective and some are not; and some are a lot less energy-dense than gas or nuclear.

[Edward Morello]

I am struggling with the argument of renewable energy not being cost-effective. For the cost of the amount of generation that Hinkley C would deliver, we could deliver twice as much renewable energy generation. The strike price for offshore wind is far below any other source of electricity. So I am at a loss—across every single form of renewable energy, the generation price is below that of fossil fuels.

The hon. Lady talks about the previous Government being at the forefront of renewable energy generation, when they signed off new drilling licences for North sea oil. I feel I am living in cloud cuckoo land. There is no connection between what she is saying and the reality of market forces. Ask any wholesale energy price provider what their strike price is for renewables, and they will say that it is lower than for fossil fuels.

[Joy Morrissey]

I thank the hon. Member for his intervention. I ask that I be allowed to make progress in my speech, during which I will address many of the excellent points he raised. Let me go back to my earlier point about density and some renewables being more affordable than others. For example, acres of agricultural land need to be covered with solar panels to produce a fraction of the power that could be generated by gas power plants or small nuclear reactors.

The time has come to have a much more sensible and serious conversation about the true cost of renewable-based systems, not just repeating again and again that renewables are the cheapest form of energy. That is why the previous Secretary of State, my right hon. Friend the Member for East Surrey (Claire Coutinho), asked the Department to produce a full-system cost of renewable-based systems. If we are intent on decarbonising the entire grid by 2030, as the Government want, we must have a detailed assessment of what it will cost, and what it will do to our constituents’ energy bills and our already high industrial energy prices. Since taking office, however, the current Secretary of State has scrapped that work. He is rushing headlong into renewable-based systems, without any idea of what it will cost the country and the economy.

There is also the issue of trust—trust for consumers and for those in industry. Throughout the general election campaign, the Prime Minister, the Chancellor, the Secretary of State and around 50 Labour MPs promised across the country to cut energy bills by £300. As soon as they got into Government, they refused to commit to that promise. Even worse, they decided to take the same amount from millions of pensioners in poverty. It is difficult to think of a bigger betrayal committed by an incoming Government.

Six months on, Labour voted against an amendment to make the Government accountable for that promise through Great British Energy—their energy company that is not going to generate a single watt of energy. The new chair of that company says that it is not even within its remit to cut bills by £300. Labour cannot spend weeks and months repeating such an explicit, clear and simple promise only to row back on it the second it gets into Government. Perhaps the Minister would like to tell constituents in Beaconsfield and across the country when they can expect to see £300 off their energy bills, and how much their bills will increase to in the meantime.

It is not just households that are worried about the cost of energy, but industry too. The same energy-intensive industries that wrote to the Government to raise concerns about their plans to hike the carbon price to the highest rate in the world also share the despair at the UK having among the highest industrial electricity prices in the world. In fact, the Department’s data shows that we now have the highest industrial energy prices in the world, well above the International Energy Agency and EU average.

More than anything, our heavy and manufacturing industries need cheap energy. They need stable and reliable energy, which does not rely on the whims of the weather. As with the shutting down of the UK oil and gas industry, seeing British industry move overseas will not change demand. It just means that domestic production—with all the tax revenue, British jobs and the investment that it brings—will be replaced by higher-carbon imports from abroad. Ministers say that decarbonisation cannot mean de-industrialisation, but if our industries, which are the hardest to decarbonise, cannot cope with the high cost of energy and therefore move abroad, that will be a disaster for our economy, devastating for our workers and their families, and will do nothing to reduce global emissions.

Ministers say that they want us to be global leaders. They want us to convince other countries to decarbonise, which is a noble goal. Climate change is a global issue, and there is no sense in our going it alone to cut our emissions when we produce fewer than 1% of global emissions. That is exactly why the Government need to change tack and stop our industrial energy prices rising any further. Countries around the world, which care deeply about holding on to their industrial and manufacturing base, are looking to the UK and other western nations to see what happens next. If they look at us and see industries being gutted by a misguided energy policy and see our people suffering from higher and higher energy bills, they will not want to follow us down the path to decarbonisation. We will be a warning, not an example, to the rest of the world.

Our ceramics, automotive, cement, steel, minerals, glass, aluminium and chemical industries need, above all else, cheap energy. I urge the Minister to talk to those businesses that are struggling with high energy costs and ask them what a carbon price of £147 per tonne of CO2 would do to their businesses. The Minister might not like the answer, but the Government need to face the consequences of their policies.

The Government should be asking what arrangements will give us the cheapest, most reliable energy and how we get there. Instead, they are determined to decarbonise the grid by 2030 at any cost to meet a political target, even if that sends people’s bills through the roof, offshores our emissions to polluting countries and leaves us at the mercy of Chinese imports. When facing the electorate at the next election, they will not be able to say that they were not warned.