Oral Answers to Questions Debate
Full Debate: Read Full DebateJustin Tomlinson
Main Page: Justin Tomlinson (Conservative - North Swindon)Department Debates - View all Justin Tomlinson's debates with the Department for Energy Security & Net Zero
(7 months ago)
Commons ChamberEvery family in Britain is paying the price for the Government’s failure on energy, with bills through the roof while oil and gas profits have soared. A publicly owned clean energy company would allow us to take back control of our energy, cutting bills and creating jobs across the UK. Why are the Government letting their ideological stubbornness get in the way of supporting families, when they could follow other, successful countries and set up a publicly owned clean energy company like Great British Energy?
I thank the hon. Lady for her question, but I do not think that consumers will. The TUC itself has highlighted the potential £61 billion to £82 billion cost that will be landed either at the taxpayer’s doorstep or directly on to consumers’ bills, which is nothing to be thankful for.
In 1985, just before privatisation, 4.2% of total consumer spending was on energy bills. Between 2000 and 2020, that dropped to between 2% and 3%. Even last year during the war in Ukraine, it only hit 3.6%. Does my hon. Friend agree that, as he has already said, the suggestion from the hon. Member for Blaydon (Liz Twist) would wallop consumers?
We have to work with businesses to secure investment. We have secured £300 billion for low-carbon technologies since 2010, as we boost UK energy production, our energy security and, ultimately, deliver cheaper bills for consumers.
When it comes to who controls and benefits from our energy system, why does the Government refuse to put the British people first? As we have heard, foreign-owned firms, whether France’s EDF or Denmark’s Ørsted, reap the rewards of energy produced in Britain. As they benefit British people pay the price, exposed to sky-high energy bills and beholden to volatile international prices. Why is the Minister so opposed to putting power back into the hands of the British people?
There is not a single country around the world that thinks Governments alone can deliver increased energy security. By working with businesses, we can unlock the private investment to do it. And talk about irrational: imagine a career politician, the shadow Secretary of State, running UK energy. Consumer bills would rocket.
The Minister is completely missing the point, so I will use a real-world example. In Bristol, we have set up the 20-year Bristol City Leap project with Ameresco and Vattenfall, a partnership between the public and private sector that will help the city to cut carbon dioxide, bring down bills and deliver green jobs. Actually, the Government are piloting a similar project in York, because it has been such a success in Bristol. But why should it be Vattenfall, a 100% Swedish state-owned firm, rather than a British equivalent, such as Labour’s GB Energy, that benefits? Why can Swedish taxpayers profit from investing in our future, but British taxpayers cannot?
Politicians with zero business experience are high risk. It was not so long ago that the shadow energy security Minister highlighted the success of Robin Hood Energy, backed by Nottingham City Council, which delivered a £38 million loss.
Our pragmatic, proportionate and realistic approach to meeting net zero will capitalise on the opportunities of the low-carbon transition, creating jobs and investment across the UK.
The cost of net zero is being borne by our hard-pressed constituents, at the same time as China increases its carbon dioxide emissions by more than the UK’s total emissions every year. Wholesale electricity prices are currently £65 per megawatt, but we are paying £102 per megawatt for fixed offshore wind, offering £246 for floating offshore wind, £89 for onshore wind, and £85 for solar. Can the Minister explain whatever happened to plentiful, cheap renewable energy?
The hon. Member and I agree that we must champion the importance of delivering cheaper bills for consumers. This does not have to be a binary choice between tackling climate change and delivering cheaper consumer bills. By investing in a cleaner, more efficient energy system, we can do both.
I refer Members to my entry in the Register of Members’ Financial Interests.
The benefits of renewables cannot come at any cost. In that spirit, I welcome the commitment of the Secretary of State and in particular the Minister to protect food security through the additional protections of versatile and productive agricultural land. Will the Minister also affirm the Government’s determination to protect areas that are particularly affected by energy infrastructure—pylons, wind and solar—such as the Lincolnshire fens, the Somerset levels and Romney Marsh? Food security matters just as much as energy security in the national interest for the common good.
We are proud to have taken renewables from just 7% under the last Labour Government to 47% today, but my right hon. Friend makes a powerful point about the need to tackle clustering. The Secretary of State reiterated clear guidelines and advice for local authorities and planning committees up and down the country to make sure that we safeguard, wherever possible, our key agricultural lands as part of our commitment on food security.
Communities in Westmorland cannot afford for us not to be reducing carbon emissions. I think of communities such as Kirkby Stephen, Appleby and Kendal, all of which are listed as energy crisis hotspots. That means they have below average incomes, but above average energy prices. There are over 10,000 homes in need of loft insulation and 6,940 homes in need of cavity wall insulation in my communities. Will the Minister give resources to the excellent Cumbria Action for Sustainability to meet that need and decrease bills, and also perhaps revise the rules for ECO4 so the scheme better fits older homes in rural areas such as ours?
I thank the hon. Member. As on football, we agree on the principles. The Government are proud to have taken energy-efficient homes from 14% to 50%. Local initiatives can play a key part in that and I would be interested to learn more about the project he highlighted.
Decarbonisation is welcome, but it must be achieved in a way that balances the country’s other priorities, such as food security. I welcome last week’s statement from the Secretary of State about the importance of protecting our best and most versatile farmland, but can the Minister tell me more about how he will ensure that we prioritise solar power on rooftops instead?
The Government are proud to have delivered an additional 43 GW of renewable energy since 2010 alone. We have also introduced planning changes to make it easier to install solar panels on rooftops, including those of industrial buildings, and we can thank consumers for leading the way: an average of 17,000 households a month added solar panels to their roofs last year.
Britain is the first major economy to halve emissions, while growing the economy by 80%. We have more ambitious targets for 2030 than the EU, with the UK aiming for a 68% reduction in emissions, compared with its 55%. We have over-achieved on all carbon budgets to date and remain on track for the next.
At COP28, the UK, alongside nearly 200 countries, agreed to the transition away from fossil fuels. Since then, the Government have recklessly granted new oil and gas licences and pushed legislation through this House to max out North sea fossil fuels. Will the Minister meet the 50 cross-party parliamentarians who last week signed a letter urging the Government to show climate leadership and join the Beyond Oil and Gas Allowance, which aims to phase out oil and gas production ahead of COP29?
I thank the hon. Member for raising that important issue. That is why we are proud that we have already taken 70% out of the oil and gas sector.
Hydrotreated vegetable oil is a good alternative to ripping out heating systems that already exist in rural homes. We have heard today about the cost to rural homes as we try to address the impact of using less fossil fuels. Will the Government get behind the opportunity for HVO in rural communities to give householders a chance to contribute to reducing harmful emissions in their homes?
My hon. Friend has always championed his local constituents to ensure that they get value for money. We must explore all potential options, local or national, to find the best way to deliver energy security and lower bills in future.
The Government are immensely proud of our record on climate change. We have cut emissions faster than any other G20 country over the last decade. The judgment contains no criticism of our detailed plans or the policies themselves, which will keep the UK on track to meet net zero by 2050.
The Government have a legal and moral duty to meet our carbon emissions target. Failure to do so would consign my generation, and generations after mine, to a future of climate catastrophe, so it is beyond a joke that the Government’s carbon budget delivery plan has now been ruled unlawful, not just once but twice. When will the Minister tell the flat earthers sitting behind him to stop trying to make net zero a culture war issue, and instead deliver a transition that both meets our climate obligations and improves people’s living standards?
Our carbon budget delivery plan has over 300 detailed policies. We are recognised as a leader internationally, having already cut emissions by half—the first major economy to do so—with a further ambitious target to get to 68% by 2030, compared with just 55% for the shadow Secretary of State’s beloved EU.
Our Department’s ministerial team meet regularly with industry, for example through the hydrogen investor forum, the Offshore Wind Industry Council, the solar taskforce, the green jobs delivery group, and the cross-cutting Net Zero Council.
Last week, Stellantis, the owner of the Vauxhall car plant in Ellesmere Port, announced that it would import electric vehicles, despite the fact that we produce some great electric vans in Ellesmere Port and want to move on to producing cars there as well. Does the Minister think that, over the long term, reaching our net zero targets through the import of cheaper Chinese vehicles will be a good or bad thing for the UK car industry?
The hon. Member raises a very important point. One of the Opposition’s main pledges, which is to fully decarbonise the grid by 2030, could be met only by opening the floodgates to cheap Chinese imports—the exact thing he is opposed to.
Many unwelcome applications for large-scale solar farms, such as Lime Down in my constituency, are funded by offshore companies such as Macquarie, which is most famous for letting Thames Water fall to pieces. What meetings has the Minister had with these speculative investors to ensure that the people who build solar farms will be there in 40 years to make sure that they are removed?
My hon. Friend and constituency neighbour raises an important point about speculative development. As part of speeding up the grid queue, in which we have somewhere in the region of 700 GW of power capacity coming forward, we wish to prioritise shovel-ready schemes, not speculative schemes.
The National Infrastructure Commission said that the Government have reversed some progress on net zero. The right hon. Member for Maidenhead (Mrs May) said that the Government’s roll-back on net zero has put off investors. A member of the Climate Change Committee has said that we are “not ready at all” for the impact of extreme weather on our national security. Mad, bad and dangerous. Will the Secretary of State finally back Great British Energy and the national wealth fund instead of lurching from crisis to crisis, not having a plan and selling out Britain?
We absolutely will not be backing putting the shadow Secretary of State in charge of UK and British energy companies, piling misery on to consumer bills. We have unlocked £300 billion of public and private investment in low-carbon technology since 2010, with plans for £100 billion more by 2030. Last year alone, we saw an investment of £60 billion; that is up a staggering 71% on the previous year.
That is simply not the case; we are leading internationally. Last year alone, there was £60 billion of funding for low-carbon technology; that is up 71% on the previous year. That is why other countries turn to our businesses and supply chain for their expertise—and to us, as we are leading with our policy framework.
The Government have invested in the Faraday battery challenge, a £541 million programme to support the research, development and scale-up of world-leading battery technology in the UK. Since 2022, all new homes and homes undergoing major renovation in England have been required to have a charge point installed. That is why we welcome the year-on-year 49% increase in charge points.
My hon. Friend raises an important matter. Absolutely; that is part of our forward planning in making sure that we can unlock the huge potential in every region of our United Kingdom.
Tapadh leat, Mr Speaker. Zonal pricing has the potential to lower bills for households from Sussex to Shetland, from Stonehaven to the great town of Stornoway. Of course some vested interests will be concerned, such as energy generating companies that are benefiting from the constraint payments raised from customer bills. What are the Government doing to stimulate debate and knowledge about zonal pricing?
It was a pleasure on my return as a Minister to attend the hon. Gentleman’s Select Committee, which he chairs so well. This is part of stage 2 of our wider consultation under our review of electricity market arrangements, and we take on board his and his Committee’s constructive suggestions in that meeting.
A key tool in our arsenal against climate change must be sequestering carbon. It was a pleasure last week to see the Morecambe bay net zero peak cluster vision launched, which could decarbonise 40% of our cement and lime industries, securing a gigatonne of carbon under Morecambe bay. Can I encourage my hon. Friend the Minister to meet me to discuss the project further?
Thank you, Mr Speaker. Now that the Government have recognised the importance of versatile and productive agricultural land in respect of solar, will they recognise too the threat of a monstrous string of pylons stretching right down the east coast of England? We either care about our green and pleasant land or we do not—for, as Keats understood, truth is beauty and beauty, truth.
My right hon. Friend will know that we value taking communities with us and working with them. I am having a number of meetings on this very subject to look at new technologies to see what additional options there could be to support local communities as we rapidly upgrade our national grid network.