Oral Answers to Questions

Debate between Kwasi Kwarteng and Jonathan Edwards

Tuesday 29th March 2022 Commons Chamber

[Kwasi Kwarteng]

My hon. Friend knows that energy efficiency is at the centre of any net zero strategy, and I would be happy to work with him to ensure that we can drive progress in this area.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

T8. People already struggling to make ends meet will be hit by an increase in the unit price of electricity next month, and for many in Wales their daily standing charge will also double. In the interests of transparency and fairness, has the Department considered the merits of introducing a system of single unit pricing, so that consumers can more easily compare the costs charged by energy providers?

[Kwasi Kwarteng]

The hon. Gentleman will appreciate that the Department continually looks at a range of schemes to see how best we can lighten the burden of rising energy prices.

Russian Oil Import Ban

Debate between Kwasi Kwarteng and Jonathan Edwards

Wednesday 9th March 2022 Commons Chamber

[Kwasi Kwarteng]

I think we can look at a range of technologies. We looked at the fracking issue—I was the Energy Minister at the time—and there were issues regarding the seismicity of various projects. However, we have always had an open mind, and we have always said, and I will repeat it, that we will support shale gas exploration if it can be done in a safe and sustainable way. We will be led by the science on whether this is indeed possible, so there are lots of experiments and empirical evidence that we need to consider.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

The Secretary of State mentioned in his statement the need to protect the Ukrainian people from further misery. As he knows, Ukraine is a country with historical debt problems, and the full-scale Russian invasion we are witnessing will inevitably make matters worse for them. Considering this is likely to be a prolonged crisis, can he assure the House that the British Government will be leading international efforts with the IMF, the World Bank and the G7 to offer Ukraine debt relief?

Nuclear Energy (Financing) Bill

Debate between Kwasi Kwarteng and Jonathan Edwards

Report stage & 3rd reading
Monday 10th January 2022 Commons Chamber

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

I beg to move, That the Bill be now read the Third time.

I want to start by following right hon. and hon. Members in paying my respects to the late Member for Birmingham, Erdington (Jack Dromey). His constituency has lost a dedicated public servant and a real champion of local industry. I am sure that all our thoughts are with his wife and his family.

Civil nuclear power has worked for this country and it works for consumers, but we all know that the existing financing scheme has led to too many foreign nuclear developers walking away from projects, setting our nuclear industry back a number of years. While the contract for difference model was right for Hinkley Point C, the lack of alternative funding models has contributed significantly to the cancellation of recent potential large-scale projects, including Hitachi’s project at Wylfa and Toshiba’s project at Moorside. We urgently need a new approach to attract capital into the sector, and therefore we are introducing the new nuclear RAB model, which will deliver nuclear projects at a lower cost for consumers.

This new funding model is a win-win for nuclear and for our country. Not only will we be able to encourage greater diversity of private investment; we will also be able through this mechanism to lower the cost of financing new nuclear power and reduce costs commensurately to consumers and to businesses. New nuclear is absolutely essential if we are to have security of energy supply and diversity to ensure resilience.

We have heard from MPs across the House about how the nuclear industry in their constituencies has created and will create jobs—from Wylfa to Hartlepool to Hinkley. All those hon. Members are powerful advocates in this place for the future of the nuclear industry. Thanks to the Bill and other steps we are taking, I firmly believe that we are at the beginning of a new age, a new renaissance, of nuclear energy in the UK.

We have already made a commitment to bring at least one further large-scale nuclear project to final investment decision by the end of this Parliament, subject of course to value for money and relevant approvals. We are also creating not only an ability to invest in large-scale nuclear but a £120 million future nuclear enabling fund to tackle barriers to deploying new nuclear technologies. I am particularly pleased to refer to the fact that we have committed £210 million to back Rolls-Royce’s plan to deploy small modular reactors.

[Jonathan Edwards]

The one thing that perplexes me about this Bill is that it is for nuclear only. If the RAB model is the way forward, why is it not also available for other technologies, such as tidal?

Subsidy Control Bill

Debate between Kwasi Kwarteng and Jonathan Edwards

2nd reading
Wednesday 22nd September 2021 Commons Chamber

[Kwasi Kwarteng]

That was a rather lengthy intervention, if I may say so, although I do not want to entrench on the Chair’s prerogative. As the right hon. Lady will appreciate, the Bill is a function of our leaving the EU. We are not trying to rehearse the arguments of Brexit; we were doing that long before she was elected to the House. I was certainly involved in those debates.

The Bill sets out a regime founded on seven clear and transparent principles. According to those principles, the subsidy must be designed to remedy a market failure. It must be designed to bring about a change in behaviour. It cannot normally cover costs that would have been funded in any case. It must be appropriate, proportionate, and designed to minimise any distortions to competition and investment in the United Kingdom. Finally, the public authority giving a subsidy must carry out a balancing test, and proceed only if the benefits of the subsidy outweigh any distortions to UK competition and investment, and to international trade.

Those principles will be supported by guidance for all to see. That will ensure that public authorities fully understand their legal obligations, and will make clear which subsidies are permitted and prohibited and under what circumstances.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

As I understand it, the Bill also gets rid of assisted area status, which in the Welsh context includes my county of Carmarthenshire. Can the Secretary of State explain why the British Government are making it more difficult for the Welsh Government to help businesses in Carmarthenshire?

[Kwasi Kwarteng]

I do not agree with the hon. Gentleman’s description of what the Bill does. If he listens to the rest of my remarks, he may well hear further clarification. Of course, as is always the case, many of these issues will be discussed in Committee if the Bill’s Second Reading receives the assent of the House.

Public authorities will be empowered to make their own assessment of whether a new subsidy meets the requirements of the regime and, in the vast majority of cases, to proceed directly to granting that subsidy. For the first time, the decision on whether to grant a subsidy will always fall to the granting authority itself. For the largest subsidies, or those that present the highest risk of distorting competition, it is worth recalling that the default process under the EU state aid regime could last between nine and 12 months, and that that often determined whether a project could happen or not. Under the new regime, a new body, the UK subsidy advice unit, must publish its report within 30 working days. That is in huge contrast to the nine-to-12 month period under the EU.

UK Gas Market

Debate between Kwasi Kwarteng and Jonathan Edwards

Monday 20th September 2021 Commons Chamber

[Kwasi Kwarteng]

I cannot make any assurances of that kind to my right hon. Friend. As a former Chief Whip, he knows the practices of this House very well. In fact, I seem to recall that in those coalition days we frequently made statements, not necessarily on the Floor of this House. I would be very happy to update him. I do not think—[Interruption.] I have a different memory of it, but we can discuss that later. I would be happy to talk to him about the measures that are being put forward; it is an Ofgem-led thing, but it is also something the Government have worked on—this has been done together.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

Given that Wales is a major net exporter in electricity and came second in the UK growth index for the potential for green development, what are the British Government doing to ensure that the Welsh Government have all the levers they need to reach their potential and ensure that the people of Wales get a dividend from our strength in electricity production?

[Kwasi Kwarteng]

The hon. Gentleman makes a good point. I am not sure whether we have scheduled this in, but one action point is that I want to do a call with the devolved Administrations this afternoon. After this statement, I will be very much looking forward to seeing some of his colleagues and people in the Welsh Government, as well as those from some of the other DAs.

UK Steel Production: Greensill Capital

Debate between Kwasi Kwarteng and Jonathan Edwards

Thursday 25th March 2021 Commons Chamber

[Kwasi Kwarteng]

I pay tribute to my hon. Friend—another Conservative who won a so-called red wall seat. He has done a fantastic job in representing his constituency, particularly on this critical issue. From my answers, he will know that we are committed to making sure that UK steel has a big part to play in the construction and infrastructure plans that we ambitiously set out.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind) [V]]

Tata Steel has reportedly said that it is in active discussions with the British Government about creating a “decarbonised footprint” for the future, especially in Port Talbot. While I welcome that, will the Secretary of State confirm that at the heart of those strategies, the British Government will prioritise maintaining volume of production and jobs in the Welsh steel industry?

[Kwasi Kwarteng]

The hon. Gentleman will know, but I say in the interests of transparency, that one of my first meetings when I was appointed Secretary of State was with the head of Tata Steel. He will also know that having visited Hinkley Point as Energy Minister I am fully aware of the impact and the contribution that the Tata plant makes to infrastructure. I am sure he will be pleased to hear that this is a top priority of mine. I have made the point many times this morning that our infrastructure plans are absolutely intertwined with a strong domestic steel industry.