Oral Answers to Questions Debate
Full Debate: Read Full DebateLindsay Hoyle
Main Page: Lindsay Hoyle (Speaker - Chorley)Department Debates - View all Lindsay Hoyle's debates with the Department for Energy Security & Net Zero
(2 days, 10 hours ago)
Commons ChamberIt is a hugely important question. In an increasingly uncertain world, our energy security becomes more and more important, and that is why we are determined not only that we build a clean power system to tackle the most existential crisis that the planet faces—the climate crisis—but that we have home-grown power here in the UK that we control; that is hugely important. Every step we are taking to invest in renewable energy and a new generation of nuclear helps us to do that, but it is also, of course, the economic opportunity of the century, which delivers our energy security and jobs at the same time.
Well, I say a happy new year to the hon. Gentleman, as we see his sunny disposition back in this House again!
First, we committed in the Budget to looking at the CBAM inclusion and are working to make that happen. Secondly, of course I have been working with all the refineries to make sure that they are as sustainable as possible. Thirdly, I think the hon. Member has an absolute cheek to come here and talk about deindustrialisation when his party has failed to have an industrial strategy in Scotland for the 18 years it has been in power and when, just before Christmas, it published the flimsiest of flimsy plans for energy security in Scotland, which was mostly made up of pictures and not by any detail. His party has absolutely no credibility on these issues whatsoever.
There are many corporate customers who are keen to decarbonise but find that grid connection forecasts of five or more years stand in their way. Will the Minister tell us what he is doing to speed up business connections to the grid and to ensure that we prioritise those business customers who will make the biggest difference in decarbonising?
That is an important question on two fronts. My hon. Friend rightly mentioned that the transition away from fossil fuels is hugely important for our energy security and for future generations. We in this place have a huge responsibility to safeguard the future of our planet for the generations still to come. His second point was, rightly, that we need to make the case for why this is important now. It is about how we get away from the volatility of fossil fuel prices, which so many of our constituents are still paying the price for, and how we industrialise communities right across the country. Tens of thousands of jobs have been created through the renewables that are already in place and we want to see hundreds of thousands of jobs by building much more of this infrastructure in the UK; that is how we get an economic advantage as well as energy security.
Harriet Cross (Gordon and Buchan) (Con)
In the consultation paper on the future of the North sea, the Government defined windfall prices as $90 a barrel for oil and 90p a therm for gas. Can the Minister tell me the prices of oil and gas today?
Rachel Taylor (North Warwickshire and Bedworth) (Lab)
Many pupils have returned to cold school classrooms this week. That is why I am delighted that Kingsbury school, St Michael’s Church of England academy and All Saints Church of England academy in Bedworth, and Ash Green school, have all received funding to install solar panels. Will the Minister outline what support those schools will receive to install the panels, and how the panels will help them to cut their energy bills?
That kind of relates to education. Can you bring it back to energy, Minister?
Chris McDonald
I think this shows how committed the Government are to supporting a reduction in costs across all our services, including education and health, through the installation of solar panels. We saw a massive increase in solar installations in the UK last year—equivalent to enough energy generation to power 2 million homes. Not only do solar installations benefit our domestic consumers and enable the creation of green energy, but by installing solar on rooftops such as those of schools and hospitals, we are taking maximum advantage.
We have regular discussions with the Northern Ireland Assembly and the Executive on a range of issues. On the hon. Gentleman’s point about nationally significant projects, it is absolutely right that communities have input into these questions. Certainly in the case of home-grown low-carbon power, we want communities to see the benefit, because by hosting infrastructure, including low-carbon infrastructure, communities are doing a service to the country.
Happy new year, Mr Speaker.
This is just nonsense on stilts from the Secretary of State, and we know this because the biggest AI company in the world has said that it will need gas power to succeed in Britain. If a company wants to build its own gas plant here, at no cost to the British taxpayer, the warped green ideology of this Secretary of State, who is obsessed with domestic emissions above everything else, will block it. Those emissions will still exist, as that company will start somewhere, just not here in Britain. Does he agree that that is a completely mad reason to block the growth we need in Britain?
I will tell the hon. Lady. We are proud of the fact that in the Budget we raised taxes on the wealthy so that we could cut bills for millions of families across this country. I am so grateful to her for her question, because it illustrates the difference between our parties. This was not an easy thing to do; it was a decision made by this Government, because for too long this country has been run for the wealthy and powerful by the Conservative party. We are changing that and cutting bills for millions of families across Britain.
Bradley Thomas (Bromsgrove) (Con)
This Government’s promise to cut energy bills by £300 is dead in the water, as bills are now £190 higher than when they took office. Now their big idea is to pull the wool over the eyes of the British public by moving some of the costs of net zero from people’s energy bill to their tax bill. Can the Secretary of State answer a very simple question: after the Government’s supposed bill cut takes place in April, will the average energy bill be higher or lower than when Labour came to power?
I can tell the hon. Gentleman that bills are going to be lower. [Interruption.] If he just listens, I will tell him. If we compare 2025 to 2024, energy bills are lower in real terms than they were in 2024, and the price cap is also lower. Because bills are still too high, we will make that situation better by taking £150 off bills. The Conservatives opposed every measure in my right hon. Friend the Chancellor’s Budget, yet they also say that they want £150 off bills—they cannot have both. It is this Government who are delivering on the cost of living crisis.
I am intrigued, because question 6 has been transferred. It has even got on to the Order Paper. Why did the Department suddenly find out so late that it has been transferred? I do not think it is good practice, and I hope it will not happen again.
Steve Yemm (Mansfield) (Lab)
Martin McCluskey
It is worth waiting for the warm homes plan, which will be published very soon. Alongside that there will be an ambitious fuel poverty plan for England. The Chancellor has already announced £15 billion of funding for that. We will set it out very soon and I look forward to constructive discussions with the hon. Member when it is published.
Pippa Heylings (South Cambridgeshire) (LD)
Thank you, Mr Speaker, and happy new year.
It is freezing outside and, tragically, more than 4,000 households in my constituency are living in fuel poverty. The Government’s decision to cut the energy company obligation, which was the key mechanism for delivering home insulation and energy efficiency, without any details about what will replace it, risks pushing more families into fuel poverty. The businesses and supply chains that have fulfilled ECO contracts for more than a decade have been left in limbo. Again, we have heard no date for the plan. Will the Secretary of State or the Minister finally say when it will be released, thus ending uncertainty for businesses and the suffering of households?
Torcuil Crichton (Na h-Eileanan an Iar) (Lab)
When it comes to creating clean jobs and local wealth, there is no better example than the community-owned wind farm sector in my Na h-Eileanan an Iar constituency. I welcome what the Government have done to clean up the grid connection queue, but the community-owned wind farm sector in my constituency is still stalled and cannot get access to the national grid. The National Energy System Operator, Ofgem and private companies all want to promote community energy, but unless Ministers direct the regulators and grid operators to give priority to community-owned wind farms, that will not happen. I would like to discuss this issue with Ministers, but I also ask them to come and see how community-owned wind farms create wealth and clean jobs in my area.
Chris McDonald
We do recognise the previous issues around grid connections, and accelerating and prioritising connections is something that this Government have taken by the scruff of the neck. I am sure that the Energy Minister will be very happy to meet my hon. Friend—I think we will have a bit of fight to see which of us has the opportunity to visit his most beautiful part of the country.
I congratulate Hackney council—Labour-led Hackney council—on the brilliant job it is doing on green energy. Unlike some who just talk about it, the council is actually delivering, and I congratulate it. I see Hackney as being at the forefront of our local power plan, which will be coming out in the coming months.
It is freezing cold outside, and people are worried about their energy bills, yet on top of all the other costs the Secretary of State has lumped on to people’s bills, it is reported that he is about to tax people with gas boilers to pay for people having heat pumps. Can he definitively rule this out for the rest of this Parliament: no new taxes on people heating their homes?
I can absolutely rule out that we are going to introduce new levies to the energy system in the warm homes plan. Those reports are complete nonsense. I can tell the shadow Secretary of State that the warm homes plan is going to turn the page on a decade of the Conservatives’ failure, because we are going to invest where they did not, we have a plan where they did not, we will have proper oversight and regulation where they did not, and we will tackle the cost of living crisis they caused—
Order. Secretary of State, we are on topicals. I know you want to get carried away, but, please, the new year does not allow for it.
The rumours are that the Secretary of State is pitching himself to be the next Chancellor. He did not rule out taxes on people heating their homes for this Parliament, he is shutting down the North sea, there is a disastrous EU energy deal and a secret deal with China, the industry is fleeing in its droves and energy bills have risen five times on his watch. Does this not show that he has to be the only person in the country who could do a worse job than the current Chancellor?
Dear, oh dear, oh dear. What can I say to that, Mr Speaker?
Don’t tempt me, Mr Speaker—don’t tempt me!
I want to briefly make one point. In the warm homes plan, which will come soon, we will be making £15 billion of public investment to help people cut their bills. The Conservatives can oppose that if they like, but I think it will be supported across the country, because they were an absolute failure on energy efficiency and all of that, and we are going to succeed.
Network companies have benefited in the past, but Ofgem has moved to correct that in the RIIO-3 price control period so that it cannot happen again. We are working with Ofgem every single day to ensure that we bear down on the costs of energy and that consumers benefit from cheaper bills as quickly as possible.
Pippa Heylings (South Cambridgeshire) (LD)
Brexit excluded us from the EU’s internal energy market, costing the UK a huge £350 million annually. Will the Secretary of State confirm how he will accelerate progress towards the UK-EU internal electricity trading agreement to bring down costs and ensure energy security in these volatile times?
Tom Hayes (Bournemouth East) (Lab)
Once the political situation is stabilised in Venezuela and foreign companies can be enticed to invest somewhere between £100 billion and £200 billion there, it will take emergency repairs, workforce modernisation and retraining and many more things to get the infrastructure and industry in Venezuela up to historical peak capacity. That could take up until 2040. Is it not easier and speedier for the UK to invest in home-grown renewables and nuclear, so that we can guarantee energy independence, and get off the fossil fuel rollercoaster—
Yes; my hon. Friend is entirely right. Home-grown clean power is what will give us energy security.
Helen Maguire (Epsom and Ewell) (LD)
An estimated 50,000 diesel-powered transport refrigeration units operate across the UK, consuming around 235 million litres of fuel annually. These generators emit up to 400 times as many particles as truck exhausts do. High-emitting diesel engines face no real regulation and create a significant burden on the NHS and the environment, but there is a solution. Zero-emission renewable transport refrigeration technologies are commercially available and being manufactured in the UK today. Government intervention would help. Will the Secretary of State come and see the fantastic work of Sunswap, which is championing this technology in my constituency, and can he—
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)
Having slightly strayed into the area of the Department for Education earlier, I think it best that I stay out of the area of the Department for Transport. I will, however, ensure that the question is passed on to the relevant Ministers for a response.
Caroline Voaden (South Devon) (LD)
Happy new year, Mr Speaker. This weekend, 4,600 properties in my constituency had their gas supply cut off, on the coldest weekend of the year. I commend Wales & West Utilities, which worked tirelessly to get people reconnected, but its efforts have been hampered by the inability to communicate effectively with residents, as it does not have a direct relationship with its customers. It has had to rely on social media, which is not great in an area with lots of elderly people. We have also been hampered by the high number of second homes, as engineers have not been able to gain access to those properties. Will the Minister meet me to discuss how providers such as Wales & West Utilities can communicate with households—
Bradley Thomas (Bromsgrove) (Con)
On a point of order, Mr Speaker. In response to my question about whether bills in April 2026 will be lower than in July 2024, the Secretary of State claimed that they would be. However, the price cap would suggest otherwise: it was £1,568 in July 2024 and is projected to be £1,620 in April 2026. Can you advise on how the House can seek a correction of the record?
You have certainly put that on the record. We are not going to continue the debate unless the Secretary of State wants to respond, which I doubt.
Further to that point of order, Mr Speaker. I am happy to respond, because we are going to deal in the facts. Bills were lower in 2025 than in 2024 in real terms, and the price cap was lower—and, of course, making a seasonal comparison makes no sense. We are going to trade in the facts.
On a point of order, Mr Speaker. I asked the Secretary of State a direct question about his former statements and how they conflict with current Government policy. Would you agree that the Secretary of State should have directly answered me?
I do not have an opinion, and I am not responsible for that, but you have certainly got that on the record.