Energy Bill [Lords]
Debate between Lisa Nandy and John Redwood
Lisa Nandy (Wigan) (Lab)
With the important exception of its provisions relating to the North sea industries, the Bill has absolutely nothing to say about the major energy challenges that we face. It constitutes a missed opportunity to mend our broken energy market, and to make good the promise that the Prime Minister delivered four years ago when he told the House that he would legislate to put every household in Britain on to the cheapest energy tariff. It is extraordinary that, during the Bill’s passage, we have learnt that that broken promise has cost Britain’s households an extra £1.7 billion every year, and that, once again, an Energy Bill led by this Government has let the energy companies off the hook.
Despite our best efforts, the Bill is also silent on the growing risk of power shortages. That is astonishing, given that official figures from National Grid show that next winter Britain could be forced to rely on back-up measures and imports from abroad just to keep the lights on. We sought to address that in Committee, especially in view of the doubt that has been cast over Hinkley Point C, the failure of which would blow a major hole in the Government’s energy policy. Where is the plan B? It is not in this Bill.
Against a background of failure—the failure to get new power stations built—it is a great shame that Ministers rejected our attempts to amend the Bill in order to correct that failure and provide incentives for the building of a number of new gas plants by changing the design of the failing and expensive capacity market scheme. Our proposals would also have had the benefit of ending the absurd practice of increasing household energy bills to provide generous handouts for dirty diesel generators. Now, however, there is nothing in the Bill that will help to address the power crunch and secure the investment in the new power stations that we so urgently need.
John Redwood
Will the hon. Lady remind us why, when Labour was in office for all those years, it made no decisions to put in new capacity?
Lisa Nandy
The right hon. Gentleman is wrong. As a matter of fact, he is wrong about a number of other things, but I will stick to the point that he has just raised. It was a Labour Government who initiated the new nuclear process for Hinkley Point C, but, six years after the right hon. Member for Witney (Mr Cameron) became Prime Minister we have seen no further progress. In fact, the only new gas station that has appeared under the present Government was initiated and commissioned by the last Labour Government.
Remarkably, the Bill will actually make our energy security position worse. It seeks to shut down, a year early, a major energy investment scheme that has been helping to ensure that wind farms are built. Wind farms already provide a substantial amount of electricity—enough power for more than 8 million homes every year—but, because of their ideological crusade against green energy, the Government do not want to increase their number even if that means that they are sending our power supply into the red. [Interruption.] Ministers can protest, but the reality is in front of us. It is there for us all to see—not just Labour Members, but Ministers’ constituents, who will pay the price for it. The Government will pursue their proposal even if it means retrospectively blocking projects whose development is well advanced and even if it means ruling out one of the cheapest energy options that are available to us, thus breaking their manifesto promise to cut emissions as cheaply as possible.
The aim of every one of our amendments has been to attract new investment in new energy projects, to create jobs and to improve our energy security, but the Government have rejected all of them. Energy UK, the trade body that represents businesses across the sector, recently called for more clarity from the Government about what was expected from companies on reducing carbon pollution. It stated:
“It is essential the industry gets a clear signal of the focus, direction and speed of travel to 2030 and beyond.”
It is hardly surprising that Energy UK wants more clarity, because while Ministers talk about their action on climate change, they are simultaneously dismantling the clean energy schemes that could help to address the problem. We proposed to amend the Bill, in response to calls from business leaders, by requiring the Secretary of State to offer clarity on the direction and speed of emissions reduction to 2030, but the Government rejected our proposals. Together with other parties from across the House, we tried to close a loophole that will enable Ministers to square this circle through carbon accounting tricks, but that move was also rejected. This all means more uncertainty for investors, rather than less.
I welcome the fact that the Government have accepted the principle, put forward by my right hon. Friend the Member for Doncaster North (Edward Miliband), that we must ultimately build a carbon-neutral economy. I welcome the spirit in which they accepted that principle and the basis on which they accepted it, which was that we need to develop a strategy that will give a clear signal to the top businesses that are supporting my right hon. Friend’s campaign as well as to the leading environmental campaigners who have shown that energy policy need not be contentious.
The truth is that few people in this country beyond those on the Conservative Back Benches doubt the need to act on emissions. Only today, NASA reported shocking levels of global warming, and one top scientist said this morning that we are in a “climate emergency now”. Despite the Energy Secretary’s words today, however, people will be left scratching their heads over what exactly the Government’s plan is to make good on their new commitment and on the promises that the Prime Minister made at the historic Paris summit in December.
Let us take carbon capture and storage as an example. The Government’s own advisers say that without this cutting-edge technology the cost of achieving emissions reduction in Britain could double. Some experts say that, without it, making good on the Paris agreement might even be impossible. As my hon. Friend the Member for Stockton North (Alex Cunningham) pointed out, however, the Chancellor has shamefully pulled the rug from under from businesses that were on the cusp of pioneering CCS projects in Yorkshire and Scotland. Investment and jobs have gone, and the possibility of a new maritime industry in our North sea has been put on hold. We proposed that a comprehensive new CCS strategy should be adopted within a year to undo the damage caused by that decision but, despite strong cross-party support, our reasonable proposal was rejected.
When the Bill arrived here from the other House, it was in a much better state than we now find it in. That makes it difficult for us to support it this evening, but the low oil price means that our North sea industries need and deserve our support. We have all benefited from the revenues produced by North sea oil in better times, and we owe it to those industries to support them now that times are hard. The Bill contains important measures that act on the recommendations of the Wood review which can support workers in this crucial sector of our economy.
Yesterday, with my support, colleagues in Scottish Labour rightly called for the Government to go further and to invest directly in strategically important offshore assets in the North sea. I hope that the Energy Secretary will support that call. The fact is that substantial reserves remain unexploited and it is essential that we work on a cross-party basis to support investment in those untapped opportunities. For that reason alone, we will not oppose the Bill tonight.
However, I say to the Energy Secretary that the poverty of ambition encapsulated in the Bill is increasingly clear, and that it is increasingly untenable to dismantle plan A without putting a plan B in its place, to duck the challenges of the coming century and to set Britain’s face against the opportunities that that century presents. I should like to thank my hon. Friends the Members for Southampton, Test (Dr Whitehead), for Norwich South (Clive Lewis) and for Brent North (Barry Gardiner). Together, we will look to Ministers to do much better than this in future.
Energy Bill [Lords]
Debate between Lisa Nandy and John Redwood(8 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Lisa Nandy
Yes, I agree. In particular, the ripple effect of what we do now in relation to North sea oil and gas will be felt not just directly by the workforce employed there, but by the UK workforce as a whole and around the world.
The Wood review also noted that carbon capture and storage has the potential to be of huge benefit.
John Redwood
Is not the awful truth at the moment that, with oil at $29 a barrel, there will be practically no new investment in new projects in the North sea because it simply is not viable? What does the hon. Lady’s plan suggest on that?