Matt Hancock
Main Page: Matt Hancock (Conservative - West Suffolk)
Mr Jim Cunningham (Coventry South) (Lab)
18. What recent assessment he has made of the UK’s energy security.
The Minister of State, Department of Energy and Climate Change (Matthew Hancock)
Today we published our annual energy statement, which shows the action we have taken to deliver a secure supply of energy while reducing bills and carbon emissions, meeting the needs of households and businesses.
David Rutley
Given the approaching winter and the increasing uncertainty in our international relations, will my right hon. Friend tell the House what steps he is taking to secure energy supplies in the face of possible extreme weather and other external threats?
Matthew Hancock
Of course, secure energy supplies are the most critical part of our responsibilities in the Department of Energy and Climate Change. We have taken steps to ensure that the market operates better, through the electricity market reform programme. We have also taken steps to ensure that there has been £45 billion of investment in energy infrastructure since 2010. This winter, we have worked with the National Grid Company to make sure there is additional capacity so that energy needs are covered no matter what the winter throws at us.
Stephen Hammond
There has been much scaremongering in the newspapers and other media recently about lights being turned off and energy being switched off. The relevance of today’s annual statement to my constituents and those of Members across the House lies in the Minister’s assurance that the lights will be kept on and heating will continue to be supplied to constituents.
Matthew Hancock
Indeed, and over the summer we also had some impact on our energy generation, both in nuclear and hydrocarbon generation. The fact that we got 15% renewable generation last year—double what we had in 2010—of course adds to energy security, but, crucially, we have to make sure that this and every winter we take the action necessary to have the energy supply that is demanded by consumers, be they households or businesses.
Mr Cunningham
I would love to be able to praise the Secretary of State today, but I cannot because I have to ask him whether he can confirm that, under this Government, construction has begun on just one new gas-fired power station, and even that will not come online until after the next election. That compares with the 10 GW of new gas capacity built under the last Labour Government. I am very sorry that I cannot heap praise on him. I had to give him some bad news.
Matthew Hancock
Well, the good news is that the rate of investment in energy infrastructure has doubled under this Government; there has been £45 billion of investment so far, but we have a £100 billion programme because of the massive underinvestment that occurred in the previous decade. It is regrettable that the previous Government did not take the action that was needed, but we have done so.
Martin Vickers (Cleethorpes) (Con)
The Minister will be aware of the many developments on the Humber estuary, onshore and offshore, that will boost energy security. In particular, the Joint Committee recently approved the Able UK development of the south Humber energy park. I urge the Minister to visit the area and meet Able and other developers to see what a boost it is to the local economy.
Matthew Hancock
I would be absolutely delighted to visit Cleethorpes and the Humber estuary, which is increasingly a crucial cluster for our energy supplies and energy security. I pay tribute to my hon. Friend for all his activity, and for his promotion of Cleethorpes and the whole of Humberside, specifically with regard to the role that they play in our energy generation.
Ian Lavery (Wansbeck) (Lab)
What role does the Minister see for the British deep-mine coal industry in future energy supply and future energy security in the UK?
Matthew Hancock
I have been working hard with UK Coal to ensure that we can refinance it. The Government have put in a £4 million loan on a commercial basis, so we are working incredibly hard in that regard. The hon. Gentleman should also take up this matter with his own Front-Bench team who voted to accelerate the closure of coal-fired power stations, which would of course to help to undermine the coal mining industry.
Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)
Further to the question from my hon. Friend the Member for Wansbeck (Ian Lavery), last week the Minister stated in this House with his characteristic humility and good grace that he had
“secured the future of the existing pits.”—[Official Report, 28 October 2014; Vol. 587, c. 247.]
He knows of course that, welcome as it may be, the commercial loan from the Government is in reality a short-term measure. Hundreds of jobs have been lost at both Thoresby and Kellingley. UK Coal told me this week that, with the help of the Minister’s officials, it will submit an application for state aid clearance to his office by the end of next month. Given how pressing this situation is, will the Minister now give the House an absolute and clear commitment that he will ensure that his Department will reflect and decide on the merits of that application, and on whether to submit it to the European Commission for approval before the dissolution of Parliament?
Matthew Hancock
Of course I will consider that submission, not least because we and the Department for Business, Innovation and Skills put in a huge amount of effort to bring that about. We worked hard to secure a commercial loan to get us over the short-term cash-flow issues and to look at longer-term options. I am grateful to the hon. Gentleman for welcoming this work and for his support. It is good to know that there is support on both sides of the House.
Sir Bob Russell (Colchester) (LD)
3. What steps he is taking to encourage the public sector to increase rooftop solar energy installations.
Ian Lucas (Wrexham) (Lab)
5. If he will take steps to tighten the regulation of fracking in the UK.
The Minister of State, Department of Energy and Climate Change (Matthew Hancock)
It is incumbent on us to explore the potential of domestic supplies of shale gas safely and carefully. The UK has a strong regulatory system and we will be working closely with the public, regulators and industry to ensure that regulation remains robust.
Matthew Hancock
I agree that it is important to ensure that as we explore for this domestic energy resource, we do so cautiously and carefully. Environmental impact assessments are an important part of the planning process. The House is considering the Infrastructure Bill and we will listen to the debates on that.
Mr David Nuttall (Bury North) (Con)
Does the Minister agree that any decision about the exploitation of shale gas should be taken by local councils, and that, once taken, those decisions should not be overridden by officials in Whitehall?
Matthew Hancock
Local engagement is incredibly important, as, likewise, is ensuring that local communities benefit from the successful extraction of shale gas. After all, being able to get shale gas successfully out of the ground will bring a benefit for the nation in terms of energy security, but also a financial benefit. The Treasury, inevitably, is keen to make sure that it has a part of that, but local communities also should.
Mr Mike Weir (Angus) (SNP)
Notwithstanding the changes that have been made in clauses 32 and 33 of the Infrastructure Bill, which is in the other place, will the Minister confirm that anyone wishing to explore or take part in fracking will still have to obtain planning permission from the relevant local authority and that the Government have no plans to change that?
Miss Anne McIntosh (Thirsk and Malton) (Con)
The fracking regulations relate mostly to exploration offshore. How can the Minister assure those living in Ryedale and Hambleton, who have seen seismic surveys being conducted this summer, that the regulations are fit for purpose and that there will be no pollution or contamination of water supplies?
Matthew Hancock
Not only does the regulatory structure surrounding the exploration for shale gas apply offshore, there is also a distinct regulatory structure onshore, precisely to take into consideration the sorts of concerns that my hon. Friend understandably raises. One of my first acts in this job was to increase the protections for national parks, in order precisely to deal with the concerns of those who are worried about the impact of shale gas.
Huw Irranca-Davies (Ogmore) (Lab)
The historical birthplace of fracking onshore is Denton in northern Texas, where the people are familiar with its economic and job impacts. What does the Minister make of the decision this weekend by the people of Denton and the town council to ban fracking based on a public referendum? What discussions has he had with his officials on that?
Matthew Hancock
The lesson to be drawn is that it is very important to have a strong and robust regulatory regime in place from the start. We have one of the strongest regulatory regimes in the world for onshore shale gas exploration, but nevertheless it is in our national interest to support the extraction of this gas in a careful and cautious way, and that is why there is cross-party support for it.
Caroline Flint (Don Valley) (Lab)
It is good to hear the Minister talk about a safe regulatory regime, so let me help him with that. In order for the public to have confidence that fracking is safe and environmentally sustainable, it is vital that we have baseline assessments before drilling begins. Otherwise, no one can know for sure what the effects of fracking actually are. The Royal Society is unequivocal about that: baseline assessments of the level of methane in the groundwater should take place at every fracking site for a full 12 months in advance. Will he therefore urge his colleagues in the other place to support Labour’s amendment on baseline assessments when the Infrastructure Bill is on Report next week?
Matthew Hancock
It is important to have baseline assessments and to follow the evidence on what is required, and the debates on that will continue, both in the other place and here. We are listening carefully to all stakeholders, including Opposition Front Benchers.
Bob Blackman (Harrow East) (Con)
10. What steps he is taking to increase the number of new nuclear power stations.
The Minister of State, Department of Energy and Climate Change (Matthew Hancock)
We strongly support new nuclear as part of a balanced mix of energy supply. Hinkley Point C is paving the way, with three consortia now moving forward with plans to develop new reactors on a further four sites.
Bob Blackman
I thank the Minister for his answer. Clearly, after years of prevarication from Labour, at last the coalition Government are taking decisions on replacing our nuclear power stations which are going out of action. As part of the balanced programme that we desperately need, what further measures does he propose to ensure that we get more new nuclear power stations to replace those that are coming off-stream?
Matthew Hancock
This is unusual for me, but I think my hon. Friend is being slightly unreasonable to Labour Members, because, under the former Prime Minister Tony Blair, they did take the decision to restart a nuclear programme. Of course, it was slow going at first, and we have accelerated it considerably. This summer’s decision, announced on 8 October, was a big step forward that has demonstrated to other potential investors that this market in the UK is now open. We have eight approved sites in total, four of which have projects that are at various stages of development. New nuclear will play an important part in our future energy mix, and I am glad that it has cross-party support.
David Mowat (Warrington South) (Con)
11. What recent discussions he has had with his counterparts in European Union member states about carbon and renewables targets.
Andrew Jones (Harrogate and Knaresborough) (Con)
12. What steps he is taking to promote investment in energy generation.
The Minister of State, Department of Energy and Climate Change (Matthew Hancock)
We are working through our long-term energy plan for a further £100 billion investment in energy infrastructure up to 2020. Since 2010, we have delivered £45 billion of that, with much more to come.
Andrew Jones
Will the Minister give a bit more information about how much investment there has been in the energy sector under this Government?
Matthew Hancock
With that £45 billion, the investment per year is at least twice its previous rate, as is our investment in renewables. Renewables investment has been a large part of that overall investment, not least as a result of electricity market reform and the support for renewables under this Government. That means that 15% of electricity last year was generated from renewables, demonstrating that we are meeting our goal of being the greenest Government ever.
Mr Philip Hollobone (Kettering) (Con)
My constituents would be keen to see more electricity generated via solar panels, but they would prefer to see those solar panels on the acres of warehouse and factory roofing in and around Kettering, rather than on the acres of green agricultural fields. There are currently three major planning applications in the pipeline for solar farms on agricultural land, but very few applications, if any, for solar panels on warehouse roofing. What can the Department do to encourage solar panels on industrial roofing?
Matthew Hancock
My hon. Friend makes a very important point. We have changed the way in which feed-in tariffs work precisely to incentivise and support solar on roofs. Having said that, 1 million people now live under roofs that have solar panels on them. That is up from a very small number in 2010, which is a big step forward, and the Under-Secretary of State for Energy and Climate Change, my hon. Friend the Member for Hastings and Rye (Amber Rudd) is putting enormous personal effort into driving it even further.
Sheila Gilmore (Edinburgh East) (Lab)
13. What progress he has made in negotiations with the European Commission on a derogation from the ban on the import or manufacture of incandescent bulbs for those with photo-sensitive health conditions; and if he will make a statement.
Nia Griffith (Llanelli) (Lab)
T5. Consumers in both south and north Wales face higher electricity costs than most of the rest of the country. In his response to my hon. Friend the Member for Ynys Môn (Albert Owen), was the Minister really suggesting that this is just too difficult to tackle, or will he now tell us more about what talks he is having with regulatory bodies on this problem and what his commitment is to trying to get a fairer system right across the UK?
The Minister of State, Department of Energy and Climate Change (Matthew Hancock)
It has long been the position that the higher costs of distribution in some areas of the country are in part paid by those who live in those areas. Actually, we have reduced the gap in costs between the most rural areas and the areas where it is cheapest to distribute electricity—that gap has shrunk. Whether we go to a single position across the whole country is worth considering. There may be benefits to remote areas that have the highest cost now, but there would be a cost to others because it has to be paid for.
Charlotte Leslie (Bristol North West) (Con)
In the very welcome mission for more renewable sustainable energy, what is the Minister doing to ensure that, in the rush, we do not commit to biofuel technologies that are not sustainable? What is he doing to ensure that residents, such as those in Avonmouth in my constituency, do not have to fear dangerous pollution from biomass energy production? Will he visit my constituency to hear their concerns?
Matthew Hancock
I would be delighted to visit my hon. Friend’s constituency and other constituencies in Bristol over the next six months. I pay tribute to her work on this front. Of course, making sure that energy supplies defined as renewable are indeed renewable and sustainable and have low overall carbon emissions is very important. We are working to ensure that that distinction is reflected in the Department’s policy.
Dr Alan Whitehead (Southampton, Test) (Lab)
T6. What is the origin of the £128 million funding that the Secretary of State has committed, over 40 years, to communities affected by the Hinkley C development? Will it come from the developer, as is the case with other technologies, or will it come from his Department’s funds or another Department’s funds?
Nic Dakin (Scunthorpe) (Lab)
When he spoke to the all-party group on steel and metal related industry, Karl-Ulrich Köhler, the chief executive of Tata in Europe, cited the higher manufacturing energy costs in Europe compared with the rest of the world as one of the key contexts for putting the long products division up for sale. What will the Government do about the competitiveness of our manufacturing in relation to energy costs?
Matthew Hancock
Europe has higher energy costs owing to European legislation. We have taken action— £7 billion of action—to reduce costs for energy-intensive industries, but of course, if there is more we can do, within the European rules, including through negotiating more competitive European rules, we will do it. There is no point simply moving carbon emissions out of Europe if that means that the same amount, or more, will be emitted in some other jurisdiction.
Mr Philip Hollobone (Kettering) (Con)
Just a few years ago, the country came close to a major national power outage because of a three-week blocking, high-pressure weather system that sat over the UK, resulting in lots of cold nights and very little wind. Has the Department modelled for such an eventuality again, given that the capacity gap is even smaller now?
Matthew Hancock
Yes, we have. The capacity gap was actually smaller at the start of the last decade, but of course we have modelled for these things, and crucially, with National Grid, we have ensured that power stations are on standby to secure energy supplies this winter.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Does the Secretary of State get the message that most people in this country, including my constituents, are quite fair-minded about new ways of producing energy and know of its urgency, but that, be it energy from waste, solar or wind power, they want to know why the incentives and benefits for local communities cannot be more generous and are not more widely known?
Mr Dennis Skinner (Bolsover) (Lab)
Oil and gas companies get tax breaks to exploit narrow seams of oil; renewables get subsidies; nuclear power gets subsidies; the only industry that does not get any help is the coal industry. [Interruption.] I put it to the Minister, who is anxious to get to his feet, that we need £70 million to save three deep mine pits. If they got that kind of money, they could exhaust all their reserves. The Government stole £700 million from the mine workers pension scheme last February. We only want £70 million. Come on, let’s have a bit of balance. When will he tell us he is going to hand over the money?
Matthew Hancock
Last month, we put £4 million into keeping UK coal running, thank you very much, so of course we are acting on this, and we are working towards further support if we can make it state aid-compliant and if it provides value for money. As somebody who comes from Nottinghamshire coal mining stock, I am working to support UK Coal.
Tessa Munt (Wells) (LD)
On the recent bans on fracking in towns in Texas, Ohio and California, the residents voted overwhelmingly to stop what they describe as noise, disruption and the constant traffic and fumes from wells and trucks in residential areas. Fifty million Americans live within a mile of an oil and gas well, so they know what it is like, but they were dismissed by regulators and energy companies as misinformed. How will the voices of local people who do not want fracking—they do not want to be paid off—be heard in their communities?
Matthew Hancock
We have a stronger regulatory system than in the United States, and I think that is a good thing.
Albert Owen (Ynys Môn) (Lab)
Had the Secretary of State accepted my invitation to Anglesey day last week, he would have seen a microcosm of the United Kingdom’s energy future. Will he genuinely thank the officials who helped with giving consent to the biomass plant, which will have an eco plant alongside it, creating real green jobs? Is not that the way forward for Anglesey and the United Kingdom?