Oral Answers to Questions

Melanie Onn Excerpts

Tuesday 18th March 2025 Commons Chamber

[Ed Miliband]

The hon. Lady is absolutely right on that. The Opposition are off to the “Wacky Races” when it comes to net zero. We in the Labour party know the truth: net zero is the economic opportunity of the 21st century and, under this Government, we will seize it.

[Melanie Onn (Great Grimsby and Cleethorpes) (Lab)]

Carbon capture, utilisation and storage is the central plank of the Humber 2030 vision. Does the Secretary of State have any plans to meet the Humber Energy Board, and if he does not will he join me in doing so?

[Sarah Jones]

I talk every day to my hon. Friend about her constituency and I am very happy to meet whoever she wants me to, because we think this is an incredibly important matter. The opportunities for her area and the Humber are great if we can harness the talents of the people in her constituency.

Renewables Obligation Certificate Scheme

Melanie Onn Excerpts

Wednesday 5th March 2025 Westminster Hall

[Nick Timothy (West Suffolk) (Con)]

Thank you, Dr Murrison—I shan’t promote you any further than that just yet.

I am pleased to respond to this important debate on the renewables obligation certificate scheme. Although the scheme was closed in 2017, its costs remain with us and are a reminder of how difficult it can be to unwind long Government contracts. I congratulate my constituency neighbour, the hon. Member for South West Norfolk (Terry Jermy), on securing this debate, which I believe is his first in Westminster Hall. I am sure he will get to debate more glamorous issues than chicken litter in the future.

Like South West Norfolk, my constituency of West Suffolk has chicken farmers grappling with many of the issues raised by Members, including avian flu, which the hon. Member for Strangford (Jim Shannon) mentioned. I echo what the hon. Member for Inverness, Skye and West Ross-shire (Mr MacDonald) said about the cost of energy in rural areas, which is very often overlooked.

I will not join the commentary from the hon. Member for Westmorland and Lonsdale (Tim Farron) about the predecessor of the hon. Member for South West Norfolk. I did plenty of that in The Daily Telegraph before I was a Member of Parliament. It is pleasing that Suffolk and East Anglia are so well represented today.

We must always be very careful when considering how public money is spent, especially when it comes to subsidies. There are lots of reasons why the Government might sometimes provide public support towards outcomes that are not necessarily the most narrowly efficient, but promote a wider social or local economic good, but they must always guarantee value for money for the families who ultimately foot the bill. Renewals obligation subsidies have fallen short of that standard. Originally introduced in 2002 by the last Labour Government, and closed to new entrants in 2017 by the last Conservative Government, the renewals obligation remains a significant drain on the public finances, providing a fixed rate of financial support through 20-year-long contracts.

[Melanie Onn (Great Grimsby and Cleethorpes) (Lab)]

By the time that the new renewables obligation closed, the cost of large-scale offshore wind had come down by half, allowing contracts for difference to be introduced, which have seen it grow at scale. It has enabled a brand-new industry to start and progress in this country, has it not?

[Nick Timothy]

I will turn to contracts for difference in a moment. We may discuss them in this debate, or perhaps in other fora, but it is important that we are honest with ourselves about the full costs of some of the renewable technologies upon which we have come to depend. With the hidden costs that apply to wind farms, I do not think that we have been quite so honest. That is not a party political point but something that has been true across the party divide. In 2023-24 the scheme cost £7.6 billion, and it will remain high, at £6.9 billion in 2028-29, according to the Office for Budget Responsibility. That proves how dangerous it can be to lock in subsidy schemes under lengthy contracts, with the cost passed on to people’s energy bills.

That is not the only zombie renewables subsidy scheme. Introduced in April 2010, feed-in tariffs were made available for schemes with capacity for 5 MW or less as an alternative for smaller projects, such as rooftop solar panels. Closed to new entrants in 2019, the scheme still sustains 20-year-long contracts, and £1.84 billion of feed-in tariff payments were made last year. Far from saving money, renewables subsidies have come with significant long-term costs.

The phasing out of the renewables obligation and feed-in tariffs is being used by the Government in their efforts to hoodwink the public on the true costs of their net zero policies. The National Energy System Operator’s 2030 report made several highly questionable assumptions about how the Government’s goal of decarbonising the grid will cut energy bills. One of the points made by NESO was that energy bills would fall due to the expiration of the renewables obligation and feed-in tariff contracts, but those contracts will expire regardless of the speed of decarbonisation, so it is misleading to include that as a benefit of the Government’s deeply flawed clean energy plan. We will see costs increase significantly elsewhere, thanks to Government policies.

The renewables obligation and feed-in tariff schemes should be a warning. The Government are consulting on substantial changes to the next round of contracts for difference, which replace the previous subsidy schemes. They include easing eligibility criteria for fixed-bottom offshore wind, as well as extending the lifetime of contracts subsidising renewables from 15 years to 20 years. We are at risk of wasting billions of pounds of taxpayers’ money in a race to meet the unrealistic clean power target.

[Melanie Onn]

The hon. Gentleman is being very generous. What he says is very interesting, but I am not entirely clear where he is headed. Is this a shift in Conservative policy on green industry and the renewables industry, which they have previously championed, or is this just an attack on Labour’s plans because he does not like them?

[Nick Timothy]

I would never suggest that the hon. Lady has tracked everything that I have written through my career, but I have been making these arguments for a number of years. The Leader of the Opposition has made the point that one of the things our party did not get right in government was setting ambitious goals on things such as energy policy without having a clear enough plan to deliver them. My concern, and the concern of the Conservative Front Benchers, is that this Government are making not only a similar mistake but a graver mistake because of the speed and unilateralism of their energy policies. [Interruption.] I can see the hon. Lady smiling, and I hope that is in approval of what I said.

--- Later in debate ---

[Kerry McCarthy]

As I said to the hon. Member, that issue that has been debated numerous times here, and it is not really the subject of today’s debate—but nice try on getting it in there. He might want to secure his own Westminster Hall or Adjournment debate on it. As I said, it is very much on our radar to look at the fairness in the system and to make sure that energy is affordable for everybody and that there are community benefits as we roll out that clean power ambition. All those issues are talked about in the Department on a daily basis.

Before I move on from the hon. Member for West Suffolk, I will say that the urgent question on carbon budget 7 was not granted because there is a process for the Government to respond to the analysis given to us from carbon budgets, and we will follow that process. First, though, we have to deal with the carbon budget delivery plan. Before looking to CB7, we must look at how we meet the obligations contained in current carbon budgets.

The previous Government were taken to court because their plan was not deemed adequate. They presented another plan, and the courts again found that it was not adequate, so we now have a deadline from the courts to produce our carbon budget delivery plan this year to show that we are back on track. That is very much our first priority. I am sure that once that is published, we will debate that and then carbon budget 7 as well, but we have to show that we are back on track before we start looking into the future.

[Melanie Onn]

The Opposition’s new-found position is apparently anti-ideological, but I have just read the article in the Telegraph—not my usual source of news—and it is in fact deeply ideological. Furthermore, it now sets the Opposition against the reality of industry in coastal and remote communities that has been generating the jobs, apprenticeships and investment that have long been requested and needed by those communities.

[Kerry McCarthy]

My hon. Friend makes a valid point. I wonder whether the Opposition spokesperson has spoken to businesses on this matter because, in all my conversations with businesses, both in opposition and now in government, it is clear that they want certainty. They need a stable investment environment if they are to make long-term decisions. They cannot invest in renewable energy, in industrial decarbonisation or in the economic growth this country needs without certainty. We know that one reason why we are in the economic situation we are is the lack of stability and the economic chaos at times under the previous Administration, particularly under the predecessor of my hon. Friend the Member for South West Norfolk. Therefore, certainty is what we need to have. Business is crying out for that.

In places such as Grimsby, it is particularly important to have a place-based solution to the current situation, showing what the energy transition would look like in such places. I urge the hon. Member for West Suffolk to take a bit of a tour, to talk to businesses and people who are trying to get much-needed investment into places such as Grimsby, and to see—I am not quite sure what his proposals are—what he can say to them on how to get long-term investment.

Energy Infrastructure: Chinese Companies

Melanie Onn Excerpts

Wednesday 12th February 2025 Commons Chamber

[Kerry McCarthy]

I cannot comment on the extent of conversations, other than to reassure the hon. Member that, of course, those conversations are taking place and will be ongoing and that we are going through robust processes. Again, because it is not my specific role, I cannot say whether that information could be shared. I do not think that it can be shared on a day-to-day basis, but I will investigate whether we could arrange a briefing with Members to give some reassurance as to the general approach.

[Melanie Onn (Great Grimsby and Cleethorpes) (Lab)]

I am surprised that Conservative Members seem to have forgotten the time when they were pushing the golden era of the relationship between the UK and China. Some of this is a legacy of their time in government, so they should be careful about how they approach this conversation.

I point out to the Minister the role that Grimsby plays in servicing and supporting operations of offshore wind, not only around UK waters but as far as Taiwan. Those skills, competencies and capabilities exist here in the country, so what additional support will be given to expand those capabilities and support for skills in this country?

[Kerry McCarthy]

My hon. Friend has been a real champion for Grimsby, and I was glad to see her returned at the recent election, so that she can carry on championing all the potential that Grimsby has to offer, not least in the wind sector. It is important that we link up skills and capacity—that is one of the obstacles. We talk often about how grid capacity and planning issues can hold up the roll-out of clean power, but we have to have the skills base as well. We are working with the Department for Education on how we can train and develop capacity within the existing workforce through things like the growth and skills levy to work on these exciting new projects.

Oral Answers to Questions

Melanie Onn Excerpts

Tuesday 17th December 2024 Commons Chamber

[Michael Shanks]

I cannot comment on the specific details of the case. However, I would like to know more about why the hon. Gentleman’s community might not benefit, because the aim is for all communities affected by hosting infrastructure to benefit in different ways. We are looking at the options—be they money off bills, or the community benefit funds that exist at the moment—as we work through the answers to the consultation launched by the previous Government. However, we are clear that if communities host infrastructure that is nationally important and benefits the whole country, they should benefit from doing so.

[Melanie Onn (Great Grimsby and Cleethorpes) (Lab)]

Community benefits come in many different forms—in my constituency, Ørsted has contributed £1 million towards Horizon Youth Zone, and RWE is supporting Projekt Renewable, which is a box park learning zone—but the most wide-reaching benefit is to people’s pockets. Schemes such as the Octopus fan club bring down people’s bills when the use of renewables is at its highest. How can other energy retailers deliver similar savings for consumers?

[Michael Shanks]

My hon. Friend asks an extremely important question. All communities should benefit from the transformation that we want to make to the energy system. Part of the answer is improving how we use smart systems right across the energy system, so that people have much more consumer-led flexibility in their options—we are moving forward with that. In the clean power action plan that we published last week, we committed to doing much more to give people the power to take advantage of some of the opportunities she mentions.

Oral Answers to Questions

Melanie Onn Excerpts

Tuesday 8th October 2024 Commons Chamber

[Michael Shanks]

I will give credit to the Conservative Government on one thing: they were very good at making grand announcements. On delivery, however, they were much poorer. Looking at a whole range of things—carbon capture being a very good example—they had lots of warm words but no delivery whatsoever. On nuclear, they had lots of warm words but no delivery whatsoever. In 14 years, how many nuclear power stations were built under the Conservative party? None. We will get on with doing the work.

[Melanie Onn (Great Grimsby and Cleethorpes) (Lab)]

If we want to see an increase in clean energy generation, we need more announcements such as the one we saw last week on the development of carbon capture, usage and storage. Although that is incredibly welcome and a sign of determined action from the new Government, there is still more to be done. Perhaps the Minister can give an indication of when he anticipates he will be able to announce progress on track 1 extension, and share some information on track 2, because that would secure thousands of jobs in the Humber region.

[Michael Shanks]

My hon. Friend is absolutely right to say that in the three and a bit months that we have been in government we have moved at pace to deliver the largest renewables auction in history and to make last week’s announcement on carbon capture. We are working through the next stages of the process at pace, and we will have further announcements in the weeks ahead.

Contracts for Difference

Melanie Onn Excerpts

Tuesday 3rd September 2024 Commons Chamber

[Ed Miliband]

I thank the hon. Lady for her support and the warm tone that she uses. She is right that we face a big challenge as a country to get moving on the offshore wind Bill, the onshore wind Bill, solar on rooftops and ground-mounted solar. The truth is that CfD auctions have served us well and continue to do so. We inherited this auction halfway through the round, and we increased the budget substantially to make sure that it was a success. But the right thing for us to do—I think this is the main point that she is making—is to talk to industry about how we can make sure that future rounds are a success. I am very interested in how we can have a line of sight for industry, so that it can have the industrial certainty to plan ahead. The annual auction round is serving us well, but we need to work with industry to make sure that we land the clean power that we need and get the jobs here too.

[Melanie Onn (Great Grimsby and Cleethorpes) (Lab)]

The Secretary of State is right to point out that the previous Government presided over the failed fifth auction round for the offshore wind sector. It was devastating. I congratulate him on achieving success for this important industry, but part of the measure of that success will be the wider industrial benefits, including good jobs. What action will he take to make sure that coastal communities such as mine see those jobs, as well as training and manufacturing?

[Ed Miliband]

My hon. Friend speaks with great experience—from both inside and outside this House—and I welcome her expertise on these issues. She is absolutely right that we have to face up to the fact that we are in a global race for these jobs. Investors are trying to decide whether to locate their blade factories and other investments in the UK or elsewhere. That is why we went into the election with a range of measures, including Great British Energy, the national wealth fund and the British jobs bonus. All are designed to achieve the re-industrialisation that my hon. Friend is talking about.

Clean Energy Superpower Mission

Melanie Onn Excerpts

Thursday 18th July 2024 Commons Chamber

[Edward Miliband]

I thank the hon. Gentleman for his kind words. In the last few days, I have sometimes sai3d to people that I feel that I am going back to the job I did 15 years ago, but getting to try and do it better. I am sure Members on the Opposition Benches would agree with that. It is an amazing opportunity and a big responsibility.

The hon. Gentleman makes an important point about the role of rural of communities, particularly farming communities. We are determined to get the balance right between food security, nature preservation and clean energy. The truth is that we, as a country, have not thought about the role of our land enough in recent years. We hope that will be driven by the land use framework that will be produced by my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs.

[Melanie Onn (Great Grimsby and Cleethorpes) (Lab)]

I welcome the Secretary of State and his team to their place. He will know that my constituency has benefited hugely from offshore wind, particularly in operations and maintenance, but the critical part of the supply chain has failed to be produced. What does he suggest that Members across the House can do to ensure we get the supply chain right so that my constituents can benefit from that investment?

[Edward Miliband]

I welcome my hon. Friend back to the House. It is fantastic to see her back in her place—I congratulate her. She knows much about this subject through working for RenewableUK when she was outside the House, and she makes an important point. The shadow Secretary of State drew attention to our generation of offshore wind, which we have done well, but it is commonly accepted that we have not done nearly so well in generating the jobs that should come with that. Part of what I will be doing with my right hon. Friend the Secretary of State for Business and Trade is developing a proper green industrial strategy, including in the supply chain. That will provide clarity about the plan to ensure that we have not just energy generation, but job generation too.