Oral Answers to Questions Debate
Full Debate: Read Full DebateMiatta Fahnbulleh
Main Page: Miatta Fahnbulleh (Labour (Co-op) - Peckham)Department Debates - View all Miatta Fahnbulleh's debates with the Department for Energy Security & Net Zero
(1 day, 8 hours ago)
Commons Chamber
Liz Jarvis (Eastleigh) (LD)
The Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
We know that energy is simply unaffordable for too many people, and we are clear that we need to get bills down for good. One of the ways that we can do that is by decoupling the price of gas and electricity, and we are already making progress by bringing on more clean power than ever before, so that gas sets the price less of the time. Gas is currently setting the price 60% of the time, compared with 90% in 2020. We need to go further, but we are taking action to do that. We are also expanding contracts for difference that fix the price of renewables. We will take the action necessary over the coming months so that we can break the link between gas and electricity and so that consumers can benefit from cheaper renewables.
Liz Jarvis
I raised the decoupling of gas and electricity prices with the former Energy Secretary in March, so I welcome the Government’s continued commitment. However, eight months into the illegal war in Iran, rising gas prices have pushed the price cap up by 4% this month, wiping out VAT savings on energy bills, while Trump’s lifting of sanctions on Russian diesel leaves fuel prices once again at the mercy of Putin. In my constituency of Eastleigh, more than a quarter of households are in fuel poverty, and I have spoken with many businesses that are struggling with spiralling bills. Will the Secretary of State therefore go further and faster on decoupling gas and electricity prices, including by investing more in home-grown renewable energy?
Miatta Fahnbulleh
The answer to that is simple: yes, absolutely. Everyone can see with their eyes what is driving up energy bills: our acute exposure to global fossil fuel markets that we do not control. We on the Labour Benches are clear that our pathway out of this is by investing in renewables and clean power, so that we have home-grown energy that we control. Candidly, it is an absolute shame and a travesty that the Conservatives, who agreed with us for a very long time, are reneging on that cross-party consensus. They would renege on our ability to control our energy system and its impact on our consumers.
Mike Reader (Northampton South) (Lab)
The Secretary of State is right that gas sets the price for power most of the time. Every wind farm and solar array built in our country weakens that link, but Reform and the Conservatives repeatedly object to developments in Northamptonshire. Does the Secretary of State agree that the route to cheaper bills is to build and invest, not to retreat from green power?
Miatta Fahnbulleh
My hon. Friend is completely right. We are clear that the route to getting bills down is through clean power. We are proud that over the past two years we have unlocked £100 billion of investment in clean power. We will do what is required. It is just a shame that the Conservatives have lost the plot.
Pippa Heylings (South Cambridgeshire) (LD)
Households and businesses have been left at the mercy of a broken energy system, and they are paying the price. As we have heard, gas is still setting the price of electricity. Gas is now at a three-year high and is due to go up again in January, when energy use goes up. While other European countries are responding to the energy crisis by accelerating electrification, we in the UK do not have a plan. Does the Secretary of State therefore agree with us that we need a national electrification strategy to bring down bills, to decouple gas from electricity and to make the most of our increasing renewables?
Miatta Fahnbulleh
The hon. Member is completely right that our route out of this is through clean power, and we need to ensure that consumers and businesses feel the benefit through electrification. I reassure her that we have a strategy, and we are getting on with it. Through our warm homes plan, we are ensuring that homes and businesses across the country have access to solar and to clean heat. That will ensure that they benefit. We are clear that electrification is the way forward. Countries across Europe are watching the UK and seeing our progress, and we will run with it.
Tristan Osborne (Chatham and Aylesford) (Lab)
Jim Dickson (Dartford) (Lab)
The Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
We know that people are worried about rising energy bills when the cost of living is biting, and we know that we need to provide breathing space. That is why one of the first things that the Prime Minister did in the job was to scrap VAT on electricity bills. That is on top of the £150 that we took off the cost of energy. We are clear that the scale of what we are seeing requires us to make a concerted effort to get bills down. That is why we are running up clean energy to reduce our exposure to global fossil fuel markets and rolling out the warm homes plan so that we can upgrade our homes. Solar, batteries and clean heat can reduce bills by £600 to £800. Critically, we are determined to put the public back in control of an energy system that the Conservatives lost control of, so that it can work in the interest of consumers.
Tristan Osborne
In Snodland, in my constituency, Octopus Energy is working with social housing tenants to reduce energy bills and cut costs this winter. What more can the Government do, working with the private sector, to promote renewable technologies to reduce bills this winter?
Miatta Fahnbulleh
My hon. Friend is right to give the example of Octopus Energy in his constituency. Through the warm homes plan, we are investing record amounts—billions—in upgrading our homes, because we know that is a key route towards reducing bills. Solar batteries and clean heat insulation can save households between £600 and £800, and we are committed to devolving that to bring about a huge acceleration, street by street, area by area, and estate by estate. That is how we can drive down energy bills for good.
Jim Dickson
Clearly a great deal is being done to protect low-income residents from the effect of rising bills, but given that the energy cap is expected to rise considerably at the start of next year, may I ask the Secretary of State what further conversations she has had with the Treasury to find additional ways of protecting those on the lowest incomes from the effect of rising bills?
Miatta Fahnbulleh
My hon. Friend asks an important question. We are acutely aware that low-income families will be hit hardest by rising prices. We are working with others across Government, including our colleagues in the Treasury, on how we can give people some breathing room. But it is important to emphasise that we have already acted. We have removed VAT from domestic electricity bills, and that comes into force straightaway. We are taking £150 off the cost of bills, and we are also delivering the warm home discount. That means £150 for 6 million of our lowest-earning households. We understand the pressure that households are under, and we will act and stand by people to support them.
Many people, not just in my constituency but throughout the country, rely on off-grid energy. I recognise that the Government have taken steps to try and help them, but so many of them have been exposed to massive shocks and leaps in the cost of filling their tanks with oil or gas. Will the Government consider doing a little more to help the many people who are incredibly vulnerable to these energy shocks?
Miatta Fahnbulleh
The right hon. Member raises an important point. We know that families in off-grid households are under huge pressure, and we are taking action to support them. We have put aside £50 million to support, for example, families who use heating oil. We are encouraging households to do that because the uptake has been lower than we want, but we are also introducing regulation of heating oil so that we can protect households. We know that there is more we can do, and we are absolutely committed to getting it done.
Mr Joshua Reynolds (Maidenhead) (LD)
Cornwall Insight forecasts that the energy price cap will increase by a further 16% in January. The Secretary of State has spoken about taking VAT off electricity bills, but that amounts to £45 for an average household. In reality, that is like trying to fill a swimming pool with a thimble—it is not going to work. How will she help to protect families who are already struggling, and will she consider an essential energy guarantee so that all the energy that we need can be affordable for every household?
Miatta Fahnbulleh
We are very clear about where the end destination is. We need to get to an energy system that is affordable for everyone, and we absolutely recognise that the present system is not. We are taking short-term action to give people breathing space, but ultimately I come back to the question of why families are under so much pressure. It is, in fact, because we are acutely exposed to global fossil fuel markets that we do not control. When we talk about clean energy, it is because that is the route by which we get bills down. We have to take the long-term action. We also have to ensure sure that we are reforming the market so that it works in the interests of consumers. We are providing breathing space and standing by people because we need to, but absolutely taking the hard long-term action so that we can fix this problem for good.
Baggy Shanker (Derby South) (Lab/Co-op)
With approximately 15% of Derby South households estimated to be living in fuel poverty, too many families will be dreading higher energy bills as the nights draw in. What reassurances can the Secretary of State offer my constituents that as much help as possible is on its way?
Miatta Fahnbulleh
We know that families across the country will be very worried this winter. I have been to my hon. Friend’s constituency and to constituencies across the country, and I understand the pressure that people are under. We have taken action on breathing space, we will have the £150 warm home discount, and we are driving forward home upgrades because that is the way in which we can get bills down. We are doing that through local authorities. Let no one be in any doubt, however, that we understand that the status quo is untenable, and we will take the action that is necessary to drive bills down.
Last week, the Secretary of State signed off a massive solar farm in my constituency called the Steeple. It comes on the back of another massive solar farm called One Earth, which was approved by her predecessor earlier in the summer, and a third application sits on her desk today, for a project called Great North Road. In aggregate, if she signs off the latest one, 10% of the entire landmass of my constituency will be solar farms, and my constituents will see no benefit from this in their own energy bills. I wrote to her earlier in the summer to congratulate her on her new position and ask whether she would like to come to my constituency, meet my local residents and make the case for these giant solar farms to my constituents, if she really believes they are in their best interests.
Order. The right hon. Member has been here a long time. Please look at the Chair, rather than the person who is answering the question. These are the rules of the House—they are not my rules.
Miatta Fahnbulleh
I gently point out to the right hon. Member that less than 1% of the land will be taken up by solar farms, even under our most ambitious assumptions, but let us come back to the conversation that we are having. Energy bills are too high, and we are far too exposed to global fossil fuel markets. We therefore need home-grown energy that we control. Solar is a cheap and effective way in which we can do that. The right hon. Member may not have a plan, or indeed care about having a plan, to get energy bills down, but we on this side of the House are very clear about what we need to do. Renewables is our route to driving bills down, and that is what the public expect of us.
Sir Ashley Fox (Bridgwater) (Con)
Britain already has the highest electricity prices in Europe, which makes all our families worse off. The Prime Minister’s decision to end VAT on household electricity bills—for only six months—is a tiny step in the right direction, but the Government need to do much more. Will the Secretary of State reduce household energy bills by £200 a year by adopting the Conservatives’ cheap power plan? Will she extend that VAT cut, axe the carbon tax and scrap renewables obligation contracts, so that all British households are better off?
Miatta Fahnbulleh
I do not think the hon. Member should have mentioned the cheap power plan, which is based on dodgy figures that the Conservatives cannot add up. Candidly, in the spirit of not point scoring, let us examine their record. They were in power for 14 years. They had the opportunity to decouple us from global fossil fuel markets and to invest in clean energy, but they did none of it. We are in this position because of the inaction and failure of the Conservatives, so they should show a bit of humility. They have no plan. Their cheap power plan is based on dodgy numbers and, candidly, we do have a plan for how to get bills down.
Olly Glover (Didcot and Wantage) (LD)
The Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
We are clear that energy is an everyday essential that everyone should have access to at affordable prices. We are also clear that, for too many people, energy is simply too expensive. That is why lowering bills for households and businesses is at the very heart of our agenda. That includes cutting VAT on electricity bills and removing £150 of costs to give people breathing space while we deliver the big changes that will get bills down for good: creating clean home-grown power to break our dependence on global fossil fuel markets we do not control; devolving the warm homes plan so that we can upgrade millions of homes to get bills down; and putting the public back in control of an energy system that the Conservatives lost control over. Great British Energy will give our communities a stake in the energy we produce, Great British Energy Nuclear will put the public at the very heart of nuclear generation and Great British Grid will accelerate the build-out of grid infrastructure and connections. We have a plan to get our energy system to work for our community again, and we are absolutely committed to running at that plan.
Fuel prices are through the roof, but it is okay because the Prime Minister says that he gets it. He has tweeted,
“I won’t accept that there’s nothing I can do to help”,
and he has proved it by pointing to a forecourt price comparison app. What he did not mention was that his Government are adding VAT on top of those price increases. That is a windfall of £2 billion to £3 billion. If the Prime Minister gets it, why is he adding 20% to the misery of motorists?
I welcome the Secretary of State and congratulate her on her new post; I look forward to working collaboratively with her on issues on which we agree—I am sure we will find some at some point.
In the last 20 minutes, The Daily Telegraph has reported that, in an act of extreme irony, the former Secretary of State for Energy, the right hon. Member for Doncaster North (Ed Miliband), has signed off on drilling for new oil in the South Atlantic, off the Falkland Islands. Why is drilling for new oil and gas okay in the south Atlantic but not in the North sea?
Miatta Fahnbulleh
The Falkland Islands is independent and self-governing. It is not a matter for us. We are and have been clear that oil and gas will be part of our energy mix for years to come. We have also been clear that we will manage existing fields, and that is what we are committed to doing. I cannot reiterate enough that, if we care about getting bills down and about energy security, we must diversify our mix. That means having clean power and renewables. The Government are pragmatic, because at the very heart of this are consumers who are under pressure. The Opposition support renewables one minute—I think I have a quote from the hon. Member himself—and are against them the next. We have a plan; they have no plan.
Oil and gas workers in Scotland will be feeling cold fury. The Labour party is creating jobs in oil and gas in Port Stanley while killing them in Aberdeen. Why does the unusual pragmatism that the former Secretary of State for Energy has applied in the south Atlantic not apply to the North sea oil and gas industry?
Miatta Fahnbulleh
I ask the hon. Member to show some humility. On his watch, from 2016 to 2024, 75,000 oil and gas jobs were lost, because the Conservatives had no plan. Candidly, I will not take lectures from the Conservative party. We are clear that there will be a plan for oil and gas workers in this country, because we do not do what the Tories do—industrial transition that denudes and guts our communities. That is not the Labour way. We will have a plan. They have no grounds to stand on.
Deirdre Costigan (Ealing Southall) (Lab)
Blake Stephenson (Mid Bedfordshire) (Con)
All our constituents are paying a high price for energy. It is impacting households and we all know that it is impacting small businesses. The Secretary of State said earlier that she would take any action necessary to get bills down. Does that include reducing green taxes and levies to reduce gas bills?
Miatta Fahnbulleh
We have already taken action to reduce the cost of bills—the £150 that was announced earlier this year. I come back to the point: we will do whatever we can to give households breathing space as we drive the big change, but part of the big change is diversifying our energy mix. That does mean more renewables and more nuclear, so that we are not as exposed as we are to global fossil fuel markets. The hon. Member’s constituents can see what is driving up bills. We have a plan to tackle that; the Conservative party does not.
Jessica Toale (Bournemouth West) (Lab)
Miatta Fahnbulleh
Yes, I will meet my hon. Friend, who is a brilliant champion, and her constituent.
Dr Scott Arthur (Edinburgh South West) (Lab)
I want to return to Jackdaw and Rosebank. Last week, Jess from my office organised a showing of the “National Emergency Briefing”, which was very well attended. Afterwards, I do not think anybody I spoke to thought that Jackdaw or Rosebank should go ahead. I know the Secretary of State will not be drawn on this for legal reasons, but it would be good to hear her acknowledge the deep concerns that many people have about this issue. One person asked that if it does go ahead, could every single penny of the money raised by the Government be invested in the transition?
Miatta Fahnbulleh
I obviously cannot go into the specifics of consenting decisions that are quasi-judicial. What I will say to the House is that we are trying to make those decisions at pace. The other thing I will be very clear about is that any decision I make will be compatible with our climate commitments. That is the first responsibility I have as Secretary of State, and that will be absolutely clear. My hon. Friend and his constituents should hear that loud and clear.
I welcome the announcement today about the Government’s intention to regulate the market in heating oil. For communities like mine that are completely off the gas grid, with the highest levels of fuel poverty in the country, this could be a significant moment. What my constituents would like to know, however, is when they might see this proposal become an implemented reality.