Oral Answers to Questions

Michael Shanks Excerpts

Tuesday 10th June 2025 Commons Chamber

[Tim Farron (Westmorland and Lonsdale) (LD)]

2. What steps he is taking to reduce reliance on fossil fuels.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)]

Happy birthday to you, Mr Speaker. We have been busy since we last met for oral questions. We have confirmed that rooftop solar panels will be standard on all new build homes and have funded £650 million of clean energy upgrades for over 200 buildings. We have also delivered the first solar projects for 11 schools, secured Royal Assent for Great British Energy—the UK’s first national publicly owned energy company in 70 years—launched the marine energy taskforce, signed a green industrial partnership with Norway and kick-started community energy right across the country. We are ambitious in our plans. There is much more to do, but we are doing more than any other Government to reduce our reliance on fossil fuels.

[Tim Farron]

Happy birthday, Mr Speaker. Most of the 1,500 farms in Westmorland and Lonsdale have rivers or becks running through them. Since we are the most beautiful—and indeed wettest—place in England, that is an awful lot of potential, and mostly untapped, energy. Will the Secretary of State and the Minister meet me and hydro energy experts to consider a new nationwide project to support farmers to have small hydroelectricity schemes on their farms to diversify farm income, provide clean energy for the farm and harness natural renewable energy for the wider economy?

[Michael Shanks]

I will not be drawn on confirming whether the hon. Gentleman’s constituency is the most beautiful part of England—I will leave that to him. However, what he proposes sounds like a fantastic idea and I am happy to meet him to discuss it further. We see huge potential for a whole range of renewables. Those kinds of innovative projects—smaller scale as well—are what could deliver not just benefits for the system but real benefits for the communities that host them.

[Mr Speaker]

I call the Chair of the Energy Security and Net Zero Committee.

[Bill Esterson (Sefton Central) (Lab)]

Happy birthday, Mr Speaker. Moving from gas to electricity in home heating is an important part of reducing our reliance on fossil fuels. Yet at the Select Committee hearing last week, we heard real concerns that people in energy debt are unable to disconnect from gas and are therefore still stuck paying standing charges. Will the Minister say what the Government’s plans are to remove that problem and ensure that more people can take up the opportunities presented by electrifying home heat?

[Michael Shanks]

My hon. Friend makes two important points. First, on the importance of decarbonising heating across the country, the electrification of home heat will be an important way of delivering cheaper bills for people and reaching our decarbonisation targets. Secondly, on the important matter of debt, I know the Minister for Energy Consumers has been doing work with Ofgem, and we have been looking at a debt relief scheme for exactly those sorts of questions. Clearly, we want to support as many households as possible to move on to cheaper heating in the long term. We will continue to push forward that work.

[Dr Andrew Murrison (South West Wiltshire) (Con)]

Happy birthday, Mr Speaker. Change in the language by the UK Government on the Moroccan autonomy plan paves the way for a bright new future between the two kingdoms. Does the Minister therefore feel that the time is right to finally make a decision on the UK-Morocco power project that could potentially add 8% of the UK’s grid requirements and clean energy for the future?

[Michael Shanks]

The right hon. Gentleman and I have discussed this in the House before. He is right to point out that we see an important partnership with Morocco across our economy, and we have outlined more of that in the last few days. The proposal he discusses is from a private company and, like the previous Government, we have been looking at it. We will say more in due course.

[Chris Kane (Stirling and Strathallan) (Lab)]

A very happy birthday to you, Mr Speaker. Given the enormous potential for renewable energy generation across Scotland, including in my constituency, does the Minister recognise that accelerating community-owned energy projects and, crucially, improving local transmission infrastructure would not only reduce fossil fuel reliance, but deliver direct economic benefits to local people?

[Michael Shanks]

My hon. Friend is absolutely right, representing, as he does, a beautiful part of Scotland and one with huge potential for such schemes. That is why Great British Energy announced £4 million of funding for community energy projects in Scotland, working with the Scottish Government to drive those forward. We see, as my hon. Friend rightly points out, the huge benefits not just of delivering clean power, but of the social and economic value for the communities that host it. We are clear that community-owned energy has huge untapped potential and huge benefits for communities. We want to see much more of it, and Great British Energy will help deliver it.

[Carla Denyer (Bristol Central) (Green)]

Happy birthday, Mr Speaker. I thank the Minister for his response on reducing the reliance on fossil fuels; no more backing for oil and gas is essential for protecting our children’s futures. However, that positive change requires a plan to future-proof British industries that works for everyone, particularly those who are currently working in those high-carbon sectors. Will the Minister and his colleagues commit to publishing an energy jobs plan for how those workers can be supported in that transition, particularly around being provided with retraining opportunities?

[Michael Shanks]

We consulted on a detailed plan around the future of energy in the North sea, which includes a detailed section on workforce planning. I am sure the hon. Lady was able to submit a response to that consultation, and we will look carefully at her views. We take the question of workforce incredibly seriously. Jobs will be created right across the clean power mission, including in the biggest upgrade to the transmission infrastructure that we have seen in this country for many years, much of which her party seems to oppose.

[Catherine Atkinson (Derby North) (Lab)]

Happy birthday, Mr Speaker. Today’s brilliant announcement backing Rolls-Royce to deliver small modular reactors creates more skilled jobs while also delivering clean, secure energy that does not rely on fossil fuels, even when the sun does not shine and the wind does not blow. Does the Minister agree that the decision shows British business, supported by this Government, again leading the way?

[Michael Shanks]

My hon. Friend will not be surprised that I completely agree with her. Today, we have announced a new golden age of nuclear power in this country after decades of dither and delay; in fact, I think that the last switch-on of a nuclear power station was before I was even born. [Interruption.] It is not that long ago. We are driving forward the real potential that we see in nuclear power, and the Secretary of State will make a statement on that later. That is how we deliver thousands of well-paid, skilled jobs across the country and the important energy security that we need. I hope that we will see SMRs in every part of the United Kingdom, including in Scotland.

[Lee Barron (Corby and East Northamptonshire) (Lab)]

3. What steps he is taking to support rooftop solar power projects.

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[Olly Glover (Didcot and Wantage) (LD)]

13. What steps he is taking to increase grid capacity

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)]

Increasing grid capacity is critical. We are halving the development time for new transmission infrastructure through reforms to planning and supply chains, so that we can deliver the grid capacity needed to achieve clean power by 2030 and meet the doubling of electricity demand by 2050.

[Sarah Green]

I thank the Minister for his response. He will know that some projects are waiting up to 15 years to connect to the grid, and the Secretary of State earlier referred to the zombie waiting list. Could I push him further and ask precisely what concrete steps the Department is taking to drastically cut that waiting list?

[Michael Shanks]

We have outlined significant reforms to the connections queue. There is currently more than 740 GW in that connection queue. Clearly, that is an unsustainable amount of demand for connection to the grid, and most of it does not really exist, as my right hon. Friend the Secretary of State pointed out. We have put forward significant reforms, so that we prioritise projects that are ready to connect to the grid, and have strategic importance to the grid. The clean power action plan will drive forward what those strategic outcomes are. That work is under way, and the National Energy System Operator is considering those proposals. It will free up a huge number of projects from the connections queue, allowing new projects to join, and, crucially, allowing for demand projects that will help deliver economic growth.

[Olly Glover]

In my Oxfordshire constituency of Didcot and Wantage, sites at Culham, Harwell campus and Milton Park host a growing range of scientific and high-tech businesses, including a proposed artificial intelligence growth zone at Culham. Major housing growth also continues, and the new Valley Park development will use air source heat pumps. However, the Future Oxfordshire Partnership has raised concerns that grid constraints are causing significant delays to decarbonisation activities and creation of local power grids. What steps will the Minister take to address these problems and create an electricity grid fit for 21st-century Oxfordshire?

[Michael Shanks]

The hon. Gentleman makes an incredibly important point that outlines why this work is so important. There are two parts to it. The connections reform is crucial, so that we have a queue of projects that are strategically relevant and ready to be delivered. The second part is that we have to build significantly more grid infrastructure, and it is incumbent on all Members of this House to not oppose that grid infrastructure and then come here and say that they want new demand projects to be able to connect. Instead, they need to take a practical approach and say, “We’re going to have to build some new grid in this country if we want to unlock the huge potential of AI growth zones and other demand projects in the economy.”

[Luke Murphy (Basingstoke) (Lab)]

The strategic defence reviews of this Government and the previous Government highlighted the risks posed to our security by climate change. Does the Minister agree that the increasing opposition by the Conservatives and other Opposition Members to clean power infrastructure and increasing our grid capacity across the country is not just economically illiterate but a risk to our national security?

[Michael Shanks]

As so often, my hon. Friend is correct on these matters. He usually has a quote that shows that, just a few months ago, Opposition Front Benchers agreed with us on many of these matters, but have suddenly changed their position. As my hon. Friend says, our proposals are not only critical to delivering energy security in an increasingly uncertain world, but to tackling the climate crisis, which has such an impact on our lives now and in the future, and to the economic opportunities of the 21st century.

[Mr Speaker]

I call the shadow Minister.

[Joy Morrissey (Beaconsfield) (Con)]

Happy birthday, Mr Speaker. We need to ensure that the technology that we import to increase grid capacity is secure. US officials recently found kill switches in Chinese-made components for solar farms. The Conservatives have been clear about the security risks that China poses in our energy supply chain, so will the Secretary of State confirm whether he discussed that issue in his recent meeting with Chinese officials? If not, why not?

[Michael Shanks]

On a day when we are announcing new nuclear schemes, I am almost tempted to ask: which party brought Chinese investment into the heart of our nuclear infrastructure? The Conservative party. In every decision taken about the energy sector and more widely, if there are questions about national security, they are taken forward in the usual way. We invest hugely in ensuring that all our critical national infrastructure is safe and secure from cyber-threats and other threats. That work continues and is a top priority for the Government. We are building the clean power system that delivers energy security, and the Conservatives are opposing it.

[Becky Gittins (Clwyd East) (Lab)]

5. What estimate he has made of the number of additional jobs in clean power industries since July 2024.

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[Edward Morello (West Dorset) (LD)]

7. What steps his Department is taking to decouple electricity and gas prices.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)]

Accelerating the clean energy transition away from insecure and expensive fossil fuels towards cheap, clean renewables and nuclear power will help decouple gas and electricity prices. As a result, we will reduce the exposure of consumer bills to volatile international crises and ensure that we never again face the kind of cost of living crisis that the last Government presided over.

[Edward Morello]

New solar is 11% cheaper than the lowest-cost fossil fuel, and onshore wind is 39% cheaper, yet the marginal pricing system that ties electricity costs to the market price of gas has resulted in British consumers enduring the fourth-highest global energy prices during a cost of living crisis. Does the Minister agree that decoupling electricity prices from the gas market is essential if consumers are to enjoy lower-cost energy?

[Michael Shanks]

I thank the hon. Gentleman for his expertise in this area, which he often brings to the House. He is absolutely right that decoupling from volatile and expensive gas prices is critical, and the journey we are on to develop clean power by 2030 will do that. Our objective is to deliver a clean power system where gas only provides the back-up, rather than setting the price, as it currently does. Too often—80% of the time—we rely on gas to set the price. We are trying to remove that, and to build a clean power system for the future.

[Ms Polly Billington (East Thanet) (Lab)]

I think we all agree that it is important for us to protect all consumers from the volatile oil and gas prices that my hon. Friend has mentioned. However, while we shift and undertake that reform, has the Minister considered the benefits of having an energy social tariff, to protect customers now from those volatile oil and gas prices, and to prepare them for a cleaner, better and reformed energy market in the future?

[Michael Shanks]

I always agree with my hon. Friend, but on her initial point, I probably do not. I am not sure that we do all agree in this House that we should remove the volatility of fossil fuel prices. Some want us to remain linked to fossil fuels for longer and longer. We are determined to remove that vulnerability from people’s bills, so that we do not face the price spikes that many families still struggle with. She is right to point to targeted support as well. We are looking at social tariffs. Part of the challenge is that the phrase means different things to different people, but we are clear that bringing down bills for everyone is a top priority for this Government, and the clean power mission is how we will do it.

[Mr Speaker]

I call the shadow Minister.

[Nick Timothy (West Suffolk) (Con)]

Happy birthday, Mr Speaker. The Energy Secretary has said that there is a “principled case” for removing green taxes from electricity bills, and the cost being met by increases in green taxes on gas bills. That would be a net tax rise for every household—80% of the country—that uses gas. This was not an argument that he made before the election, so can the Minister take this opportunity to rule out any increase in taxes, charges or levies on gas bills?

[Michael Shanks]

On the Government Benches, we are trying to cut people’s bills as quickly as possible. The hon. Gentleman was a core part of a Government who failed to do that for many years. I am surprised that he did not rise to congratulate Great British Energy on its investment in solar panels on schools and hospitals, because his constituents are benefiting from one on a hospital and one on a school. He should welcome that.

[Nick Timothy]

If the hon. Member wants to talk about my constituency, he can talk about the betrayal of the Sunnica application, which is being imposed on my constituency by the Energy Secretary. The public will see that the answer was not a “no” from the Minister. Families across the country should be worried; this is becoming a pattern. For weeks, I asked Ministers about their plan to align with the European carbon price. For weeks, they denied that it would happen, and then, once the local elections were done, they did it, increasing electricity bills by stealth for every family and business in the country. Now it is the same for gas bills. When will the Minister be straight with people and admit that the Government are adding to the bills of families and businesses, not cutting them?

[Michael Shanks]

The House will have heard the shadow Minister’s failure to welcome solar panels on a hospital and a school in his constituency, but he can deal with his own constituents. On the question of the emissions trading system, on one side, we have National Grid, Energy UK, the Carbon Capture and Storage Association, Make UK and the Confederation of British Industry welcoming it. On the other side, we have the shadow Minister and the deputy leader of the Reform party, the hon. Member for Boston and Skegness (Richard Tice). I think I know who I would take my advice from.

[Maya Ellis (Ribble Valley) (Lab)]

9. What steps his Department is taking to ensure that the transition to net zero supports rural economies.

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[John McDonnell (Hayes and Harlington) (Ind)]

11. What steps he plans to take in relation to the Rosebank oilfield.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)]

The consent to develop the Rosebank oilfield was deemed unlawful by the courts. The developer will need to reapply for consent, including an assessment of emissions from burning the fuel produced. We will produce guidance on the environmental assessment of those emissions in due course.

[John McDonnell]

Have a good one, Mr Speaker!

The big issues to consider in this decision-making process will be the economic and environmental impacts. As the Government develop their thinking, will they consider and report to the House on another issue? Ithaca is one of the companies seeking to benefit from the large profits from the Rosebank development. It is owned by Delek, an Israeli oil conglomerate that has been listed recently by the UN for human rights abuses in the Occupied Palestinian Territories. I do not believe that our Government would want to be associated with a company like that, and many pension funds are now divesting from that company, too. Can we have a report as the Government’s thinking develops on that crucial matter?

[Michael Shanks]

I will be careful about what I say in this particular case and on the specific application for obvious reasons. We will be publishing guidance very soon on how the scope 3 emissions—the end-use emissions —will be assessed. Any developers with any projects that wish to reapply will then be able to do so. Each project will go through a regulatory process and be considered on its individual merits.

[Harriet Cross (Gordon and Buchan) (Con)]

Cabinet Office guidance states that Government Departments should aim to publish a response to a consultation within 12 weeks of the consultation closing. The consultation on environmental impact assessments closed on 8 January, which is 22 weeks ago tomorrow. When will the Department publish the guidance, because it is causing delays to projects in the North sea today?

[Michael Shanks]

We published the consultation on what we will do with the EIA guidance as quickly as we could. We are now analysing that. It is a complex issue, as I am sure the hon. Lady will understand. We will publish the response and the process that will now be put in place as soon as possible. Any developers that wish to reapply will then be able to do so.

[Alice Macdonald (Norwich North) (Lab/Co-op)]

T1. If he will make a statement on his departmental responsibilities.

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[Pippa Heylings (South Cambridgeshire) (LD)]

The North sea’s future lies in clean energy, but despite the UK’s billing as a wind superpower, we still import most of our wind turbine components while communities around the North sea are losing jobs. Trade unions and industry are united in calling for £1.1 billion a year to build up domestic renewables manufacturing, but the Chancellor has committed barely half that. Will the Secretary of State work with his Cabinet colleagues to secure the investment that is needed to realise the job-creating potential of the green just transition?

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)]

The hon. Lady is absolutely right. We are trying not just to build the renewables that we need for the future, but to bring the good jobs, the manufacturing and the industry along with them. The Prime Minister has announced £200 million of support for supply chains through Great British Energy, and there will be much more to come. We are also working individually with projects and developers to ensure that we bring the jobs here, and that is why the clean industry bonus is so important.

[Paul Davies (Colne Valley) (Lab)]

T5. Over recent months I have received numerous emails from constituents in Hade Edge expressing concern about repeated energy outages. The most recent incident occurred on 26 May, affecting 389 customers. What steps are the Government taking to ensure that energy suppliers such as Northern Powergrid invest in upgrading their infrastructure so that communities like Hade Edge no longer have to worry about outages?

[Michael Shanks]

My hon. Friend raises an important point. The UK’s energy grid is very resilient, but we are investing to make sure that remains the case in the decades ahead. Ofgem requires transmission owners and distribution network operators to make sure that there is an efficient, economic and co-ordinated system of electricity transmission in the country—and to make sure that it works—but if he wishes to raise any specific issues, I would be happy to hear from him.

[Calum Miller (Bicester and Woodstock) (LD)]

T2. On 21 May, the Government published their working paper on community benefits, but contributions are unlikely to be made mandatory before a decision is made about the huge Botley West plant in my constituency. Does the Minister agree that a responsible developer would offer my constituents a level of benefit in line with that proposed by the Government?

[Michael Shanks]

Yes, and I was grateful for the opportunity to meet the hon. Gentleman recently to discuss exactly those points. We encourage all developers to provide a range of local community benefits, and we are consulting on whether that should go further, but in the meantime we want to see community benefit schemes that are as strong as possible for all energy projects, right across the country.

[Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)]

T6.    Happy Labubu birthday, Mr Speaker! Our most climate-friendly nations require investment to adapt to the effects of climate change, but sadly a number of them are facing a debt crisis and are spending a lot of money on paying sky-high interest rates to lenders. Given that 90% of the debt contracts are governed by English law, will the Government ensure that private lenders take part in debt relief schemes in order to tackle the climate emergency effectively?

[Chris Law (Dundee Central) (SNP)]

T4. I wish you a happy birthday, Mr Speaker. In its manifesto last year, the Scottish Labour party promised to create 69,000 Scottish jobs in the clean energy industries of the future, but on “The Sunday Show” the Scottish Labour leader was unable to answer any questions about that. May I ask how many jobs have been created so far, how this is progressing, and when the target will be met?

[Michael Shanks]

The hon. Gentleman is right, in that we had ambitious plans in our manifesto to create thousands of jobs funded through Great British Energy—something that he failed to vote for, so he is now against the investment that will come. We have secured £40 billion-worth of private investment since we came to office, with hundreds of jobs and many, many thousands to come.

[Nesil Caliskan (Barking) (Lab)]

T7. Thousands of my constituents in Barking receive their energy via a heat network provided by their landlord or a housing association. In many cases, they are not eligible for the warm home discount. What plans do the Government have to make sure that those constituents receive the support they need?

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[Perran Moon (Camborne and Redruth) (Lab)]

Penn-bloodh lowen, Mr Speaker.

I welcome the Government’s commitment to nuclear energy as a means of reducing our reliance on fossil fuels, but I am concerned that far less attention has been given to another low-carbon, low marginal cost, firm baseload power source—deep geothermal. By some estimates, there are over 30 GW of geothermal energy potential in the Cornish granite batholith alone. What are the Government doing to assess and unlock this untapped geothermal potential?

[Michael Shanks]

As always, my hon. Friend is a great champion for his local area and its different energy sources. I am very happy to meet him, as geothermal has huge opportunities. I think some of it has yet to come to market, but we look at all opportunities for delivering clean power.

[Christine Jardine (Edinburgh West) (LD)]

Happy birthday, Mr Speaker—I suspect you may be relieved that we cannot sing in the Chamber.

I was recently approached by a small business owner in my constituency of Edinburgh West who faces bill of almost £30,000 for the period of lockdown when her business was closed. She is getting no sense out of British Gas Lite about why she is facing this bill, and I am getting no response from it. Will the Minister meet me to discuss how we can find out what is happening?

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[Rachael Maskell (York Central) (Lab/Co-op)]

Happy birthday, Mr Speaker.

The York Central development site at the heart of my constituency has been found to be a rich source of deep geothermal energy. Will the Minister meet me to look at how we can bring this on stream to heat the 2,500 homes and support the 12,500 jobs there will be on that site?

[Michael Shanks]

I am very happy to meet my hon. Friend. There are a number of schemes like this already. The Mining Remediation Authority has a number of projects under way. There is huge potential, and I am happy to meet her to discuss it.

[Sammy Wilson (East Antrim) (DUP)]

Happy birthday, Mr Speaker, and despite what has been said by colleagues on the Benches in front of me, you do not look a day over 75. [Laughter.]

While the Minister is claiming to save the world by closing down the oil and gas industry in the United Kingdom, Centrica has signed a £20 billion deal with Norway to supply gas to the United Kingdom. How does he justify the loss of British jobs, giving away tax revenue and putting growth in jeopardy by closing down an industry that is still much needed?

[Michael Shanks]

The right hon. Gentleman is wrong on two fronts. First, we are not closing down oil and gas. It will continue to play a part for many years to come, but there is a transition under way, as there has been for many years. The truth of the matter is that, while we want to create the jobs that come next, he turns his face against all the investment in what those jobs will be, which means that, under his plan, the transition will not lead to a future for that incredibly skilled workforce. We are determined to do it differently, so that there are good, well-paid jobs in the future and a secure energy mix for decades to come.

[Mr Speaker]

I thank everybody who has wished me well for my birthday. I got the best birthday present, and that was the knighthood for Sir Billy Boston, who had to leave Wales to play rugby league. This is the first knighthood for rugby league, so it is the best present I could have had.