Heathrow Substation Outage: NESO Review
Debate between Michael Shanks and Tom Collins(2 days, 20 hours ago)
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Michael Shanks
The hon. Gentleman may be confusing two things. The National Energy System Operator is no longer part of National Grid, as it was made into a publicly owned company by the previous Government, which was introduced by us when we came into Government. So the National Energy System Operator is responsible for managing the energy system and it is different from National Grid, which is a private company that operates the electricity network in England, so those two organisations are slightly different. Of course, he is right to highlight the scale of the failure. That is why I have given a statement today and why a number of serious actions are being taken, which will be followed up in a serious way.
We did not come close to a blackout earlier this year. It is important to repeat that, because there is a lot of misinformation about a particular set of statistics that were misunderstood by some people. We have never come close to that and we have never had a national power outage in our history. The aim of all the work that we do is to build as safe and resilient an electricity system as we can, so that when circumstances like this happen—because fires and accidents do happen—we will have done everything that we could have done to have mitigations in place. When such a fault is down to a failure of maintenance, we must ensure that is taken account of and never happens again.
Tom Collins (Worcester) (Lab)
Like any serious incident, this one had multiple causes, both operational and relating to design. I urge the Minister to ensure that the lessons learned are applied not only to electricity transmission and distribution sites, but to energy storage sites, for which we have an absence of standards. He rightly mentioned the need for redundancy and flexibility in our electricity systems, and the need to avoid having single points of failure. That applies well to large pieces of essential infrastructure, but is harder with our distributed critical infrastructure, for example around telecommunications, so we need diversity in our energy system as a whole. Does he agree that in our energy system, we need widespread availability from multiple parts of the energy sector, with electricity being backed up by, for example, hydrogen and ammonia?
Michael Shanks
My hon. Friend always reminds me how much he knows about many of these issues; it is hugely welcome. He is right: there are wider lessons to be learned across the system, and not just for large critical national infrastructure. As he says, we have a grid that has many more power stations, of different forms, than we have ever had in the past. There are also lessons to be learned for storage, which is rightly becoming increasingly important for our energy mix.
On his wider point about telecoms, in the wake of the storms earlier this year, we took a number of actions to make our electricity system more resilient. Our use of telecommunications equipment in this country is changing. Very few people now have access to traditional copper wire phones, so when telecoms equipment goes down, there is an immediate significant impact on people’s lives. I recently met the Minister for Data Protection and Telecoms in the Department for Science, Innovation and Technology to discuss this issue. We will work with Ofcom and the operators to ensure that the telecoms infrastructure is as resilient as it can be.
Biomass Generation
Debate between Michael Shanks and Tom Collins(4 months, 3 weeks ago)
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Michael Shanks
We do not have a mechanism to claw back past profits from any company—that is not something that Governments are able to do. What we can do is move forward with a fair system that reduces the subsidy considerably, and has excess profit mechanisms and a windfall tax in place to ensure that if the company generates additional profits, we can claw that back for the British public, which is important. The level that we have agreed in the deal brings the subsidy down to a considerably lower level—half what it was under the previous Government.
Tom Collins (Worcester) (Lab)
I welcome the revision of Drax’s role in our energy system, reducing biomass and ensuring that where it is used it displaces gas, not excess wind and solar. However, we also need to find new low-carbon forms of dispatchable power, backed up by long-term energy storage at scale. Hydrogen is a strong candidate for that. By moving fast, the UK can reduce costs and regain our early-mover advantage. Will the Minister work with industry at pace to ensure the opportunities around hydrogen are known, explored and exploited?
Michael Shanks
My hon. Friend is right that one of the really important outcomes of the new deal is that instead of cheaper wind and solar power being displaced by Drax when it operated with baseload capacity, Drax will only operate when we need it on the system. That means that the cheaper, cleaner power sources that we are building in abundance, of which we want to see much more in the years ahead, can generate and deliver cheaper power for the people of this country. On my hon. Friend’s wider point, it is important that we explore the role that hydrogen can play in the system. We are looking at a number of different technologies at the moment. Just last week, I met some investors looking at the future of the gas system to take forward some of those questions, and I am happy to discuss that further with my hon. Friend in the future.