UK Energy Costs

Mike Amesbury Excerpts

Thursday 8th September 2022 Commons Chamber

[Dame Andrea Leadsom (South Northamptonshire) (Con)]

I start by saying: may God bless our Queen. [Hon. Members: “Hear, hear!”]

I sincerely welcome the announcement—it is fantastic that we have seized the massive problem that is facing us—which will give relief to so many households and businesses who have been terrified by the prospect of what was to come. I am convinced that that reassurance will be greatly pleasing to them.

I want to take a couple of minutes to talk about some really low-hanging fruit that I do not think we have made enough of yet. With energy prices where they are, we as a Government could do a lot more. We could, for example, go house to house—through energy suppliers; not as Government officials—to assist people with looking at how they can reduce their energy bills. There are many practical ways and great ideas for doing that, not least of which are turning down boiler thermostats—people should not do that themselves at home—to make more effective use of energy and turning down the hot water tap pressure. Those things are really low-hanging fruit that could be done tomorrow, and forecasters suggest that they could save up to 10% off energy bills.

Most important of all is insulation. Current energy prices are a game-changer for insulation. Recent research suggests that £1,000 could pay for basic cavity wall or loft insulation for the average household and that the sector could insulate up to half a million homes this winter and 1 million homes next year. That could be cost-neutral to the Treasury as it would not be paying the excess for the price cap. With energy prices at current levels, it is worth looking again at massively ramping up household insulation.

[Mike Amesbury (Weaver Vale) (Lab)]

Will the right hon. Member give way?

[Dame Andrea Leadsom]

I will not give way because there is so little time.

Finally, as Business Secretary and then as chair of the 1922 Backbench committee on business, energy and industrial strategy, so many businesses have said to me, “We cannot get a grid connection for our solar panels, so there is no point in doing it.” I would say to them that, with energy prices where they are, they could get themselves a battery and have some internal energy independence. Many businesses should be looking at that. The Government’s role should be to provide advice through the energy suppliers.

--- Later in debate ---

[Chris Green (Bolton West) (Con)]

I welcome the Prime Minister’s statement, which set out two broad areas. First, we have the immediate support that she will give to so many people around the country as well as to businesses. Like many hon. Members—perhaps all hon. Members—I have had many constituents getting in touch to say how concerned they are about the cost of energy now and how fearful they are about the cost of energy this coming winter. The decisive action that she has taken is therefore incredibly welcome.

Secondly, I would like to highlight the Prime Minister’s longer-term vision. Much of the current problem is caused by the invasion of Ukraine by Vladimir Putin and the Russian army. However, we can also look back to the oil crisis of the 1970s and see that if we are dependent on foreign sources of energy for heating our homes and powering our industry, we will always be in a vulnerable place. I therefore welcome her ambition for the United Kingdom to be a net exporter of energy by 2040. That is a hugely positive ambition for the United Kingdom, for our industry and for the sector.

I would like to emphasise that nuclear needs to form a key part of the United Kingdom’s energy sector. It is reliable baseload energy that we can depend on come rain or shine. In the north-west of England, right across the three counties of Cheshire, Lancashire and Cumbria, there is huge talent in the sector, and by investing in that and giving the sector more security, we will protect and secure those jobs. I think also of the Springfields nuclear fuels plant near Preston. We need security for that plant to ensure that it can maintain itself and maintain its staff, the skilled engineers and skilled apprentices, on that site. We need to secure that site and many other places in the north-west of England. Warrington and the wider area also has an enormous wealth of talent.

[Mike Amesbury]

Does the hon. Member share my concern about one of the announcements, on fracking? I am quite confident that my community will not accept it. I know the hon. Member’s constituency of Bolton West and the beautiful rural idylls surrounding it. Does he feel that it will accept it?

[Chris Green]

The Prime Minister is committed to respecting the views and values of local communities, and I support that. However, in the short time I have in which to contribute I am trying to focus on nuclear energy.

We want that commitment in the north-west but also in Hinkley Point C, which is a phenomenal site and a phenomenal investment in our United Kingdom. I want our commitment to nuclear energy and the phenomenal workforce at the Hinkley Point C site in Somerset to go on to the next nuclear project and a whole series of nuclear projects, whether full-scale nuclear reactors or small modular reactors. There is huge potential and ambition, which the Prime Minister will set out and the Business Secretary will give more detail on. That is immensely positive for so many different parts of our country. I also particularly welcome the location of Rolls-Royce SMR headquarters in the city of Manchester.