Energy Bill [Lords]

Nia Griffith Excerpts

2nd reading
Tuesday 9th May 2023 Commons Chamber

[Dame Nia Griffith (Llanelli) (Lab)]

I welcome the Bill, but I must say that I am extremely disappointed by the Government’s paltry efforts on energy to date. It is now a year since the horrific invasion of Ukraine by President Putin, which should have been a brutal wake-up call. Not only do we need accelerated investment in renewables because of the extreme urgency of tackling the climate emergency and ensuring that we reduce our carbon emissions, but Putin’s invasion reminded us of the strategic importance of energy security. We have plentiful natural resources and we can provide ourselves with energy security with wide-ranging investment in renewables. Then we come to the issue of cost, as renewables, particularly onshore wind, are now proving their cost-effectiveness.

So whether it is about tackling the climate crisis, energy security or price, the Government should be making investment in renewables an absolute top priority. Despite the Department’s document citing onshore wind as one of the cheapest and easiest forms of electricity generation, they are still being mealy-mouthed about lifting the ban on onshore wind in England. This bill should include a clear lifting of that ban. We know that business needs certainty in order to invest, and the Bill misses the opportunity to give the onshore wind business that certainty.

Now is a crucial time for industry more widely to be investing in the green technologies of the future. Many industries such as steel and manufacturing face huge transition costs to reach net zero, and they will be making unprecedented investments in new methods of production and new production lines. They will be looking very carefully at which countries offer them the best deal on siting their production lines of the future. Not only is it essential that the Government respond to the game-changing US Inflation Reduction Act, and similar moves by the EU—I do not know why they are dragging their feet, as industry is crying out for information and will simply go elsewhere if it does not get it—but they need to address energy costs.

Time and again, not just our energy-intensive industries but swathes of manufacturing cite high energy costs as a massive disincentive to continuing their operations in the UK. This situation is absurd, and it would be laughable if it were not so tragic that we have so much potential for cheap energy and yet we offer industry sky high prices. The Government need to give industry long-term certainty on cheap, competitive energy prices if we are to have any hope of new production lines being sited here and providing the valuable green jobs of the future.

Make no mistake: if we do not get certainty on consistent, cheap energy prices, we will lose vital investment in the new production lines, with massive jobs losses. Our competitor countries have major state-owned companies pushing forward with renewables, but the UK Government shy away from any such idea. Such a company can really accelerate investment in renewables. The Welsh Government are now establishing one such company and a future Labour UK Government would establish a Great British energy company to do likewise.

Of course it is not just industry that is desperate for cheap energy; householders have been staggered by the price rises in energy this winter. Even when they make determined efforts to cut down on the number of units they use, they are still stung by rocketing standing charges, for which they can see no good reason. It seems completely perverse that the price of electricity produced by cheap renewable generation is linked to the price of gas. That urgently needs reform and, yet again, this Bill is a missed opportunity to tackle the problem. Nor are the Government doing anything to close the windfall tax loophole that allows oil and gas companies to continue to rack up enormous profits while householders struggle in cold and often damp houses.

Of course, that brings me to that other great failure: the Government’s failure to invest effectively in home insulation. If that had been actively pursued by the Government in the past, energy bills for millions of householders could have been reduced by now.

It is also high time that the Government resolve the problems of the national grid’s lack of capacity with the difficulties and delays in connection. It is vital that we have an effective grid to get energy from where it is generated to the areas of population and industry where it is needed. Not long ago we witnessed the fiasco of electricity generated in Scotland failing to reach consumers in England because of the current lack of grid capacity. But it is not enough to catch up with the present. I know that the Minister for Climate Change in the Welsh Government, Julie James MS, has flagged up the huge quantities of electricity that will be generated by offshore wind in the Celtic sea. She has raised with the UK Government the vital work needed to increase the grid capacity to transmit this energy to where it is needed across the UK. I would be grateful for a categoric assurance from the Minister that increasing grid capacity will be an absolute priority.

Community energy schemes can bring great benefit to local communities, so will the Minister, when he winds up, commit to retaining the amendments to help encourage such community energy schemes. I urge the Government: to retain the amendments made in the other place; to support our amendments to deal with grid delays; to expand home energy efficiency measures; to ban fracking, as indeed we have already done in Wales; and to lift the ban on onshore wind in England, all of which would make for a better Bill.