Offshore Wind Supply Chain: Tyneside

Nusrat Ghani Excerpts

Wednesday 29th October 2025 Commons Chamber

[Mary Glindon]

I certainly will.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call Jim Shannon on the offshore wind supply chain in Tyneside.

[Jim Shannon]

I spoke to the hon. Lady before the debate and explained the connection between her constituency and mine, and why it is so important. I also want to encourage the hon. Lady, who has been a great friend of mine in the House in all the time I have been here. We share many things, including an interest in this subject matter, but we also share our faith. It is important that we have that relationship across the Chamber. Does she not agree that while Tyneside is a major hub for offshore wind supply, we must continue to invest in new and better methodology in renewable energy, such as harnessing tidal energy through Strangford lough and Newcastle University’s wave energy device, which contributes to the area’s role in marine energy innovation? These are things that we can do better together.

[Mary Glindon]

The hon. Gentleman has long been a friend of mine, and he not only speaks well of his own constituency and Northern Ireland, but is very supportive of all of us across the Irish sea. He is right in what he says, and I think we are both justly proud of what is being achieved by the universities and industries in our areas. That is why we are standing here tonight and making our plea to the Government.

This week, the Government set the budget for allocation round 7 to support new offshore wind projects. RenewableUK, along with other industry voices, has expressed concern that the amount allocated is likely to procure only a quarter of the 20 GW capacity available in this year’s tender. This is a very recent announcement, so I would be grateful if the Minister could set out how the budget aligns with the Government’s plans to maximise the number of green jobs in Britain.

Against the backdrop of AR7, there is real concern regarding the alarming drift towards UK offshore wind turbine foundation structures being procured from lower-cost regions such as the middle east, the Asia-Pacific region—APAC—and China. Recent examples of this include EDF’s Neart na Gaoithe offshore wind farm, Ocean Winds’ Moray West OWF and the Inch Cape OWF. For these UK projects, all the foundation structures were imported from lower-cost fabrication yards located in the middle east, Indonesia and China. I understand the approach taken by the previous Government and developers to drive down and minimise capital expenditure, but that approach adversely impacts the operations of our own UK companies, which are unable to compete on cost alone.

Recent mechanisms and initiatives such as the clean industry bonus included in AR7 are of course welcome, but there is a fear that these alone will not prevent the further drift of foundation fabrication away from the UK to these lower-cost regions. With reference to the AR7 clean industry bonus allocation framework, there are two CIB criteria that developers could meet. Criterion 1 refers to “investment in shorter supply chains”, where an investment may be made in a deprived area in the UK. Given the socioeconomic challenges that Newcastle upon Tyne East and Wallsend face, option 1 is a welcome incentive, and I look forward to the outcome of the AR7 projects, when announced. Criterion 2 refers to “investment in more sustainable means of production”, where investments may be made in one or more manufacturing facilities or installation firms that have either committed to, or set their science-based targets by, the application date anywhere in the world.

There is real concern that this approach opens the door to unfair competition from lower-cost regions such as China, APAC and the middle east, specifically for the supply of critical offshore wind infrastructure such as wind turbine generator foundations, jackets, transition pieces and monopiles. Therefore, outside the AR7 framework, and given the criticality of this infrastructure to our energy security, will the Minister set out what additional measures or guarantees can be put in place to ensure that a significant portion of offshore wind infrastructure is secured and fabricated by UK companies such as Smulders? It is essential that businesses in the UK continue to invest, innovate and introduce new technologies and processes to optimise efficiency as well as competitiveness, as my hon. Friend the Member for Strangford (Jim Shannon) said. However, it is becoming increasingly difficult for UK companies to compete equally with overseas yards on such an uneven playing field.

On the Tyne, not only are supply chains held back by unfair competition; they are also constrained by physical barriers. The power cables over the Tyne are an obstacle to businesses securing work for large renewable energy structures, which risks possible net gross value added benefits of up to £1.2 billion. The height restriction in place is 87 metres. However, wind turbine jackets for AR7 and future rounds will be in excess of 100 to 120 metres high. It means that Smulders cannot bid for certain contracts despite having world-class facilities and the sharpest minds ready to go. It has been proposed that the removal of the cables will be completed in 2032. I have campaigned since 2017 for a solution to this issue—2032 is too late. The jobs of the future have become the jobs of today, and this is an international race. Yards in the middle east will not wait for 2032, APAC will not wait, and neither will China.

In July, I welcomed the Secretary of State’s commitment to engage with me and Ofgem to try to accelerate the work. I look forward to meeting the Energy Minister next month to discuss it further. I would be grateful if the Minister reaffirmed the Department’s support for bringing forward this work and reaffirm that the Government will press the National Grid for an earlier completion date.

I turn to the issue of ensuring a more consistent revenue stream for our domestic fabricators. We have seen disruption, delay and postponement in the promised pipeline of offshore wind projects because of failures during earlier leasing and allocation rounds. Projects from AR5 and AR6 are all now complete, or very near to completion. Unfortunately, however, insufficient projects were approved and insufficient contracts were awarded to the UK to ensure a continuous pipeline of work for companies such as Smulders. The result of that failure is a very real two-year chasm in UK offshore wind manufacturing. From the start of 2026, effectively, zero UK offshore wind projects will be in fabrication.

The next tranche of projects will be dependent on the successful outcome of AR7 and the clean industry bonus incentives offered to developers. The results from AR7, however, will not be known until quarter 1 in 2026, thus creating a two-year gap. This is the effective period from project approval and contract award, to finalising engineering and procuring materials before industry can start cutting steel. Optimistically, that could begin in quarter 3 or quarter 4 of 2027, with offshore infrastructure in place again two years after that in the final quarter of 2029. However, the first power generation from AR7 projects before August 2029 is a stretched target.

Smulders has already invested over £100 million at its Wallsend facilities based on previous Government assurances of continued UK offshore wind fabrication projects. What level of operational or other support is the Government willing to provide to established tier-1 fabricators such as Smulders to secure the jobs of over 600 well-paid workers during this two-year gap in fabrication?

I was delighted to hear the Secretary of State’s commitment during party conference to a clean energy jobs plan, which will see the sector grow from 430,000 jobs today to 830,000 by 2030. That will include tens of thousands of new roles for engineers, welders, electricians and construction workers. I support the Government’s ambition for further growth. The skills for these jobs are being developed and nurtured by companies in Tyneside, as well as by the Energy Academy in my constituency, which is set to expand following the combined authority’s commitment to invest £8.5 million in the college. Well-paid, secure jobs can be created through the awarding of contracts to existing UK tier-1 fabricators.

For UK companies, the outcome and results from allocation round 7 are critical to their continued operations in this country. More crucially, the outcome of the foundation contract awards will ultimately determine the long-term success or failure of our businesses—and, I believe, the future of the UK offshore wind fabrication sector. Only foundation contracts awarded domestically can provide the necessary volume of serial, repeat fabrication needed to achieve the Government’s clean jobs target, and secure the necessary skills required for a high-paid clean energy sector. I repeat my call on the Government to take further steps to ensure that a substantial allocation of AR7 foundation fabrication is awarded here in the UK.

As I said, at its peak, Smulders supports over 600 high-skilled and well-paid local jobs in Tyneside and across the region, and its primary concern is to secure those jobs in the long term. It is in the national interest for UK businesses to succeed with those projects, as they are creating highly skilled and dependable jobs that will not only strengthen the offshore wind industry but support training in skills required for associated industries such as defence, nuclear and the wider engineering sector, as well as supporting other major British infrastructure initiatives. The drifting overseas of such work threatens domestic jobs, future economic investment and the UK’s long-term security.

This is a critical juncture for the UK offshore wind sector, so will the Minister meet me, representatives from Smulders and the wider Tyneside supply chain to discuss urgently the concerns that I have set out about the areas in which industry needs further support, and so that we can present our aspirations for the clean energy future? Although the transition presents challenges from all angles, it presents even more opportunities. The Tyne is open for business, and it stands ready to play a defining role.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Minister. I believe that this is her first time at the Dispatch Box for an Adjournment debate.

Solar Development: Newark

Nusrat Ghani Excerpts

Tuesday 2nd September 2025 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

Will the right hon. Gentleman give way?

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call Jim Shannon to intervene, on large-scale solar development in the Newark constituency.

[Jim Shannon]

This is not just about Newark; it affects its neighbours as well. It is an issue across the whole of the United Kingdom of Great Britain and Northern Ireland, and these large-scale plans will definitely affect us all. I understand the need for renewable energy, but our farmers and their needs, and the food security of this nation, must come first. Does the right hon. Gentleman agree that, when it comes to ensuring that we have food security, the same rules must apply across the whole of the United Kingdom? On a side note, I see that he has been active in putting flags up. I have some 60 years’ experience of putting flags up and I would be happy to help him.

Warm Home Discount

Nusrat Ghani Excerpts

Thursday 19th June 2025 Commons Chamber

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

With permission, I wish to make a statement on the action we are taking to cut energy bills for working families.

Three years on from the Russian invasion of Ukraine which sent prices soaring, people up and down the country are still feeling the impacts. Everywhere I go in this job and from every person I speak to, I hear how the wages that used to support families are being swallowed up by sky-high energy bills month after month after month. The truth is that for as long as we remain dependent on gas and volatile global markets, British people will continue to pay the price and we will continue to be held back as a country. That is why we are finally ending our exposure and our vulnerability by sprinting to clean, affordable energy that is controlled by us.

We know that in the meantime, we must do everything we can to support families who are under huge amounts of pressure with their energy bills. Today, we are setting out how we will help millions more households with their bills this winter by expanding the warm home discount. Previously, around 3 million people received the £150 rebate off their energy bills, but millions of people living in homes not classified as “hard to heat” were excluded as a result of criteria introduced by the previous Government in 2022. We believe those criteria were unnecessary and unreliable. We believe that it cannot be fair to have two families in almost exactly the same circumstances, with one receiving help and one not. That has been raised repeatedly by consumers and their advocates since the changes were made in 2022, and I absolutely understand their concerns. That is why we are abolishing this restriction.

This winter, every single household where the bill payer receives a means-tested benefit will be eligible for the warm home discount, which means a further 2.7 million low-income households will get that vital support. In total, more than 6 million households—one in five families in Britain—will get the help they need this winter. This expansion will help us meet our goal of tackling fuel poverty, which is critical to the work of my Department. It will increase the number of fuel-poor households that receive support, with coverage improving from 30% under the current scheme to around 45%. In total, 1.6 million fuel-poor households will receive support. I have met people on the frontline of the energy bills crisis up and down the country, so I know for a fact that there are families out there right now breathing a sigh of relief because this measure will ease the huge amount of pressure they are under with the cost of living.

One issue that is often raised with me is that families can miss out on the warm home discount because the person who receives the means-tested benefit is not named on the energy bill. To be eligible, the means-tested benefit recipient, their partner or their legal appointee needs to be named on the energy bill. I encourage all families who receive a means-tested benefit to check that and, if necessary, to contact their supplier. People need to ensure that the benefit recipient, their partner or their appointee is named on the bill before the warm home discount qualifying date, which is 24 August.

At the same time, we are going further to put the energy market back in the service of working people, taking steps to restore confidence and faith in the energy market, which has been shaken. As it stands, too many complaints against energy companies go unresolved or take too long to fix—whether it is suppliers not responding quickly enough or failing to adjust direct debits when families use less energy—which leads to a situation where consumers often do not access the compensation they are entitled to due to an overly complex complaints system.

This Government are absolutely committed to standing up for consumers who have had a bad experience of the energy system, and we are working hard to ensure that the system works in the interests of consumers. We have already made real strides in improving conditions for customers. Following the Secretary of State’s intervention and months of Government work with the sector, Ofgem announced £18.6 million of compensation for victims of forced prepayment meters in May, and we will continue to go further.

This is a Government willing to use every tool in our arsenal to fight for working people. By moving at speed to deliver clean power, and with the spending review setting out the biggest investment in the domestic clean energy industry in history, we will take back control of our energy system and do the job of protecting consumers. That is why we have wasted absolutely no time in driving forward our clean energy mission in our first year, ending the onshore wind ban, consenting more than 4 GW of renewable energy, launching Great British Energy, funding a new golden era for nuclear, kick-starting carbon capture and hydrogen industries, and investing £1 billion already to upgrade up to 300,000 homes, with £13.2 billion committed in the spending review to upgrade millions more.

This is how we will rebuild our energy network and protect families across the country: by supporting more people who need our help this winter; by restoring confidence in a reformed energy market; and by bringing bills down for good with secure, reliable, clean energy. We will ensure that every family in this country has the security of a home they can afford to heat now and in the future. I commend this statement to the House.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Minister.

--- Later in debate ---

[Miatta Fahnbulleh]

As always, my hon. Friend puts it perfectly. I will pick up his point on data sharing, which is critical. My Department and the Department for Work and Pensions have been working over the past few months on the sharing of means-tested benefit data so that this will be automatic; come this winter, all eligible consumers will receive a letter informing them that they will be getting the warm home discount. It will be transferred on to energy bills as a credit—a direct payment for consumers—because we have done the groundwork to put that in place.

On my hon. Friend’s critical second point, the relative cost of gas and electricity is incredibly high, and we know that is a problem for both households and businesses, particularly as we try to make that transition to clean energy. We are continuing to do that work. I am very clear that we need to deal with that question in order, for example, for our plans to upgrade homes to have the bite and traction they need, and we are absolutely committed to doing so.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

[Claire Young (Thornbury and Yate) (LD)]

We welcome investment in warm homes following a winter in which millions of households were living in fuel poverty. The crisis was exacerbated by the Government’s cut to winter fuel payments— and we welcome the U-turn on that, too. The former Conservative Government’s stop-starts on home insulation policies left thousands of vulnerable people in damp, cold and unsafe homes, with lower energy-efficiency standards and higher bills during an energy crisis.

Given that homes in this country are among the oldest and least energy-efficient in Europe, will the Government commit to an ambitious 10-year plan for home insulation, for which the Liberal Democrats have long called? Will they ensure that households on lower incomes will be eligible for free insulation as part of that plan? And, following the Government accepting the campaign of my hon. Friend the Member for Cheltenham (Max Wilkinson) for solar panels to be mandated for all new homes, will they now look to introduce a full zero carbon standard for all new homes and solar for car parks, as put forward by the Liberal Democrats in amendments to the Planning and Infra- structure Bill?

--- Later in debate ---

[Miatta Fahnbulleh]

I cannot believe it was 30 years ago that my hon. Friend was learning about green energy. We have been sprinting to deliver clean power. When we came into government we set a mission to do it by 2030. There were naysayers, and there continues to be naysayers, but we were not deterred by that. So whether it is removing the ban on onshore wind, whether it is record investment in nuclear, or whether it is a record renewables auction, we are very clear that we are putting in the investment—we are putting in the hard yards, the hard graft—to deliver clean power. Why are we doing that? Not because of ideology, but because we recognise that we inherited an energy system that was not working on behalf of consumers. We recognise that people were under huge pressure—a status quo that we were not willing to accept. We will deliver clean power, so that we can bear down on bills and ensure that we drive down energy bills for good.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

That is the end of the statement, so I will allow the Front Benches a few moments to shuffle over as we continue the business for the rest of the afternoon.

Solar Farms

Nusrat Ghani Excerpts

Thursday 15th May 2025 Commons Chamber

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. Members can see that a number of people wish to contribute, so there will be a time limit of four minutes.

Great British Energy Bill

Nusrat Ghani Excerpts

Consideration of Lords message
Wednesday 14th May 2025 Commons Chamber

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

I beg to move, That this House agrees with Lords amendment 2B in lieu.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

With this it will be convenient to discuss amendment (a) to Lords amendment 2B.

[Michael Shanks]

I thank all Members of both Houses for their continued scrutiny of this important Bill. In particular, I extend my thanks to my noble Friend the Minister for Energy Security, Lord Hunt of Kings Heath, for his expertise and, dare I say, resilience, which ensured that we reached the resolution that we are here to discuss. Lords amendment 2B was added to the Great British Energy Bill during consideration of Commons amendments, and the Government motion to accept Lords amendment 2B was passed in the other place.

The Great British Energy Bill delivers on our manifesto commitment to establish Great British Energy, which will accelerate clean power deployment, create jobs, boost energy independence and ensure that UK taxpayers, bill payers and communities reap the benefits of clean, secure, home-grown energy. We recognise the breadth of concern across Parliament and from the public on this issue, and particularly on the issue of how Great British Energy will tackle forced labour in its supply chains. Throughout the passage of the Bill, the Government have consistently stated that they wholeheartedly share that concern and agree on the importance of tackling forced labour in supply chains wherever we find it. That is why we tabled Lords amendment 2B, which is the latest move in the Government’s work to tackle the issue of forced labour while we progress towards becoming a global leader in clean energy.

We expect all UK businesses to do everything in their power to remove any instances of forced labour from their supply chains, and Great British Energy will be no different—in fact, we have stated many times that we expect it to be a sector leader on this matter. Lords amendment 2B makes it clear that Great British Energy is committed to adopting measures so that it can take the appropriate steps to act on any evidence of forced labour in its supply chains, as we would expect from any responsible company.

--- Later in debate ---

[Michael Shanks]

My hon. Friend is absolutely right. We want Great British Energy to be a sector leader in this area. It must meet all the standards that we expect from every other company, but we want it to go further and really demonstrate what is possible in this space. He raises a wider question about the importance of Great British Energy to delivering investment in the supply chain, so that we are delivering not just energy security through the clean power mission, but good, industrial jobs. That is what this Bill is all about.

Great British Energy will strive to be a leading example of best practice, not just in this space, but right across corporate due diligence, setting a benchmark for ethical standards in supply chain management. That involves ensuring that human rights considerations are integrated into corporate policies, procurement and suppliers’ conduct; we will draw on guidance from leading experts in the sector, such as the Helena Kennedy Centre at Sheffield Hallam University.

Lords amendment 2B will strengthen our framework. It demonstrates that both Great British Energy and the Government are absolutely committed to maintaining supply chains that are free from forced labour. I urge the House to agree to Lords amendment 2B and the position that the Government have reached on this critical issue.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Minister.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

On 25 March, when we last debated amendments to the Bill, the Minister assured us that the mechanisms for preventing modern slavery in supply chains were adequate, and that the Procurement Act 2023 would provide adequate protection against technology that could have been manufactured using slave labour being deployed in the UK. He confirmed that in the coming weeks, he would convene cross-departmental meetings on that matter, and said that a broad strategy would be developed, through work with the solar taskforce and other Government Departments. Then we had the incredible sight of Labour MPs trooping through the Lobby, being whipped to vote against an amendment that would have prevented Great British Energy from investing in supply chains in which links to modern slavery were proven.

The offshoring of our emissions, our manufacturing base and our skilled jobs is understood and acknowledged to be the result of Labour’s energy policies, but on that day, we also saw the offshoring of Labour’s moral compass. We saw its narrow-minded, ideological obsession with achieving the unachievable: clean power by 2030, at any price and any cost, delivered through solar panels made by slave labour and with coal power in the People’s Republic of China.

Following all that, though, a screeching U-turn took place. Literally weeks after the Government whipped their MPs to vote against the modern slavery amendment the last time the Bill was debated, the Government conceded what we all knew to be the case—that the mechanisms cited by the Minister in this House were simply not up to the job. However, we sincerely welcome the acknowledgement that the UK must take a principled stand. The Procurement Act 2023 and the Modern Slavery Act 2015 were groundbreaking when they were introduced, but it is evident that more needs to be done today to prevent goods tainted by slavery from entering UK supply chains.

[Andrew Bowie]

I wholeheartedly agree with the sentiments expressed by my hon. Friend. He is absolutely right: over the past decade and more, a cross-party consensus was reached in this House about the pernicious nature of modern slavery and the work we must do together to drive it out of supply chains that could be contributing to, or investing in, the United Kingdom. I think we all believe that we have to achieve that. Now that the Government have acknowledged that the mechanisms in the Bill were not up to the job, as we said at the time, I hope that we can revert to cross-party working on this incredibly important issue.

The transition to clean power must be just, as we have said before and as the Minister has said many times, but it is clear that there is no justice where there is slave labour in supply chains, so we are glad that the Government have listened not just to the official Opposition, but to Members from across both Houses. However, there is a serious question: what does this mean for the clean power 2030 mission? If the route to decarbonisation relies on importing technology from China made with slave labour, surely there should be a rethink of whether that mission is conducive to good policy.

We are pleased that the Minister has rowed back from the position that the Great British Energy Bill needed no extra provisions to exclude slave labour from supply chains, and have accepted an amendment that safeguards against slavery and human trafficking. While we welcome the Government’s change of heart, it would be remiss of me not to reiterate for the record that the official Opposition remain resolutely opposed to the creation of Great British Energy, which is not great, not British, and will not produce any energy. The Minister often cites my constituency in Aberdeenshire in these debates because of the location of GB Energy’s headquarters, but I say to him in all sincerity that the people and businesses of north-east Scotland do not want more government. They want government to get out of the way and let them get on with what they do best: extracting oil and gas from the North sea, keeping the lights on and homes warm in our country.

Instead of wasting time on this wasteful vanity project, the Government should lift the ban on licences and work faster on replacing the energy profits levy. That would really create jobs—indeed, it would save jobs—and drive investment in Aberdeen, unlike this Bill. High industrial energy costs are pushing energy-intensive industries such as ceramics and petrochemicals overseas. The impact of those costs is real for industrial communities, and we need to see a real plan that shows that the Government understand that and will act on it.

We are grateful to the Minister for heeding our calls—and, indeed, those of other right hon. and hon. Members—for provisions on slave labour to be included in the Bill, and for listening to the arguments made by Members from all Benches in both Houses. Today, we welcome a small victory, the acceptance of an amendment that seeks to prevent modern slavery in our energy supply chains. That is a positive change to the legislation—legislation that should not exist, but a positive change none the less.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrats spokesperson.

[Pippa Heylings (South Cambridgeshire) (LD)]

I rise in strong support of Lords amendment 2B and the consequential amendment tabled by the hon. Member for Rotherham (Sarah Champion). The Liberal Democrats welcome this key step by the Government towards preventing goods linked to Chinese slave labour from being part of our renewables businesses’ supply chains. The decision, as we have heard, took time, and it is born of pressure from Members of all political parties and the sheer strength of feeling across both Houses. The Great British Energy Bill needed amending, and we thank the Government for reconsidering.

I want to express in particular my appreciation of Lord Alton of Liverpool’s tireless advocacy. Together with Lord Hunt of Kings Heath, the Bill team and colleagues from across both Houses—with important input from the Inter-Parliamentary Alliance on China—there has been a constructive and cross-party effort to confront an issue that is too often left in the shadows: the scourge of modern slavery in our energy supply chains. Groundbreaking investigative research has helped to shine the necessary light on what is at stake. We have heard irrefutable evidence from the BBC, The Guardian, and the world’s foremost expert on Uyghur forced labour, Professor Laura Murphy, that forced labour is being used to produce the solar-grade polysilicon that powers most of the global green transition.

--- Later in debate ---

[Sir Iain Duncan Smith]

On a point of order, Madam Deputy Speaker. I just want to remind the House that the Deputy Speaker in the Chair today is also sanctioned by the Chinese Government for her bravery.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

That is noted, and no doubt on the record again, as it has been previously. Thank you. I will continue with the business.

Lords amendment 2B agreed to.

Data (Use and Access) Bill [Lords] (Programme) (No. 2)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the Data (Use and Access) Bill [Lords] for the purpose of supplementing the Order of 12 February 2025 (Data (Use and Access) Bill [Lords]: Programme):

Consideration of Lords Message

(1) Proceedings on the Lords Message shall (so far as not previously concluded) be brought to a conclusion two hours after their commencement.

Subsequent stages

(2) Any further Message from the Lords may be considered forthwith without any Question being put.

(3) The proceedings on any further Message from the Lords shall (so far as not previously concluded) be brought to a conclusion one hour after their commencement.—(Kate Dearden.)

Question agreed to.

Energy Grid Resilience

Nusrat Ghani Excerpts

Wednesday 30th April 2025 Commons Chamber

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

With permission, Mr Speaker, I will make a statement on the resilience of the UK’s energy grid in the context of the widespread power outages experienced across the Iberian peninsula over the past two days. My thoughts are with all those affected by the widespread disruption across that peninsula on Monday. I am glad to hear that power has now been fully restored across the region.

I want to reassure the House that Great Britain has a highly resilient energy network, and that the incident in Iberia has not impacted Great Britain. The Secretary of State has been in regular contact with the National Energy System Operator over the past two days, and it has provided reassurance that there is no increase in risk to our energy supplies or system stability from this incident.

My Department was informed on Monday 28 April by NESO that a power outage had occurred across the Iberian peninsula, affecting mainland Spain, Portugal, Andorra and areas of France. While all power was restored to the impacted areas yesterday, Tuesday 29 April, the disruption had cascading impacts on other sectors across the vast majority of Spain and Portugal. The cause of the outage is yet to be confirmed; it is likely to take some time for the Spanish network operator to carry out a thorough investigation to determine the exact cause of the failure. Various independent reviews have been commissioned by Spain, Portugal and the European Commission to understand the cause.

Although GB is not directly connected to Spain and Portugal’s grid, NESO is in close contact with European counterparts, and is offering support where needed. The Government are closely monitoring the situation and are in contact with the Spanish and Portuguese authorities to ensure the safety and wellbeing of any British nationals in the affected regions.

I turn to our grid’s resilience, and our preparedness in the context of recent events on the Iberian peninsula. An event similar in impact in Great Britain would be equivalent to a national power outage—a total loss of power across the whole of GB—which is listed on the national risk register as a high-impact but low-likelihood event. In its 75-year history, Great Britain’s national electricity transmission system has never experienced a complete shutdown, or anything on the scale of what has happened in Spain over the past few days.

Our electricity system is highly resilient. The National Energy System Operator continuously monitors the condition of the electricity system to ensure there are sufficient inertia and reserves in the system to manage large losses and prevent large-scale power outages. NESO has also introduced innovative new approaches to managing system stability, as well as advanced safety systems to help to prevent such events from happening in GB. The system is built, designed and operated to cope with the loss of key circuits or systems without causing customer impacts. There are multiple redundant alternative routes through which power can flow should a fault occur, minimising the risk of a single fault cascading across the entire system to cause a total or partial electricity system shutdown.

However, as a responsible Government, we prepare for all eventualities, no matter how unlikely. I would like to reassure the House that the Government work closely with industry to continually improve and maintain the resilience of energy infrastructure, networks and assets to reduce vulnerabilities. This work includes having robust emergency plans, summarised in the national emergency plan for downstream gas and electricity, and regularly exercising emergency plans with the energy industry and Ofgem. That includes an exercise carried out by the previous Government; we have been taking forward the recommendations from that exercise. This work is ongoing across Government to ensure we are as resilient as possible as a nation in all eventualities.

We have also empowered the independent National Energy System Operator to carry out resilience functions across the electricity and gas systems, and will continue to work with industry and regulators to improve and maintain the resilience of old, new and future energy infrastructure. Switching fossil-fuelled generation for home-grown clean energy from renewables, nuclear and other clean technologies is the route to long-term energy security. I will speak more broadly about the UK’s energy resilience in a debate in Westminster Hall on Tuesday.

To conclude, Great Britain has a resilient energy network, and we will ensure that that continues to be the case. I commend this statement to the House.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Minister.

--- Later in debate ---

[Michael Shanks]

I shall start with the more serious of the hon. Gentleman’s questions, and then, in reply to some of his other questions, I might gently remind him who was in office not that long ago. On a serious note, I agree entirely with him on his opening point: the first priority of my Department and the Government is to ensure our energy security. The past few days in Spain and Portugal have brought to light just how much of our day-to-day lives are dependent on a functioning electricity system, so he is right to make that point, and we are very aware of it.

I am surprised that the hon. Gentleman did not recognise the work that the previous Government did on building the renewable system, and on introducing inertia into the system, because that all started a number of years ago. We have a resilient grid in this country, and it is important to continue to have that. That means building new grid infrastructure, which he and a number of his colleagues quite often oppose. It is important to build that grid infrastructure and to invest in it. We will continue to work with NESO and others to understand the full causes of this outage. I will not be drawn into speculation on what may have caused it, because clearly the first priority of the Spanish and Portuguese Governments has been restoring power, but they will carry out investigations to find out the cause, and we will implement any lessons from that.

Finally, the hon. Gentleman was right to reflect on Operation Mighty Oak, which was carried out under the previous Government. We have been taking forward those recommendations right across government. My right hon. Friend the Chancellor of the Duchy of Lancaster is looking at resilience across Government. These are all important points. However, I say gently that energy security is an absolute priority for this Government, which means building the energy infrastructure that this country needs, and not opposing it at every turn.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

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

[Bill Esterson (Sefton Central) (Lab)]

There are some inconvenient truths for those on the Opposition Benches who wish to blame low-carbon energy for what happened in Spain and Portugal. As the Minister has said, the cause of the outage is unknown at this stage. In 2003, when there was a blackout in Switzerland and Italy, and in 2006, when the same happened in Germany, affecting the whole of the continent, there were no renewables in the system. That goes to show that it is far too early to speculate.

Gas sets the price for our electricity 98% of the time in this country. Those who oppose the transition to low-carbon energy generation are opposing energy security for this country. They are opposing lower prices for our constituents and good, well-paid jobs. That is what this agenda is really about.

[Michael Shanks]

I thank the Chair of the Energy Security and Net Zero Committee for his question. Let me reiterate the point that he made and that I will, I suspect, make a number of times during this statement. I will not be drawn on unfounded claims and speculation about what the causes might be. It is rightly for the authorities in Spain and Portugal to carry out the investigations, exactly as it would be if any incident happened here, and for them to share that information. Of course we will be in close contact with them about that, but it is far too early to make any hasty conclusions, particularly when they are based on unfounded claims.

The broader point that my hon. Friend makes is right: constituents right across the country continue to pay too much for their electricity. That is because of the role of gas in setting the price in our system. The more renewables that we build, the more that we push gas off as the marginal price setter, the more that we bring those bills down, and also the more that we make sure that they are not subject to the volatility of the fossil fuel markets as they are at the moment. My hon. Friend is right: this is the right journey for us to be on; it is right for the British economy; and it is right for energy security. The Opposition parties should support that.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

[Claire Young (Thornbury and Yate) (LD)]

I thank the Minister for advance sight of his statement. Our thoughts are with all those affected by these power outages, which are a stark reminder of how key our energy security is to our national security. That is why it is vital that the Government learn from this latest incident by acting now to boost our home-grown energy by supporting community-owned projects and increasing supply chain capacity.

Our constituents will be concerned to know about preparations in this country. What conversations has the Minister had across Government to ensure that the UK has robust plans in place in the event of similar situations occurring here? In particular, can he outline what contingency plans are in place to protect our transport network, our hospitals and urgent healthcare settings and our emergency communication capacity? The latter currently relies heavily on the mobile network for our emergency alert system, as well as being the primary way that most people stay up to date.

--- Later in debate ---

[Michael Shanks]

Storage will be crucial in the clean-power system that we are building. Batteries will play a critical role in making sure that we can store the clean, cheap energy that we are generating for times when we need it most. We have also announced the first long-duration energy storage in 40 years, building the assets that will allow us to store eight hours of power for when it is needed most. Therefore, storage is key in a system such as this. And finally, I am always happy to visit my hon. Friend’s constituency.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call Harriet Cross—and congratulations on your remarkable London marathon time.

[Hon. Members]

Hear, hear!

Onshore Wind and Solar Generation

Nusrat Ghani Excerpts

Wednesday 2nd April 2025 Commons Chamber

[Michael Shanks]

The hon. Gentleman has asked me a number of written questions on this topic to try to get to the heart of the matter, and he is now testing me on the number, which I think we did provide him with in response to one of those written questions. Since it is not on the tip of my tongue, I will write to him with the answer. On the general point, I do accept what he is saying. Part of the reason for the instrument is to try to get to a more rational point where we do not have projects limiting themselves artificially to a level based on a figure.

We settled on 100 MW because we think it strikes the right balance by allowing larger projects that can deliver the outcomes we want in the energy system through the Town and Country Planning Act 1990, while limiting the number of projects coming into the national planning process. We think that balance is right, but we will continue to look at it. The hon. Gentleman has raised important points with me in in written questions that I am happy to discuss with him in more detail.

The Government are mindful that mid and large-scale solar and onshore wind projects that may be preparing to enter the planning system might have already invested and undertaken preparatory steps with the expectation of entering a particular planning regime. Therefore, changing the NSIP criteria at short notice could result in projects entering into a different regime from that which they expected, which could increase costs for developers and cause delays. Therefore, the instrument before us also makes transitional provisions for onshore wind and solar projects that are already in the planning process when the order comes into force. The provisions will therefore ensure that projects already progressing under one regime will not be required to move into a different one.

In conclusion, through consultation, we sought views and supporting evidence on reintroducing onshore wind into the NSIP regime. We received a range of responses from different groups of people. Most agreed with our approach and the majority agreed with the 100 MW threshold. Indeed, although we initially consulted on the idea of a higher threshold of 150 MW, based on the analysis of those consultation responses, we concluded that a 100 MW threshold would be more appropriate and would reflect modern technology.

This instrument is another important step forward in delivering our clean power mission, supporting the deployment of onshore wind and solar and establishing the UK as a clean energy superpower. It supports all our work as a Government on delivering an effective planning system—one that ensures that applications are processed efficiently through an appropriate regime and that avoids distortionary effects on deployment. The measures ultimately aim to support our future energy security and resilience, alongside our 2030 goals and wider decarbonisation targets. I commend the order to the House.

[Madam Deputy Speaker]

I call the shadow Minister.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. I will now announce the result of today’s deferred Division on the draft Ecodesign for Energy-Related Products and Energy Information (Amendment) (Northern Ireland) Regulations 2025. The Ayes were 349 and the Noes were 14, so the Ayes have it.

[The Division list is published at the end of today’s debates.]

We have four more speeches.

Warm Home Discount

Nusrat Ghani Excerpts

Tuesday 25th February 2025 Commons Chamber

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

With your permission, Madam Deputy Speaker, I would like to make a statement about the action we are taking to protect families in the face of the global spike in gas prices. In recent months, wholesale gas prices have risen to their highest level in two years. They are up nearly 15% compared with the previous price cap period. As a result, this morning Ofgem announced the energy price cap will rise by around £9 a month between April and June. We know this will be unwelcome news for families across the country that are already worried about their bills, but as Ofgem’s chief executive officer, Jonathan Brearley, said today,

“our reliance on international gas markets leads to volatile wholesale prices, and continues to drive up bills”.

This week marks three years since Russia’s invasion of Ukraine, and once again the British people are paying the price of our country being exposed to fossil fuel markets controlled by petrostates and dictators. The truth is that every day we remain stuck on gas is another day families, businesses and, indeed, the public finances are at risk from these kinds of price spikes. That is why sprinting to home-grown, clean energy is the only way to end our exposure and our vulnerability as a country. In the meantime, we are determined to do all that we can to protect people, and today I want to set out the measures we are taking.

First, we want to provide greater help to the most vulnerable in time for next winter. The warm home discount currently gives around 3 million families a £150 rebate on their energy bills. The current system provides help to those on means-tested benefits, but excludes millions of people in homes not classified as hard to heat, as a result of criteria introduced by the last Government in 2022. These criteria are seen by many as arbitrary and unreliable, and they mean there are families in almost exactly the same circumstances with some receiving help and others not.

Today, we have announced that we will consult on proposals to abolish this restriction, meaning all households receiving means-tested benefits would be eligible for bills support next winter—from 3 million families in the current system to more than 6 million with our proposals—so that one in five families in Britain would get help with their bills through this scheme, including an additional 900,000 families with children and a total of 1.8 million households in fuel poverty. This Government are determined to do everything in our power to help people struggling to pay their energy bills and support the most vulnerable in our society.

Secondly, because of our exposure to fossil fuels, the cost of living crisis saw bills rocket to £2,500 and families plunged into unstable debt—debt that continues to accumulate today. In the system we have inherited, every bill payer pays for managing this debt burden. We are determined to act on behalf of those in debt and all the bill payers who are paying the costs of it. So we are working closely with Ofgem to accelerate proposals on a debt relief scheme that will support households that have built up unsustainable energy debt through the crisis and have no way of paying it. This will be an important first step to cut the costs of servicing bad energy debt, and under these plans the target would be to reduce the debt allowance paid by all bill payers to pre-crisis levels.

Thirdly, we know that one of the best answers to high bills is upgrading homes so that they are cheaper to run, so we will shortly announce the details of around £0.5 billion pounds of funding under the warm homes local grant and £1.3 billion under the warm homes social housing fund to invest in home upgrades over the coming years and cut fuel poverty. In all, up to 300,000 households will benefit from upgrades in the next financial year through our warm homes plan—whether it is new insulation, double glazing, a heat pump or rooftop solar panels—which is more than double the number supported in the last financial year. We will also ensure that landlords invest in energy efficiency upgrades that will make homes warmer and bring down costs for tenants, lifting up to 1 million people out of fuel poverty, so that we are doing everything we can to ensure people have the security of a home they can afford to heat.

Fourthly, we are clear that we need a regulator that fights for consumers. That is why we have called on Ofgem to use its powers to the maximum to protect consumers by challenging unlawful back billing, taking action on inaccurate bills, driving the smart meter roll-out, giving every family the option of a zero standing charge tariff so they have more choice in how they pay for their energy, and ensuring that compensation is given for wrongful installation of prepayment meters. We are moving forward on our review of Ofgem to ensure it has the powers it needs to stand up for consumers and clamp down on poor behaviour by energy companies.

This set of measures shows a Government willing to use all the powers at our disposal to help protect consumers. However, important as these measures are, I must stress to the House that there is no proper solution to rising energy bills while this country remains exposed to the rollercoaster of fossil fuel markets. That is why this Government are moving at speed to deliver clean power by lifting the onshore wind ban in England, consenting nearly 3 GW of solar, setting up Great British Energy, delivering a record-breaking renewables auction, making it easier to build the next generation of new nuclear power stations, and getting on with the job of implementing the reforms to the planning system, the grid and renewables auctions set out in our clean power action plan.

I have to report to the House, however, that despite the importance of this mission and the fact that we are running it, we continue to receive representations from Opposition parties not to speed up, but to slow down and to reject solar power, reject onshore wind, reject offshore wind and reject new transmission infrastructure—representations that, if accepted, would leave us more vulnerable and more insecure, with the British people paying the price. Let me tell the House that we will reject those representations. We know that every solar panel we put up, every wind turbine we build and every piece of transmission infrastructure we construct makes us more secure, and every time the Conservatives oppose those measures, they double down on their legacy of leaving this country exposed and the British people deeply vulnerable.

This Government will do whatever it takes to stand up for working people now and in the future—protecting families and businesses from the consequences of global events, driving forward our plans to bring down bills for good and doing everything in our power to support those most in need. I commend this statement to the House.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Minister.

--- Later in debate ---

[Miatta Fahnbulleh]

My hon. Friend is absolutely right. We have an energy market that does not work sufficiently in the interest of consumers, and we are committed to turning that around. That is why we are reforming the electricity market, why we are trying to drive forward a shift from fossil fuels to clean power, and why we are putting in place the review of Ofgem, to ensure that customers and consumers are at the very heart of everything we do in the energy market. This is an important step to supporting households in the short term. We took action this winter, with up to £1 billion of support through Government and industry to help the most vulnerable customers, and the measures announced today will ensure that we will provide support next winter. However, it is not the end of our ambition; it is the start of our ambition to reform the energy market.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

[Vikki Slade (Mid Dorset and North Poole) (LD)]

I thank the Minister for advance sight of her statement. It is deeply troubling that we remain so reliant on the foreign gas markets and that, as a result, vulnerable people in this country will see an increase in their bills.

I completely welcome the proposals to expand the warm home discount. No one should have to choose between heating and eating—we all know that. However, the reality is that we have to get beyond that issue and reduce consumption, instead of just handing public money to our energy giants. The Lib Dems have been calling for a 10-year emergency home insulation plan for a long time, and it was disappointing that the amendment tabled to the Great British Energy Bill by my hon. Friend the Member for South Cambridgeshire (Pippa Heylings) was not taken up, so I would be grateful if that could be looked at again in any other scope.

What timeline can we expect for the upgrade of building standards for new homes and the decent homes standard for existing properties, so that people are not having to consume as much electricity and gas? Until all homes are properly insulated, what progress has been made on requiring all energy companies to sign up to a single social tariff, paying particular attention to the pensioners left cold after the removal of the winter fuel allowance?

I was contacted by Michael from H2-ecO, a company that does lots of retrofitting, who told me about the home upgrade grant, affectionately known as HUG, which is ending in March, when it is due to be replaced immediately, with continuity, by the warm homes local grant. The company was told on Friday that it will not be continued, and that there will be a pause—five weeks before the scheme ends. People have been told that they would be able to pre-register, but now they are told that there will be a pause. They asked me to tell you that they are concerned that they will lose their contractors [Interruption.] Sorry—not you, Madam Deputy Speaker, but the Minister. I apologise.

--- Later in debate ---

[Madam Deputy Speaker]

Order. You have two minutes for your contribution, and you are just over that. If you could come to a conclusion, that would be great.

[Vikki Slade]

I absolutely will, Madam Deputy Speaker. They asked me to ask you—sorry, they asked me to ask the Minister what guarantee can be offered that the scheme will open immediately, and not be slowed by reviews, and when will you set out your long-term plans before 2026?

[Madam Deputy Speaker]

When will you set those out, Minister, since I will not be responding at the Dispatch Box?

[Miatta Fahnbulleh]

The hon. Lady is right that insulating and upgrading people’s homes is the route by which we will reduce bills and deliver homes that are warmer and cheaper to run. That is why we are absolutely committed to the warm homes plan. Rather than there being a pause, we are running at this.

Next financial year, 300,000 homes will be upgraded, which is double the number in the previous financial year, and that is just the start for our warm homes plan. We are working with colleagues in the Ministry of Housing, Communities and Local Government to bring forward the future homes and buildings standards. Critically, we have spoken to industry, installers and local government, and we are acutely aware that there should and cannot be a hiatus. We are moving forward with the local grant and the warm homes social housing scheme to ensure that there is not one. I ask the hon. Lady to write with the specifics of that scheme, because we are trying to design it to stop that.

Critically, on the social tariff, we are clear that clean power is the route by which we will bear down on energy costs in the long term, but that we will need to support the most vulnerable customers as we get there. There are different ways to design a social tariff, and we are looking at options for how to support the most vulnerable at the moment, and the warm home discount is a key part of delivering that.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call Luke Murphy, a member of the Energy Security and Net Zero Committee.

[Luke Murphy (Basingstoke) (Lab)]

Many of my constituents, like others across the country, will be concerned about the increase in their energy bills announced today. I therefore welcome the Government’s extension of the warm home discount, as well as the measures to tackle unsustainable debt and push the regulator to do more to support consumers.

I must say that the shadow Minister talks as if his Government left a legacy of low energy prices, when it was his Government who left an appalling legacy of high energy prices. I have stood in both this Chamber and Westminster Hall and heard shadow Ministers attack renewables and electric vehicles—do they not realise that they are attacking the very means of bringing down the cost of energy? Does the Minister agree that our clean energy mission and renewables is the fastest way to ensure we end our dependence on volatile fossil fuels, which also leaves us at the mercy of Vladimir Putin?

--- Later in debate ---

[Miatta Fahnbulleh]

I thank my hon. Friend—that was well said.

The Conservative party left us with the highest energy prices that we have seen in a generation. That is a legacy that, quite frankly, should see them hang their heads in shame. Rather than criticising us for trying to unpick and deal with their legacies, I would strongly caution them to support our action. [Interruption.] It is their legacy!

My hon. Friend is right: the way that we get out of this bind, left by and inherited from the Conservative party, is through clean power, delivering renewables that we know are cheaper and clean power by 2030. My hon. Friend is right; the Conservative party continues to be misguided. Thankfully, we are in the driving seat.

[Madam Deputy Speaker]

I call a member of the Energy Security and Net Zero Committee, Bradley Thomas.

[Bradley Thomas (Bromsgrove) (Con)]

Rising energy costs affect not just households but industry. Sir Jim Ratcliffe has said that deindustrialising Britain is a false economy because it “shifts production and emissions elsewhere”. Can the Minister tell the House what is more important: chasing an arbitrary target or protecting industry and jobs?

--- Later in debate ---

[Miatta Fahnbulleh]

My hon. Friend is completely right: the previous Government failed to insulate and upgrade enough homes to protect people from energy price hikes. Conservative Members are hanging their heads in shame and rightly so. She is also right that we are committed to upgrading hundreds of thousands of homes. That is critical. The way that we ensure that households are insulated from price rises and the way that we drive down prices is to upgrade those homes. That is a central part of our plan. We are already running at it with 300,000 homes in the coming year, but we will build on that, because we want to ensure that homes across the country benefit.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call a member of the Energy Security and Net Zero Committee.

[Claire Young (Thornbury and Yate) (LD)]

Chopping and changing home upgrade schemes, as we saw under the previous Conservative Government, causes uncertainty and confusion, which is damaging for both consumers and installers alike. Will this Government avoid that mistake by setting out long-term plans for energy efficiency schemes that go beyond 2026?

--- Later in debate ---

[Ann Davies (Caerfyrddin) (PC)]

Extending the warm home discount to all households that receive means-tested benefits could make a difference to many, especially those who have not received their winter fuel payment this winter. However, £150 off will not go far enough to help the 56% of adults in Wales likely to ration their energy over the next three months, according to National Energy Action Cymru. With the energy price cap rising again in April, will the Minister admit that we need long-term solutions that ensure energy affordability, such as the social energy tariff, which I have asked for since I came to this House last July, in order to support—

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order.

[Miatta Fahnbulleh]

I agree that we need long-term solutions. That is why we have talked constantly about the clean power mission, and why we are clear that while we make the transition to clean power, we will support the most vulnerable households. As an important first step, we are extending support next winter to over 6 million people who we know are struggling. We will continue to build on that in the weeks and months ahead.

Energy Development Proposals: Mid Buckinghamshire

Nusrat Ghani Excerpts

Monday 3rd February 2025 Commons Chamber

[Greg Smith]

It would not be an Adjournment debate without the hon. Gentleman. I am interested to see how he will get Mid Buckinghamshire into his intervention. I am all ears.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I remind you, Mr Shannon, that this debate is about energy development proposals in Mid Buckinghamshire. We are ready for your intervention.

[Jim Shannon]

The hon. Gentleman mentioned the importance of land. The priority for agricultural land is to provide the food to feed this nation, not for solar energy projects that clog and take away the land. My constituency is similar to his, and my interest is to ensure that that good land is kept for the production of food, as it should be.

Great British Energy Bill

Nusrat Ghani Excerpts

Report stage
Tuesday 29th October 2024 Commons Chamber

[Harriet Cross]

I certainly hope that we will have the opportunity to do so, but as I am setting out, the Government’s proposals for the North sea in respect of taxation and cutting down on licences do not guarantee that. As much as I and the hon. Member want and need for that to be the case for our constituents, we cannot guarantee it. That is why it is so important that we get the transition right.

The Bill must include consideration of the impact on the public. Communities such as Leylodge and Kintore in my constituency face unprecedented infrastructure pressures. Those communities have seen a 3 GW hydrogen plant, an expanded substation, multiple battery facilities and new pylons. What are their statutory protections? What assurances are there in the Bill that certain communities will not be over-saturated with an unsustainable amount of infrastructure?

Before the election, the Labour party claimed that GB Energy would reduce household bills by £300. Since then, Ministers have not repeated the promise and have not explained when or how it will be achieved. I am sure that the Labour Government would not want us to think that that promise was simply a headline-grabbing figure before an election, so I look forward to their clarifying that commitment and voting for our amendments on that figure.

Let me move on to the jobs of today and the jobs of tomorrow. We hear that GB Energy will create 650,000 jobs—apparently, 69,000 of them will be in Scotland, which, if delivered, would be welcome—but as is the running theme in this Bill, we do not have sufficient detail to offer even a grain of certainty to comfort those whose jobs are on the line now. Existing oil and gas and supply chain businesses in Aberdeen, Aberdeenshire and the north-east need a timeline so that they can plan their business and workforce. How, when and where will jobs be created? What kind of jobs and skills will be required?

Of course, we now have certainty that one job will not be coming to Scotland, as we hear that the CEO will be based in Manchester. Is Aberdeen a headquarters in name but not in nature? We already know that there will be satellite sites in Edinburgh and Glasgow. Which other executive management jobs will not be based in Aberdeen? We in north-east Scotland are not buttoned up the back, so will the Minister confirm today that Aberdeen is still the headquarters for GB Energy—and I mean that in no other way than the meaning that the general public would understand?

The funding may not be sufficient, the overall energy strategy is incoherent and there is no clarity on the delivery of jobs or any mention of £300 energy bill savings, but surely the Bill offers certainty to the very industry that will deliver the energy transition. That brings me to the strategic statement. One thing that we know for sure is that we do not know all we need to know about what GB Energy will do. As a result, the uncertainty will continue. For communities such as mine in Gordon and Buchan, and for businesses, supply chains and those working in the existing energy industry, that is profound. We need to know how those communities will be brought with us in the transition—if it is, indeed, to be a just transition.

GB Energy will not generate energy, but it cannot instead generate mass redundancies across north-east Scotland. As has been mentioned, the Bill gives the Secretary of State extensive power to dictate what is in the strategic statement, and he has given himself the huge responsibility of ensuring that GB Energy delivers its aims. The work of the existing energy industry, and of communities such as Gordon and Buchan, must be taken into account. If it is not, the transition to cleaner, greener energies will be less efficient, less affordable and less possible. As such, I sincerely ask that the Secretary of State prepares the strategic priorities in a timely manner, taking account of stakeholders in the industry, the impacted communities, the current jobs and skills, and the existing businesses that are the bedrock of our future energy generation.

Because the Bill gives us all but no clarity on what is going to happen, the strategic statement—which we are all waiting for—is going to be the key document in dictating whether it will or will not be a success. As I said at the start of my speech, I want it to be a success; I want the UK to be a clean energy superpower, just as we are, and always were, an oil and gas superpower. If we get this right, that superpower status will drive the economy and jobs of the future. We cannot allow investment to be lost, because that means that investment in new technologies will be lost.

If we lose the expertise, the supply chains and the private investment because of the way this Bill is handled and how GB Energy is handled—there is no guarantee that private investment will stay in the UK just because GB Energy has been created—we will look back at this time and wish we had done things differently. I really do not want to be in that situation, because it is my communities in Gordon and Buchan and in north-east Scotland who will suffer the most.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

In a debate like this, it is important for Members to ensure that they link their contributions to the amendments we are addressing. I call Polly Billington.

[Ms Billington]

Thank you, Madam Deputy Speaker. I will speak specifically to the amendments on community energy, and I refer the House to my entry in the Register of Members’ Financial Interests.

Back in 2016, I founded UK100, a network of local government leaders who are ambitious about shifting their communities and their economies to net zero. It is because of that experience, working with local leaders of all political persuasions across the country, that I would like to highlight the importance of a local-led approach to reaching our net zero targets. GB Energy will be able to play a crucial role in doing so by facilitating and encouraging local authorities to meet the ambitious net zero targets that have been set across the country. People will be familiar with the ambitions of big cities such as Leeds, Liverpool, Birmingham, Bristol and Brighton—to name but a few—but towns and villages in rural and coastal communities have also made those commitments. That is why community energy is so vital, and why it is so much a part of this Government’s overall project and of this Bill.

Through the local power plan, GB Energy will be able to work with local and combined authorities to deliver hundreds of millions of pounds of funding to small and medium-scale clean energy projects, helping to turn those ambitious targets into reality. GB Energy will also be able to work with communities across the country to help deliver that local-led approach. I have seen some great real-world examples of community-led climate projects. For example, Green Meadows is a community climate action project in Nottingham, funded by the National Lottery’s climate action fund, that aims to deliver home insulation, clean energy generation for local homes, planting projects and workshops to give residents the tools and skills they need to install their own energy upgrades.

With no disrespect to the National Lottery’s fund, we need a more strategic approach to the local delivery of clean, home-grown, secure energy. That is the role of the GB Energy company. By working with communities and local people, GB Energy will be able to play a crucial role in building consent and support for clean energy projects, in order to reach our ambitious targets and avoid a backlash to net zero—we have already seen that backlash, particularly driven by some of the attitudes of the Conservative party. We have to bring people along with us and show them how they can tangibly benefit from the transition.

Net zero must not be something we do to people; it must be something we do with people. If we do not work with communities, we will face resistance across the country, but not because people are against tackling climate change. By involving people and showing them how they can tangibly benefit, we will face less resistance and deliver much quicker deployment of the energy projects we need to build. Swaffham Prior, which was mentioned by the hon. Member for South Cambridgeshire (Pippa Heylings), is indeed a valuable project, but we cannot leave the transition to projects of that scale. To support community projects at scale, we need a transformative approach that is about transforming the rules of the market as much as it is about establishing GB Energy. Lastly, de-risking those projects—both at scale and community assets—will be a vital role of GB Energy.

Reaching net zero will be a partnership between the state, the private sector and the community. Government investment to help “crowd in” that private sector and community investment will be crucial. In that context, we often talk about new and developing technologies, but it is crucial not to forget existing, proven technologies.

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[Pippa Heylings]

I think I will intervene, if that is okay with you, Madam Deputy Speaker. We welcome that question from the hon. Member for East Thanet (Ms Billington). In fact, there are multiple ownership models, so it is quite right to get clarification. Some of these will need investments from other companies, but others will—

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. Please be seated. We have a speech mid-flow. Is that correct?

[Caroline Voaden]

indicated assent.

[Madam Deputy Speaker]

Then please continue. If you wish to respond to that intervention, you may do so, and I will go to another speaker afterwards.

[Caroline Voaden]

Thank you, Madam Deputy Speaker.

To guarantee that local communities receive a fair share of the wealth generated from community energy projects, it is crucial that these are at the heart of the Bill, so I would welcome the Government’s support for amendment 5.

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[Dave Doogan]

I am not sure what the hon. Gentleman is driving at, but if he wants to get in touch with me after the debate, I will be happy to discuss it further.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. We are debating the amendments to the Bill, not SNP policy.

[Dave Doogan]

Well, indeed.

Will the Minister advise us whether we are talking about GB electricity or GB energy? I would be keen to know what investments and ambition this supposedly state-owned company—I have to grit my teeth when I say that, because it is actually little more than a trading fund—will be involved in? Will it be involved in carbon capture, utilisation and storage? Will it be involved in attenuated hydro? Will it be involved in pumped storage, geothermal or hydrogen? What are the limits of GB Energy? That is not in the Bill, and we do not understand what it will deliver. As other hon. Members have asked, what is the Government’s ambition on GB Energy when it comes to Grangemouth? Is it just limited to the common or garden production of electricity?

I will not vote with the Government on the Bill. I do not want to condemn it as an election prop that is now desperately looking for some sort of function—I hope it amounts to more than that—but I will vote for the amendments, and so will my colleagues, to try to make some sense of the Bill.

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[Several hon. Members rose—]

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. To ensure that I can call everybody in the time remaining, Back-Bench speeches will be limited to three minutes, after a maiden speech by Iqbal Mohamed.

[Iqbal Mohamed (Dewsbury and Batley) (Ind)]

Thank you, Madam Deputy Speaker, for giving me the opportunity to make my maiden speech today. I congratulate my hon. Friends the Members for Bolsover (Natalie Fleet) and for Erewash (Adam Thompson) on their excellent maiden speeches. They have set a high bar that I will struggle to match.

I thank the people of Dewsbury and Batley for the trust they have placed in me. I am honoured and humbled to be their representative and a voice for all residents. Dewsbury and Batley is a newly formed constituency, so I thank my two predecessors. First, I thank my hon. Friend the Member for Spen Valley (Kim Leadbeater) for her service as the MP for Batley and Spen. She helped secure funding for the town centre, and became an MBE for helping to promote social cohesion and tackling loneliness. I wish her well as the new Member for Spen Valley.

Secondly, I thank Mark Eastwood for his service as the MP for Dewsbury. He was a man of great perseverance and helped secure over £40 million in funding for the town. I am honoured to follow Mark as the second locally born and bred MP for Dewsbury.

I stand here as the eldest of six children born to Gujarati Indian immigrants who came here in the ’60s. I am an immensely proud, passionate and no-nonsense British Indian Muslim Yorkshireman who grew up on a council estate in Dewsbury Moor on free school meals and uniforms. My late father, Gulam Ahmed, and my mother, Noorjhan Fatima, gave us love, put food in our bellies and taught us proper British and Islamic values, such as honesty, integrity, hard work, friendship, compassion and wanting the best for others.

My political journey started when I was around nine or 10 years old. I remember standing in front of my parents’ wardrobe mirror and asking God to make me one of two things when I grew up. I asked to be either a “Blue Peter” presenter, because a job that paid you to travel the world, do amazing activities and be on TV was surely the best gig in town, or—and I did not know why at the time—I asked God to make me a parliamentarian. I remember looking down at the colour of my skin and thinking that that might be difficult, but here I am today in the most diverse Parliament in history, where I look forward to breaking down barriers, making friends, doing good and preventing harm. If a “Blue Peter” producer is watching, however, I am still available for a guest appearance or a Christmas special.

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Finally, amendment 15 would require express consent—

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call Nick Timothy.

[Nick Timothy]

I shall speak briefly about amendment 6 tabled by my right hon. Friend the Member for East Surrey (Claire Coutinho).

In this debate, we have heard much from Government Members about cleaner and cheaper energy, not much of which has been connected to reality. This has been exposed by Labour’s campaigning before the election, promising £300 off bills, only to drop that commitment as soon as the party entered government. That disconnect, as I have said, has been present throughout the debate.

Blind faith in renewable technology without the acceptance of the intermittency challenges and costs of wind and solar will lead to less security of supply and higher costs for industry and households. We cannot allow policy to run faster than technology without risking a crisis in the grid and, therefore, in our economy. We need baseload power, which means nuclear—where the Secretary of State is going slow—and oil and gas, where the Secretary of State is refusing new licences. To pursue the ideological objectives of the Secretary of State, we see giant solar farms forced on communities like mine, against expert advice by examining authorities, contrary to the quasi-judicial responsibilities of the Secretary of State and dependent on solar panels made by slaves in Xinjiang. I say enough of the nonsense about fossil fuels and the dependence on dictators.

Tomorrow the Chancellor of the Exchequer will announce her intention to borrow to invest. We know that the borrowing will not just be for investment, but what investment there is will be dominated by energy schemes that will cost more to do less. We do have an underinvested economy, but net zero zealotry will make the problem worse, not better.

[Madam Deputy Speaker]

I call the Minister.

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

I thank all Members who have made contributions to the debate, and I am grateful for all the points raised in Committee. I thank the witnesses who gave their time to the Committee, as well as the Clerks, House staff and civil servants, who put so much work into legislation such as this. I apologise to the House in advance both for the speed of my speaking and the speed with which I will have to go through the amendments—there is not a huge amount of time left.

First, I want to highlight the three maiden speeches that we have heard today. My hon. Friend the Member for Bolsover (Natalie Fleet) gave an incredibly emotional speech, and spoke passionately about the importance of the state having an impact on people’s lives. I also pay tribute to my hon. Friend the Member for Erewash (Adam Thompson) for telling us, apart from anything else, how to pronounce his constituency, and to the hon. Member for Dewsbury and Batley (Iqbal Mohamed), who I am sure will at least receive a Blue Peter badge in the post for his speech.

Great British Energy is at the heart of our clean power mission, and the Bill provides the statutory basis for it, enabling the Government to deliver on the ambitions that we set out during the election and that the country voted for so resoundingly just a few months ago. Let me turn to the amendments. New clause 1, in the name of the right hon. Member for East Surrey (Claire Coutinho), would create additional reporting mechanisms for Great British Energy. I agree with her that Great British Energy should be accountable, transparent and open in all its dealings and in how it delivers a return on investment. That is why we have made provision in the Bill to ensure that regular updates are given in the form of annual reports and accounts, which will be laid before Parliament for all Members to review. Of course, as a company, it will undergo external audit in the usual manner. As I outlined in Committee, my view remains that adding additional requirements at such frequent intervals is disproportionate and will stop the company from getting on with delivering its mission.

On amendments 6 and 7 in the name of the right hon. Member for East Surrey, and amendment 1 in the name of the right hon. Member for Aberdeen South (Stephen Flynn), every family and business in this country has paid the price for our dependence on fossil fuels during the cost of living crisis. Speeding up the roll-out of clean energy is the only way to get our country off the rollercoaster of volatile international gas markets and to protect families from future energy shocks. That is the argument that the Conservative party used to support but that it seems increasingly to distance itself from, as it has with so many principled positions.

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[Michael Shanks]

I do not have time—I have a minute in which to finish.

I hope the hon. Member for South Cambridgeshire will recognise that there is really no need to put an amendment such as this one on the face of the Bill. Turning to her amendment on the topic of community energy, she will know, however, that I am passionate about community energy, as are the Government. It will form an integral part of Great British Energy’s local power plan, which will put communities at the heart of the energy transition, giving them a stake in the shift to net zero. As a member of not just the Labour party but the Co-operative party, that is at the heart of my politics and that of many of my hon. Friends. We have been advocating for community energy for decades—this is not a new idea for us—and empowering communities is critical. The hon. Lady and I share that passion and a commitment to community energy.

I can assure the House that the Department is looking to take a cross-government approach—not just through Great British Energy but, crucially, on a number of the points that have been made—to ensuring that community energy projects can be delivered, with all the changes to planning and governance that are required to make that happen. I always want to work with Members across this House, and have done so throughout the passage of the Bill. We continue to engage with the Liberal Democrats and other interested parties on this important issue, exploring options to ensure the Bill has the effects they are seeking. I look forward to further such discussions in the weeks and months ahead. I hope all who have tabled or spoken to amendments today will feel reassured by what I have outlined—albeit considerably more briefly than I was expecting—and will perhaps feel able to withdraw, or not move, their amendments.

This is a truly historic Bill, delivering on the Government’s promise to establish a new national, publicly owned energy champion for our country. It has been a privilege to take it through Committee, and I repeat my sincere thanks to everyone involved in that process. Great British Energy is the right idea for energy security, for bills, for jobs, and for delivering the climate leadership that the people of this country demand of their Government. It is the right idea for our time, hugely supported by the British public, and I urge all Members of the House to support it this evening.

[Madam Deputy Speaker]

I call the shadow Minister.

[Claire Coutinho]

I also thank the Minister for his work in Committee, but I am afraid we are not reassured. Labour Members have a clear opportunity to prove to their constituents that they will stick to the promises they made just a few months ago. They promised to cut energy bills by £300 and to create 650,000 jobs; if Labour Members do not vote for amendments 6 and 8 this evening, we will know that they never had any intention of delivering on those promises. With the leave of the House, I will seek to withdraw new clause 1, which stands in my name, but we look forward to dividing the House on amendments 6 and 8.

I beg to ask leave to withdraw the clause.

Clause, by leave, withdrawn.

Clause 3

Objects

Amendment proposed: 4, page 2, line 18, at end insert—

“(e) an emergency home insulation programme with targeted support for people on low incomes, and

(f) the expansion and development of renewable energy and technology.”—(Pippa Heylings.)

This amendment would set objects for Great British Energy of facilitating, encouraging and participating in an emergency home insulation programme with targeted support for people on low incomes, and the expansion and development of renewable energy and technology.

Question put, That the amendment be made.

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[Ed Miliband]

My hon. Friend has made really important interventions on this point. We have been clear that no company in the UK should have forced labour in its supply chain, and we will be working with colleagues across Government to tackle the issue of the Uyghur forced labour in supply chains that she has raised during the passage of the Bill. As part of that, we have relaunched the solar taskforce and we will work with industry, trade unions and others to take forward the actions needed to develop supply chains that are resilient, sustainable and free from forced labour.

Great British Energy is the national champion that our country needs, for three reasons. First, it is at the heart of our mission to make Britain a clean energy superpower. Every family and business has paid the price for our country’s exposure to volatile fossil fuel markets over the last two and a half years. A sprint to clean energy is the way to increase our energy independence and protect families and businesses. We need to invest in wind, solar, nuclear, tidal, hydrogen, carbon capture and more—geothermal too.

Secondly, Great British Energy will help to generate the jobs the UK needs, not just the power. Here’s the thing: our European neighbours recognise that a publicly owned national champion is a critical tool in industrial policy, and the good news is that after 14 years of industrial policy being a dirty, taboo phrase, it is back at the heart of policy making in this Government. Great British Energy is part of our plan to ensure that the future is made and built in Britain.

Thirdly, Great British Energy will ensure that the British people reap the benefits of our natural energy resources, generating profits that can be returned to bill payers, taxpayers and communities across the country. I know that many Members of the House are passionate about the issue of local power, so let me reassure them that the Government are committed to delivering the biggest expansion of support for community-owned energy in history.

Great British Energy is the right idea for our time and has in a short time won huge support. I am sorry that the Opposition have chosen to wallow in their minority status and stand out against it, but let me tell them: their vote tonight will have consequences. For every project that Great British Energy announces in constituencies around Britain, every job that it creates, every local solar project it initiates and every wind project it invests in, we will tell their constituents that they opposed it. They are the anti-jobs, pro-energy-insecurity party, and we will hang their opposition to GBE round their necks from here till the next general election. Invest or decline: that is the choice, and GBE is the right choice for energy security, bills and jobs. I commend the Bill to the House.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Secretary of State.