Biomass Generation

Paul Waugh Excerpts

Monday 10th February 2025 Commons Chamber

[Michael Shanks]

My hon. Friend summarises the importance of the deal clearly. We have limited the expected rate of return for Drax to a level below that of monopolies regulated by Ofgem. We have halved the subsidies provided to Drax that were in every single deal from the Conservative party, year after year, saving £170 million each year of the agreement. We have introduced a windfall tax with 30% and 60% rates to be clawed back should Drax have excess profits. We are delivering on energy security and on tougher sustainability requirements, but at the heart of the deal is better value for money for the hard-working people of this country.

[Paul Waugh (Rochdale) (Lab/Co-op)]

Drax has been a greenwashing con that has ripped off the British public for far too long, so I welcome the statement. The Minister and the Energy Secretary have done more than eight previous Tory Energy Ministers, and indeed one Lib Dem Secretary of State. I welcome the move to slash the subsidy for Drax and to enforce 100% sustainability targets on its supply chains. But when the Minister talks about a windfall mechanism, may I gently urge him to call a spade a spade? This is a windfall tax on Drax and we should be proud of saying so.

[Michael Shanks]

At the risk of getting into trouble with those responsible for tax matters, I simply say that this is a windfall mechanism that does exactly the same thing, and it does exactly what the Conservatives failed to do in 14 years, which is to ensure that there is a good deal and good value for money for the British public, delivering on energy security and, crucially, getting us to a point where our clean power plan for 2030 delivers energy security, climate leadership and jobs right across the country. It is the ambition of doing something different in this country and doing it fast, and we are committed to delivering it.