Oral Answers to Questions

Peter Aldous Excerpts

Tuesday 19th September 2023 Commons Chamber

The Secretary of State was asked—

[Peter Aldous (Waveney) (Con)]

1. What recent assessment she has made of the effectiveness of the contracts for difference scheme in supporting low-carbon electricity generation.

[Selaine Saxby (North Devon) (Con)]

2. What assessment she has made of the potential implications of the outcome of the contracts for difference allocation round 5 on the future development of floating offshore wind.

[The Secretary of State for Energy Security and Net Zero (Claire Coutinho)]

Our contracts for difference scheme is a UK success story, having contracted more than 30 GW of capacity, including 20 GW of offshore wind, since 2014. AR5 delivered a record number of clean energy projects, enough to power the equivalent of 2 million homes, and the Government’s commitment to offshore wind remains unchanged, which is 50 GW by 2030.

[Peter Aldous]

I welcome my right hon. Friend to her place. The great advantage of the CfD scheme is that with forward planning it has the flexibility to adapt to changing economic conditions. Can she therefore confirm that the Government will be working collaboratively and straightaway with industry to ensure a successful round 6 so that offshore wind can get back on track, and UK consumers and the UK economy can benefit from low-cost, low-carbon energy?

[Claire Coutinho]

I thank my hon. Friend for his long-standing support in this area and I can confirm that we are wasting no time in engaging the sector in advance of AR6. I personally spoke to offshore wind stakeholders following AR5 and confirmed our commitment. The Minister for Energy Security and Net Zero held a roundtable with the sector on 12 September. We are listening to the sector and annual auctions mean we can respond quickly.

--- Later in debate ---

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

The hon. Gentleman will be aware that the Government are raising a 75% energy profits levy, and he will also be aware that standing charges are a matter for Ofgem. Let me reiterate, however, that we are mindful of the cost of living crisis and have been providing support with the warm home discount, the £900 cost of living payment, and a raft of other measures to support people through this crisis.

[Peter Aldous (Waveney) (Con)]

T2. The launch last week of the Great British insulation scheme was very welcome. So as to build on this and to kickstart a mass retrofitting revolution, will my hon. Friend liaise with the Treasury to obtain its support for the introduction of such fiscal measures as an energy-saving stamp duty and an employee benefits scheme similar to the cycle to work scheme?

[Amanda Solloway]

The Government set the aspiration in the clean growth strategy of upgrading as many homes as possible to energy performance certificate band C by 2035, where practical, cost-effective and affordable. We remain committed to that aspiration. Although tax policy sits with the Treasury, we are considering how to improve energy efficiency for owner-occupied homes and plan to consult by the end of 2023.