Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he has made an assessment of the potential merits of allowing hon. Members to access (a) the KPMG interim report of December 2022 and (b) the full NESO report on the alternatives to burning 27 million trees a year.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The KPMG report is an internal fact-finding document, commissioned by Drax to review their biomass supply chain against the sustainability requirements of existing arrangements. Whilst DESNZ Officials were granted time limited access to view the report, we do not hold a copy. We therefore have no means or rights to share the report.
NESO published a summary of its advice to DESNZ (here). Given the focus of this analysis is on specific companies, it is commercially sensitive and cannot be shared publicly. This is the right approach to ensure security of our electricity system at a fair price for consumers.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he plans to legislate to prevent the Drax power station burning wood from primary forests for producing non-subsidised electricity.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government only provides support for biomass sourced from forests which are sustainably managed.
Under the agreed Heads of Terms for short term support from 2027-2031, Drax must source 100% of its biomass from sustainable sources, and must exclude primary forest to receive support. Drax will be supported at a 27% load factor and we do not anticipate they will be incentivised to generate further, without subsidies.
Nevertheless, we are considering further options through the new contract and the consultation on the Common Biomass Sustainability Framework to provide additional protection for primary forests.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether his Department has issued a response to BBC Panorama’s reports that the Drax powerplant has burned wood from primary forest sites.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Following the Panorama reports, Ofgem, as the independent regulator, conducted a comprehensive investigation into Drax’s sustainability arrangements and concluded that, whilst no subsidies were issued for unsustainable biomass, there was an absence of adequate data governance and controls. We are confident in Ofgem’s conclusion, and Drax accepted the findings of the investigation and made a voluntary redress payment of £25m.
Further to this, we have tightened the sustainability criteria under the new Contract for Difference, including strict provisions to exclude material sourced from primary and old growth forests under the contract.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, when he plans to stop unabated burning of wood at Drax power station.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government has agreed Heads of Terms with Drax for time-limited support from 2027 to 2031. The National Energy System Operator advised that without Drax we would face increased security of supply risks from 2027 to 2031. No decisions have been made on Drax’s future after 2031.
Over the next decade, more and more of our ageing gas and nuclear assets will retire. Government is bringing forward options for low carbon dispatchable power such as hydrogen and gas with carbon capture. But energy security is essential and we will retain existing assets where it is in the country’s interest to do so.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether the trees burnt at the Drax power station are imported and transported on diesel freighters.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Drax sources the vast majority of its supply of biomass pellets from the US, with a small percentage from Canada, and elsewhere. It transports pellets to the UK by shipping them on bulk carriers, unloading at ports including Immingham, Liverpool and Port of Tyne before final transport to the Drax site by rail. Bulk transport of biomass pellets can be a highly carbon-efficient way of moving material across large distances.
Under the new arrangements agreed with Drax we have strengthened the supply chain emissions threshold in line with European standards.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether his proposed extension of subsidies for the Drax power station would raise the guaranteed strike price for the company from £100 MW/h to £113 MW/h.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The new CfD arrangement caps the volume of supported generation to an annual load factor of 27% compared to Drax’s current 65%. This incentivises dispatchable biomass generation only when the system needs it, ensuring consumers can benefit from cheaper wind and solar power at other times.
The new arrangement is estimated to halve subsidies to Drax, saving around £6 per household per year compared to current arrangements. The strike price for the new CfD is £113 (2012 prices) compared to £100 MWh currently. This modest increase reflects that Drax’s fixed operating costs will be spread over fewer units of generation, but consumers get more valuable power for lower overall subsidy.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he is taking steps (a) reduce and (b) remove policy costs on electricity bills.
Answered by Miatta Fahnbulleh - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government believes that our mission to deliver clean power by 2030 is the best way to break our dependence on global fossil fuel markets and protect billpayers permanently. With this, the Government is also committed to ensuring a fair and affordable transition to Net Zero while considering the impact of policy costs on all energy consumers.
NESO’s advice in their Clean Power 2030 Report on the impact of clean power on energy bills finds that a 2030 clean power system can be cheaper for the consumer than the one we have today.
Policy costs, or levies, fund essential schemes that have delivered significant benefits, including increasing renewable generation capacity and reducing reliance on fossil fuels. The Department keeps the aggregate impact of these policies under review.
The Government’s main mechanism to invest in new renewables capacity are our Contracts for Difference. We have consulted on reforms to the Contracts for Difference, which are intended to ensure we secure the capacity needed to deliver Clean Power by 2030, whilst minimising the costs to consumers. The Government will publish a response with a view to implementing any changes in time for Allocation Round 7 to open in summer 2025.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps he is taking to support low-income households with the costs of installing (a) insulation and (b) heat pumps.
Answered by Miatta Fahnbulleh - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
As the first step towards the Warm Homes Plan, the Government has committed an initial £3.4 billion over the next 3 years towards heat decarbonisation and household energy efficiency.
Government energy efficiency schemes such as the Energy Company Obligation, Great British Insulation Scheme, Warm Homes: Social Housing Fund and Warm Homes: Local Grant are targeted at low-income households to fund energy efficiency upgrades and low-carbon heating for those eligible.
Further details on the Warm Homes Plan will be set out in due course.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps he is taking to ensure the Climate Change Committee assesses the upcoming sixth carbon budget plan before it is published.
Answered by Kerry McCarthy - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
We value the CCC’s independent advice and expertise on progress against our targets. We will deliver an updated plan that sets out the policy package out to the end of Carbon Budget 6 in 2037 for all the sectors in due course. This will outline the policies and proposals needed to deliver Carbon Budgets 4-6 and our NDC commitments on a pathway to net zero. Government will consider CCC’s already published independent advice on Carbon Budgets as well as annual progress reports to Government ahead of publishing the new Plan.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the Department for Education:
To ask the Secretary of State for Education, whether she has made an assessment of the potential merits of making the adoption and special guardianship support fund permanent.
Answered by Janet Daby - Parliamentary Under-Secretary (Department for Education)
On 1 April, it was announced that the adoption and special guardianship support fund (ASGSF) would continue into 2025/26, with a budget of £50 million.
All future decisions regarding the ASGSF will be considered as part of the next spending review.