(1 week, 2 days ago)
Commons ChamberHomes in the UK are among the least energy-efficient in Europe, with unparalleled health, productivity and carbon emission costs to society, as a result of the last Government’s failure to act. I agree with the Minister: it is a disgrace that this is happening in one of the largest economies in the G7. We welcome the news of the warm homes plan coming next year, but does the Minister agree that an emergency home insulation programme this winter, with free insulation for people on low incomes, is necessary so that people in South Cambridgeshire do not have to face the choice between heating and eating?
Let me assure the hon. Member that we are hitting the ground running with home insulations. We are rolling out our warm homes local grant and our warm homes social housing fund, to target people this winter—this year—because we need to deliver the biggest ever upgrade.
The US President-elect, Donald Trump, has repeatedly called climate change “a hoax”. I share the concerns of young people in South Cambridgeshire that these views represent a threat to our efforts to tackle climate change. The global community is meeting right now at the international climate summit in Azerbaijan—COP29. Does the Minister believe and share with me the view that the UK must rebuild its leadership by getting back on track with our climate and nature targets?
I agree that it is now more important than ever that the UK shows global leadership, and that is exactly what the Prime Minister, the Foreign Secretary and the Energy Secretary are doing with their presence at COP today—I will be heading out there tomorrow. I am very keen to work with the hon. Lady cross-party on these issues. Working with young people is very important as well.
(3 weeks, 2 days ago)
Commons ChamberI call the Liberal Democrat spokesperson.
I start by thanking the Minister for how constructively he has worked with me, and by thanking the hon. Member for Na h-Eileanan an Iar (Torcuil Crichton) for his words just now. I also thank all the colleagues who have sat on the Great British Energy Bill Committee. It is encouraging that this legislation has been given a prime spot at the beginning of this Parliament, and I thank the Clerks and the Speaker’s Office for their diligent work in administering the Bill thus far, as well as all the Members who have taken the opportunity to represent their constituents’ aspirations and concerns regarding the Bill. As many Members know, this is my first Bill as spokesperson for energy security and net zero, and I have appreciated all the support I have been given.
I also acknowledge colleagues from across the House who have lent their support to the amendments to which I am going to speak, and have also tabled their own. In particular, I recognise the contribution made by the hon. Member for Waveney Valley (Adrian Ramsay), whose amendment promotes a nature recovery duty. He will know that nature recovery is close to my heart, and that I raised that topic in Committee. Last week, I had the privilege of attending the UN conference on biodiversity in Cali, Colombia—a poignant reminder of how it is impossible to address climate change and energy security without tackling the nature emergency. National energy infrastructure must therefore be nature-positive and aligned with the obligations in the Environment Act 2021.
As the Minister knows, the Liberal Democrats support the Bill in principle, because we want a nationwide energy system that will bring down energy bills and provide clean, green energy. Amendment 3, which stands in my name, would guarantee that Great British Energy is established within six months of the Bill becoming law. We all know that as a result of the Conservative Government’s delay and dither, we are not on track to meet our ambitious targets.
I echo that. Torbay has an oven-ready solar scheme that would power our hospital and our council, yet because the national grid is not fit for purpose, that scheme has remained a blueprint. Does my hon. Friend agree that building capacity in the national grid is absolutely essential if this Bill is to be successful?
I agree very much with my hon. Friend. National grid capacity is critical if we are to unblock all of these projects, which are so critical to powering our community services, our public services and the national economy. That is why we need to ensure there is no delay, and that is what amendment 3 speaks to.
Amendment 4, which also stands in my name, would ensure that Great British Energy has an explicit duty to help deliver energy efficiency through
“an emergency home insulation programme with targeted support for people on low incomes”,
as well as the expansion of renewables. This Bill has the power to transform lives, but also to protect lives. Warm hubs are becoming too familiar in my constituency of South Cambridgeshire: Comberton, Duxford, Melbourn, Meldreth and Toft are just a few of the village hubs run by amazing volunteers in the local community that provide warmth to those who have to make the heartbreaking choice between heating and eating. It is frankly astonishing that this is now a reality for so many in the UK in 2024, and is a damning indictment of the last Government’s record on prioritising home insulation. Insulated homes mean warmer homes, which in turn means safer homes. The NHS spends an estimated £1.4 billion annually on treating illnesses associated with people living in cold and damp housing, and amendment 4 would seek to address this.
Amendment 4 also seeks to capitalise on our unique opportunity to be world-leading in renewable energy, which the Lib Dems know from our own track record. We must ensure that Great British Energy is duty-bound to support those activities. If renewable energy and home insulation can be rolled out at speed so that we can meet those vital climate targets, that will reduce energy demand, bring down energy bills and provide green, future-proofed, well-paid jobs for the UK.
I turn to amendment 5 on community energy. At every stage of the Bill, the Liberal Democrats have raised our concerns, and those of many MPs from other parties and of the many community energy groups and communities that we represent, that as it stands, the Bill is missing a vital limb. It lists four objects for Great British Energy, but nowhere does it mention supporting the growth of community energy.
I am grateful to my hon. Friend for giving way. She mentions community energy and I wonder if she recognises, as I do, the value of projects such as Stockport Hydro in Romiley in my constituency, which since 2012 has been using its two Archimedes screws, Thunder and Lightning, to power around 60 homes, thereby saving more than 100 tonnes of CO2 a year. Is that the sort of project that she thinks the Bill should do more to support and encourage, so that we can tackle climate change and ensure that communities benefit from community energy projects?
I thank my hon. Friend for that fantastic example from her constituency, which is exactly the kind of project we are talking about. We know that
“Local power generation is an essential part of the energy mix, ensuring communities own and benefit from clean power projects, and reducing pressures on the transmission grid.”
In fact, those words are taken from the Government’s founding statement for Great British Energy, and the Minister said in this Chamber that
“Great British Energy will deliver a step change in investment in local and community energy projects, putting local authorities and communities at the heart of the energy transition.”—[Official Report, 5 September 2024; Vol. 753, c. 530.]
Yet the community energy sector was brought almost to a standstill by the former Conservative Government, and barriers still exist in selling directly to customers and in the cost of connecting to the grid, so welcome words are not enough.
I thank the hon. Lady for giving way. I would like to clarify what she said about there not being anything in the Bill about community energy. It is in the founding statement of GB Energy, because we know the importance of locally delivered community energy in facilitating this transformation. I want to correct that for the record, because the suggestion that community energy is not one of the aims of this legislation is a misunderstanding.
I appreciate that, which is why I quoted from the founding statement. The problem is that those words are not enshrined in the Bill itself, which is why we are surprised that the Government continue to vote down amendments that would put communities at the heart of the Bill. We will continue to push on that.
I thank the 58 Members from different parties who have supported amendment 5, which requires that the statement of strategic priorities for Great British Energy has specific regard to community-based clean energy schemes. I would also like to give recognition to my colleagues who are leading the way in promoting the benefits of community energy, including my hon. Friend the Member for Hazel Grove (Lisa Smart), as we have just heard.
Does the hon. Lady recall the evidence of Juergen Maier, EDF, SSE and the Minister to the Committee? They all gave commitments to community energy and to the local power plan being almost an eighth—almost £1 billion-worth—of GB Energy’s plans.
In fact, I said at the beginning of my contribution that I welcomed the constructive debate in Committee.
If the Government have bought into the idea of community energy, does my hon. Friend not think it odd that they are so afraid to put it in the Bill?
I could not have put it better myself. I thank my hon. Friend for leading the fight for the Liberal Democrats as the former spokesperson on energy security and net zero. That question goes to the crux of the matter.
We have fantastic examples from many communities of how important community energy is. My hon. Friend the Member for Inverness, Skye and West Ross-shire (Mr MacDonald) led the recent Westminster Hall debate, in which there were fantastic examples from rural communities of how they feel about community benefits. There are also the efforts of my hon. Friend the Member for Edinburgh West (Christine Jardine) in supporting the Aikengall community wind farm, which provides a direct benefit of an amazing £120,000 for the community.
Community energy is not just for Scotland. In my own county of Cambridgeshire, there is the Swaffham Prior community heat network, and the village is the first of its kind to switch to reliable zero-carbon heating. It was started by the Swaffham Prior Community Land Trust, and it addresses fuel poverty and the village’s reliance on oil heating. The Liberal Democrats will continue to promote those who have pioneered community energy schemes, proving their worth and championing their critical importance to our energy future.
While the Government have not previously backed our amendments, which is incomprehensible to us, I am grateful to the Minister for the conversations we have had recently and the assurances he has given us that the Government really do want to make provisions in the Bill for community energy in the Lords. I look forward to supporting our colleagues in the other place in this endeavour, but the interventions from Labour Members—saying that this will be in the founding statement and the strategic priorities, but not in the Bill—are causing us to doubt that commitment. I therefore urge the Government to make good on their promises. We know their commitment to community energy, so let that be understood clearly and let us put it in the Bill.
I call Adam Thompson to make his maiden speech.
I thank the hon. Member for the intervention. The model would involve part ownership by the community and part ownership by large energy suppliers—
And community energy groups—but, yes, I will hand over to my hon. Friend, if I am allowed to do so.
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—
Order. Please be seated. We have a speech mid-flow. Is that correct?
(1 month, 1 week ago)
Public Bill CommitteesGood morning. I have some reminders for the Committee. Please set your electronic devices to silent. No food or drink is permitted during sittings, apart from the water provided, still or fizzy. Hansard colleagues will be grateful if Members could email their speaking notes, or alternatively pass their paper notes to the Hansard colleague in the room, to my left.
We now begin line-by-line consideration of the Bill. The selection list for today’s sittings is available in the room and shows how the selected amendments have been grouped for debate. Amendments grouped together are generally on the same or similar issues. Decisions on each amendment are taken when we come to the clause to which the amendment relates. Decisions on new clauses will be taken once we have completed consideration of the Bill’s existing clauses—saved by the bell, maybe.
I remind the Committee that the Member who has put their name to the lead amendment in a group of amendments is called to speak first. In the case of a debate on clause stand part, I will normally call the Minister first to introduce the clause. Members who wish to speak in any debate should indicate to me that they wish to do so. At the end of a debate, I shall call the Member who moved the lead amendment, or the Minister in the case of a clause stand part debate, to speak again in conclusion.
Before Members who move an amendment or new clause sit down, they will need to indicate whether they wish to withdraw the amendment or to seek a decision. If any Member wishes to press a grouped amendment to a vote once we have disposed of the lead amendment, they should indicate that in the course of their speech on the group.
Clause 1
Great British Energy
I beg to move amendment 8, in clause 1, page 1, line 3, at end insert—
“within 6 months of the day on which this Act is passed.”
With this it will be convenient to discuss the following:
Clause stand part.
New clause 1—Energy efficiency reporting—
“(1) Within two years of the date of Royal Assent to this Act and every 12 months thereafter, Great British Energy must report to Parliament on its progress towards the object of improvements in energy efficiency set out in Clause 3(2)(c).
(2) The report mentioned in subsection (1) must include—
(a) the means by which energy efficiencies are being made;
(b) an assessment over time of the energy efficiencies made; and
(c) the projected impact on consumer energy bills.”
Thank you, Chair, and all Committee members. I apologise for being a moment late. My hon. Friend the Member for Bath will be slightly late too, but will be in Committee.
As we heard in the oral evidence, we need a lot of reassurance before we can be supportive of the scope of the Bill, because it is so wide-ranging. We understand that flexibility is needed, but so much comes down to the strategic priorities and the business case. As the Bill stands, there is no deadline for the production of the critical delimiting document in which the Secretary of State will state the strategic priorities to reassure businesses, communities, bill payers and Committee members that Great British Energy, within its broad and wide-ranging objects, will focus on the innovative and on what is not duplicating or perverting the market and is not uncompetitive, to ensure a fair playing field and that communities have a say and a part to play in the generation of energy, and receive the benefits as well.
All that will come out in the Secretary of State’s strategic priorities statement. I therefore propose some level of certainty for everyone—business in particular—by putting in a deadline for the publication of the statement, which we suggest should be six months.
I rise to speak briefly to new clause 1, which is grouped with amendment 8 and clause 1. It is very straightforward. It will be for Government Members to consider whether it is appropriate for the House of Commons to be in full knowledge and understanding of what the Government seek to do on energy efficiency. They must also consider whether the steps that the Government take in that regard should be reported to this House to ensure that we are fully abreast of the progress that the Government hope to make and how that meets the promises that they as individuals made to their constituents prior to the election. We as parliamentarians can collectively hold the Government to account on those promises and ambitions.
In discussions on further amendments, we will talk in more detail about the promises that were made, and hopefully the Government might be minded to agree to include some of those promises in the Bill. For now, though, I think it worth while for Members to consider the role that this Parliament plays in scrutinising this Government in a constructive fashion.
No one can deny that, as the Minister said, we have seen huge progress coming through immediately, and commitment from the Government. I thought we would have heard from the oral evidence that certainty is critical, and therefore that giving a deadline and a timeframe in which people and businesses could expect to see the statement would be good reassurance. As the right hon. Member for Aberdeen South indicated, it would also be good to have some kind of revision. I hear from the Minister that the Government will not accept the amendment, so I will not press it to a vote, but it should be considered.
On the hon. Lady’s point, I reiterate our absolute commitment to move faster—frankly, far faster than in six months—to deliver the statement of strategic priorities. We will talk about that later in relation to further amendments.
On the point from the right hon. Member for Aberdeen South, we do not think the theme of the new clause is particularly important in this part of the Bill. It is important, of course, that the aim of Great British Energy is to be part of what will deliver cheaper bills for all, and efficiency, but it is only part of the story. Of course, in the election campaign we made it clear that across Government—yes, through Great British Energy, but also through a series of other measures, including our reforms to planning and including a lot of areas on which I am working closely with his colleagues in the Scottish Government to expedite progress—we will deliver cheaper bills.
The right hon. Gentleman must acknowledge, despite his not supporting Great British Energy so far—I hope that he and his colleagues will change their minds when the Bill comes back—that on this point it is in fact an important vehicle. [Interruption.] He looks as if he does not agree with what I said. He did not vote for the Bill on Second Reading, so I took it from that that he did not support it. It is important that he recognises that Great British Energy has a really important part to play in delivering what I have set out. His colleagues in the Scottish Government certainly think so, which is why we have been working so closely together on the matter.
If the hon. Gentleman is proposing that the Bill will be through Parliament by Christmas, that would be great—we could move forward. Of course, we need the Bill to have Royal Assent before we can move forward. I welcome his co-operation on making sure that it has a swift passage through the House of Lords and the Commons. We will move as quickly as possible. It is in no one’s interest, let alone that of a Government who are moving as quickly as possible to deliver this, for it to be delayed any further.
Finally, the requirement in new clause 1, tabled by the right hon. Member for Aberdeen South, to report to Parliament on energy efficiency measures is unnecessary because there are already many mechanisms for that. We have been consistently clear that Great British Energy will be operationally independent. I hope that the right hon. Gentleman will therefore not press his new clause to a vote.
I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 1 ordered to stand part of the Bill.
Clause 2
Crown status
Question proposed, That the clause stand part of the Bill.
We are making great progress—this will be a good day. Clause 2 is straightforward. It ensures that Great British Energy will serve the public as an independent company and operate in the same way as any other UK company, that it will not have any special status, immunity or privilege normally associated with the Crown, and that its property will not be seen as property of the Crown. It will be subject to exactly the same legal requirements as all other companies. That is in line with the vision we had for Great British Energy from the beginning: that it should be operationally independent and an agile market player. We will ensure that it remains that way.
Question put and agreed to.
Clause 2 accordingly ordered to stand part of the Bill.
Clause 3
Objects
I beg to move amendment 2, in clause 3, page 2, line 18, at end insert—
“(e) measures to increase low carbon and renewable energy schemes owned, or part owned, by community organisations.”
This amendment includes community energy schemes in the objects that the Great British Energy company will be restricted to facilitating, encouraging and participating in.
With this it will be convenient to discuss amendment 9, in clause 5, page 3, line 8, at end insert—
“(1A) A statement under this section must include as a strategic priority, consistent with Great British Energy’s objects under section 3, measures to be taken to ensure that local communities benefit directly from low carbon and renewable energy projects operating within their area.”
This amendment would require the Secretary of State to set a strategic priority for measures to be taken to ensure local communities benefit from low and renewable energy projects operating in their area.
The objects of Great British Energy need to be wide-ranging and flexible so that it can be innovative and pivot where necessary. But one issue, which the Liberal Democrats also raised during the oral evidence sessions, is community energy: that which is owned, managed and generated by, and brings benefits directly to, the community. We propose this amendment for the Government’s serious consideration because the founding statement for Great British Energy says that local communities will derive benefits. That is not just in the five functions but part of the purpose of Great British Energy. Juergen Maier says in his foreword to the founding statement that Great British Energy will actively co-invest and support communities to generate energy. That is fundamental. As most of the rest of the provision is for large-scale clean energy projects, it is critical to include the amendment in the objects, given that communities are included in the five functions in the foundational statement.
I thank the hon. Lady for her opening remarks on the amendment. Is there anything in the Bill that would preclude the kind of support for community energy projects that we have discussed in Committee so far?
The debate so far has all been about the ability to delimit what limits Great British Energy, but that allows for everything else that has not been mentioned. However, it is critical to reassure everybody that Great British Energy is about both large-scale clean energy projects and community projects. I do not think the amendment would change or limit Great British Energy any further; it would add to the understanding of the objects. I do not think it would in any way pervert the flexibility in the wide-ranging objects; it would bring the necessary emphasis and balance between large-scale and community energy projects.
I rise to speak to amendment 2, tabled by the hon. Member for Bath, which seeks to include community energy in the objects of the Bill. The amendment has gathered support from across the House. I find it encouraging that so many hon. Members understand the important role that community energy schemes play in our energy sector and our mission to make Britain a clean energy superpower.
Community energy schemes currently generate 0.5% of the UK’s electricity. However, studies by the Environmental Audit Committee show that they could grow twentyfold in the next 10 years. They not only power many homes but reduce our dependence on energy imports and support the development of critical local infrastructure, and of course they create local jobs. It is clear to me that community energy schemes play a key part in tackling climate change. I have seen at first hand in my constituency of Monmouthshire great schemes such as the community solar project at Bridges community centre, which saves the centre money, which can then be reinvested in the community.
Further afield, in Bangor Aberconwy, we have Ynni Ogwen, which does fantastic work to produce electrical energy from hydro power using the Ogwen river. Again, the profits are used to fund community and environmental projects in the community. My commitment to community energy is clear, as is the Government’s. We are inviting communities to come forward with projects and to work with local leaders and devolved Governments to ensure that local people benefit from energy production.
Although the amendment is well intended, it is not necessary. The Government and the chair of GB Energy himself made it clear at the evidence session on Tuesday that community energy will be a “core part” of GB Energy.
I take my hon. Friend’s point in the spirit in which it was intended and not as an attempt to rush me through the rest of these proceedings so we can get the Bill up and running, but we will move at pace. Every time he speaks, he is very good at reminding me that I need to visit those projects in Lewis with him at some point. He is absolutely right that it is important that we give communities, in whatever form—local government, local island communities, villages or towns —the ability to come together with the capacity to deliver on their energy potential.
I fundamentally believe that the Bill is at the heart of what the Government desire to do on the local power plan and community ownership more generally. We are absolutely committed to community energy, including through things such as what the Co-operative party has put forward. There is nothing in the Bill that prevents that from happening. For those reasons, I hope that the hon. Member for South Cambridgeshire will withdraw her amendment.
It is wonderful to hear hon. Members say how supportive they are of community energy and give examples from their local areas. In Cambridgeshire, the expertise is still there—it is absolutely amazing. We have community energy projects, including wind energy, and a whole village has an off-grid heat network, which is a national case in point.
I ask the Minister once again to take into account the cross-party support for the amendment. It is not a bauble, nor is it about crossing t’s and dotting i’s; it is about public ownership models. At the moment there is real concern, because although we talk about the great things happening, in the latest meetings we have held with advocates of community energy, we have been told that it is in crisis. Although GB Energy is removing the barriers to large-scale clean energy projects, there are barriers to community energy, which is why we have so few new community energy projects, in contrast to the past. We need investment, but it is not just about the money and capacity. It is about the rights—the ownership model and the right not only to generate but to sell locally, with an equal cost to connect.
I take the hon. Member’s point about rights. Usually, land rights prevent communities from taking a stake in energy projects. Community-owned land, which we have plenty of in the Western Isles and across Scotland, is the key—land that the community has ownership of.
The other problem, which I am sure GB Energy should and will unlock, is access to the grid, to get community companies on to the grid; GB Energy and regulation from the Department should be crucial to achieving that.
I thank the hon. Member for making that point about the cost for communities of connecting to the grid, which makes it completely unviable for them to do so. It is not about capacity; the communities know what they want to do and are ready to do it. Unfortunately, although there is a right to sell energy locally, the cost of connection makes it completely unviable.
An additional problem is that small community energy projects cannot provide directly—cannot sell directly—to the consumer. That is one of the major problems. Therefore, the Government should really put their mind to it and accept our amendment, so that we can assure our communities that the Government are really serious about this issue. Does my hon. Friend agree?
I very much agree. Indeed, I find it very hard not to agree with my hon. Friend, who tabled the amendment.
We are obviously waiting to see the local power plan. We hope that it contains detail not only about the benefits, as with the Scottish and Welsh examples, but about the ownership model empowering local communities to do this work.
Given the cross-party support for the amendment, I will not withdraw it.
Question put, That the amendment be made.
I beg to move amendment 10, clause 3, 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.”
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.
As I understand it, the Bill’s scope has changed, enabling us also to consider the customers in all of this and the benefits to customers from the creation of Great British Energy. For that reason, the issue of home insulation should be considered.
The need for Great British Energy and the demand for the energy that is being created is also generated by the amount of energy that leaks from cold, draughty homes. We are approaching winter now. In my constituency of South Cambridgeshire and, I am sure, in constituencies across the country, including those represented by Members of this Committee, a large number of people, many of them vulnerable, are in cold, damp homes. Although those people may be able, through their local authority, to have some renewable energy features and insulation added to their home, a proper emergency home insulation programme—not just for this winter but for the long term—is not being considered.
As we know from the Climate Change Committee, the calculation of the demand for energy generation changes when we look at the amount of energy lost through heating homes. We would need to generate less energy if we managed our home insulation programme. I therefore think that it is within scope to show not only the price of people’s bills but the standards under which they are living in their homes, and the amount of energy being lost without a home insulation programme. I know that the Government have their warm homes plan, which we will see in the spring, but we should consider home insulation within energy efficiency, given the importance of GB Energy to the consumer.
We have not dropped any announcement on reducing bills, but GB Energy was not going to be the single thing that would deliver that; it was the Government’s whole energy strategy. It is important to say that. I said in my evidence to the Committee on Tuesday that GB Energy is an important part of delivering that, but it is not a silver bullet. It will not be the thing that deals with every single aspect of our energy policy. It is also about what we are doing, for example, around increasing the renewables auction to get more cheaper energy on to the grid. It is about what we are doing around planning, consenting and connections. All that work is related to bringing down bills in the long term.
The Conservative party—the party that was in government when all our constituents suffered some of the highest price spikes that we have ever experienced—has to recognise, as it did for many years until it moved away from this policy, that the only way to reduce our dependence on the volatile markets that have led to increases in bills is to move towards greener, cheaper energy in the long term. That is what GB Energy is about delivering, that is what will bring down bills in the long term, and that is what we continue to deliver through this Bill.
I turn to paragraph (f) of amendment 10, which I am afraid we cannot support today, partly because it says what is already in the Bill on expanding renewable energy and technology. The Bill itself facilitates exactly those points and defines clean energy as
“energy produced from sources other than fossil fuels.”
That existing object already enables Great British Energy to drive the deployment of clean energy, helping to boost our energy independence, create jobs and ensure that communities reap the benefit of home-grown energy. Therefore, as a whole, amendment 10 is unnecessary, as the Bill already enables all of those points in clause 3.
The words of the hon. Member for South Cambridgeshire are heartfelt and have been genuinely heard; I hope she gets that sense from all my hon. Friends and me. Such initiatives are an important part, not of GB Energy in itself, but of the whole Government’s mission to make communities in their households much safer from the lack of insulation and cold homes from which they are suffering at the moment. For those reasons, we will not support the amendment, and I hope that the hon. Lady will not press it.
I thank all hon. Members for their serious consideration of the amendment. The hon. Member for Sheffield Hallam said that it was important to consider the role that energy efficiency plays within overall demand. I agree that it is part of the wider policy, but I think it is also critical in the context of GB Energy, because there is room for interpretation of clause 3(2)(c), which is about energy efficiency, as in energy efficiency in the process of generating energy.
(1 month, 1 week ago)
Public Bill CommitteesThe devolved Administrations in terms of the Governments—I thank the right hon. Gentleman.
The first thing to say is that the statement of strategic priorities cannot overrule the objectives in the Bill. If an incoming Government—I will not say “nefarious” or otherwise—were seeking to use Great British Energy for a whole other purpose, they would not be able to, because the legislation sets out exactly what it will be used for, and that will be in the articles of association. Those objects set the overarching framework for Great British Energy’s activities and it is right that this framework is in legislation passed by Parliament and debated here today in clause 3.
Were we to move to a point where we required parliamentary approval of the statement of strategic priorities, which is only designed to provide direction in the priorities that the Government sets for the company, we would create unnecessary burdens on the company. Going back to the points in the Lib Dem amendments from earlier, I am concerned that, rather than Great British Energy getting on with delivering, we would end up in a constant cycle in which people add various things—I think someone said “baubles” earlier on, but I am not sure that I will continue that metaphor—into the statement of strategic priorities that would take away from it actually delivering the objects that we will hopefully pass in this Bill.
Taking away labels such as “nefarious” or “baubles” and moving to the serious intent of our interventions, this is about scrutiny, and I take the point from the right hon. Member for Aberdeen South in that respect. We heard from witnesses that if the objects remain broad, they are reassured that all their issues will be contained within the statement of priorities. Will the Minister reassure us about the engagement that will happen prior to the development of those priorities? If it will not happen through the House, what will the process be? Instead of baubles, we may find bits of home-made tinsel hanging on this majestic tree, which is not exactly what was bought in the shop, to continue the metaphor.
British-made and home-made. I think the serious issue is the extent to which there is reassurance that a statement of priorities, which everybody is accepting will be within the remit of the objects, will fulfil expectations and not steer into areas in which there will be duplication.
(1 month, 2 weeks ago)
Commons ChamberKeeping vulnerable people warm and lowering their energy bills is, I am sure, something we can all agree on across the House. Insulating homes is a key part of that puzzle. We welcome the news that we will see the warm homes plan in spring. However, does the Minister agree that ahead of this winter we need an emergency home insulation plan, particularly for the vulnerable, along with allocated funding? Does she have any idea of the amount and allocation of funding in this Parliament that there will be for insulating homes?
We are really clear that as we develop our plans we absolutely need to get on with the job of upgrading homes. We have announced our warm homes local grant and our warm homes social housing fund, which are targeted at low-income families, because we know there is a job of work to do. We are committed to an additional £6.6 billion to invest in our warm homes plan over the course of this Parliament.
As we have heard from my hon. Friend the Member for Wells and Mendip Hills (Tessa Munt), the lack of national grid capacity is holding back the UK’s push towards renewable energy. There are numerous examples of projects that have been delayed because they are waiting to be connected to the national grid, or because connection is too expensive. In my constituency, we cannot even connect the solar panels and batteries for the ambitious plan to decarbonise and electrify the refuse fleet for South Cambridgeshire district council. The projects that have been delayed include the building of new homes, which is crucial at present. Can the Minister explain to us how we are to reach this stage on the scale and at the pace that is needed?
The hon. Lady is right to highlight those issues. The connections queue, in particular, is a huge challenge, with more than 700 GW waiting to join it. The last Government did some work to establish how the queue could be prioritised, and we will now implement that, but we need to go further. It is clear that by 2030 we will need to build four times as much new transmission network as has been built since 1990. This is a project to rewire the entire country, to improve the current connections availability, and to work with everyone, including the new national energy systems operator, on the road map towards 2030.
(1 month, 2 weeks ago)
Public Bill CommitteesQ
Juergen Maier: It certainly gives me a very clear direction, along with the framework document that we will develop together with the Secretary of State and the Minister. The short answer to your question is that it is pretty clear. The purpose is clear, and that is the most important thing: the purpose, at the end of the day, is that we will accelerate the amount of clean renewable energy that we put on the grid, and that we will create as much prosperity and as many jobs through it as possible.
Q
Juergen Maier: We are seeing pretty good evidence of that right now, aren’t we? At the end of the day, this is now a pretty well-established model for being absolutely state-owned and independently run. “Independently run” means excellent governance, and obviously as start-up chair I am going to ensure that that is the case. That does not all need to be in the Bill, because we know what it means. We have the Companies Act 2006 and numerous Acts about how good governance works. We will ensure through our board and our non-executives that there is proper governance, and of course there will be many opportunities for reviews by the Secretary of State and ultimately for the usual sort of public scrutiny.
Order. That is the end of our first panel.
Examination of Witnesses
Mika Minio-Paluello and Mike Clancy gave evidence.
Q
Shaun Spiers: We have concerns about the huge powers given to the Secretary of State in the Bill. Clause 5(2) says:
“The Secretary of State may revise or replace the statement.”
A subsequent Secretary of State could significantly revise the aims of GB Energy. We think that the statement should be consulted on. We would propose an addition or amendment to say that the Secretary of State must consult anybody likely to be affected by the statement, or such bodies as considered appropriate by the Secretary of State— something like that, just to say that there should be more scrutiny so that the Secretary of State cannot simply change the aims of GB Energy in the way it is currently set out.
Ravi Gurumurthy: I run an innovation organisation, and the hallmark of good innovation, or of good companies, is that they pivot and adapt. I know that it is sometimes challenging to set up an institution like GB Energy and not lock down all the parameters, but actually that is critical. There are issues and barriers that we do not even know yet, and I think it is important that this organisation can do whatever it takes to achieve the mission, even if we cannot right now identify exactly every single aspect of its role.
Marc Hedin: I would echo that message that the role of Great British Energy is very broad and is being defined as we speak. That is what we in this room, but also the people working for Great British Energy, are doing at the moment. It could also change in the future as the challenges of energy administration evolve. I therefore think it makes sense for the Bill to provide present and future flexibility in scope.
That being said, there are two points or questions that should potentially be answered. First, what are the governance arrangements to ensure that Great British Energy carries out its duties and focuses on its remit? Part of the answer could be that it should be ensured that Great British Energy provides additionality and works with stakeholders, which is what Shaun Spiers mentioned. Secondly, since Great British Energy’s role is primarily to fill gaps in the market, it would be useful to assess its effectiveness there. Clause 7 only mentions an annual rendition of financial accounts, and there is no mention of effectiveness or impact. Reflecting on the possible roles of Great British Energy, some, such as speeding up project delivery, will lead to value added for the whole system but not necessarily additional revenues for Great British Energy. Financial accounts may only tell part of the story, and there is a need for more comprehensive reporting, in my view.
Shaun Spiers: If I may, just quickly: to require consultation on the strategic priorities if they are going to change radically should not be too onerous.
Q
Can you explain a little more your concerns? First, given that innovation needs to pivot, but also given that we are being asked to allow for the objects to be so broad to allow for flexibility within them, Shaun, can you explain a little more why you think there should be consultation on such broad objects? Secondly, can you discuss any concerns you may have around environmental requirements for what GB Energy is going to do? That is also absent at the moment from the objects of the Bill.
Shaun Spiers: On the concern about the ability of subsequent Secretaries of State simply to change the strategic direction of the organisation, you can look at recent history to know that there can be radical changes. It does not seem to me to be too demanding; it is just good governance to suggest that that should be consulted on, and that you do not give absolute powers to a Secretary of State to do that. I do not see that as a particular constraint on innovation; I just think of that as good governance.
The Chair is keen that we do not lever in lots of other things on the Bill, but there is a concern. Clearly, 2030 power decarbonisation is an imperative and we need to achieve net zero, but we also have a nature crisis and there are concerns about whether GB Energy will seek to enhance nature or whether nature will take second place. Both the Secretary of State and Chris Stark, the head of mission control, have emphasised that there will be a role for considerations of nature in energy planning. But, again, that is not in the Bill, and it would be nice to see it there or to see some statement to that effect from the Dispatch Box to ensure that it is central to how GB Energy will behave. There are lots of public companies that do not prioritise nature—they prioritise bills or the delivery of their main objective—and we see the consequence of that, for instance, in the water industry.
Q
Ravi Gurumurthy: It is a very challenging question. As you know, good intentions in this area often do not translate. You can mandate and say you want to operate with risk appetite, but it does not really translate into behaviour. What do I think are some of the components? The capitalisation of GB Energy is really important, because that gives it some degree of resource to take risks. I am quite interested in whether, as well as investing in novel technologies with a high-risk appetite, GB Energy can either take cashless equity stakes or invest in more established technologies, because if you have a more balanced portfolio, it might give you the ability to take risks in some aspects.
That gets you into a conversation about the fiscal rules. The one thing I would say about this area is that if you compare offshore wind and other established energy technologies with roads or hospitals, the big difference in my mind is that for offshore wind we will build those wind farms whether the state invests or not, and we will pay as consumers, whereas roads and hospitals will not get built if the state does not. The point is that we are going to pay for it, and we will pay more through private sector borrowing than we will through the state.
The second big difference is that unlike a road or a hospital, there was a guaranteed revenue stream through a contract for difference, so there is a really good rationale for why we should not have fiscal rules that bias us towards 100% private sector borrowing, rather than the state either taking a cashless equity stake via this development process or actually investing. If you do that, it will give GB Energy the ability to then take risks on the much more novel aspects of the portfolio and have failures. If GB Energy does not have failures, it will not be doing its job.
Q
Dan McGrail: From my perspective, the definition is probably good enough. It is quite tricky to go too narrow and say renewable energy only, because there are certain areas, such as long duration storage, where the sector would like GB Energy to participate in, or at least to have the freedom to participate in, which, if it is too narrowly constrained or defined, may prove problematic later down the line.
One thing I think would be advantageous in the definition, or in the objects, is to clearly set out the guard rails, such as ensuring the carbon budgets are referenced. If we reference the carbon budgets, future Secretaries of State would need to make sure that any investments that were made were in line with the delivery of the carbon budgets. That is comparable to what was done with the set-up of the Green Investment Bank, where there were specific references to what the Secretary of State would need to go back to primary legislation to change, and what would be foreseeable within secondary legislation—not directing the Green Investment Bank to invest in fossil fuels, for example, would have required a complete change of mandate. I think some similar thinking, therefore, would be helpful here.
Adam Berman: I do not completely agree. I do not think there is a big problem of definition, but I would say that we need to ensure it is consistent with the CCC’s existing language and with the technologies that it thinks are consistent with the sixth carbon budget. Clean energy may encapsulate all of them, but I think we would have to make sure that it includes established mature renewables, nuclear, carbon capture, utilisation and storage and hydrogen, just to leave those options on the table. I do not disagree with Dan that there needs to be a focus, but GB Energy needs to at least be given the option to engage in the technologies where it thinks there may be additionality in terms of bringing in GBE’s involvement.
Q
Adam Berman: Clearly I agree that they are of incredible importance when it comes to planning the energy system and that the dialogue with them about the local communities that they know better than anyone else is pivotal. The challenge is that for GB Energy, as far as I understand it, a major part of it is local power plans, which will already have involved close consultation with local authorities and communities in lots of different ways.
From an industry perspective, I would be hesitant about placing that as a condition on GB Energy’s investment. That is not to diminish its importance; it is just to ensure that we are allowing GB Energy to be successful and that we are not holding it back. There is a very good argument that that should be included in the legislation, and that the national energy system operator and the Climate Change Committee should be included in the legislation, but once we have gone through all those bodies, it starts to become prohibitive for the investment process, which we want to be free and fair for GB Energy. We are therefore slightly hesitant about saying that we necessarily have to look to any particular body for consultation.
Q
Adam Berman: That is a really good point. I think that there could be something in the legislation to ensure that GB Energy’s investments are consistent not only with the local area energy planning, but with the strategic spatial energy planning that the energy system operator is doing.
Dan McGrail: There is a really important point here about how, to be successful in the market, GB Energy will need to engage with those processes anyway. There will be accountability around the company, but one nervousness I have is about trying to put too much into the Bill specifically on GB Energy. I agree that the point should be about complying with the things that we need to deal with, whether those are in law, in programmes such as the strategic spatial energy plan or in the work of the national system operator. Those are all interconnected and contiguous pieces of a system in which GB Energy needs to be able to operate effectively. The onus, if we put anything in legislation, is to be compliant with all that.
(1 month, 2 weeks ago)
Commons ChamberI thank the Secretary of State for his statement. The Liberal Democrats are committed to supporting British industries in cutting carbon emissions and getting the country back on track towards meeting our climate targets. It cannot be emphasised enough how significant it is that this announcement comes at the same time as we hear about the UK being the first industrial nation to close its last coal-fired power plant. We had been dependent on coal for 150 years, so that is absolutely key.
It is clear that the future lies with renewables and clean energy, where we need to bring urgency and the necessary scale of investment. The Conservative Government’s irresponsible roll-back from key climate pledges, and their failure to invest properly in renewable energy and home insulation, has left thousands of households vulnerable to fuel poverty as another winter approaches. The failure to move forward at pace in decarbonising our industries, our transport and our homes has left us needing to take difficult decisions. We support the need, recognised by the Climate Change Committee, for at-scale, long-term investment in CCS, particularly for hard-to-decarbonise industries such as chemicals, cement and steel manufacturing. We would like to see investment in existing industries, and we want it to meet environmental requirements.
While we are discussing history, I should mention that it was my right hon. Friend the Member for Kingston and Surbiton (Ed Davey) who launched carbon capture and storage, which was yet again cancelled by the Conservatives. However, although carbon capture and storage is a key tool in reaching net zero, it is also very expensive and complex, and evidence of its efficacy is still scant. Understandably, as the Secretary of State mentioned, there is much concern about the focus on incentivising industries to invest in CCS as an alternative to radically reducing their emissions. Therefore, it is important that the Government set out clearly and transparently the path to delivery for any CCS they invest in and show the milestones for progress. What will the Secretary of State do to increase investment—
(2 months, 1 week ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I thank my hon. Friend for his intervention, and his as always wise and salient words. The big countries in the world, such as China, Russia and others, have a disregard for fossil fuel pollution and seem to wish to pollute the rest of the world from their own countries. There is a real need for them to do something.
I am really pleased to see the Under-Secretary of State for Energy Security and Net Zero in her place. She sat on the Opposition side of the Chamber in many debates; she and I would have been alongside each other on many things, supporting the same objectives and the same targets. It is a real pleasure to see her today and I wish her well. It also nice to see the shadow Minister, the hon. Member for Wyre Forest (Mark Garnier), in his place.
I always bring the Northern Ireland perspective to debates, because it is important that we understand—perhaps appreciate is a better word—things that are happening in Northern Ireland and how they contribute to policy at Westminster. In Northern Ireland, as a smaller nation of the United Kingdom, we are not shy to the feeling of being left behind, so it is important that efforts are made to engage with international stakeholders, which my hon. Friend referred to.
I will give an example. Climate Northern Ireland brings together members from the key range of sectors to share best practice and enable positive action to address the impacts of climate change. It is funded by the Department of Agriculture, Environment and Rural Affairs of the Northern Ireland Assembly, and aims to support the development and implementation of climate policy—it is really important, and core to the Department’s policy—by enabling the exchange of expertise and advice between Government Departments, public bodies and civil society. It brings them all together under one umbrella to pursue a policy that coincides and works alongside the one at Westminster.
I live in Greyabbey in Strangford and am a farmer there. I was saying to some people I met earlier this morning that I love to come here for the history, but I do not enjoy the concrete. I like to get back home to where the fields are green and where I can walk out and breathe the fresh country air, but that does not take away from where we are. Numerous neighbours of mine own farms themselves. It is really important that we have balance in this debate.
The hon. Member talked about peace and working together with international stakeholders. I would like to add to the calls on the Government for a special climate envoy nominated for our country, because all the things that are being said here today require diplomacy, negotiation and preparation before any climate summit.
I have 15 years’ experience of working in international climate negotiations, from the developing country aspect. I have witnessed how important the roles of special representatives, other climate envoys around the world and climate ambassadors are. Would the hon. Member, and the hon. Member for Ealing Southall (Deirdre Costigan) who introduced this debate, agree that the climate envoy should be nominated by the Prime Minister, so that it has the gravitas to put the UK back into a global leadership position, which the former Conservative Government trashed?
I thank the hon. Lady for her intervention and for the work she did in her previous occupation. That brings a wealth of knowledge to debates here; we can all learn and be the wiser for that. The Minister might be able to respond to our thoughts. We are looking for a climate envoy, as the hon. Lady referred to. We should all recognise the justification for that. I look forward to hearing in the Minister’s response on how that is to be taken care of.
In the farming community where I live, we understand the huge significance of farming and agriculture for our climate, as well as the contribution to the local economy. That is why it is important to get the balance right. I work closely alongside the Ulster Farmers Union and the National Farmers Union. I declare an interest that I should have mentioned earlier: I am a member of the Ulster Farmers Union and work alongside it on many policies. It has pledged support for issues such as measures on emissions. It is important to bring people along; it is important to bring along the farming community. It is important to understand the goals, then we can work together. That is what everyone wants but it is never easy to achieve. As I have said before, these things are hard to do without the commitment of funding for our Government. Maybe we can get some clarity from the Minister on the commitment to Northern Ireland.
The Minister’s interest in Northern Ireland has never been in dispute, but I would like to hear whether she has had an opportunity to talk with the DAERA Minister in Northern Ireland, Andrew Muir, or with civil servants and Government officials, to see how we can work on this together. If we are going to do it, it is always better to do it together.
I understand the Labour Government have not yet published their priorities for COP29. I am keen to see what they are. When we reflect on the most recent policy document, that sets out a commitment to keeping 1.5 alive. Limiting global temperature increases is really important. Some people believe that is not happening but, as we look about us around the world, we know we have to address this key issue. Building resilience and reversing biodiversity loss were priorities set out in the Paris agreement. I understand that the Secretary of State for Energy Security and Net Zero has met current and past COP presidents.
Other roles are taken by local councils, stakeholders and small, medium and large businesses. Most importantly, I honestly believe our constituents want to do their bit, but they must be given the means to do so. My way of doing politics has always been to try to bring everyone with us. It is in the nature of life that we might not agree on everything but, when we have a joint goal, we can focus better together. We are always better together and have roles to play at councils, at the Northern Ireland Assembly, and at regional and Westminster level.
COP provides a fantastic opportunity for the United Kingdom of Great Britain and Northern Ireland to pave the way in climate success, by being adaptable and showing that we are willing to learn as a collective. There is a lot to learn and a lot to do; let us do it together.
(3 months, 4 weeks ago)
Commons ChamberThank you, Madam Deputy Speaker, and congratulations on your new role. I also congratulate the hon. Member for East Thanet (Ms Billington), with whom I worked before we both came to this Chamber, through UK100 and elsewhere, on local climate action, which I will speak much about today. I also congratulate the Minister and the Secretary of State for Energy Security and Net Zero.
It means a great deal to me to make my maiden speech during a debate in which the new Government are setting out green energy policies and plans to get us back on track with our climate pledges here at home, so that we can once again contribute on the international stage towards collective global action. Closer to home, Government research shows that local climate action would achieve net zero for half the cost of the national approach and deliver three times the financial returns, but we need a clear framework between the national and the local and for how councils fit into the national plan for net zero, including community energy initiatives.
Let me say how proud and humbled I am by the faith the residents of beautiful South Cambridgeshire have put in me. They wanted change, and this was a truly historic result. The Liberal Democrats won all three Cambridgeshire seats, turning them from blue to yellow for the first time, forming a golden ring around the constituency of the Minister of State, Department for Environment, Food and Rural Affairs, the hon. Member for Cambridge (Daniel Zeichner). I congratulate him on his appointment as the Minister for farming. We have a golden ring, or rather a golden doughnut with red jam in the middle, and it is thanks to family, friends and activists, many of them here today, that that happened.
I am a lass from Hull, whose dad was a GP and mum a nurse. From an early age, I accompanied my dad on his home visits to patients, and it was those roots in the NHS that fostered in me a deep sense of community service, as well as an insight into the links between inequality, child poverty and poor health outcomes. That is why I am proud that the Liberal Democrats put the NHS and social care at the forefront of our campaign, after years of Conservative chaos and neglect left the NHS on its knees. I will continue to campaign to get fairer funding for our GPs in Cambridgeshire, because the unfair funding formula in Cambridgeshire is leaving GPs struggling to keep their heads above water.
Inequality was a cruel determinant in the covid pandemic and led to many avoidable deaths. South Cambridgeshire helped avoid more. It was here that the quick deciphering of the covid virus’s genetic code allowed for the vaccines to be developed straightaway. That partly explains why they were available in record time. The researchers then continued to detect the variants as they emerged. It was truly lifesaving. That is part of the reason why semi-rural South Cambridgeshire is fast changing. It is now home to world-leading innovation, with Europe’s largest biomedical centre and the Wellcome Genome Campus, as well as more than 8,000 start-ups and businesses, most of which are small or medium-sized enterprises.
Our world-leading tech and life science sectors are among the biggest contributors to the country’s economy, and I invite the Government to recognise that. They are the goose that lays the golden egg, which is why their future needs to be shaped carefully with and through the local authorities, giving local people a voice and tackling affordable housing, the water supply, transport and grid infrastructure gaps in a way that allows communities, businesses and nature to thrive.
That is why I would like to pay my respects to my predecessor, Anthony Browne, who worked hard to raise those issues. He supported the calls on Government to tackle the water crisis, and I look forward to continuing his work supporting the campaigns for the new cancer and children’s hospitals, too. I also pay tribute to his predecessor, Heidi Allen, who is still remembered fondly by many residents. Sadly, Heidi stood down from politics as a result of the abuse that many MPs—mainly women —face. In her words,
“Of course public scrutiny is to be expected, but lines are all too often regularly crossed and the effect is utterly dehumanising.”
Heidi had become an MP to stand up for the vulnerable and for those who have no voice. Now, more than ever, I want to continue their work by helping to ensure that there is a positive and inclusive vision for all in South Cambridgeshire where no one is left behind. It is distressing that 15% of children in my constituency are living in poverty, with increasing numbers dependent on food banks and free school meals, isolated in villages with no public transport.
This inclusive vision must include our unique and precious chalk streams that connect us—our blue veins; the silvery threads weaving together our villages. We have the Granta that twinkles through Stapleford, Linton and Balsham; the River Shep that starts in Fowlmere nature reserve and flows through Shepreth and Barrington villages; the River Rhee that flows through Haslingfield and Harston; the Mel that rises in Melbourn and flows through Meldreth; and the Fulbourn and Wilbraham chalk streams. Residents are rightly outraged at the dumping of raw sewage in these streams and rivers. I urge the Government to get tougher with the water companies. Together with the Government, I will champion breathing new life into the Chalk Streams (Protections) Bill. I have worked professionally for many years with Governments around the world to integrate climate and nature into growth plans, mediating agreements where benefits can flow to local communities.
What motivates me most is how young people see their future. A recent study on young people found that too many had climate anxiety. Their most used words were fear, anger, frustration and worry. There were two main reasons why they felt this way: first, they did not think that decision makers listened to them; and, secondly, they thought that decision makers did not care or take the right decisions for their future. I have met many young people in South Cambridgeshire who feel this way, and they want action on the twin climate and nature emergencies. I speak to them now: I want what we do in this Chamber to restore your faith and give you agency, so that together we can be the change that we want.