Great British Energy Bill (Third sitting)

Debate between Pippa Heylings and Michael Shanks

Committee stage
Thursday 10th October 2024 Public Bill Committees

[Pippa Heylings]

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.

[Michael Shanks]

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.

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[Michael Shanks]

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.

[Pippa Heylings]

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.

[Michael Shanks]

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

[Pippa Heylings]

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.

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[Michael Shanks]

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.

[Pippa Heylings]

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.

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[Michael Shanks]

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.

[Pippa Heylings]

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.

Great British Energy Bill (Fourth sitting)

Debate between Pippa Heylings and Michael Shanks

Committee stage
Thursday 10th October 2024 Public Bill Committees

[Michael Shanks]

The 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.

[Pippa Heylings (South Cambridgeshire) (LD)]

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.

Oral Answers to Questions

Debate between Pippa Heylings and Michael Shanks

Tuesday 8th October 2024 Commons Chamber

[Pippa Heylings (South Cambridgeshire) (LD)]

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?

[Michael Shanks]

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.