Great British Energy Bill

Polly Billington Excerpts

Report stage
Tuesday 29th October 2024 Commons Chamber

[Pippa Heylings]

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.

[Ms Polly Billington (East Thanet) (Lab)]

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.

[Pippa Heylings]

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.

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[Sarah Champion]

I completely agree with my hon. Friend, and that, to my mind, is what GB Energy should be doing. It is using its purchasing power around the world to increase human rights and improve working conditions, for example, but it also needs to be supporting British-based businesses, because our businesses need that support more than ever before. What we need to be doing is applying pressure on all our trading partners around the world, not just China, to improve standards. There are allegations of child labour in cobalt mining for EV batteries in the Democratic Republic of Congo, and there is evidence of labour exploitation in nickel processing in Indonesia.

With those examples in mind, I ask the House a simple question: do we turn a blind eye to modern slavery in our energy supply chains, or do we lead the way with a just transition? As the Chancellor outlined in her conference speech, this Government are

“Calling time on the days when government stood back…and turned a blind eye to where things are made and who makes them.”

It is vital that we follow up her words with real, meaningful action, because, as things currently stand, we are a global outlier. In 2021 the United States enacted the Uyghur Forced Labor Prevention Act, banning the importation of products from the Uyghur region, including shipments of solar panels with connections to Xinjiang. That has been highly effective, with the market responding with new, ethical supply chains. Canada and Mexico have followed suit with similar regulations, and this year the European Union passed the corporate sustainability due diligence directive, which will ensure that companies prevent and address the adverse human rights impacts of their actions.

[Ms Billington]

We should bear in mind that the regulations established by those other countries apply to all companies. It seems to me that we should be going in that direction, rather than simply saying that we will focus on one company, GB Energy. Given our high ethical standards, this is the kind of sectoral approach that we should be able to create ourselves, as an international leader.

[Sarah Champion]

My hon. Friend pre-empts me. This will work only if we do it across the whole of Government and in all sectors, and I want my Government to be leading the way on that. We have a hugely important role to play internationally, as well as in our own industries.

The UK’s failure to keep pace with our partners has resulted in the global supply chain splitting. Slave-made renewable products are being redirected to countries with weaker regulations, such as the UK. As the other place’s Modern Slavery Act 2015 Committee recently recognised, without forced labour import bans, the UK risks becoming a dumping ground for tainted products. Current legislation, such as the Modern Slavery Act 2015 and the Procurement Act 2023, cannot meet the scale of the problem, especially while human rights due diligence remains optional for companies.

I appreciate that the Department is looking into these issues through the solar taskforce’s upcoming solar road map, which I really welcome. However, the solar taskforce, made up mostly of industry voices, needs to have civil society and trade unions on the team for its work to be truly credible. That is especially the case given my concerns about Solar Energy UK’s solar stewardship initiative, or SSI, as I am doubtful that an industry-led solution can meet the scale of the challenges I have outlined today.

A just transition is not only about international workers’ rights; it is also about securing UK jobs and industry. Our energy strategy must prioritise green jobs and wealth creation here, and avoid fuelling growth in economies known for cutting corners. Following my discussions with the industry and unions, it is clear that the UK’s inadequate response to these issues is creating a competitive disadvantage for businesses here and an uneven playing field internationally. If GB Energy allows exposure to state-imposed forced labour, it creates a distinct risk for investors and businesses here in the UK.

The arguments I have laid out today have the support of unions, businesses and human rights advocates alike. They echo the sentiments of our Prime Minister, Foreign Secretary, Business Secretary and Energy Secretary. For too many years, tackling modern slavery has received a siloed, disjointed response from Government. We now have an opportunity to change that and to embrace cross-departmental, collaborative working. Renewable energy has a key role to play in our transformation to a low-carbon economy, but without placing human rights at its centre, our green transition will come at a grave cost.

This Bill is aptly named the Great British Energy Bill. It simply cannot live up to its name if it depends on modern slavery to achieve its aims.

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[Madam Deputy Speaker (Ms Nusrat Ghani)]

In a debate like this, it is important for Members to ensure that they link their contributions to the amendments we are addressing. I call Polly Billington.

[Ms Billington]

Thank you, Madam Deputy Speaker. I will speak specifically to the amendments on community energy, and I refer the House to my entry in the Register of Members’ Financial Interests.

Back in 2016, I founded UK100, a network of local government leaders who are ambitious about shifting their communities and their economies to net zero. It is because of that experience, working with local leaders of all political persuasions across the country, that I would like to highlight the importance of a local-led approach to reaching our net zero targets. GB Energy will be able to play a crucial role in doing so by facilitating and encouraging local authorities to meet the ambitious net zero targets that have been set across the country. People will be familiar with the ambitions of big cities such as Leeds, Liverpool, Birmingham, Bristol and Brighton—to name but a few—but towns and villages in rural and coastal communities have also made those commitments. That is why community energy is so vital, and why it is so much a part of this Government’s overall project and of this Bill.

Through the local power plan, GB Energy will be able to work with local and combined authorities to deliver hundreds of millions of pounds of funding to small and medium-scale clean energy projects, helping to turn those ambitious targets into reality. GB Energy will also be able to work with communities across the country to help deliver that local-led approach. I have seen some great real-world examples of community-led climate projects. For example, Green Meadows is a community climate action project in Nottingham, funded by the National Lottery’s climate action fund, that aims to deliver home insulation, clean energy generation for local homes, planting projects and workshops to give residents the tools and skills they need to install their own energy upgrades.

With no disrespect to the National Lottery’s fund, we need a more strategic approach to the local delivery of clean, home-grown, secure energy. That is the role of the GB Energy company. By working with communities and local people, GB Energy will be able to play a crucial role in building consent and support for clean energy projects, in order to reach our ambitious targets and avoid a backlash to net zero—we have already seen that backlash, particularly driven by some of the attitudes of the Conservative party. We have to bring people along with us and show them how they can tangibly benefit from the transition.

Net zero must not be something we do to people; it must be something we do with people. If we do not work with communities, we will face resistance across the country, but not because people are against tackling climate change. By involving people and showing them how they can tangibly benefit, we will face less resistance and deliver much quicker deployment of the energy projects we need to build. Swaffham Prior, which was mentioned by the hon. Member for South Cambridgeshire (Pippa Heylings), is indeed a valuable project, but we cannot leave the transition to projects of that scale. To support community projects at scale, we need a transformative approach that is about transforming the rules of the market as much as it is about establishing GB Energy. Lastly, de-risking those projects—both at scale and community assets—will be a vital role of GB Energy.

Reaching net zero will be a partnership between the state, the private sector and the community. Government investment to help “crowd in” that private sector and community investment will be crucial. In that context, we often talk about new and developing technologies, but it is crucial not to forget existing, proven technologies.

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[Caroline Voaden (South Devon) (LD)]

I rise to speak to amendment 5 alongside my hon. Friends. I welcome the fact that the Government are keen to increase the amount of energy produced by renewables—we have certainly waited far too long in this country for the priority and urgency needed to try to shift electricity production away from fossil fuels definitively. Unlike the shadow Secretary of State, the right hon. Member for East Surrey (Claire Coutinho), I look forward to the day when I can turn my lights on knowing that the electricity has been produced by the sun or wind.

I will acknowledge four excellent projects in my constituency, which are brilliant examples—or potential future examples—of community energy. South Brent Community Energy Society runs a community energy fund with the surplus from the operation of the wind turbine and solar panels that have been erected in the village. The fund is directed to new energy saving measures and renewable energy generation projects for the benefit of the community. Charities, schools and community groups have all benefited from the surplus energy that it produces, and it is a brilliant example of what can be done in a village environment with a community energy project.

Totnes Renewable Energy Society has solar panels on the roof of the civic hall that I can see from my bedroom window, and that power the electricity in my house, along with others. We also have a turbine in the river, which sadly does not have a name such as Thunder or Lightning like the ones in the constituency of my hon. Friend the Member for Hazel Grove (Lisa Smart), but does power the local high school. I also give a shout-out to Sustainable Blackawton, which is keen to find a site for a wind turbine, and to the Bigbury Fan Club, which is setting out on a long journey to try to get a turbine there.

I have spoken to many constituents who are excited by the prospect of creating new solar or wind projects on community or municipal buildings, or wind turbines in a village, but they are struggling. It is complicated to get planning permission, it is difficult to get funding, and it is virtually impossible to connect new projects to the national grid. We must make it easier, simpler and faster to connect up community energy projects, not only so that we can transfer to clean energy, but so that communities across the country, like the brilliant example from Eigg in Scotland, can connect to renewable energy in that way.

In the early 2010s, we had the Green Investment Bank—what a shame that we lost it in 2014, and with it 10 years of potential investment in green projects. We need to catch up for the lost decade since the Liberal Democrats did so much to grow offshore wind when we were in office. We will support the Government’s ambitions to transform our energy network, but community energy must be at the heart of it and baked into the Bill, so that every village that agrees to a wind turbine can benefit from it, knowing that they are using their own clean, locally produced energy for the benefit of their community, for lower bills and for cleaner energy.

We are calling for larger energy suppliers to work with community schemes across the country so that we can sell power to local customers at a discounted rate and provide community benefits.

[Ms Billington]

I would like further clarification about this interesting proposition from the Liberal Democrats about community energy groups working with the big energy companies. What plans do the Liberal Democrats have for the concept of securing ownership at community level? My concern about the model being suggested is that, rather than there being a community energy ownership model, it would instead be one of big companies investing in small communities.

[Caroline Voaden]

I thank the hon. Member for the intervention. The model would involve part ownership by the community and part ownership by large energy suppliers—

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[Dave Doogan (Angus and Perthshire Glens) (SNP)]

I rise to speak in support of amendment 1, in the name of my right hon. Friend the Member for Aberdeen South (Stephen Flynn), and amendment 5, tabled by the Liberal Democrats.

I am supportive of the Bill in the abstract, and I am certainly supportive of its headline ambitions, like many Members, but I trust that the Minister is hearing what the House is saying today about the substantive lack of information and detail, and the troubling direction of travel, which will place significant executive authority in the hands of the Secretary of State in discharging GB Energy’s responsibilities.

It is a pity, too, that the attrition to the original budget of £28 billion has nearly quartered it to £8 billion. I hope that the jobs associated with this implied investment do not go the same way as the budget, before they get the chance to take root in the north-east of Scotland and support my constituents and many others in that part of the country. It is a shame that the only person appointed to GB Energy is not working in Scotland at all. I am not sure that was on the script going into the election, but it seems to be what has happened afterwards.

Amendment 1 from the SNP asks the Labour Government to deliver upon what they said they would do ahead of the election. That does not strike me as particularly unreasonable. I do not think our amendment will be selected for separate decision, so I think we will be forced to vote with amendment 6 in the name of the right hon. Member for East Surrey (Claire Coutinho), which asks for basically the same thing. [Interruption.] The Minister is getting very excited. Of course, we would not have had to table an amendment if the Labour party had just put the measure in the Bill. It was in the leaflets, so I do not know why it was not in the Bill. It is also no longer £300 that we need to see reduced from hard-pressed working people’s bills. Since Labour made that claim, bills have gone up by £149, so the Government will need to get £449 off people’s bills before they can get back to where they started, certainly in terms of them having any credibility.

The Liberal Democrats have a well-worded and noble ambition on community energy, and the SNP would have been pleased to support it. One of the things missing from GB Energy is a statutory responsibility to develop and accelerate community energy at pace in a measured fashion. Referring back to my opening remarks, I am supportive of the Bill’s outline ambitions, but I am worried about the lack of detail. The more we discuss and debate the Bill, the more I am concerned that GB Energy will end up doing lots of things that nobody particularly needed it to do, because they were all done by a department within the Department for Energy Security and Net Zero.

What we do not have is what people want GB Energy to do. We do want it to generate energy independently and to have an effect on the energy market in the United Kingdom. We do want it to sell energy to the retail market. We do want it to buy community energy from community energy generators and to introduce it into the market. And we do want it to enable community energy and to lower bills.

[Ms Billington]

All the things that the hon. Gentleman mentioned are exactly what GB Energy will do. There is literally no reason why he cannot go through the Lobby with Labour Members this evening, because the Great British Energy Bill will do all the things he has asked for it to do. It is nothing to do with sucking up the energy of the civil servants doing policy; that is a completely different role, and they will continue their work.

[Dave Doogan]

I thank the hon. Lady for her intervention, but I politely disagree. No amount of emphasis on her part will change the detail in the Bill, and that is what MPs are concerned about.