Great British Energy Bill

Richard Tice Excerpts

Report stage
Tuesday 29th October 2024 Commons Chamber

[Torcuil Crichton]

I could have said it in Gaelic. [Laughter.] It is not necessary for that to be part of the Bill or the company.

Communities must be at the heart of what GB Energy does, and community energy is at the heart of much of the wind production in my constituency—although there are commercial plans, too. Scotland’s community-owned wind farms provide, on average, 34 times more benefit payments to local communities. I have given the example of just one village with one turbine, so imagine what three estates with nine turbines could do in terms of community benefit. Let us be in no doubt, the transformative move towards wind-farming—onshore and offshore—will be mean an extremely profitable, multibillion-pound industry. Communities that host such infrastructure, or which have serious infrastructure passing through their areas, must benefit as well. People will not mind the pylons going past as long as some of the profit comes to them. That will be a critical part of the contract between GB Energy, developers and communities. Communities settling and making deals should not be left to chance.

[Richard Tice (Boston and Skegness) (Reform)]

Does the hon. Member seriously think that people in my constituency and across Lincolnshire and the east of England will be happy with thousands and thousands of huge pylons going through their area, damaging the value of their properties and businesses?

[Torcuil Crichton]

I remind the hon. Member that to switch on one lightbulb in Lincoln from a turbine on the Isle of Lewis will require a link and a chain of dominos to fall in order, on a scale that we have only ever seen in the Guinness record books. For each of those dominos to stay in place, the communities along that line must be involved and rewarded locally, or nationally with a sovereign wealth fund, to ensure that they play a part and have a sense of ownership in the transformation. The only way for this to succeed is if we all benefit. The wealth of wind is owned by no one man, and we should all share in the transformation. That is what I think GB Energy will deliver, and it is why I support the Bill.

Carbon Capture, Usage and Storage

Richard Tice Excerpts

Monday 7th October 2024 Commons Chamber

[Ed Miliband]

I listened to what oil and gas companies such as BP and Equinor said: they warmly welcomed this announcement. Frankly, there was a sigh of relief; after years of promises and delay, we finally had a Government getting this done.

[Richard Tice (Boston and Skegness) (Reform)]

Ten million pensioners will find it utterly extraordinary that this Government can find over £20 billion when they cannot find £1 billion to fund the winter fuel payment. That is £20 billion to invest in what the Secretary of State has today admitted is a risky technology—I find myself in the rare position of agreeing with the co-leader of the Green party, the hon. Member for Waveney Valley (Adrian Ramsay), on that. The extraordinary thing is that this is almost £1,000 per household. Will this sum of taxpayers’ money be added to general taxation, when taxes are already at record highs, or will it be added to our energy bills, which the Secretary of State has promised will be brought down?

[Ed Miliband]

Let us be absolutely clear about this, because that was a significant intervention from the hon. Gentleman. Here we have what claims to be the party of working people opposing jobs for working people right across the country. That says all we need to know about the hon. Gentleman: outside this House, he pretends to be in favour of good industrial jobs for Britain; in this House, he opposes them.

Great British Energy Bill

Richard Tice Excerpts

2nd reading
Thursday 5th September 2024 Commons Chamber

[Richard Tice (Boston and Skegness) (Reform)]

I congratulate the hon. Member for Barrow and Furness (Michelle Scrogham) on that excellent speech. The vision of a landlord with a sword serving alcohol is an interesting one. I also congratulate the others who have made maiden speeches, and in particular the hon. Member for Northampton South (Mike Reader). Northampton South is where I grew up and first went to school, and I am still a passionate supporter of the Northampton Saints.

I have long been a critic of the excessive levels of overseas ownership of our key public utilities thanks to the failures of the previous Conservative regimes. Some 80% of our offshore wind industry is overseas-owned, so I have some sympathy, the House may be surprised to hear, with some of the aims and ambitions of GB Energy. Indeed, it may be that the Secretary of State was listening to me a couple of years ago when I talked about this issue.

In the spirit of being constructive and helpful to the Minister and the Secretary of State, I wish to put forward a couple of suggestions. My model of joint-venture partial public ownership of monopoly, critical public utilities is a 50:50 model. In opening the debate, the Secretary of State referred to the Danish company Ørsted, which is 50% owned by the state and 50% owned primarily by pension funds with private sector management. That is a win-win joint venture. I urge the Secretary of State and the Minister, when they make investments through GB Energy, to focus almost exclusively on 50:50 joint ventures in which the other 50% should be private sector investment, preferably from British pension funds on behalf of British pensioners. That way we will get the best of all worlds, with the quality of private sector management, because the truth is that Governments can be good at funding things but are generally very bad at managing things. I therefore urge the Secretary of State and the Minister, when they consider the investments to be made through GB Energy, to adopt the model of investing only up to 50% and always ensuring that there is private sector investment alongside.

Of course, the Secretary of State passionately believes that renewable energy will be cheaper, so he should have no problem at all with inserting into the conditions for investment a requirement for confirmation that within the business plan for investments there is a clear goal for the investment to result in cheaper energy for British consumers and taxpayers. I urge the Secretary of State and the Minister to adopt that 50% restriction and consider the need for private sector investment.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call Noah Law to make his maiden speech.

Contracts for Difference

Richard Tice Excerpts

Tuesday 3rd September 2024 Commons Chamber

[The Secretary of State for Energy Security and Net Zero (Ed Miliband)]

I congratulate you on your new role, Madam Deputy Speaker.

With permission, I would like to make a statement about the sixth contracts for difference allocation round.

It is less than two months since the Government came into office with a mandate to fix the foundations and make Britain a clean energy superpower. The last Government left this country exposed to international fossil fuel markets. As a result, every household and business paid the price in the worst cost of living and energy bills crisis in memory; because of Britain’s particular exposure, families and businesses in our country were hit harder than others.

The only way to provide this country with the energy security that the British people deserve is through home-grown clean energy that we control. That is the mandate on which this Government were elected, and that is what we will deliver.

Last year’s contracts for difference auction, under the previous Government, was a fiasco. No offshore wind projects were awarded, which was a disaster for the industry and for our efforts to move away from dependence on fossil fuels. In July, when we came into office, I made the decision to expand the budget for this year’s auction by 50% to maximise the amount of home-grown clean power we could secure while delivering value for the British people, and today the results are in.

I can announce to the House that we have secured a record-breaking 131 new clean energy projects: more projects for our country as a whole than any previous auction; more projects in England, more projects in Scotland and more projects in Wales than any previous auction; over two and a half times the capacity secured in last year’s auction; nearly 10 GW of clean, home-grown power, enough to power the equivalent of 11 million homes; the most successful renewables auction in British history; and a major step forward in our mission to make Britain a clean energy superpower and to help Britain get off the rollercoaster of volatile global gas markets.

Let me set out the results in detail. First, solar is one of the cheapest and most readily deployable energy sources at our disposal. We have secured a record 93 solar photovoltaic projects, the largest number of solar projects ever in an auction, unlocking 3.3 GW of new solar, which is a 20% increase on our installed capacity.

Secondly, we have secured almost 1 GW of onshore wind. However, I must report to the House that, thanks to the Conservatives’ near total ban on onshore wind, there was just one small onshore wind project in England of 8 MW. Their nine-year ban destroyed the pipeline of projects. That is why this Government lifted the onshore wind ban in England as one of their first acts. Our onshore wind taskforce will now go about the process of working with industry to rebuild the pipeline of projects.

Thirdly, this auction was a success for the emerging technologies that will serve our country in the future. Floating offshore wind offers a huge opportunity in every part of Britain. The last auction secured no floating offshore wind. On coming to office, I was presented with a budget that risked repeating the mistakes of the past, so I took the decision to more than double the budget that covers this cutting-edge technology. I can report to the House that today’s auction has secured a 400 MW floating offshore wind project, more than 10 times bigger than the previous biggest floating offshore wind farm in Britain.

[Richard Tice (Boston and Skegness) (Reform)]

At double the price.

[Ed Miliband]

At a lower price. This floating offshore wind farm alone is double the size of all of Europe’s installed floating offshore wind capacity. In addition, on tidal, where Britain has huge leadership opportunities, we have secured six new tidal stream projects at the lowest ever price.

Fourthly, on fixed offshore wind, in contrast to the zero GW secured in last year’s round, we have secured 4.9 GW of offshore wind, enough to power the equivalent of 8 million homes. That includes securing both the largest and second largest offshore wind projects in Europe—Hornsea 3 and Hornsea 4 off the Yorkshire coast. An industry flat on its back because of the mistakes of the last Government is back on its feet thanks to this Government.

I can also report to the House that across the whole auction all these results were secured at prices well below the maximum price limit—prices that demonstrate that wind and solar are the cheapest sources of power to build and operate in our country. For the House’s benefit, that means a clearing price for offshore wind that is five to seven times lower than electricity prices driven by gas at the peak of the energy crisis.

The success of this round does not just offer greater energy security for the British people; it also offers the possibility of good jobs throughout Britain. But that will not happen without action by Government, because we know that too often in the past renewable energy produced in Britain has not created enough good jobs in Britain. With Great British Energy and our national wealth fund, we will invest to make sure our clean power mission produces jobs in every corner of the United Kingdom.

This Government have been in office for less than two months. In that time, we have lifted the onshore wind ban, consented more nationally significant solar capacity in one week than the last Government did in 14 years, and now delivered the most successful renewables auction in the history of the country. And on Thursday we will debate the Second Reading of the Great British Energy Bill. This is a Government in a hurry to deliver our mission: energy security, lower bills, good jobs and tackling the climate crisis. I commend this statement to the House.

--- Later in debate ---

[Ed Miliband]

Again, my hon. Friend speaks with great expertise. Part of it is about is having a Government who are committed to a proper industrial strategy and have the levers to make that strategy happen. There was an interesting divide between the Opposition, when they were in government, and us. Although, of course, America is a different-sized country from us, we see the Inflation Reduction Act as offering real lessons to us about how we can lever in private investment. We will not be able to do it on the scale of that Act, but these interventions can make a difference. There is also this crucial point: we care where the manufacturing happens, and we are determined to make sure that it happens in the UK.

[Richard Tice (Boston and Skegness) (Reform)]

Will the Secretary of State, who is obsessed with renewable energy, actually be honest with the British people? The truth is that the offshore wind turbine bids today are some 20% above current prices. The floating offshore wind bids are some three times the current prices. His Department says that this requires subsidies of some £1.5 billion a year. That is before the extra transmission costs, before constraint payments, before compensation payments for blighting my constituents’ countryside, and before the cost of back-up when the wind does not blow and the sun does not shine. Why will he not be honest and tell the truth: that renewable energy is more expensive, not cheaper?

[Ed Miliband]

I am interested by the hon. Gentleman’s intervention, because his manifesto is basically higher bills and to make people poorer. We do not need to look into the crystal ball; we just need to look at the record. The truth is that the cost of living crisis—the energy bills crisis—casts a long shadow in this country. It was caused not by a dependence on renewables but by our exposure to fossil fuels. He just needs to understand this basic point: whether fossil fuels are produced in this country or internationally, they are sold on the international market, and that is why the British people paid the price and the Government forked out £94 billion. The only way to get off the rollercoaster of international gas markets and take back control is to become a clean energy superpower.