Oral Answers to Questions

Sarah Dyke Excerpts

Tuesday 17th December 2024 Commons Chamber

[Michael Shanks]

It will not surprise the House that I agree wholeheartedly with my hon. Friend, who, as always, makes an incredibly important point. He is right that stability is key, but so too is this Government’s commitment to invest in community energy. We have committed to upwards of 8 GW of energy from community sources over the course of this Parliament up to 2030. That commitment ensures not just that we have an energy mix where communities benefit, but that they benefit from the economic and social advantages of owning the energy they produce.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

Community energy schemes provide a great opportunity for local communities to take ownership of clean energy production. In Glastonbury and Somerton, we have seen the benefits as Avalon Community Energy projects around Glastonbury are projected to save 1,000 tonnes of carbon per year. How will the Minister support community energy schemes and ensure that they play a fair and full role in creating clean energy?

[Michael Shanks]

The hon. Member has raised community energy on a number of occasions in this place, and I know she is a champion of it. She is right to highlight the examples of where community energy can make a huge difference. One of the key areas we want to drive forward is the local power plan, which will be delivered by Great British Energy. Unfortunately, her party did not in the end support the creation of Great British Energy, but I hope they will change that position and see the huge advantages of investing through Great British Energy in schemes like the one she mentioned, but also of helping to build capacity in community groups so that they are capable of driving those projects forward.

COP29

Sarah Dyke Excerpts

Tuesday 26th November 2024 Commons Chamber

[Ed Miliband]

My hon. Friend asks a really important question. I met with some of the youth campaigners and the youth coalition at COP, and I agreed with them. The UK has signed up to a youth clause in our NDC, which is about recognising young people as agents of change when it comes to climate and the need to engage with young people. I would love to talk to my hon. Friend and those young people about how we take those issues forward in the months ahead.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

I thank the Secretary of State for his statement and agree that the UK must show global leadership on climate action. Peatlands are the largest natural terrestrial carbon store, yet damaged peatlands are responsible for almost 5% of global anthropogenic CO₂ emissions. The UK imports 60% of peat used in horticulture, offshoring carbon emissions abroad. Does the Secretary of State agree that, beyond COP29, we must continue to show global leadership and protect the environment by committing to a phased ban on peat in horticulture?

[Ed Miliband]

I will deal with the wider issues of peatlands, because money was allocated in the Budget for these issues through the Department for Environment, Food and Rural Affairs. That is a very important issue, and the wider issue is also important. We also need to make progress at a global level. The other issues are actually a matter for DEFRA, but I will undertake to write to the hon. Lady on them.

Fuel Poverty

Sarah Dyke Excerpts

Wednesday 6th November 2024 Westminster Hall

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

I beg to move,

That this House has considered Government policies on tackling fuel poverty.

It is a pleasure to see you in the Chair, Sir Roger. A household in fuel poverty is defined as one that commits more than 10% of its income on energy to maintain a satisfactory heating regime. Fuel poverty includes three elements. The first is the household’s income, from which we compute that 10%; the second is the household’s energy requirements, on which the quality of the housing stock and the availability of cheaper tariffs have an influence; and the third is the fuel prices themselves. It is sobering to think that across the United Kingdom as a whole, no fewer than 6 million households are living in fuel poverty. In Scotland in 2022, some 791,000 households were fuel-poor.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

I have recently received more than 200 emails from pensioners in Glastonbury and Somerton who do not know whether they can afford to turn on the heating this winter. Does my right hon. Friend agree that the Government should provide targeted energy discounts for vulnerable households, to reduce the number of people living in fuel poverty?

[Mr Carmichael]

It will be the first surprise of the day for everyone that the answer is yes. I very much agree that we need that—or if not that, something of the sort. Meaningful action that is fit to meet the needs of the different parts of the United Kingdom is long overdue.

While households in fuel poverty are committing more than 10% of their income, households in extreme fuel poverty are committing more than 20% to meet their energy needs and keep their home warm. In Scotland, there were 311,000 such households in 2019. By 2022, the figure had risen to 472,000.

This issue is particularly acute for us in the northern isles. In Orkney and Shetland, 31% of households live in fuel poverty; the Scottish average, which is higher than that of the rest of the United Kingdom, is 24%. It is not difficult to see why fuel poverty is particularly acute in the northern isles. Winters are longer, darker and colder than in other parts of the country. We are off the gas grid. Most of our homes are heated using electricity, oil and sometimes liquefied petroleum gas or solid fuel. Yes, an increasing number of people are able to use photovoltaics and ground or air-source heat pumps, but the bulk of our heating still comes from conventional sources.

Great British Energy Bill

Sarah Dyke Excerpts

Report stage
Tuesday 29th October 2024 Commons Chamber

[Tom Hayes (Bournemouth East) (Lab)]

It is an honour to welcome this Bill as it is moving forward, and I want to commend the leadership of the Secretary of State and the Energy Minister. To show such leadership so early on in the Parliament on such an important topic is really commended in my community.

My community of Bournemouth, and Britain, have suffered the worst cost of living crisis in a generation, driven by the energy shock that followed Putin’s invasion of Ukraine. This cost of living crisis has been a disaster for businesses. Typical energy bills have nearly doubled in the space of a year. It has been a disaster for family finances, with millions struggling with fuel poverty and many still facing enormous debts. It has been a disaster for public finances because the Government that we replaced left our country so unprepared. They were forced to spend an eye-watering £94 billion to support households with the cost of living—almost as much as our entire defence budget over the entire period. Because energy costs underpin economic performance, inflation soared, growth sputtered and Russia’s invasion of Ukraine sent inflation in the UK to over 10%, with a full third of that directly due to rising gas prices as a direct result of our vulnerability over the last 14 years.

We risk paying an even heavier price if we stay exposed to fossil fuels. We still depend on gas to generate more than a third of our electricity and to heat more than four out of five of our homes. No more. We must make sure that we are energy secure, and we must be able to bring down our bills. The Office for Budget Responsibility has warned about our exposure to surges in energy prices, and the potential costs to bill payers, taxpayers, consumers and businesses alike. The OBR now estimates that another fossil fuel price shock would cost the economy 2% to 3% of our GDP in the 2030s.

The crisis is not over. It still casts a long shadow and we cannot go on like this. We must learn the lessons, and the fastest way to reduce our vulnerability is to end our dependence on volatile global fossil fuels. The cheapest way to meet our energy needs is to enhance our home-grown renewables and British-based nuclear. I was intrigued to hear the Conservative spokesperson, the right hon. Member for East Surrey (Claire Coutinho), saying that this Government want to go slow on nuclear, so I have to ask: what nuclear projects were built over the last 14 years of the Conservative Government and five Prime Ministers? What small modular reactors actually moved ahead? What did those Prime Ministers do with the investment and the work that developers wanted to bring forward? Nothing. Our nuclear industry has been starved of funding and attention, but no more. When the energy is produced here and consumed here, Britain is protected against the volatile international markets that send our bills soaring.

The Climate Change Committee’s report, published two weeks after the Labour Government came into office, laid bare the true reality of energy policy under the last Conservative Government. It states:

“Last year…the previous Government signalled a slowing of pace and reversed or delayed key policies”.

We did not hear about that from the right hon. Member for East Surrey. It also stated that

“announcements were given with the justification that they will make the transition more affordable for people, but with no evidence backing this claim”.

We did not hear anything about that. The assessment of the committee was that

“only a third of the emissions reductions required…are currently covered by credible plans”

by the previous Government. We did not hear anything about that. That is this Labour Government’s inheritance, for a target that has to be achieved in just five years’ time. Britain is way off track to hit our 2030 international target of a 68% reduction in emissions. That is why the Government are in a hurry, and it is why they introduced the Bill so early in this Parliament.

In the five years ahead, our big challenges will be building an energy system at speed and supporting people through the energy transition. We need to demonstrate the benefits of the infrastructure we are building and make sure that host communities benefit in return. When we ask our communities to host this infrastructure, I am confident that they will say yes. They will do so on behalf of our nation. They will do so for cheaper bills in the long run, for good jobs that pay well and to benefit our communities.

National Grid estimates that five times as many pylons and underground lines will need to be constructed by 2030 than in the past 30 years. Underground cables cost six to 10 times more than overground cables. If part of our challenge is to cut bills and to reduce overall costs in a time of scarcity, we must be willing to invest in our infrastructure.

The faster we go, the more secure we become. Every wind turbine we erect, every solar panel we install and every piece of grid we construct will help our families and protect them from future energy shocks. Conversely, every wind turbine blocked, every solar farm rejected and every piece of grid left unbuilt will make us less secure and more exposed.

The faster we go, the better our economy will work for working people by creating a new generation of good jobs that finally pay decent wages in our industrial heartlands. Labour Members do not seek deindustrialisation; we seek decarbonisation. And decarbonisation will be achieved through reindustrialisation and the creation of good green jobs. The faster we go, the more we will be early movers and lead the world in new technologies. Why should these jobs be created in Pennsylvania or Shanghai? Let us create them in Bournemouth and across our country. And the faster we go, the more we can tackle our climate challenge. This is no longer a future threat. It is right here, right now, and we need to be able to tackle it.

Over the past few years, the race for jobs and the industries of the future has accelerated across the world. For too long, our country has been opted out of that race against our will. We have lost out, and our communities have fallen behind. Pay has not kept pace, and jobs have not been created on the scale needed. Why did the previous Government allow other countries to lead in these industries and clean jobs? Why did they not bet on our country and our potential?

I am delighted to see this Bill make progress. I commend Ministers for introducing it, and I look forward to seeing true investment in our green industries and the jobs of the future.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

I rise to support amendment 5, tabled by my hon. Friend the Member for South Cambridgeshire (Pippa Heylings), to require a statement of strategic priorities on the facilitation of community-based clean energy schemes.

Energy supply is the second largest contributor to UK domestic greenhouse gas emissions, making up 20% of carbon emissions in 2022. Community energy should play a key role in reducing this and in helping the UK to meet its net zero targets. Community energy projects have positive impacts on equality, social cohesion and economic opportunity. We must therefore encourage local communities to take ownership of energy production. This way, we can ensure that decisions are taken in the best interests of local communities, and in collaboration with them, to better meet their needs.

The local economic benefits are clear, with community energy businesses in 2021 raising £21.5 million of investment for new projects and spending £15 million of community energy income to boost local economies. Community energy schemes currently produce just 0.5% of UK electricity but, according to studies by the Environmental Audit Committee, this could grow twentyfold over the next 10 years.

My constituency has seen the benefit of community energy schemes, with Avalon Community Energy in Street and South Somerset Community Energy in Wincanton providing services to the local area. Avalon is currently focused on delivering the clean energy project as one of the projects that make up the Glastonbury town deal. The £2 million project will develop renewable energy and carbon saving for the community. It is currently estimated that the project will save around 1,000 tonnes of carbon per year, and there will be an annual revenue surplus of over £100,000, some of which will be used for ongoing local community benefits. South Somerset Community Energy has installed three solar panels on the roof of Stanchester academy in Stoke-sub-Hamdon. Those solar panels produce around 100,000 kWh of energy per year, at least 70% of which is used by the academy.

The Liberal Democrats want to support the expansion of community energy schemes by requiring large energy suppliers to work with community schemes to sell the power they generate to local customers. If the Government want to drive a clean energy revolution, community energy has to be part of that. Community energy schemes have the potential to power 2.2 million homes, to save 2.5 million tonnes of CO₂ a year and to create over 30,000 jobs. The Government have sadly neglected community energy provisions in the original Bill, as many of my Liberal Democrat colleagues have and will outline. That is a major missed opportunity.

Engagement and consultation with local communities is crucial if GB Energy is to be a success. GB Energy should also provide communities who host renewable energy infrastructure with the ability to realise community benefits from that. I have spoken on this point at length over recent weeks, because it is crucial if we are to boost the much-needed roll-out of renewable energy, particularly in areas like Glastonbury and Somerton. Communities must be part of the process. They have a critical role to play and a voice that must be heard. Through engagement, we can deliver clean energy, increase social cohesion and allow communities to invest in their place.

For the reasons I have laid out, I will be supporting the amendments tabled by my hon. Friend the Member for South Cambridgeshire, and I urge the House to do the same.

[Brian Leishman (Alloa and Grangemouth) (Lab)]

Before I make my contribution, I apologise to you, Madam Deputy Speaker, and to the House for failing to mention during the Employment Rights Bill debate last week the financial donations made to me by Unite the Union of £7,500, and by the Communication Workers Union of £3,500. I appreciate that being a first time MP is no excuse, and I extend my sincere apologies to you and to the House. On that note, I refer to my entry in the Register of Members’ Financial Interests, where it also says that I am a member of Unite the Union, which I will refer to later in my remarks.

There is so much to like in the GB Energy Bill: a publicly owned clean energy company, the creation of skilled jobs, reindustrialising communities and cutting household bills. It is a transformative and bold idea, which is to be applauded and to be proud of. Since coming to this place, I have heard it said—indeed, I have said—that a nation’s energy security is linked to its national security. GB Energy should eventually help with both those things and create thousands of skilled jobs. That is excellent.

However, what about the jobs of the Grangemouth refinery workers, the same workers who are right now crucial to Scotland’s energy security, and therefore to Scotland’s national security? Those workers are nearing the end of their 45-day consultation process, during which the focus should be on how jobs can be saved and maintained for those workers. Recent comments include, “These workers will be okay and it will all be fine because they’ll get employment elsewhere.” If the workers have to leave, that will not help my community. Stopping refining does not help Scotland’s fuel or national security.

There can be no doubt that my constituency will be much weaker for losing the refinery—job losses will run into the thousands. There can also be no doubt that Scotland will be weaker for losing the refinery. After all, Scottish Enterprise has reported that the economic contribution of the Grangemouth refinery is north of £400 million.

Mark my words, stopping refining at Grangemouth and closing Finnart will have monumental consequences for all of Scotland. It will not take long for the pumps on forecourts all over the country to be impacted, and so too the public. Although this is not a problem of this Government’s making—the previous UK Tory Government and the current SNP Scottish Government have long since turned their backs on the refinery, and it was previous UK Ministers and Scottish Cabinet Secretaries who got us into this mess—make no mistake, it is our mess to clean up now.

Large-scale Energy Projects and Food Security

Sarah Dyke Excerpts

Tuesday 22nd October 2024 Westminster Hall

[Sarah Dyke (Glastonbury and Somerton) (LD)]

It is a pleasure to serve with you in the Chair, Sir Mark. I congratulate the hon. Member for Ynys Môn (Llinos Medi) on securing this important debate.

Farmers across the country are leading the UK’s renewable energy charge, and already host about 70% of the UK’s total solar generation capacity. Hosting renewable energy infrastructure can help British farmers at a time when they desperately need it, so the ability to diversify their business has been welcome for those who can do so. However, food security is paramount to national security. Energy security and food security go hand in hand, so we must secure the future of British farming.

Worryingly, recent research from Riverford Organic Farmers has found that 61% of farmers feel that they will have to give up their farms in the next 18 months due to financial pressures. British farmers have had to deal with significant challenges in the wake of Brexit, and the previous Conservative Government failed to give them the support they needed. They botched the transition from basic payments and negotiated damaging trade deals, all the while managing a staggering £358 million DEFRA underspend over the past three years. The Liberal Democrats know that we must support the nation’s farmers, and that is why we need to boost the environmental land management budget by £1 billion. Reports that the new Government are considering stripping £130 million from the agriculture budget are hugely concerning. That would be a serious misstep at a time when the nation’s food producers can least afford it.

In Glastonbury and Somerton, many farmers and landowners are taking the opportunity to host ground-mounted solar panels. Over the past few years, they have been installed in Cucklington, Milborne Port and Wincanton, to name just a few places, but it is important that solar farms are not developed on our best and most versatile land. The national planning policy framework states that poorer quality land should be used in preference.

[Carla Lockhart (Upper Bann) (DUP)]

Will the hon. Lady give way?

[Sarah Dyke]

I will not, given the time.

Poorer quality land can still be productive, as sheep can graze underneath the solar panels, while the solar array provides a diversification opportunity for the farmer. It is important that the updated NPPF keeps that distinction so that poorer quality land with the ability to under-graze remains preferable to the best and most versatile.

We must make it easier for farmers to put solar panels on agricultural buildings. Solar arrays are space intensive, and can sometimes compete for land that would otherwise be used for other purposes. Putting solar panels on the roofs of farm buildings would avoid any land use conflict.

Rural communities such as Glastonbury and Somerton are leading the solar energy movement. My constituency is in the top 50 English parliamentary constituencies for domestic solar generation capacity. The Government should be looking to improve on the success of rural communities by enabling more solar panels on agricultural buildings, with affordable access to rural electricity grid connections. To ensure we are food secure, we must ensure that the future of British farming is safe. We must therefore give our farmers the support they need to feed the nation and protect our environment. To reach net zero by 2045, we must support the roll-out of renewables. Supporting farmers to host renewable infrastructure is common sense, but it must not be on our best, most versatile and most productive land. I look forward to hearing the Minister’s comments—

[Sir Mark Hendrick (in the Chair)]

Order. I call Ann Davies.

Renewable Energy Projects: Community Benefits

Sarah Dyke Excerpts

Tuesday 15th October 2024 Westminster Hall

[Sarah Dyke (Glastonbury and Somerton) (LD)]

It is a pleasure to serve with you in the Chair, Dr Huq. I congratulate my hon. Friend the Member for Inverness, Skye and West Ross-shire (Mr MacDonald) on securing this important debate.

I commend the new Government’s aspiration to increase our renewable energy infrastructure. The previous Conservative Government’s failure to invest in renewable energy and insulate our homes led directly to the energy crisis, pushing up energy bills for everyone and squeezing personal finances. In Somerset we are investing in and expanding our renewable energy infrastructure. Under the net zero pathway, the equivalent of 45% of Somerset’s future expected electricity demand will be met by local renewable energy generation by 2050.

However, I believe that when communities host renewable energy infrastructure such as solar farms, they should benefit from it. When I asked the Secretary of State about this recently, he agreed—he was clear that when communities take on the responsibility of hosting clean energy infrastructure, they should benefit from it—yet when I wrote to the Minister for Energy, the response stated blankly that the Government have no formal role in ensuring community benefits in solar. That is not the case with onshore wind power, which the Government are taking action to ensure is covered. That leaves communities in Somerset that host solar infrastructure totally reliant on developers to offer tangible benefits. Developments are also ineligible for community infrastructure levy obligations in the way that new housing is. The lack of obligations on developers means that communities are unlikely to benefit from hosting installations, leading to ongoing tensions within communities.

That begs further questions about the Government’s development of Great British Energy, to which I hope the Minister might respond today. If GB Energy is going to invest in new ground-mounted solar farms, will it ensure that local communities benefit from hosting the infrastructure, as the Government have claimed is their aim? I look forward to hearing the Minister’s comments. I hope that we can continue to move forward and increase clean, green energy production.

Great British Energy Bill

Sarah Dyke Excerpts

2nd reading
Thursday 5th September 2024 Commons Chamber

[Wera Hobhouse]

I totally agree, and I am sure that the Government will agree too. A lot of these decisions are ultimately about value for money; as these tidal range technologies come on board, they can become cheaper. I hear the Government are saying that this is exactly the plan: that, where it is currently expensive, Great British Energy can come in and provide support. We understand and support that principle.

This new Government must ensure that they have clear and consistent messages. Delays to the phase-out dates of fossil-fuel vehicles and boilers, as we saw under the last Government, have sent mixed signals to investors, businesses and consumers. We hope that GB Energy will go some way in providing confidence to other investment bodies and the wider industry that Britain’s green economy is open for business.

We Liberal Democrats realise the importance of community buy-in. The new Government must put local voices at the centre of the journey to deliver net zero. We need to win hearts and minds to persuade people that net zero projects are good for their communities, for their pockets and for our future national economy.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

The Government have said that they believe communities that host renewable energy infrastructure should benefit from it, but there are currently no ways to force developers of on-ground mounted solar panel farms to provide community benefits. Does my hon. Friend agree that the Government should use this Bill to make provisions for guaranteed community benefits in these circumstances?

[Wera Hobhouse]

We have already had some detailed discussions about what we are doing with communities that have to host vital infrastructure, and it is important that the Government assure local communities and the Liberal Democrats that this will happen. As the Bill progresses, we need to discuss how we can get legal assurances and whether the Bill is the right place for this.

As I have said, we need to win hearts and minds to persuade people. Only with local consent can we successfully deliver the path to net zero, which is why we have called for communities living near large-scale infrastructure projects to receive community benefits—for example, through reducing energy costs and funding local initiatives. We are keen to work collaboratively to ensure that these benefits are in place in legislation.

We Liberal Democrats welcome the inclusion of clause 3, which lists specifically all the objects of GB Energy. Although those aims all have their merits, the Government have failed to include anything on community energy. That is especially disappointing—[Interruption.] May I continue? I will lay this out as I understand it—I worked on the all-party parliamentary group for community energy, and I will get to my point. It is especially disappointing that the new Government have failed to include anything on community energy, given their welcome words in the House about how important it is to enable community energy—I hear it again and again. It is no longer about words; we now have a Bill before us in which we can make this happen.

I will lay out what I think is necessary. Without the inclusion of community energy, the Bill will be a major missed opportunity. In the past, the now Secretary of State and his Ministers have been vocal champions of community energy. In a previous debate on making Britain a clean energy superpower, the Under-Secretary of State for Energy Security and Net Zero, the hon. Member for Rutherglen (Michael Shanks), stated:

“One of the missions of GB Energy will be around the idea of community-owned power.”

He has also advocated for local communities to have

“some sense of ownership of the assets”—[Official Report, 26 July 2024; Vol. 752, c. 942.]

that they generate. Last year, the Secretary of State himself tabled two enabling amendments on community energy to the then Energy Bill; his new clause 53 specifically would have required large-scale energy suppliers to offer a special agreement to small-scale energy companies. He has spoken at length about Labour’s local power plan, much of which we are in agreement with, but where is the commitment to community energy in this Bill?

The biggest issue we identify is that energy supply licensing conditions hinder small community energy projects from selling directly to consumers. In turn, this makes it difficult to retain advantages for local communities—discounts on their energy bills, for example, or raising new money to invest in new projects. The high burdens and costs currently involved in being a licensed energy supplier mean that not a single community energy project in all the UK can sell its power directly to local people. Locally sourced energy does not travel further across the nationwide grid, and therefore reduces that constraint on it, but the cost-benefits of selling locally produced energy to local consumers are not going to community projects and nor do they benefit the consumer. That must change. Regulatory changes are required; the Government must put them in place or stop talking about their support for community energy.

Community energy schemes need to receive a guaranteed, discounted price for the clean electricity that they contribute to the energy system. If the costs of selling their power to local households and businesses were proportionate, many more community energy schemes would become financially viable and we would get many more than we have; I urge the Government to really look at our concerns and what we can include in the Bill to make these regulatory changes. Clause 3 is the ideal place to add community energy and ensure that it is one of Great British Energy’s objects.

To conclude, we Liberal Democrats welcome the steps being taken to restore British investment in renewable energy after the mess left by the previous Government. These steps will help us to bring down energy bills, create high-quality jobs, increase our energy security and, of course, reach net zero. However, there is a clear gap in this Bill for community energy, despite Labour’s manifesto committing to it, and we urge the Government to listen to our concerns.

Clean Energy Superpower Mission

Sarah Dyke Excerpts

Thursday 18th July 2024 Commons Chamber

[Edward Miliband]

I think to be called a kid at my time of life is stretching things a bit, but I am nevertheless grateful to my hon. Friend for his contribution. He makes the important point that huge opportunities exist right across our country. The United States has used the Inflation Reduction Act to seize those opportunities. Our economy is smaller, but we intend to seize those opportunities with a proper, modern industrial policy.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

I welcome the Secretary of State to his place. Somerset is home to many ground-mounted solar farm developments. Although I fully support the significantly increasing amount of electricity that we generate from renewables, I believe that the communities that host the infrastructure should receive compensation. The Government’s recent policy statement on onshore wind agreed with that, so will community benefit funds be mandated for new solar farm developments?

[Edward Miliband]

The hon. Lady raises an important issue. The previous Government had a whole series of consultations out on community benefit. We will respond to those, but I want to be very clear that I believe that when a community takes on the responsibility of hosting clean energy infrastructure, it should benefit from it.

Oral Answers to Questions

Sarah Dyke Excerpts

Tuesday 16th April 2024 Commons Chamber

[Andrew Bowie]

I agree with the hon. Lady that what happened was dreadful. As she has said, an ongoing legal process is under way so I am restricted in what I can say at the Dispatch Box, but I should be happy to meet her in the coming days to discuss the specifics involving her constituents who were affected.

[Sarah Dyke (Somerton and Frome) (LD)]

The south-west is proud to be punching above its weight in green technology, and will soon welcome a £4 billion gigafactory at the Gravity site near Bridgwater which will create 4,000 new jobs and boost the green economy. Investment in infrastructure around the country is needed if we are to see more developments of that kind, so what steps is the Department planning to facilitate such ventures?

[Andrew Bowie]

It is fantastic to hear Liberal Democrats champion Conservative policies that are bringing investment and new jobs into the country—for that is what happens under a Conservative Government—and it is great that a gigafactory is planned for the south-west. As a result of Giga and so many of the other projects and funds launched by the Department, we expect to see many more such developments, but of course there is work to be done: we can go further and faster, and, as I have said, where we can we will. I look forward to working with the hon. Lady in further championing the UK as the destination of choice for all who want to invest in these new technologies.

Energy Costs and Charges

Sarah Dyke Excerpts

Tuesday 21st November 2023 Westminster Hall

[Kenny MacAskill]

Well, I prefer an independent strategy, similar to what Norway and Denmark are doing, but I concede that Northern Ireland is frequently ignored because so much of the gas grid is pan-Great Britain, rather than across the Irish sea.

Let us look at how Scotland’s resource is pooled and shared. I have detailed the 35 TWh rising to 124 TWh, but I have not explained that no payment is received for that resource. The energy is sent south, but there is no financial return to Scotland. Besides nothing being paid for it, there are now efforts to take it directly south with neither a bawbee nor a pretty please being given for it. Off south it is to go, and for no payment.

The Eastern HVDC—high voltage direct current sub-sea—transmission cables, also referred to as the Eastern Green Link projects, are the longest HVDC cables to be laid in the UK and will run from Peterhead to Redcar and from Torness to Drax. It is estimated that those links will take 5 TWh, or 5 billion kWh, of Scotland’s renewable energy source south, again with no payment. Additionally, the proposed Berwick Bank offshore wind farm in the firth of Forth will alone produce sufficient energy to supply more households than Scotland possesses, but a cable is proposed to be laid to take 40% of its energy directly south, again with no payment.

What about the sharing? Where is the benefit from the supposed broad shoulders of the Union? Where is the return for what we contribute? A recent question to the now Department for Energy Security and Net Zero asked whether consideration would be given to crediting domestic energy users in the localities where energy is produced and landed. After all, it is being produced onshore or offshore in Scotland, so we might have thought that some credit or benefit would accrue to Scotland, and it might even be cheaper there. But no—the answer was simply that it is a matter for Ofgem, which we know is a creature of statute and can act only within its set powers or as directed by Ministers. No such rules exist and no direction has been given. The energy is not only to go south for no payment, but no benefit is to accrue to Scotland from it.

There is talk of payments to those facing having pylons placed near them, but what about those who live in the land where the energy is being produced? Winter will soon be upon us. The weather is changing and the temperature is falling. The cold is being felt and the need to heat homes is increasing, but it is not simply heat but power that is required. Energy, and especially electricity, is needed not just to keep the cold at bay. It is required by the mother to wash her children’s clothes, keep them clean and uphold the standards she seeks to maintain. It is required by the parent seeking to power up an iPad or laptop to help their child’s education and advance their life chances. It is required by the worker charging their phone to allow them to find employment or do the additional hours that the Government want, or simply to keep body and soul together. More shamefully, it is also required by the sick, including those on dialysis and those recovering from cancer, whose immune systems are weakened and for whom warmth and power are a necessity for life, not a luxury for living.

Despite the fact that Scotland is energy rich, our people are fuel poor. Already more than a third of Scots have been assessed as being in fuel poverty. Even more shamefully, almost a quarter are in extreme fuel poverty.

[Sarah Dyke (Somerton and Frome) (LD)]

I thank the hon. Gentleman very much for securing the debate. Households in rural areas have the highest fuel poverty rate—15.9% in 2022—and I am concerned that that will continue into 2024 if the Government do not act. Somerton and Frome has an estimated 13,060 homes off the gas grid that rely on alternative sources of fuel. Does the hon. Gentleman agree that we should accelerate the deployment of renewable power, provide more funding and remove the Government restrictions on solar and wind?

[Kenny MacAskill]

I certainly agree that there is a prejudice against those off the gas grid. It is not simply about those in rural areas, whether that means the hon. Lady’s constituents or my own in the lee of the Lammermuirs, but about those in urban areas—often urban deprived areas, in multi-storey flats, where gas is not available and the heating system is expensive.

The numbers I was given are historical, and they will only rise—if they have not already risen. After all, the statistics from the Scottish Ambulance Service for last winter’s hypothermic call-outs were shameful, but that is likely to be the baseline, and worse could follow. Energy prices may have fallen along with the energy price cap, but according to National Energy Action the average household is still paying £800 more for heat and power than before the energy crisis started, at a time when the cost of living crisis has subsumed the energy price crisis. Costs will be higher this year than last, when support was given to reduce bills. It is not just the big energy companies making money out of others’ misery; the Treasury made money though VAT on increased bills, which amounted to £1.1 billion in the UK and £96 million in Scotland. The cash is there. It is who has got it, or not got it, that is the issue.

Scotland is geographically further north and our climate is colder and damper than that in other parts of the UK, which makes access to heat and power even more essential. Winters can be cruel and the hardship in northern parts extreme. Let us examine the sharing—after all, we are told pooling and sharing is a benefit of the Union. When there is so much renewable energy being produced in Scotland, why are costs so high? Where is the social tariff alluded to by Government that even many suppliers support? It could be paid for out of general taxation—shared, that is. But no, the vulnerable are again left to struggle this winter.

Where is the credit, or reduced costs more generally, as I have mentioned? In my constituency, people can see the turbines turning or the towers rising from their doors, but they are unable to heat their homes. Moreover, why are costs greater in Scotland, the nation providing more energy than it has households? I wrote to Ofgem, asking them to detail the standing charges for electricity imposed on consumers in Scotland and in England. They have provided the answer for the costs imposed up until this December, but there is no sign of any variation coming. This will run and run, and so will the injustice—with the consultation not closing until January when winter has passed.

Scotland is divided into two zones: northern and southern, SSE and ScottishPower Energy Networks—that is, roughly the highlands and the lowlands. England is divided into north-west, southern and London. Ofgem’s answer disclosed that both Scottish zones were charged more, and often substantially more, than regions south of the border. That differential runs across all forms of charging, whether that is whether standard credit, direct debit or prepayment meter.

Let me detail the situation for those on prepayment meters. After all, they should be benefiting most from Scotland’s energy, which is being pooled. Their needs are invariably greatest and this bounty should be prioritised towards them, although similar benefits should apply equally across Scotland irrespective of payment method and could also be applied across the UK. Many are now counting their ability to access heat and power in pounds, if not pence. It is not 50p or £1 for the meter, but what they calculate that they can afford to use. It is why we have the weasel phrase of “self-disconnection”. That is not personal choice but imposed cruelty.

Let us look at standing charges for electricity. Including VAT, it is 69p a day in southern Scotland and 66p in northern Scotland, yet it is lower in England and only 46p in London. Per annum, it means that the standing charges for those on prepayment meters are, on average, £251.75 in southern Scotland, £241.92 in northern Scotland, yet only £166.10 in London. Those are not my figures—they are Ofgem’s.

We have seen the pooling and now we are seeing the sharing. We are giving, but not receiving. We produce the energy and our people, especially the poorest Scots, are charged more for it. The broad shoulders of the Union is the claim, but sleight of hand is the reality—as the bounty is taken, yet higher costs are imposed. As I begin to conclude on the costs of energy and energy charges—with the perversity of energy-rich Scotland and fuel-poor Scots—I make my first remarks to the Scottish Government. They have sold off ScotWind cheap and failed to stand up for Scotland. I am reminded of the words from the Proclaimers song “Cap in Hand”,

“We fight, when they ask us

We boast, then we cower

We beg

For a piece of

What’s already ours”.

As the song says,

“I can’t understand why we let someone else rule our land, Cap in Hand”.

It is time they stood up for our land on energy and electricity prices.

Meanwhile, I ask the Minister: if energy policy is reserved to the UK, where is the pooling and sharing? There is talk of payments to those having pylons nearby, but what about those where the energy is produced? Will there be a social tariff for the vulnerable this year? Ofgem is appointed by this Government and accountable to them. It is carrying out a welcome, if long overdue, review on standing charges. As I said, submissions do not close until late January—too late for this winter. Will the Minister direct Ofgem that standing charges should be abolished, as many suppliers argue? As National Energy Action states:

“How can it be right that someone who can’t afford any energy pays”

the same as

“someone in a mansion?”

It is an energy poll tax and equally unjust. Failing that, will the Minister ensure that standing charges are at least equalised across the UK, rather than seeing Scotland pool its energy, yet share higher charges? In summary, will she end the perversity of the land that produces the energy seeing its people and its poorest paying the most for that energy?