Energy Markets
Toby Perkins Excerpts(2 weeks, 1 day ago)
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Ed Miliband
I absolutely recognise the challenges that many businesses faced even before the crisis. It is important to say that even before the crisis began, fossil fuel prices were still 40% higher than before Russia invaded Ukraine, and businesses were facing the impacts of that.
We are taking action this April on the supercharger, but that is for only 500 or so of the most energy-intensive businesses. We are also taking action next April on the British industrial competitiveness scheme, which is for 7,000 businesses, but I recognise the point that the hon. Gentleman makes. Just as we are looking across Government at the situation that households face, and working on that, we are looking at the impact on businesses; indeed, I was talking to my colleague the Secretary of State for Business and Trade yesterday.
Mr Toby Perkins (Chesterfield) (Lab)
My right hon. Friend is absolutely right to expose the utter folly of responding to the situation that faces us by saying, “We need to stop with renewables and invest more in oil and gas.” It would be utter madness to learn that lesson. When we had the huge price spike as a result of Russia’s invasion of Ukraine, the fact that oil and gas was coming from the UK made no difference to the amount that our consumers paid, because it was all on the global market.
Does my right hon. Friend agree that the marginal pricing system, which was set up at a time when 80% or 90% of energy was being generated by fossil fuels, is far less robust at a time when the figure for gas is down to 40% and shrinking the entire time, and more than 50% of our energy comes from renewable sources? Because renewables are cheaper, should we not look to benefit from that, rather than having a system that allows gas to set the price, even if it accounts for only 1% of our energy?
Warm Homes Plan
Toby Perkins Excerpts(1 month, 3 weeks ago)
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Ed Miliband
I thank the hon. Gentleman for his question. It is because we recognise the immediacy of the affordability crisis that we took the action we did in the Budget to take £150 of costs off bills. It is because we recognise the affordability crisis that we significantly increased the numbers eligible for the warm home discount, for which I think hundreds of thousands more people in Scotland are now eligible. I would point out that the Scottish Government have some responsibility here, having cut some of their own schemes, but we want to work with the Scottish Government and do all we can to help his constituents.
Mr Toby Perkins (Chesterfield) (Lab)
My right hon. Friend has once again pulled quite a rabbit out of the Chancellor’s hat, so I congratulate him on that. He is clearly her favourite Secretary of State.
Does my right hon. Friend agree that we know what happens when we do not rely on renewables? The previous Government had to pay £44 billion to subsidise bills, at the same time that our constituents were struggling to pay them. I agree with the Chair of the Energy Security and Net Zero Committee, my hon. Friend the Member for Sefton Central (Bill Esterson), that we still need to be driving down electricity costs. What does the Secretary of State think are the key things we can do to address the skills shortages in the heat pump installation sector, and how many heat pumps should we expect to be installed by 2030?
Ed Miliband
The target we are setting in this plan for 2030 is 450,000. Our skills taskforce is designed to do what my hon. Friend set out, which is to meet the skills needs—the very significant skills needs—we are going to have.
On the first part of my hon. Friend’s question, I do think that the Chancellor deserves real credit for this plan, because she has recognised the importance of long-term public investment, which the last Government singularly did not. The easy thing in difficult times is to cut public investment, but she did not do that. She has increased it, and she is investing very significantly in this area.
Oral Answers to Questions
Toby Perkins Excerpts(2 months, 2 weeks ago)
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Mr Toby Perkins (Chesterfield) (Lab)
There are many corporate customers who are keen to decarbonise but find that grid connection forecasts of five or more years stand in their way. Will the Minister tell us what he is doing to speed up business connections to the grid and to ensure that we prioritise those business customers who will make the biggest difference in decarbonising?
COP30
Toby Perkins Excerpts(3 months, 3 weeks ago)
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Ed Miliband
That is an absolutely fair question; it is one I ask myself a lot. Are we doing everything we can despite the global pressures and how difficult it is? I will tell the House this: as it looked like we were going to end up with no deal, I thought a lot about what signal that would send. At the same time, though, we wanted to have as robust an agreement as possible. My answer to the hon. Gentleman’s very legitimate question is yes; we are trying to do absolutely everything we can, but it is hard because 190-something countries are all wrestling with their own dilemmas and constraints. However, he is right to push us to do as much as we can, because we are the generation that both knows the scale of the crisis that confronts us and has the chance to do something about it. Future generations will have less opportunity to do anything about it because the pathway will be more set. He is absolutely right to push us.
Mr Toby Perkins (Chesterfield) (Lab)
Meeting international colleagues at COP30, the extent to which the UK’s track record and the policy of this Government are hugely respected was absolutely clear. In fact, while many of the steps this Government have taken received huge support, there was also great respect for the steps that the previous Government had taken. I share my right hon. Friend’s despair that the current version of the Conservative party not only opposes his policies, but trashes its own history, which—in this area at least—should be a proud one.
While I absolutely believe that we would not have got the statement that we did get without his work and the work of his colleagues over there, does the Secretary of State agree that it is disappointing that the road map towards the eradication of fossil fuels was not agreed? On that basis, what more will he be doing to try to bring that coalition together to get greater agreement when we get to Turkey next year, or even before that?
Ed Miliband
First, I thank my hon. Friend, who is the Chair of the Environmental Audit Committee, and my hon. Friend the Member for Sefton Central (Bill Esterson), the Chair of the Energy Security and Net Zero Committee, for the really outstanding job they do. I think the observations from my hon. Friend the Member for Chesterfield (Mr Perkins) on the Conservative party are right; I will not add to them because he put them well.
The transition away is the hardest part of the negotiations, as I said, and that is not surprising, because some countries are extremely reliant on fossil fuels and are very reluctant—I think, in retrospect, they are quite reluctant about what was agreed at COP28, which is part of the difficulties we have. I agree with my hon. Friend about continuing to push for this to be part of the negotiations, but I think we also have to accept, as I said in my statement, that part of what we did on coal—and, to be fair, what the previous Government did on coal—is work with others. We have to work as much as we can both inside and outside the formal negotiations with others to drive these issues forward. The lesson of COP history is that we keep pushing forward on these issues; it might be slightly three steps forward, two steps back, but we do make progress.
State of Climate and Nature
Toby Perkins Excerpts(8 months ago)
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Mr Speaker
I really want to get everybody in—I am sure the Secretary of State wants that—so I need a lot of help from those on the Front Bench to speed things up. A good example will be set by Toby Perkins, the Chair of the Environmental Audit Committee.
Mr Toby Perkins (Chesterfield) (Lab)
I share the Secretary of State’s despair at the fact that the consensus on these matters appears to be dissipating. Does he agree that this is incredibly damaging for investment in the sector? Investors really need to see that whoever is in government, and whatever happens in elections, they have a Government who are committed to this agenda. Does he agree that it is completely wrong to say that Britain is the only country taking this issue seriously? In fact, China is absolutely leading the way in investing in the necessary technologies. We need to catch up and ensure that everyone knows that Britain is open for business in this sector.
Ed Miliband
My hon. Friend, who speaks with such expertise on these matters, is 100% right. The biggest enemy of investment is uncertainty. That is why I appeal to all parties to stick to what we have legislated for in this country, in order to give that certainty.
Rosebank and Jackdaw Oilfields
Toby Perkins Excerpts(1 year, 1 month ago)
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Michael Shanks
To be clear, I am not suggesting that I cannot comment because of particular legal action. My Department will have responsibility for making the decisions, and it would be wrong for me to prejudice that process by giving my view on those applications in Parliament or anywhere else. That is entirely how such applications end up back in court, and that is what I am determined to avoid.
We clearly outlined the question of licensing at the election: we will not issue new licences to explore new fields, existing licences will be honoured, and we will not remove licences from fields that already have a licence. However, consents—the point at which extraction takes place—must take into account climate tests, and not least the compatibility test laid down by the Supreme Court. Any applications now or in future must take account of that.
Mr Toby Perkins (Chesterfield) (Lab)
The sixth carbon budget was put in place by the previous Government. It was pretty ambitious, and it is now for this Government to identify how it will be achieved. The Minister seems to be taking an entirely practical approach, and I commend him for that, but can he assure us that the Government will ensure that any new applications will be approved only if they can achieve any offsets or mitigations in their own right, so that we keep in line with the carbon budgets that are in place, which we are legally obliged to achieve?
Michael Shanks
My hon. Friend touches on some of the key questions that we asked in the consultation, which closed just a few weeks ago and to which we had a significant number of responses. The Supreme Court’s judgment requires us to look at some of the tests that he mentioned—particularly whether there are offsets or mitigations—and we will announce how we will put that into effect in due course.
On the guidance that comes from the consultation, we have only just closed the consultation and are working as fast as possible on the results from that. However, applicants for consents will absolutely have to take account of the scope 3 emissions. It will be for them to outline in their applications how they intend to mitigate any impacts to achieve such consents.
Biomass Generation
Toby Perkins Excerpts(1 year, 1 month ago)
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Michael Shanks
I thank the hon. Lady for her questions. Her tone means that I will resist the urge to say that, although I made fun of the shadow Minister for the eight announcements, it was of course the current Liberal Democrat leader who agreed the first support deal for Drax. But we will move past that on to her important questions about security of supply.
The place we want to get to by the end of this period is one where we are not forced into making a decision like this again. It is really important to say that. We have a strong deal that protects bill payers, improves sustainability and delivers energy security, but we want to have options. The truth, as the hon. Lady rightly points out, is that we came into government without those options because of the decisions made by the Conservative party. That is a really important point.
As for the point about excess profits, there was previously no mechanism to claw them back. We made that a key part of the negotiation and we managed to get it into the deal. Even if our estimates are wrong—and the estimates, of course, mean that the profit will be below the level expected of the regulated companies by Ofgem—we can claw back the additional profit from Drax. That is important to the system.
Both the hon. Lady and the shadow Minister raised the question of KPMG’s reports. I know that my Department has seen them and engaged with them, and I know that Ofgem is still engaged in the audit process. I will take those questions away and see what can be done about sharing those reports.
Mr Toby Perkins (Chesterfield) (Lab)
We have a new line from the official Opposition. We are told that they are a firm under new management, but this sounds to me like the same circus, just with different clowns.
The Minister is right to say that the new deal that the Government are putting in place is a far better deal for taxpayers, because the previous deal was an absolute disgrace for taxpayers, but can he tell us a little more about the projections that he has seen? Do they confirm that this deal is the best for taxpayers, even in comparison with gas? How can he be certain of that? We heard a different suggestion from the shadow Minister.
Michael Shanks
My hon. Friend makes an important point. I think we should consider two aspects of the analysis of the importance of Drax to the system. First, in comparison with the counterfactual of building new gas-fired power stations, our analysis is that the deal we have agreed, which involves the use of gas on the system for 27% of the time, costs £170 million less. Secondly, on energy security, the assessment is that even if we wanted to go down that route, there would be risks about whether we could build that capacity in the time that we have.
This is all about the decisions taken by the last Government, who did not look far enough ahead and did not have that capacity on the system. Even if we did want to proceed with new gas stations, there would be questions about whether we could build them in time. This deal is about protecting bill payers, halving the subsidy from £1 billion and ensuring that there is dispatchable power when we need it as we build the clean power system.
As we move towards the 2030s, what comes next is long-term planning for a clean power mix, but also about the long-duration and short-duration storage mixes that will help us to make decisions that are different from the one we were forced to make this time.
Oral Answers to Questions
Toby Perkins Excerpts(1 year, 3 months ago)
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Michael Shanks
The hon. Gentleman makes an incredibly important point about how local community groups can benefit from not just hosting the community energy, but from being able to sell locally. We have had a number of conversations on this topic already. I most recently met the community energy contact group, which does a lot of work to look at what regulations there might be, and we are happy to look at any proposals that come forward. We want to see a revolution in community energy right across the country so that more communities can benefit.
Mr Toby Perkins (Chesterfield) (Lab)
Under the previous Government, we had an energy market that worked for nobody. It was bad for consumers, and we also saw many energy companies go out of business as the Government lost any grip on the industry. Does my hon. Friend agree that with the greater stability we have under this new Labour Government, there are opportunities for community energy coming forward as part of the recovery of our whole energy infrastructure?
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.
COP29
Toby Perkins Excerpts(1 year, 3 months ago)
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Mr Toby Perkins (Chesterfield) (Lab)
No one can doubt the leadership that the Prime Minister and the Secretary of State showed in Baku, and they deserve great credit for that. The Secretary of State is right that there is a danger of overselling the achievements of the COP. Developing nations have been critical about the financial agreement that was reached, and the commitments made in Paris on fossil fuels were not followed through, as he said. What are the main barriers right now to getting the action and pace of action that are needed? Does he have confidence that in Rio we will see the real breakthrough that the world is waiting for?
Ed Miliband
My hon. Friend asks absolutely the right question. The truth on the finance side is that this represents a significant scaling up at a time when developed and developing countries face extreme pressures on the public finances. There is a significant development whereby the flows to multilateral development banks from large emitters, such as China, will now count towards the overall finance goal. That is a big change and a big step forward.
On the transition away from fossil fuels, the barrier is that some countries are worried about what it means for them—that is totally understandable. Some countries think it will be problematic for their prosperity. The truth is that we will just have to make better efforts with the majority of countries that want to see action prevail at next year’s COP, and that will involve hard yards. Finally, we must have a campaign for—this is something we will work on with Brazil—ambitious NDCs because it is crucial that that is the job of the next COP.
Oral Answers to Questions
Toby Perkins Excerpts(1 year, 4 months ago)
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Mr Toby Perkins (Chesterfield) (Lab)
I am ready to go, and so is the Prime Minister—it is great to see him in Baku showing leadership. The recent Cali conference was a disappointment. Ultimately, nations were not able to reach agreement. Alongside the positive steps the UK Government are taking, what conversations are we having with international partners to recognise the necessity of an agreement that brings all western nations together in showing equal ambition?
Kerry McCarthy
I thank my hon. Friend for that question. I know he was at Cali. There was some progress on such issues as digital sequence information, but more needs to be done. We are very seized of the need to join up action on the nature and climate crisis. When I head out to COP29 tomorrow, Members will hopefully hear more from us on our efforts to protect forests and on the support we are giving to countries at risk of deforestation. We are also looking at nature-based solutions to climate change. The nature Minister—the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Coventry East (Mary Creagh)—will be out there as well, and we will have more to say, but I entirely agree with my hon. Friend the Member for Chesterfield (Mr Perkins) that we cannot deal with one crisis in isolation from the other.