Biomass Generation

Tom Collins Excerpts

Monday 10th February 2025 Commons Chamber

[Michael Shanks]

We do not have a mechanism to claw back past profits from any company—that is not something that Governments are able to do. What we can do is move forward with a fair system that reduces the subsidy considerably, and has excess profit mechanisms and a windfall tax in place to ensure that if the company generates additional profits, we can claw that back for the British public, which is important. The level that we have agreed in the deal brings the subsidy down to a considerably lower level—half what it was under the previous Government.

[Tom Collins (Worcester) (Lab)]

I welcome the revision of Drax’s role in our energy system, reducing biomass and ensuring that where it is used it displaces gas, not excess wind and solar. However, we also need to find new low-carbon forms of dispatchable power, backed up by long-term energy storage at scale. Hydrogen is a strong candidate for that. By moving fast, the UK can reduce costs and regain our early-mover advantage. Will the Minister work with industry at pace to ensure the opportunities around hydrogen are known, explored and exploited?

[Michael Shanks]

My hon. Friend is right that one of the really important outcomes of the new deal is that instead of cheaper wind and solar power being displaced by Drax when it operated with baseload capacity, Drax will only operate when we need it on the system. That means that the cheaper, cleaner power sources that we are building in abundance, of which we want to see much more in the years ahead, can generate and deliver cheaper power for the people of this country. On my hon. Friend’s wider point, it is important that we explore the role that hydrogen can play in the system. We are looking at a number of different technologies at the moment. Just last week, I met some investors looking at the future of the gas system to take forward some of those questions, and I am happy to discuss that further with my hon. Friend in the future.

Draft Clean Heat Market Mechanism Regulations 2024

Tom Collins Excerpts

Monday 13th January 2025 General Committees

[Tom Collins (Worcester) (Lab)]

It is a pleasure to serve under your chairship, Mr Vickers. I am quite frankly staggered by the criticism from the Opposition. I remind Conservative Members that they had a policy of exactly the same architecture in recent years, with targets set at a level that produced a textbook example of unintended consequences. I will not accept any attempt from them to rewrite history on the matter.

I welcome the ambition in the draft regulations and in our mission for dependable, affordable and clean energy. In particular, I welcome the fresh approach from this Government of partnership with industry, understanding markets and putting people first. As the representative of a constituency that is home to one of our large domestic heating technology manufacturers, which produces boilers, heat pumps and other technologies for heating, I welcome the renewed targets that come with these regulations alongside and as a result of the Government’s fresh, constructive approach. I welcome that approach, because there is much more to be done in the transition for heating.

This is just one point in that journey. I would like to see us exploring an approach to air source heat pumps, alongside other technologies, and I am confident that we are now in the best possible place to navigate the way forward. I therefore thank the Minister for the approach that she has demonstrated with industry and with the market, and I ask whether she is prepared to continue in the same spirit of partnership, openness and innovation that she has begun.