Great British Energy Bill

Uma Kumaran Excerpts

2nd reading
Thursday 5th September 2024 Commons Chamber

[Uma Kumaran (Stratford and Bow) (Lab)]

I am grateful for the opportunity to make my maiden speech with my parents and husband in the Gallery today. I congratulate the hon. Member for Eastleigh (Liz Jarvis), who gave an impassioned speech showing how deeply she cares for her community, its heritage and in particular the history of caring for refugees. She spoke so lovingly of her late parents.

It is the honour of my life to be elected as the first ever MP for Stratford and Bow. I was born in east London, and I have lived in Stratford and in Bow. I studied at one of our brilliant local universities, Queen Mary. To go from local student to local MP in 20 years has been quite the homecoming. Not getting our declaration result until nearly 6 am really did bring back memories of stumbling home from uni.

I pay tribute to the force of nature Lyn Brown, who served her home West Ham as the Member of Parliament for 19 years, and for a total of 36 years of selfless service to communities in Newham. A true east London girl, her guidance and support have been invaluable. I have no doubt that her contribution to the east end and public life will continue. I also inherit Bow from my hon. Friend the Member for Bethnal Green and Stepney (Rushanara Ali). She is another trail-blazer, as the first Bangladeshi-origin woman elected to Parliament. She has inspired a generation with the promise of what is possible.

Although Stratford and Bow is a new parliamentary constituency, its history is old and rich. The Woman’s Hall at Old Ford Road in Bow was home to Sylvia Pankhurst and Norah Smyth and the headquarters of the East London Federation of Suffragettes from 1914 until 1924. It was the beating heart of the east end suffrage movement, and the home of the matchgirls’ strike and the largest union of women and girls in the country. Every corner is filled with the history of the struggle for women’s rights and for our voices to be heard; a history that I will work every day to honour. As a proud grand- daughter of a trade unionist and a member of the GMB union, I go forward in their memory and will continue to fight for working people.

Parts of my constituency have been represented by illustrious political figures including Charles Key, Keir Hardie, Lansbury and Clement Attlee, who led the Labour Government that created our beloved NHS—so no pressure on this new Member. Our stunning Victoria park with its breathtaking canals opened to the public in 1845 and became the people’s park: a centre for political meetings and rallies with speakers such as William Morris and Annie Besant.

It is not just political history that we are blessed with in Stratford and Bow. I am sure that many hon. Members in the Chamber love nothing more than going home after a long day sitting in the Chamber and putting on their favourite grime playlist. They can thank Bow for playing an integral part in the origins of grime music, with Roman Road and its once-beloved record shop producing artists and crews such as Roll Deep and Skepta to name just two. Over in Newham, we have our top boy Kano.

I can see that I have completely baffled some hon. Members—[Laughter.] For those whose tastes are a bit more retro, we are also home to ABBA Voyage. My constituency is a place where people can come and spend their money, money, money in some of our brilliant local and international businesses. Of course—it cannot be missed—sitting at the heart of my constituency is the London stadium: a place of joy and wonder from the 2012 Olympics and some of our most wonderful sporting achievements. As this generation of Team GB Paralympians competes in Paris, I send my wishes to them.

The ability to bring people together that sport possesses is like nothing else, so it is a privilege and honour to be the Member of Parliament for the greatest club in world football—sorry, Keir—West Ham. As a Hammer since 5 July—[Laughter]—I am proud to be forever blowing bubbles. I know that there are several Hammers fans on the Government Benches and throughout the parliamentary estate—probably more of us than Members on the Opposition Benches.

Stratford and Bow is a wonderful, vibrant and diverse constituency, and our current heritage lives up to that history. Forest Gate is the home of independent cafes and shops and Forest Gayte Pride, overlooking the nature and beauty of Wanstead Flats. There are the bustling shops of Green Street serving communities throughout east London, alongside mosques, temples, synagogues, gurdwaras and churches. It is a place that is truly representative of the rich tapestry of cultures and people that make up our great capital city, London.

People from all over the world have come to Stratford and Bow to make the UK their home. My constituency is a prime example of Britain at its best, with pearly kings and queens, and white, European, Indian, Bengali, Pakistani, Chinese, African, Asian, middle eastern, Caribbean communities and more living side by side and working together to make a better society for everyone. Wherever someone is from, they are welcome in Stratford and Bow.

I am proud, too, to have origins as an east London girl born in Homerton hospital, but I was born here but by fate. I am the daughter of Tamil refugees and the child of a community that knows what it is like to endure prejudice and persecution. My parents, proud and patriotic British citizens, came to Britain over 40 years ago, but they did not simply come here; they fled for their lives, forced to leave behind everything and everyone they knew and loved, torn from a good and prosperous life in their prime to start from scratch in an unfamiliar country, working multiple jobs day and night to give me the chances that were taken from them.

Britain welcomed my parents with open arms so that they could rebuild their lives and flourish, and it was the east end that they first chose to call their home. This is the London that I know and love, and it is the story of Britain and British values at its best: outward looking and compassionate; a country where people can work hard and triumph. Mum and dad, thank you for everything: your endurance and your will to succeed—[Hon. Members: “Hear, hear!”] You are part of the success story of Britain, and that is a story that can be found in every corner of Stratford and Bow and in every part of Britain, with the hope and aspiration for a better tomorrow that all parents have for their children and the dreams of a safe and secure life.

It is that hope and determination to fight for a better future that this Labour Government will work hard every day to deliver. Whether the people of Stratford and Bow were born here, came here in search of a better life or just moved to the best bit of London—whatever their start in life—I will ensure that their voices are heard and valued. I pledge to work day in, day out to tackle the root causes of poverty, to fight for more police on our streets so that women and girls feel safe to walk home at night, parents do not have to worry about knife crime and young men are not having to look over their shoulders when they walk home after dark, and to fight for an NHS that is here for us in our time of need, where patients can be seen in wards, not corridors.

Delivering my maiden speech during the GB energy debate is apt. Climate change remains one of the greatest challenges of our time, and we must redouble our efforts. Before I came to this place, I worked internationally on climate action with cities around the world, the United Nations and civil society to help stop our world going past the point of no return and ensure that generations who come after us have a world that has not been destroyed because of our failure to act or our fear of being bold.

I feel deeply the responsibility that I have to repay the faith that the people of Stratford and Bow have placed in me and the duty that I have to be their voice here in Westminster. I will work every day for that and for the values and pledges that I was elected on. Thank you.

[Madam Deputy Speaker (Caroline Nokes)]

I call Tom Morrison to make his maiden speech.

Great British Energy Bill (First sitting)

Uma Kumaran Excerpts

Committee stage
Tuesday 8th October 2024 Public Bill Committees

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)]

I am also a member of the GMB.

[Uma Kumaran (Stratford and Bow) (Lab)]

I am also a member of the GMB.

[Olivia Blake]

I am also a member of the GMB.

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[Harriet Cross]

In that respect, we would still need fossil fuels—oil and gas—going forward to help the transition.

Juergen Maier: Of course, yes.

[Uma Kumaran]

Q Welcome, Mr Maier. It is good to hear your reassurances about communities being kept at the heart of this. You have told us about renewables, about offshore and about clean energy. As we have heard, it is a short Bill, but I would welcome your thoughts on what the Bill tells us about the objects and the strategic priorities of GB Energy and whether, in your view, it gives you enough detail to carry out your work.

Juergen Maier: It certainly gives me a very clear direction, along with the framework document that we will develop together with the Secretary of State and the Minister. The short answer to your question is that it is pretty clear. The purpose is clear, and that is the most important thing: the purpose, at the end of the day, is that we will accelerate the amount of clean renewable energy that we put on the grid, and that we will create as much prosperity and as many jobs through it as possible.

[Pippa Heylings (South Cambridgeshire) (LD)]

Q Welcome, Mr Maier. The main thing for me is the public accountability of GB Energy. You are very clear that the Bill gives you strategic direction. How do you feel that it also provides for public accountability for the money being invested or co-invested?

Juergen Maier: We are seeing pretty good evidence of that right now, aren’t we? At the end of the day, this is now a pretty well-established model for being absolutely state-owned and independently run. “Independently run” means excellent governance, and obviously as start-up chair I am going to ensure that that is the case. That does not all need to be in the Bill, because we know what it means. We have the Companies Act 2006 and numerous Acts about how good governance works. We will ensure through our board and our non-executives that there is proper governance, and of course there will be many opportunities for reviews by the Secretary of State and ultimately for the usual sort of public scrutiny.

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[Wera Hobhouse]

Q Good morning. I want to come back to clause 5 of the Bill, which is about the statement of strategic priorities. Most of what I have heard this morning is that we are a bit worried about there not being enough detail on certain things. Should there be more detail about the strategic priorities in the Bill, such as job creation, or should there be a precise timeline for when we can actually expect that? The whole purpose of the Bill is to speed up all that energy transition, and currently we do not know when we will see a statement. Is it important that we actually get some timelines in the Bill?

Mike Clancy: The simple answer is yes. The longer there is a concept phase, albeit a positive concept phase, the more that we are talking about a multiplier effect from GBE in many respects. If GBE is delivered, starts to operate and gives confidence to the direction of energy policy, other investors will see this as a serious proposition and therefore we will be engaging in this huge process of energy transition.

As I said just a moment ago, it also means that talented people can see a future. We want to be part of that. So, within the process of parliamentary drafting, the more that we have a clear set of objectives—actually differentiating it as a public entity and setting the tone for what you want from energy assets in the future—the better, because that will give that confidence. That also has a knock-on effect for the confidence of private investors in other parts of the energy environment.

[Uma Kumaran]

Q Thank you both. I really welcome hearing the views of trade unions in this session, especially about keeping workers at the heart of this. Do you think that GB Energy can help to drive the demand for skills and apprenticeships and prepare our workforce for a just transition?

Mika Minio-Paluello: There is a lot of demand at the moment, and a part of the challenge is a significant lack of supply. Part of the reason for that lack of supply is that there is a lack of investment. We as a country have not invested into our workforce sufficiently over time, which is why you get into a situation where different sectors effectively end up poaching people who are most in demand.

GB Energy provides a mechanism as part of solving that. It will not solve it as a whole—the Government have other plans as well to try put that investment in— but it can have a significant role in going, “Yes, here, we are going to provide that long-term investment directly.” Also, clearly, GB Energy will be partnering with the private sector. In that co-operation, it can then say, through its procurement powers, “Okay, in our joint project on this big offshore wind farm, we are going to require the supply chain across the board to be investing into apprenticeships, whether that is one, two or three tiers down,” so that we get that overall growth. It therefore can play a significant role there.

Mike Clancy: I have already touched on this. It might sound strange, but we probably have a bit of a mission at present because of the constraints applied by the previous Administration to remove our members in technical occupations in the energy field from the public sphere, because the labour markets that they operate in reward better in the private sector. The private sector is in a war for talent in this area because, in this country, over the many decades, we have not valued STEM skills and engineering. I speak as a humanities graduate who is always in awe of people who actually go to institutions and learn things that matter and are then applied for the health of the nation.

We have to start with valuing STEM—valuing it on a diverse basis, ensuring that the workforce reflects our diversity objectives more generally—and having a clear understanding that, even within Government, there can be an element of robbing one to pay for the other, such as with defence and aviation. Lots of areas need these STEM skills, which are then easily transferable into digital skills, and there are better salaries for some of those elsewhere.

If you want to deliver that promise about high-quality jobs, you really have to think and have a labour-market strategy for GB Energy that works in this competitive context at all levels—from apprenticeship, through to technical, through to engineering and even through to doctoral level. Again, in terms of the direction and objectives of the Bill, it is about being an exemplar for the entire energy sector in relation to the skills matrix, with how people are employed and the diversity objectives that any public company should have. That is what the Bill should try to address in sufficient detail.

[The Chair]

Order. Just a reminder again that we are talking about what is in the Bill—not blue-sky thinking about what GB Energy might do and that kind of stuff.

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[Catherine Fookes]

Q Welcome to the participants. My question follows on beautifully from Shaun’s comments around community. How do we think that GB Energy can accelerate and drive investment in the development of community enterprise and community energy?

Shaun Spiers: One thing that is necessary to say is that this is a major part of the transition and a priority of the Government. That was the case for periods during the coalition, when there was a really vibrant community energy movement and a sense in which people were coming around to supporting renewable energy—which otherwise they would have opposed—because they could see they had a financial stake in it but had also been engaged in developing it. What snuffed that out had more to do with planning issues than with investment, but there are ways in which GB Energy can pump-prime some of the investment.

I am trying to think back to the community energy manifesto we put together in 2018. I cannot think of any specific things, but I can write to the Committee, if that is helpful. There are specific financial incentives that would help get this off the ground. To be honest, though, communities across the country were really keen on community energy. It was a vibrant movement and could be again, with the right political framework as much as investment.

[Uma Kumaran]

Q Thank you, panel. We have been hearing a lot today about the mission to make the UK a clean energy superpower, moving away from fossil fuels. I want to touch on something that Shaun, Marc and Ravi have all mentioned, about leadership, ambition and innovation. In your view, does the Bill give investors increased confidence to invest in the UK in the energy sector?

Ravi Gurumurthy: You have to think about this as a whole package. If you have absolute clarity and conviction around the 2030 decarbonisation target and the pathway beyond that, and if you translate that intent into a strategic plan—with clarity about the technologies and their location through the NESO—and if you then have an enabling, activating agency like GB Energy clearing away some of the barriers, then the combination of that overall ambition, that plan and GB Energy does I think hugely accelerate investments into the sector. But you have got to do all three.

Marc Hedin: I think that is right. I think there are two key components here. One is identifying gaps in the market, where Great British Energy can provide a lot of value and can reinforce confidence from investors, and thinking hard about where it makes sense for Great British Energy to invest. We have mentioned points like local power plans, innovative technologies. I think there is a range of areas in which it makes a lot of sense for the state to co-invest through Great British Energy to develop those industries. The last point is around supply chain, to really support the whole energy transition.

Shaun Spiers: I agree with that. This is a part of a bigger picture. We keep coming back to the scope of the Bill. The Bill, in its objects, talks about

“measures for ensuring the security of supply of energy”

One area that really has not been given sufficient attention is critical raw materials, where we import 100% and then we export 100% for recycling elsewhere. There are 37 lithium recycling factories in the EU but none in the UK. This is the sort of industry that Great British Energy could help pump-prime, if that is seen as within its scope.

[Stephen Flynn]

Q Again, you have spoken very eloquently about the opportunities that may or may not exist under GB Energy, particularly with regard to the risk appetite that needs to be there. You have perhaps delved into some areas in relation to planning and Crown Estate; where they sit within the devolved competency of the Scottish Parliament. I will not ask you to comment on that because that would be deeply unfair, but what you and others have done is delve into the strategic priorities and what you think they could be. Do you think it is helpful or unhelpful that at this juncture we do not have a full understanding of what those strategic priorities are, given that the Bill is going through in its current form?

Shaun Spiers: I think the more that can be done to set out the strategic priorities, the better. I do not think it necessarily needs to be in the Bill. The explanatory statement and the introductions and so on I think do give a reasonably good steer on what the strategic priorities are, but obviously this body is being set up at pace. The more clarity there is on what it is going to do, the better. I would not set unreasonable expectations of a body that is being set up really quickly, with a pretty clear short-term aim of 2030 power decarbonisation and of supporting that. However, in the longer term the priorities clearly need to be set out.

Ravi Gurumurthy: The NESO will be producing its plan in October, and you have then got the next carbon budget in February, so the actual pathway to 2030 and to 2050 will start to become even clearer in the coming months. It will need to be flexible, however. There will be technologies which emerge that shift our sense of what to focus on. You need priorities, but you do need quite a lot of flexibility in this system.

Marc Hedin: I made the point, I think, at the very beginning that we need a very flexible scope because there will be challenges to the energy transition. We need room to adapt. If this vehicle is to facilitate the energy transition, we need that scope to be relatively broad. I did mention a couple of safeguards, more like accountability, and I think that is still reasonable to ask. However, in terms of strategic priorities, I think the scope is broad enough and makes sense.

Great British Energy Bill (Second sitting)

Uma Kumaran Excerpts

Committee stage
Tuesday 8th October 2024 Public Bill Committees

[The Chair]

I have three Members on my list already, and we have 15 minutes left, so please be short, sharp and to the point.

[Uma Kumaran (Stratford and Bow) (Lab)]

Q I will keep it short. Thank you both for your insights today. I would like to know what advantages other European countries have from a state-owned energy company.

Tristan Zipfel: If you take the example of France, EDF is indeed state owned, but it is a competitive market. Nowadays, EDF is one actor among others. If you take, for instance, offshore wind in France, EDF competes—sometimes it wins, and sometimes it does not. The benefit for the general public is a sense that that body can execute the strategic vision of the French Government in delivering net zero or a decarbonised future. EDF is very much the arm that executes that vision—independently, at arm’s length, but it does it. I also think there is a creation of long-term value by the ownership of assets. EDF provides dividends to the French state, which I think are valuable.

[Uma Kumaran]

Merci.

Alistair McGirr: If I may add to that, there is the question of the role of the state. Not everything has to be through GB Energy or the national wealth fund. In terms of the GB Energy policy framework, the creation of the National Energy System Operator can help to drive a lot of economic value through the transition here in GB by taking a much more strategic approach to how infrastructure is going to be deployed. GB Energy is one element of that, but I think the wider value can be brought together by a more strategic approach through the policy framework.

[Pippa Heylings (South Cambridgeshire) (LD)]

Q You talked about the objects within the scope of the law, about facilitating and encouraging, and about frontier innovation in technology and energy generation, but you also talked about de-risking. You did not mention onshore wind, so I am wondering whether that would lead also to onshore wind. There are also tidal programmes, such as the reef from Aberthaw to Minehead, that are stalled. Do you see these as part of helping to facilitate and de-risk within the scope of GB Energy, too?

Tristan Zipfel: For sure, yes, they could be part of the scope. Choices will need to be made, of course, on where those investments are directed, and I think it is important to direct the investments where they will have the maximum impact. When it comes to onshore wind, for instance, perhaps it could be a case not of investing where the private sector is already doing a good job on its own, but of looking at areas where there is a need to develop infrastructure to unlock these onshore wind opportunities, or of looking at Government-owned land that could be used to develop new projects. As you said, Alistair, it is going to be complementary to what the private sector is doing, but there will be pockets of opportunities for GB Energy to really make a difference, even in an area like onshore wind, I think—100%.

Alistair McGirr: I agree with that answer. The question would then be: where is the biggest bang for the buck? Is it building large onshore wind projects that actually have developers in that space and have a route to market? That is probably the question for GB Energy: is that the best use of taxpayers’ money, rather than other things that can be done in terms of investment in frontier technologies?

You mentioned tidal. There is the question there of an absence of a business model. If there was this supported business model, there might be an opportunity for private investors to come into that space. There is the issue that just because the private sector is not doing it does not mean that the public sector should do it, because ultimately, if it is a bad deal for private shareholders, it is probably a bad deal for taxpayers as well. I think this is about making sure that the technologies that are useful are brought forward with business models that provide a return for whoever the investor is.

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[Wera Hobhouse (Bath) (LD)]

Q Following on from what you were saying about uncertainties, and how we have the Bill but then there are all sorts of other questions, it is about creating certainties for us as legislators, to some extent, as well as for investors. Clause 5 says that

“the Secretary of State must prepare a statement of strategic priorities”.

Do you think that it would be important to have a timescale for that, so that we know when the Secretary of State is preparing the strategic priorities, and so that it happens quite quickly? That is something that we can do: put a possible time limit or timeframe into this Bill.

Josh Buckland: That is a very good question; I look back to my time as a civil servant. Sometimes timelines can be very useful because they give clarity, externally, as to when priorities will be updated and when there will be new interventions from Government, but sometimes they do not necessarily reflect the external environment as things change. If there were to be a decision to include an additional requirement around the timeframe, I think you would still want the ability to respond to external events as the world changes, to ensure that the priorities set out to the institution could adapt as the external world changes. Obviously, that is very true in the energy transition.

Clause 5(8) states that Great British Energy must have the ability

“to publish and act in accordance with”

that statement. The thing for me—again, it may not be an issue for the Bill itself, but it will be interesting to watch—will be how bound Great British Energy is to the specifics of the Secretary of State’s statement and what latitude it has beyond that, because clearly it will want to take its own commercial decisions. Fundamental to its independence and ability to crowd in private finance will be that it is taking commercial decisions with strong justification. That is an area that may not need any greater clarity in the Bill, but it will be one thing that private investors will look at quite closely.

[Uma Kumaran]

Q Thank you, Josh. Prior to becoming an MP, I worked globally to advance climate action, so I know that there is best practice to learn from countries around the world. As a global corporation, have you seen comparable frameworks in other countries to support the transition?

Josh Buckland: Completely. There are plenty of precedents in various sizes and scales. Critically, they are not necessarily all in the concept of a developer company, which obviously has got most of the attention as a result of the Great British Energy Bill. There are those examples, and there are significant European energy developers and national energy companies right across the world, and quite often they partner with other entities, whether they are private investors or developers. It is welcome that in the broader statement the Government have been clear that, especially at an early stage, they want Great British Energy to partner with other developers. We should not forget that we have a lot of leading companies in this country, both headquartered here and inward investors.

The other interesting area is the role that the state can play more generally. I might be wrong, but I think that is alluded to in clause 4, which mentions that the financial assistance may be applied “pursuant to a contract”. That is an interesting dynamic. In Denmark, for example, the state in its new leasing process for offshore wind will take a 20% stake in projects as it offers out contracts to the private sector. That is an interesting model that could potentially be applied here and has been applied in other European jurisdictions.

I am not entirely sure about the Government’s intentions on whether that would be a matter for GB Energy or for broader policy, but clearly it creates different opportunities. We should not necessarily think about Great British Energy just as an investor of capital, to go back to the question asked earlier; this is a significant amount of money but, given the scale of investment required, it will be deploying other capital through it that is the key test of success.

[The Chair]

I call Stephen Flynn.

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[The Chair]

Order. I think we can say that that is fairly close to being outside the scope of the Bill. I am absolutely confident that the next question will be within it.

[Uma Kumaran]

Q Thank you, Sir Roger; I will do my best. Thank you, David, for your insights today. You talked earlier about the potential for GB Energy to be much more than an investment vehicle. In your opinion, what are the other barriers that GB Energy and the Government can break down to create an environment to accelerate the transition?

David Whitehouse: I am an engineer, so it is simple engineering stuff. Collaboration: I was pleased to see the Scottish Government and other devolved Governments welcome this. I do not think GB Energy is the convening force in and of itself, but the convening power, which means we have Governments around the country working together for a common goal, is an important part of what GB Energy can provide a focus for.

Collaboration is really important. We need collaboration among our regulators. We have a complex regulatory framework. The view many of our members take is that to change our regulatory framework to be exactly what we require for this journey would take so long that the train would have gone. What GB Energy will do, and what it can see and help with, is alignment between our regulatory bodies—bodies in the devolved Governments and the wider UK Government. It will also see what the other barriers to investment are.

I think there is good cross-party consensus about the journey we need to go on to drive collaboration. Looking at what needs to be done to help with the simple co-ordination between different competing projects can drive down costs and drive efficiency. We should look at what we can do to reduce the cycle time. There is 15 years from licence to electricity—unfortunately, in my experience, I am probably on year 30 from carbon storage to actually injecting it. There is a significant role there that GB Energy should be growing into, and it should be playing in that space.

[The Chair]

I apologise for the slight distraction at this end of the table. We have been trying to juggle timings in connection with the imminent Division.

As there are no further questions, Mr Whitehouse, may I thank you for your contribution? We are most grateful.

Examination of Witness

Andy Prendergast gave evidence.

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[Andrew Pakes]

Q It is good to have you in, Andy. Do you think there should be anything in the Bill and its priorities on workforce development? Having worked in the sector alongside GMB colleagues, my experience is that lots of these new companies set up, but do not recognise trade unions and do not have the quality of work that we have seen previously in the power and industry sectors, particularly in renewables and others. Indeed, some of the renewables companies, despite being divisions of existing larger companies that do recognise unions, have set up without recognition. What do you think the role is of the Bill, or its strategic priorities, in ensuring we get the right terms and conditions for the new workforce, as we have for existing workforces?

Andy Prendergast: That is a very good question. We have been really pleased to see that the role of trade unions is incorporated in the Bill, although we do need to flesh out exactly how that works.

Your criticism of the renewables industry, particularly for members of the GMB, is absolutely critical. When people talk about our role in industry, what they are often talking about is the white-collar jobs—the ones in universities, getting the technology. They are not talking about the blue-collar jobs, which, at the moment, are the ones in the energy sector that are very well unionised, with good rates of pay and excellent terms and conditions, and which give the security that families and communities need for the long term.

What really concerns us about the renewables industry so far is that it came with the promise of mass jobs that simply have not materialised. Alex Salmond promised 30,000 jobs in offshore wind; 10 years later, fewer than 10,000 have been delivered. Particularly when you are looking at maintenance jobs, you are talking about jobs that are subcontracted with terrible terms and conditions and that are anti-union. When we look at the success that places like America or Europe have had in renewables, trade unions are at the heart of that.

What we have seen so far is a real willingness from the Government to work with both ourselves and employers. One of the bizarre things about it is that those coalitions really have an impact. One of the most surprising days in my job was attending a meeting here and being praised by a Tory MP, which I never thought would happen—it was one of those pinch-yourself moments. It was in relation to Hinkley Point: it was recognised that we had a huge role there in helping to develop the workforce and to manage the process of ensuring both that they benefited and that we got things done quickly and properly.

If we get that right, this is an opportunity to bring not just jobs but good jobs. In a lot of the areas that we are talking about, we have this constant debate about “red wall” and about “post-industrial”. It is not that there are no jobs there; it is just that the jobs being brought in are not very good ones. They are not jobs that offer permanent contracts. They are not jobs that offer good pensions, sick pay or opportunities for advancement. They are zero-hours contracts—got here today, gone tomorrow—that give people very little pride. This is an opportunity to reverse that 40-year decline in our industrial base and do something positive about it.

[Uma Kumaran]

Q I declare an interest as a proud member of the GMB. Thanks, Andy. The transition is one that we all care about, and it needs to be a just transition that takes local communities with us. In your opinion, what more can the Government do to ensure that workers and jobs are kept at the heart of the GB Energy Bill?

Andy Prendergast: Part of this is about listening without prejudice. Look, we are going to be absolute clear: we agree with the Labour Government on a huge swathe of things, but one thing we do not agree on is the ending of oil and gas licences. We look at oil and gas licences and every single scenario into the future requires us to have oil and gas. We as a nation have a choice. We either take it for ourselves, with high working and environmental standards, or we import it from a number of frankly disreputable regimes.

Part of that transition has to be listening to those communities and the people doing the jobs and actually take their expertise. We are absolutely clear—and I think it is obvious to anyone with half a brain—that global warming is happening and the speed at which is happening is quicker. It is the biggest challenge that humanity has faced, certainly in my lifetime, and we need to deal with it. The concern for us, and this relates to what I was talking about earlier, is that if we get this wrong and we do not listen to communities and do not bring them with us, we risk getting a reaction against that, which is what we have seen in America and Europe. Then, instead of doing it a little bit slower but in a demonstrable and deliverable way, we end up with an electorate being offered simple solutions and quick fixes, and ultimately due to a mixture of climate pessimism and snake oil salesmen, they take the wrong decision. We have to look at some of this from a pragmatic angle, ask what is best in the national interest and listen to the workers and communities who are currently benefiting.

[The Chair]

I call Perran Moon.

--- Later in debate ---

[Stephen Flynn]

Q Thank you, Minister, for your candour so far. Clause 3(2)(c) refers to energy efficiency. Can you clarify to the Committee when GB Energy will reduce energy bills by £300?

Michael Shanks: In the election, we committed that bills would come down. That figure was from independent analysts. We never said that bills would come down overnight; this is a process that will take time. GB Energy is part of delivering that. Without GB Energy, it would be harder to reach our targets by 2030 and to bring down bills for everyone. The reality with bills is that we remain far too wedded to fossil fuels; whether they come from the North sea or not, they are traded on the international market and we are subject to all the spikes, so reducing our dependence on unabated gas is critical. That is why I hope that all Members will vote to support GB Energy as part of the solution, including you.

[Uma Kumaran]

Q It is good to see the UK as a global leader once more, being the first in the G7 to end coal and in ensuring, as you have said, that the transition has been a just one. This is an increasingly perilous time globally to rely on foreign countries for our energy and energy security, and that remains a concern. I am looking at the object in clause 3(2)(d), on

“measures for ensuring the security of the supply of energy”.

For our constituents watching at home, which I choose to believe they are, what does the Bill actually mean for energy security? What does it mean for our constituents in the years ahead?

Michael Shanks: Our constituents and the wider population are watching every moment of this sitting, I have no doubt.

That is an important question. Security of supply is one of the critical questions that we have to answer. We have this challenge at the moment of how we bring down bills; how we move towards our climate targets for clean power, which is essential; and how we ensure security of supply. The only way—the only long-term solution—is for us to move to cheaper renewable energy at pace. Every single year that we are dependent on volatile fossil fuel markets, we open ourselves to the kind of exposure that people have still been paying the price for in the past few years. That cannot continue.

We will not be able to flick a switch overnight. We have come in after 14 years of chaos, frankly, in so much of government, and we are doing as much as we can to move at pace, but this is the journey that we need to be on. As I have said, 2030 is ambitious, but it is absolutely achievable. I was heartened when every single one of our witnesses today confirmed that although this is an ambitious programme, they see GB Energy as a critical part—not a silver bullet; of course it is not, and we never said that it is—in moving us toward energy security, cheaper bills and the climate leadership that the public want.

[Pippa Heylings]

Q I would like to understand whether you see this as the missing limb in clause 3, on the objects. I heard you mention in the Chamber that the fifth objective of GB Energy is community energy, so we are missing the fifth objective in clause 3 around community energy. We heard from all the witnesses about how crucial this community piece is, both to de-risking and to reducing the delay. I wonder whether you would be open to an amendment and would consider putting it in here. I do not think that this would make it more difficult to hold the flexible, wide-ranging framework that we have had, so I want to see if you are open to that.

Michael Shanks: There are two separate things here: the objects in the Bill, which are around the restrictions placed on Great British Energy, and the five key functions, which are outlined in the founding statement. I was referring to the five key functions, one of which is the local power plan, which is how we think we will deliver a lot more community-owned energy.

The important thing about the Bill is that we do not want inadvertently to create a list of things that we think are good to have—I do not disagree with you at all about the importance of that—but that actually end up restricting it in ways that we do not expect. There is that danger with Bills like this; it was the same with Great British Nuclear and the UK Infrastructure Bank, where they have a clear, focused remit. There is nothing in the objects that prevents community energy projects—in fact, they are intrinsic to several of them—but we think that adding more and more detail, including the amendment that you propose, is not the right way to go. But it is clear in the founding statement, in the evidence from Juergen Maier and in numerous answers from the Secretary of State and me that this is something to which we are absolutely committed.

Great British Energy Bill (Third sitting)

Uma Kumaran Excerpts

Committee stage
Thursday 10th October 2024 Public Bill Committees

[Andrew Pakes (Peterborough) (Lab)]

I want to join in the conversation about community energy, which I know is very important to the county that the hon. Member for South Cambridgeshire and I share. Lots of great initiatives are going on there. Having read the amendments and thought about them this morning, I am deeply encouraged by the comments that the Minister and Juergen Maier made in our session earlier in the week.

I think I am the only Co-operative MP here—[Interruption.] I can see my hon. Friend the Member for Redcar indicating that she is one, too. As someone who has worked in the co-operative energy sector for much of my adult life, this is the first time in many years that I have seen a Government genuinely committed to community energy and working with the mutual sector to deliver that. I am proud of the work that the Co-operative party and the Labour party have done to bring forward GB Energy and work with the co-op sector.

In recent weeks, as we have prepared for the Bill, I have met Central Co-op, Midcounties Co-op, Unity, Greater Manchester Community Renewables, and a range of agencies that are fully behind the Bill because they see the power of it. The scale of the Government’s ambition is clear. The Secretary of State himself has said that the local power plan will deliver the biggest expansion of community energy in history. It would also be remiss of us to consider the amendment without acknowledging the local power plan, which is part of GB Energy’s founding statement, which includes a clear commitment from the chair, Juergen Maier:

“We will be investing in community-owned energy generation, reducing the pressures on the transmission grid while giving local people a stake in their transition to net zero.”

The local power plan is also listed in GB Energy’s three initial priorities.

Although I sympathise with, and support and wish to work with, the hon. Member for South Cambridgeshire on community energy in Cambridgeshire in the localities that we operate in—it is really important that we keep a focus on that—this is a Bill that will transform our energy. The co-op movement is behind it and communities are behind it. It is important that we drive the Bill forward, so that it enables the local power plan, rather than—as it is almost the festive season—treating it like a Christmas tree, which is what I worry some legislation can become like. There are so many baubles that we could put on this legislation, when we should let the majesty of the tree speak for itself. We should get on and pass it, by Christmas or in six months or however long it takes. Community energy is coming, and we do not need an amendment to tell us it is on its way.

[Uma Kumaran (Stratford and Bow) (Lab)]

It is really good to see this cross-party support for community energy. I am sure all Members here today can speak to brilliant innovations in their constituencies. I have one in my constituency of Stratford and Bow, Community Energy Newham: its vision, very much like that of the Government, is to provide clean, affordable energy to homes and public buildings across the borough of Newham.

As we heard extensively on Second Reading, GB Energy will be owned by and for the British people, to help to promote energy independence, as well as to maintain Britain’s standing as a global leader. I echo the comments of my hon. Friend the Member for Monmouthshire. The Bill has already baked in the fact that community energy will be possible. We heard extensively from our witnesses that if the Bill does not give GB Energy the ability to innovate and advance, or to be flexible, there may be constraints in the years ahead. That is why we do not need the amendment.

Community Energy Newham is looking to provide our local library with a cleaner source of energy. As I said, many Members have exciting projects in their constituencies. That is why it is so important to maintain this cross-party support for the Bill and get it through as quickly as possible, so that not only our constituents but the whole country can benefit from Great British Energy.

[Torcuil Crichton (Na h-Eileanan an Iar) (Lab)]

I rise to reinforce not just the evidence that we heard from the Minister and Juergen Maier about the commitment to community energy, but the evidence we heard from private companies about foreign Governments that are willing to allow communities and municipalities to take a share in community energy.

None of what is in the Bill or what GB Energy proposes will happen without communities being involved. Communities will have to be involved at every stage —in generation, in transmission and in the purchase of the energy—otherwise we will find ourselves fighting communities every step of the way. It is vital that communities are involved. They are not just knocking at the door; they are taking over.

My constituency, Na h-Eileanan an Iar, has the largest number of community-owned windfarms in the UK. They serve as a template for what could happen across the rest of Scotland and Britain if communities are engaged and take on the challenge of producing their own power.

I was delighted with what the Minister said in the evidence session on Tuesday: GB Energy will be there to enable and help communities to get on the grid, get over the planning obstacles and the legal and financial obstacles that are sometimes in their paths. I think we should allow GB Energy to be set up and to get on with its business, and to enable communities to be engaged and involved not just in the production of energy, but in earning and reaping some of the profit that we will see from the wealth of wind.