Climate and Nature Bill

Debate between Wera Hobhouse and Andrew Bowie

2nd reading
Friday 24th January 2025 Commons Chamber

[Andrew Bowie]

I could not agree more with the hon. Member; in fact, it is quite nice to hear the Liberal Democrats acknowledge that they were actually part of the Government over the last 14 years—they do not always choose to do so. As to the point about national security and energy security, that is why I am so concerned about the Labour Government’s plans for our offshore oil and gas industry. Why would we want to rely more on imports, as the Government will, should they go ahead and accelerate the decline in the North sea? However, I am sure we will continue to have that debate as we move forward.

If this private Member’s Bill contained measures to ensure a pragmatic and proportionate response to climate change, with households and bill payers at its core, and defended our British wildlife, nature and countryside, I am sure we would all support its aims and ambitions. Indeed, colleagues and friends who support it do so with the admirable, and indeed laudable, intention of seeing the United Kingdom protect the environment, and it is not that ambition with which we take umbrage. However, it is clear that we should not support the damaging measures the Bill would require. If it became law, it would damage our country, our prosperity, the lives of individuals and industries across the United Kingdom.

[Wera Hobhouse (Bath) (LD)]

I wonder where the shadow Minister was when the hon. Member for North Dorset (Simon Hoare) said, just 15 minutes ago, that this is not an either/or between prosperity and protecting nature and the climate.

[Andrew Bowie]

I was actually right here on the Front Bench listening to my hon. Friend, and I agreed with a lot of what he said. However, we are here to debate the contents of the Bill and to decide whether they are something we should support, and I am afraid—to break with the consensus that has been expressed across the House this morning—that we cannot.

The Bill would undermine the power of this Parliament and its democratically elected Members and would bind their hands. As the Bill suggests, the Secretary of State would be duty-bound to act as directed by an unelected body. A world with a cleaner climate and with thriving nature and wildlife is one we all aspire to; it is the core belief of Conservativism that we should seek to leave the country and the world in a better place than that in which we found them, for both our children and our grandchildren. But I am afraid that this Bill would not do that.

In government, we aspired to be a world leader in the energy sector and to embrace a new energy mix that would reduce our carbon footprint, and that is what we did. We should want to pave the way for other nations, but it should be a path that they would actually want to follow. If the Bill means green levies, soaring bills, the highest electricity prices in the world, boiler taxes, job losses, and rejecting our ability to produce fuel domestically, while increasing imports from abroad and generating lower tax revenues as a result, nobody will follow this path.

Great British Energy Bill (Fourth sitting)

Debate between Wera Hobhouse and Andrew Bowie

Committee stage
Thursday 10th October 2024 Public Bill Committees

[Andrew Bowie]

It is a pleasure to serve under your chairmanship, Sir Roger. The amendment would bring to the Bill a concrete objective for Great British Energy to reduce the wholesale price of electricity. I am pleased to move this amendment, which will introduce a specific strategic priority to reduce wholesale electricity prices and to require that an annual report is produced on how Great British Energy’s activities are affecting wholesale energy prices and therefore consumer electricity bills.

Further to the discussion earlier about the impact of Great British Energy on bills, notable by its absence, sadly, is a purpose for GB Energy to reduce wholesale electricity prices. As we noted earlier, the Bill states that the objects of GB Energy are only to facilitate, encourage and participate in the production of energy, the reduction of greenhouse gas emissions, improvements to energy efficiency, and measures for ensuring the security of supply. It would be remiss of the Government not to include the ambition to reduce the wholesale price of electricity as a strategic priority of the company.

Why is reducing wholesale electricity prices important? Wholesale costs account for about 60% of a customer’s energy bill and are a major consideration in suppliers’ retail pricing decisions. In the two years since Vladimir Putin’s invasion of Ukraine, we have seen the sizeable impact of the international energy crisis on bill payers in the United Kingdom. Tensions rising in the middle east could very much affect our domestic energy costs, so it is more significant than ever that we take into account the impact that Great British Energy could have on wholesale electricity prices to reduce consumer bills as much as possible.

It should be incumbent on Great British Energy, through its investments and its part and full ownership of projects, to drive down wholesale electricity prices to the benefit of UK bill payers and businesses. In winter 2022-23, the Conservative and Unionist Government paid half the country’s energy bills to protect households from the worst of the energy shocks triggered by that war in Ukraine. Energy bills, alongside the pressures of inflation, have been a consistent worry for all our constituents. We also have the highest energy costs for industry in Europe.

The Government have outlined that their plans to tackle future energy security, to reduce bills and to lower wholesale prices for electricity hinge on the creation of GB Energy. Therefore, it would be prudent to write into the Bill the strategic priority to reduce wholesale electricity prices. On Tuesday, we heard from the chair of GB Energy that

“Every megawatt and gigawatt of renewable energy that we put on the grid will help to bring bills and prices down.”––[Official Report, Great British Energy Public Bill Committee, 8 October 2024; c. 6, Q5.]

I agree. Therefore, it has been intimated that that is indeed a strategic priority for GB Energy, and the Bill ought to reflect that.

This group of amendments also introduces the requirement for the Secretary of State to give a specific direction to Great British Energy that it must report on its progress.

[Wera Hobhouse (Bath) (LD)]

I have an honest question. Since energy is sold in a daily, 10-minute or whatever market, and that market operates, how can the Government ensure that the market behaves in the way they want it to behave? Is that question useful? I want to understand what the hon. Gentleman’s amendment will actually do to guarantee the price, since British energy operates in a market.

[Andrew Bowie]

That is an important question. I think we all agree that the reason the United Kingdom was so exposed to the energy price shocks that the entire western world has experienced over the past two years was our overreliance on the highly volatile fossil fuel market. Building new technologies to drive us towards a cleaner future and lower bills is therefore important. Our exposure to the market to which the hon. Lady refers had an adverse impact here in the United Kingdom. Just as stating in the Bill that a reduction in bills is important, the reduction of wholesale electricity prices should also be a stated object in the Bill. If GB Energy is to do anything, alongside all its other strategic objects, surely it must be working towards a reduction in electricity prices. We would therefore like to see that on the face of the Bill.

[Wera Hobhouse]

The hon. Gentleman is being generous in giving way. Would that not be a clear state intervention in the market?

[Andrew Bowie]

I do not think so, but the creation of the company is a state intervention in the market. That is one reason we on the Conservative Benches disagree with the Bill. We think that we can drive up investment in renewables and new technologies in this country by allowing companies the freedom to invest and by creating the best environment for private investment in this country. That is what we did when we were in government. That is why we have the first to the fifth-largest offshore wind farms in the world, and that is why we cut emissions faster than any other country in the G7, at the same time as growing the economy. That is a record that I am very proud of, and I worry that this state intervention in the market will have a negative effect.

We are debating the creation of GB Energy and this Bill. As part of that, a reduction in electricity prices should be one of the strategic aims.