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Energy Security Strategy
19 April 2022
Lead MP
Kwasi Kwarteng
Debate Type
Ministerial Statement
Tags
ClimateEnergyBusiness & Trade
Other Contributors: 34
At a Glance
Kwasi Kwarteng raised concerns about energy security strategy in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
The Secretary of State for Business, Energy and Industrial Strategy announced the British energy security strategy aimed at reducing dependency on expensive fossil fuels. The plan includes a £9 billion package to support households, expanding eligibility for warm home discounts, investing over £6 billion in decarbonising homes and buildings, and setting ambitious targets for renewable energy like offshore wind (50 GW by 2030) and solar capacity growth. Additionally, the strategy aims to replace lost nuclear power with up to 24 GW of new nuclear power by 2050, while doubling low-carbon hydrogen production goals. The minister highlighted that the transition to clean energy is necessary for national security and economic prosperity.
Ed Miliband
Lab
Doncaster North
Question
The strategy does not sufficiently address immediate cost-of-living issues, lacks ambition in onshore wind and solar capacity, fails to provide additional investment for energy efficiency, and has weak targets overall. How can the Government justify these shortcomings?
Minister reply
The Minister of State argued that the strategy aims to secure long-term energy independence and affordability by investing in renewables and nuclear power, while acknowledging the immediate support measures announced earlier.
Ed Miliband
Lab
Doncaster North
Question
I thank the Secretary of State for his statement, but I have to tell him that after all the hype and all the promises, his energy relaunch fails to live up remotely to the scale of the crisis that families are facing. The Government have already failed to deliver the immediate measures needed to help millions of families with their energy bills this year, and they now have an energy security strategy that has rejected the measures that could have made the most difference in the years ahead.
Minister reply
I am pleased that the right hon. Gentleman is back in his place. There is plenty about onshore wind in the strategy. The Government’s position is that it must be pursued with local community support, and we have always had this position. On nuclear, Labour’s attempt to pretend they made us more secure is laughable as they did nothing to promote the nuclear industry while in office.
Question
My right hon. Friend is right to point out that the Labour party destroyed Britain’s nuclear industry by failing to build new nuclear projects while in office. Will my right hon. Friend update us on our new nuclear company, Great British Nuclear, its remit for new nuclear power stations and what that might mean for Moorside in Cumbria?
Minister reply
The development vehicle will inaugurate a new era for the nuclear industry; it represents a great endorsement for skills and industry promoted by my hon. Friend.
Question
Clearly, this is not a strategy at all, but a series of high-level targets or rehashed information that the Government have spoken about several times. The 2022 energy price cap is 75% higher than the April 2021 price cap, putting 6.5 million UK households into fuel poverty.
Minister reply
I am very grateful to the hon. Gentleman for his barrage of questions. His position on nuclear and mine could not be more different. I still do not understand what his answer is on decarbonised baseload, in terms of security of supply.
Question
My right hon. Friend is aware that the Back-Bench committee on business, energy and industrial strategy has done a very swift and urgent inquiry into how businesses and households can reduce their energy bills this winter. Will he and the Minister for Energy, Clean Growth and Climate Change meet me and my vice-chairs to discuss some of the very sensible and practical measures in the inquiry?
Minister reply
Absolutely. The Minister for Energy, Clean Growth and Climate Change and I will be delighted to meet her and her committee to discuss ideas that will give us security, affordability and sustainability.
Tonia Antoniazzi
Lab
Gower
Question
The MP raised concerns about the impact of rising energy bills on vulnerable people, highlighting that short-term fixes are insufficient and long-term solutions are necessary.
Minister reply
The Secretary acknowledged the pressure on household bills and stated that measures will be reviewed in October by the Chancellor. He emphasised that Ofgem sets the price cap and its level is unknown until August.
Martin Vickers
Con
Brigg and Immingham
Question
The MP asked about focusing on exporting renewable energy expertise from northern Lincolnshire.
Minister reply
The Secretary agreed that the region's talent should be exported around the world, supporting the idea of leveraging financial management and construction skills.
Darren Jones
Lab
Bristol North West
Question
The MP inquired about the reported denial by the Chancellor to use £300 million of underspend for home insulation.
Minister reply
The Secretary did not recall the incident but noted that energy efficiency was central to last year's heat and buildings strategy.
John Hayes
Con
South Holland and The Deepings
Question
The MP highlighted the importance of food security alongside energy security, urging for solar panels on all buildings before land is used.
Minister reply
The Secretary expressed interest in discussing solar with the MP and acknowledged his distinguished record as Energy Minister.
Caroline Lucas
Green
Brighton Pavilion
Question
The MP criticised the Government's strategy for failing on energy security, affordability, and climate safety, questioning reports of scrapping green levies.
Minister reply
The Secretary disagreed with the criticism and stated that the strategy addresses security, affordability, and net zero targets.
Richard Fuller
Con
North Bedfordshire
Question
The MP proposed a Net Zero Enterprise Investment Scheme to attract private capital for energy efficiency measures.
Minister reply
The Secretary noted the Government's efforts in attracting private investment towards net zero objectives.
Wera Hobhouse
Lib Dem
Bath
Question
The MP asked about new evidence supporting a reversal of the fracking moratorium.
Minister reply
The Secretary stated that changes to wholesale prices necessitate reconsideration of domestic gas use for energy security.
Philip Dunne
Con
Worcestershire
Question
The MP requested a reduction in VAT on solar panel installation and electricity storage equipment.
Minister reply
The Secretary indicated that he discusses tax incentives with the Chancellor to promote green technologies.
David Linden
SNP
Glasgow East
Question
The MP sought a meeting to discuss energy efficiency challenges in Glasgow's tenement properties.
Minister reply
The Secretary agreed to meet the MP and other Scottish colleagues to address critical energy issues.
Miriam Cates
Con
Penistone and Stocksbridge
Question
The MP welcomed nuclear industry commitments, inquiring about procurement of UK steel for such projects.
Minister reply
The Secretary noted that Sizewell C's commitment to the UK steel charter does not guarantee UK procurement but emphasised his support for the steel industry.
Seema Malhotra
Lab Co-op
Feltham and Heston
Question
The MP criticised the Secretary's failure to back onshore wind, claiming it would lead to higher bills.
Minister reply
The Secretary highlighted the Government’s efforts in promoting onshore wind despite suspending pot 1 auctions.
Mark Pawsey
Con
Banbury
Question
The MP questioned steps to ensure a resilient retail energy market following increased supplier numbers.
Minister reply
The Secretary indicated discussions with Ofgem on securing financial discipline and transparency in the sector.
Dan Carden
Lab
Liverpool Walton
Question
The MP raised concerns about prepayment metre users facing higher costs than those with direct debits.
Minister reply
The Secretary committed to investigate this issue, stating it is unfair that vulnerable people pay more for energy.
Maldon
Question
I welcome my right hon. Friend’s commitment to a new generation of nuclear power stations. Can he confirm that the eight designated sites remain the Government’s preferred locations for those, including Bradwell in my constituency, and has he yet reached a view on whether a Chinese-designed reactor could be included?
Minister reply
As my right hon. Friend will know, Bradwell passed the generic design assessment. That was an arm’s-length process in which the Government did not become involved. There is clearly a discussion to be had about how we can take Bradwell forward, but, as my right hon. Friend knows, there is an absolute commitment to up to eight sites. I am not saying eight, because obviously we have small modular reactors as well, but eight sites would mean roughly 24 GW.
Kerry McCarthy
Lab
Bristol East
Question
My hon. Friend the shadow Secretary of State visited Bristol recently to look at the ambitious projects that are going on there, including new water source heat pumps and the City Leap partnership. Is the Secretary of State aware of what is going on in Bristol, and what can he do to help cities to decarbonise?
Minister reply
I know that Bristol has a strong tradition of green, carbon-reducing policies. I should be happy to visit the city and see the great work that is being done there. It is a part of the world that I know well from Airbus and other great industrial concerns.
Question
I congratulate the Secretary of State on this excellent document. May I press him on the review of energy market arrangements and the long-term fundamental reform of the underlying market? Will he reassure me, and others on this side of the House—at the very least—that that will be done in a spirit that will maximise competition and consumer choice to ensure that we make the customer the king and the queen, and that it will include price cap reform?
Minister reply
All these issues are being looked at. The six-month periods for the price cap are being reviewed, and, as I have said, financial resilience for new entrants will be considered. A subject that has not been mentioned so far is the future system operator and the electricity system operator. That is a remarkable innovation, and I am proud that it is included in the document. I should be happy to talk to my hon. Friend about these matters.
Sammy Wilson
DUP
East Antrim
Question
The Secretary of State has said that this is a long-term strategy, and obviously we need that, but there is a short-term problem, namely that people cannot afford to pay their bills at present. That is partly due to the green levies, which amount to about £400 a year in additional costs to individuals. What plans has the Secretary of State to deal with that? Given his plans for a number of new offshore wind turbines, may I ask how many he believes are needed, and at what cost? What is the cost of connection to the grid, and how will that affect the capital costs on people’s energy bills?
Minister reply
As the right hon. Gentleman will know, in the time during which I—indeed, I suspect, both of us—have been in the House, renewables have really taken off. They are the one bit of the energy story here in the UK that has been genuinely transformative and a world leader, and I am very proud of that. As for the immediate support for hard-pressed consumers facing a global price hike, my right hon. Friend the Chancellor committed £9 million to help people to pay their bills.
Question
What steps are being taken to ensure that the future energy strategy of the UK is secured by the manufacture of hydrogen fuel cells in the UK—in, say, Loughborough?
Minister reply
I had a feeling that my hon. Friend was going to mention Loughborough. She will know that we are absolutely committed to hydrogen. It has many uses: it can be used, potentially, in the gas grid, in transport—to which she alluded—and in industrial processes. We are very excited about the opportunities, outlined in the strategy, for more capacity so that we can drive innovation in those areas.
Cat Smith
Lab
Lancaster and Wyre
Question
In 2019—it was during the general election campaign, but I am sure that was just a coincidence—the Government said that fracking in Lancashire would be off the table, that there would be a moratorium and that the wells would be filled with concrete. May I ask the Secretary of State what has changed between 2019 and today that has put fracking back on the table? What on earth did he get from COP26?
Minister reply
There has been an issue with the wholesale gas price, which has gone up about 10 times during that period. It seems entirely reasonable, if we have gas underneath our feet, to consider the possibility of using it.
Question
Would my right hon. Friend like to come to Heysham and look at the two reactors that are working in my constituency? The whole community is behind the nuclear power industry, and it is our future, so I extend that invitation to my right hon. Friend.
Minister reply
I should be very happy to go with my hon. Friend to see the nuclear reactors. The future is decarbonised baseload power. That is what we need, and it is something with which my hon. Friend and I are 100% aligned.
Stephen Flynn
SNP
Aberdeen South
Question
The Secretary of State has said that his energy strategy would “drive down bills for British people”. By how much?
Minister reply
That obviously refers, relatively, to whatever the wholesale price of gas will be. I am not a gas trader, and nor is the hon. Gentleman. He has no idea what the wholesale gas price will be either. The strategy will have a tendency to lower prices.
Question
If recent events have shown us one thing, it is the importance of having our own strategic steel industry—something that I know the Secretary of State understands. The announcement of the expansion of the energy-intensive industries compensation scheme is welcomed by the industry, but can the Secretary of State tell us when we will know the details of that?
Minister reply
We are in constant conversation about this. It was a hard-earned win for the Government, and we are very pleased to be backing steel. My hon. Friend knows of my commitment to the industry. We have won some battles, and I look forward to engaging with him on this in the future.
Mark Hendrick
Lab Co-op
Preston
Question
Mr Deputy Speaker, you will know, as a Lancashire MP, that the people of Lancashire are fed up to the back teeth with fracking. As the Secretary of State knows, the moratorium came in 2019 because Lancashire was experiencing tremors measuring 8 on the Richter scale. It was a safety measure, because we were worried about safety. It was nothing to do with the wholesale gas price, so please, Secretary of State, do not come out with that now.
Minister reply
There was drilling, and I remember it well. When I was the Energy Minister, I was receiving daily updates on the Richter scale, and yes, there were moments—there were times—when the level exceeded the limit that we had imposed. I think it entirely legitimate now, given where gas prices are, to look again at some of the evidence.
Question
I congratulate my right hon. Friend on the publication of the report, which provides certainty for so many sectors, particularly oil and gas, and nuclear. However, much attention has rightly been paid to the support for energy-intensive industries, and there have understandably been many questions involving the steel industry. Will my right hon. Friend confirm that the support extends to the chemical industry, given that Dow Corning has a site in my constituency, as well as others?
Minister reply
My right hon. Friend knows very well that the chemical industry is central not only to people in his constituency, but to those throughout the north-east. We engage with energy-intensive sectors such as the glass, steel and chemical sectors, and others.
Rachael Maskell
Lab Co-op
York Central
Question
One of the greatest constraints on decarbonisation is the skill supply. Will the Secretary of State publish a workforce plan for the energy sector, so we can ensure that we are making the necessary investment in the skills that we need, both now and in the future?
Minister reply
The hon. Lady is absolutely right. That is why, when I was the Energy Minister, I—along with my right hon. Friend the Member for South Staffordshire (Sir Gavin Williamson), the then Education Secretary—set up the green jobs taskforce, working with unions across the sector. We came up with some very good proposals. We are driving that forward, because we recognise the skills gap and want to close it.
Question
I am delighted that Wylfa is specifically included in the British energy security strategy, and I look forward to welcoming the Energy Minister to Ynys Môn in a few weeks. The new Wylfa nuclear plant will bring local jobs for local people. Will the Minister consider discounting electricity bills for locals, and locating the headquarters of the new Great British Nuclear vehicle in north Wales, in recognition of the nuclear expertise and heritage in the area?
Minister reply
I think I would be getting a bit ahead of myself if I were to decide here and now at the Dispatch Box where that body will be sited, but I pay tribute to my hon. Friend’s tireless and passionate advocacy for the nuclear industry. She, among a number of others in this Chamber, has been a brilliant champion, and I look forward to working with her to drive nuclear power in Wylfa and across the country.
Hilary Benn
Lab
Leeds South
Question
People used to have their water supply cut off if they could not pay their bill, until it was made illegal to do so. Given that more and more of our constituents will be unable to pay their gas and electricity bills as the year progresses, does the Secretary of State share my concern that more and more prepayment metres will be installed in response, and that our constituents will in effect end up disconnecting themselves because they do not have enough money to put in the metre? If so, what is he going to do about it?
Minister reply
As I said in an earlier answer, I speak to the industry all the time. This has been raised, and we want to prevent people from having to take up prepayment metres if they can avoid it. That is something that we have done through a number of interventions to try to reduce the impact of very high prices globally. I also refer the right hon. Gentleman to the fact that my right hon. Friend the Chancellor of the Exchequer has announced a £9 billion package to help people who face high bills.
Question
Energy price fluctuations are a particular issue for the ceramics sector. Over Easter, I was delighted to visit 1882 Ltd, a ceramics producer in my constituency that has raised these concerns with me. What is my right hon. Friend doing to support the ceramics sector, and all energy-intensive sectors, to reduce the cost of energy and help to increase energy sustainability?
Minister reply
My hon. Friend will have noticed that there is a commitment in the strategy to energy-intensive users. From his first day here, he has been a tireless champion of the ceramics industry. I was pleased to see him in his constituency when I went there, and to the other Stoke constituencies. I look forward to working with him to ensure that we protect our precious ceramics industry in the UK.
Shadow Comment
Ed Miliband
Shadow Comment
The shadow Secretary of State criticised the strategy's failure to address immediate cost-of-living issues, lack of ambition on onshore wind and solar capacity, insufficient investment in energy efficiency, and overall weak targets. He pointed out that the Government’s approach is failing to deliver quick, affordable solutions due to ideological opposition and reluctance to invest public funds.
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