Commons Sense

House of Commons · Ministers' Questions

Energy Sector

Tuesday 14 November 2023 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 1 Not answered 0

Key points

  • The Government have committed a total of 30 billion in public investment for the green industrial revolution since March 2021.
  • The Chancellor has announced 6 billion for clean heat and improving energy efficiency, and 20 billion for carbon capture, usage and storage.
  • The Government introduced a price floor for the oil and gas industry to ensure tax rates adjust with oil prices.

Topics (select to filter)

Questions & Answers

Q1 David Duguid Con
Economy Energy
Context

The MP is concerned about fiscal steps to support the growth of the UK's energy sector.

Question

What fiscal steps his Department is taking to support the growth of the energy sector.

Answer from Gareth Davies

Since March 2021, the Government have committed a total of £30 billion in public investment for the green industrial revolution. Since then, the Chancellor has announced £6 billion for clean heat and improving energy efficiency, and £20 billion for carbon capture, usage and storage. Alongside the launch of Great British Nuclear and the small modular reactor competition, the Government have also invested £1 billion in Sizewell C.

Answered
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Q2 David Duguid Con
Energy
Context

According to a recent survey, 90% of North sea oil and gas operators have reduced spending since the energy profits levy was introduced. The MP welcomes recent announcements on new North sea licences and asks about ESIM and consultation response timeline.

Question

Can my hon. Friend tell me when we can expect a response to the consultation on the ESIM and what plans this Government have to legislate for the mechanism? Will he meet me to discuss how investor confidence in our home-grown industry can be assured further?

Answer from Gareth Davies

Introducing the price floor for the oil and gas industry comes from the principle that, while it is right that oil and gas companies pay a higher share of tax during exceptional times, it is also right that when prices fall to normal levels, so do their tax rates. That is why we introduced the price floor in June and we have extensively engaged with the industry since then. I know that legislating will provide some certainty; we are looking carefully at that and will respond soon. I will always be happy to meet with my hon. Friend.

Partly answered

Not addressed: Timing of legislative plans

How: Looking Carefully

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Q3 Jim McMahon Labour (Co-op) Oldham West, Chadderton and Royton
Climate Energy
Context

The Labour party and the Co-operative party have set out a shared ambition for more community-owned energy. The MP references Denmark and Germany as examples of community-owned wind energy.

Question

That is not new: in Denmark, 52% of wind energy is community owned, and in Germany half of all onshore wind is community owned. Will the Government do far more to join that ambition of community-owned energy here in Britain?

Answer from Gareth Davies

We have ambitious plans for energy generation and our energy security. We want to bring communities with us, and we look at all options as we do so.

Not addressed: Specific steps towards community-owned energy

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