National Energy System Operator: Blackout Risk
Debate between Michael Shanks and Claire Coutinho(2 weeks, 2 days ago)
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Claire Coutinho (East Surrey) (Con)
(Urgent Question): To ask the Secretary of State for Energy Security and Net Zero if he will make a statement on allegations from whistleblowers within the National Energy System Operator regarding summer blackout risk.
The Minister for Energy (Michael Shanks)
On 7 July, the shadow Secretary of State, the right hon. Member for East Surrey (Claire Coutinho), wrote to the Government alleging practices of poor information handling in NESO and interference in operational decision-making in the control room. The Government take this issue incredibly seriously. Since the allegations came to light, we have been engaging with NESO and Ofgem to establish the facts. Both my right hon. Friend the Secretary of State and I have spoken to the chief executive of NESO.
NESO has now appointed an external legal firm to conduct a full investigation into the claims, and a report is to be delivered to the board’s head of risk and controls and to Ofgem in the coming weeks. The legal firm will interview members of the control room, without any other NESO employees present. NESO has already responded publicly that all operational decisions are taken solely by authorised operational control room personnel, and that NESO does not instruct employees to avoid retaining records. We will work closely with Ofgem to monitor both the progress and the outcome of the investigation. However, it would be wrong to pre-empt that outcome, and the investigation must be allowed to run its course.
I want to make it clear that during this period of unprecedented extreme heat, the Great British grid remains stable. No customers were impacted by tight electricity margins, and NESO had a number of tools available to ensure our energy security. Great Britain has one of the most resilient energy systems in the world, and the Government work closely with NESO and the wider sector to ensure that this resilience is constantly maintained. Market notices, such as those issued by NESO during the heatwaves, are standard operational tools that can be used to support energy security, and these were used successfully to maintain grid stability. However, it is important to acknowledge that extreme heat events, such as those experienced this summer, are likely to occur more frequently as our climate continues to change.
My Department will continue to work with NESO and Ofgem to identify any lessons from these events, and to work to ensure that our electricity system remains resilient. Ofgem, as the independent regulator, is also working with NESO to initiate a formal review of events during the June heatwave. I welcome this important transparency, and look forward to working with NESO and Ofgem on taking forward the lessons learned.
Claire Coutinho
Control room operators at the National Energy System Operator have the life-or-death job of balancing our electricity supply and demand. If they do not get it right, we will have blackouts, and in blackouts, people die; it is that serious. That makes what I am about to say all the more extraordinary.
I have been approached by multiple whistleblowers within our grid operator. Their allegations are: first, that on 23 June, the operator failed to meet the grid security standards put in place to prevent blackouts; secondly, that the corporate affairs team interfered with operational decisions—that is not something that the Minister denied—putting the reputation of the operator above security of supply; and thirdly, that operational decisions are being recorded in live documents, with no audit trail. Again, the Minister did not deny that.
I first raised questions on 2 June. Since then, we have had three public electricity margin notices—warnings to the market that we may be short on supply. I cannot stress enough that this is completely unprecedented. Multiple whistleblowers have now come forward. This, too, is unprecedented. I have raised this matter twice in the House. Despite the seriousness of the allegations, the Government shockingly dismissed me on both occasions as “scaremongering”. Considering the consequences of blackouts to people’s lives, that is nothing short of a disgrace.
NESO has now agreed to hold an external independent investigation. That is positive. However, while the Government wash their hands of this situation, the investigation that has been set up is a complete sham. It will not look into whether the grid is being run securely, or whether there was a breach of security standards on 23 June. It does not grant anonymity to any control room operator who wants to come forward. Those who are not selected by NESO management will have to ask those managers if they can participate, if they have concerns. Remarkably, on an all-staff call on Monday, the chief executive of NESO prejudged the outcome of the investigation by calling the allegations false, while senior management said that the whistleblowers had let them down. Let me be clear: the whistleblowers who have put the national interest over their own careers should be celebrated for their courage and integrity, not denigrated. Will the Government finally get a grip on this? Can the Minister guarantee that every single control room operator who wants to share their concerns will be given the opportunity to do so anonymously?
Mr Speaker
Order. Can I just remind those on the Front Bench—it is nothing personal; far from it—that you have only two minutes? Please, can we can try to stick to the rules? It makes things hard when we do not.
Oral Answers to Questions
Debate between Michael Shanks and Claire Coutinho(3 weeks, 3 days ago)
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Claire Coutinho (East Surrey) (Con)
Last month, I asked the Secretary of State about the risk of blackouts from the increasing instability of our electricity grid, and he accused me of scaremongering. Since then, I can inform the House that I have been contacted by a whistleblower at the heart of our grid operator, the National Energy System Operator. They allege that senior managers have ordered control room operators to hide information that shows that the grid is not being run securely. They also allege that corporate affairs have interfered with the operational decisions needed to stabilise the grid in order to protect the NESO’s reputation. If true, this is nothing short of a scandal. Will the Secretary of State take back his accusation of scaremongering and launch an immediate investigation into the security of our grid operations?
Michael Shanks
The shadow Secretary of State has made some very serious claims. If she has that information, she should share it with the Department. [Interruption.] Well, she has shared it in the House of Commons. She should also share the detail with us.
No, I do not take back—and I am sure that my right hon. Friend the Secretary of State does not take back—the idea that the shadow Secretary of State has been scaremongering, because she has continued to do so; even though the National Energy System Operator has continued to meet the demand that is necessary for all consumers in the country, she continues to peddle nonsense on social media. I think she should look at some of the facts before she does that. The heatwave saw no impacts on consumers, and demand was met at all times. We have a robust and resilient energy system; if she looks at the data, she will see that that is being delivered day after day.
Oral Answers to Questions
Debate between Michael Shanks and Claire Coutinho(1 month, 4 weeks ago)
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Claire Coutinho (East Surrey) (Con)
I have a very simple question. Everybody in this House knows we will need gas for decades to come, so for once, can the Minister give a straight answer? Which is better for the environment: going to a country 1,000 miles away, fracking the gas, freezing the gas, shipping it and reheating it, or just piping it in straight from the North sea?
Michael Shanks
The very simple answer is that we are continuing to use the North sea—no one is switching off what we are producing in the North sea—but the amount that we are able to extract from the North sea has been in long-term decline. The right hon. Lady knows that because she was the Secretary of State who talked a lot about the need for a transition in the North sea—she recognised then that the North sea has been in decline. We have been a net importer for more than 20 years, so this is not a short-term position. The shadow Minister, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), gave the game away a few minutes ago: the answer to this is how we build the industries that come in the future, alongside retaining oil and gas for many decades to come.
Oral Answers to Questions
Debate between Michael Shanks and Claire Coutinho(8 months, 1 week ago)
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Claire Coutinho (East Surrey) (Con)
At this COP, acres of the Amazon were chopped down so that the Secretary of State can lecture us about saving the planet. Can the Minister justify why his Government did not even put a single penny into the forest fund, which could have at least repaired some of the damage?
Michael Shanks
I think the shadow Secretary of State has a bit of a cheek talking about anyone’s action on the climate crisis when she has completely reversed her own position on it. The UK’s climate leadership is an incredibly important contribution to the world’s action on the climate crisis. That crisis is not a future threat, but a very present reality. The UK has been a part of the forest initiative; we have supported Brazil and others to make that happen. Of course, coming up to a Budget and with tight fiscal considerations, we want to make sure that every pound of British taxpayers’ money is spent. We have not ruled out any future support for such schemes. Britain’s leadership at COP and at other international forums is important for our own economic interests, but also for tackling the global climate crisis.
Heathrow Substation Outage: NESO Review
Debate between Michael Shanks and Claire Coutinho(1 year ago)
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Claire Coutinho (East Surrey) (Con)
Thank you, Mr Deputy Speaker. I feel older, wiser and significantly more sleep-deprived.
I thank the Minister for advance sight of his statement. I also thank NESO for its rapid work. The report is clear that there have been serious failings by National Grid to fix an issue that it knew about for seven years. The Minister is right; that is unacceptable. What is most important, though, is what happens now.
I have some questions for the Minister. First, who at National Grid made the decision to defer critical maintenance of the transformer in 2022? He said that he would hold them accountable, so how will he do that? He spoke about breaching licence conditions. What are the penalties for doing that and what accountability mechanisms will he use? Secondly, the report says that the North Hyde site did not meet modern standards on physical barriers between transformers. Can the Minister confirm he has asked National Grid to review substations with transformers built before the current standards were put in place? Thirdly, what steps will he take to look at the resilience of our energy system, particularly in the light of the heightened geopolitical risk that we all face?
The key message that we should take from the report on the Heathrow blackout is the importance of critical national infrastructure to our energy security and our national security. In that regard, it is the Secretary of State for Energy and Climate Change who is playing with fire. A week after the blackout hit Heathrow, Spain and Portugal gave us a stark warning of what happens when countries fail to protect their energy security: public transport down, payment systems down and millions of people unable to cook, travel or contact their families. Tragically, people lost their lives. In the case of North Hyde, the blackout affected schools, the London Underground, Hillingdon hospital and 70,000 customers, some of whom had to move out of their homes. That is the price we pay when we do not take energy security seriously. It is not a nice-to-have—energy is a basic need—and yet this Government are putting our energy at risk.
The national security strategy that the Government published just last week included 12 mentions of climate but not a single mention of the risk that China poses to our energy system. Last year, our intelligence services warned that Chinese state-sponsored hackers were working to disrupt and destroy critical infrastructure in the event of conflict, and yet the Secretary of State is rushing to make Britain dependent on Chinese solar panels, Chinese rare earths and Chinese batteries in just five years’ time. We have just seen China limit the export of critical minerals in its trade war with the US. We have seen kill switches found in Chinese inverters. The US intelligence services have warned us about the risk of surveillance devices in Chinese wind turbines.
I first wrote to the Secretary of State eight months ago, asking him to publish an assessment of what his targets mean for our reliance on Chinese imports. He has not even bothered to reply. If the Secretary of State wants to hand over the keys of our energy supply to the Chinese Communist party, he should come to this House and explain why.
We are lucky enough in this country to be surrounded by our own gas fields, but the Secretary of State does not care. This is a man who would rather import gas from Norway, from the very same fields in the North sea that he is banning Britain from using; who is pouring concrete down our gas wells; and who is blocking off any contingency plan that Britain might need in a crisis. I do not say this lightly, but this is a man who is putting our national security at risk. Today we are talking about the first transformer fire in a decade in this country and he did not even bother to turn up. That is the problem. The Secretary of State might prefer to be in Brazil, Baku, Beijing or wherever he is today, but he should be here to explain himself, because as the former head of MI6 said, he is pursuing an energy policy that is “completely crazy” when it comes to national security.
I want clean energy from nuclear, from small modular reactors and from the next generation of British innovation, but first and foremost I want energy that keeps the lights on and keeps bills down. This Government are going to leave us completely reliant on foreign imports: from China, from Norway, from Qatar—from anywhere as long as it is not Britain. NESO and Ofgem will do their work, but the Minister must do his work too. Alongside the work of the North Hyde report, can he confirm that he will come back and update the House on his plans to protect the energy resilience of this country?
Michael Shanks
I was going to start—and I will, regardless of the rest of that speech—by warmly welcoming the right hon. Lady back to her place as the shadow Secretary of State. I will miss sparring with my Scottish colleague, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), although I am sure we will still have opportunities to do so. The right hon. Lady might come to miss the lack of sleep at home compared with the noise in this place, but she is very welcome back. She has obviously taken the last few months to write a wrap-up speech on a whole range of issues, and I am glad to give her the opportunity to pontificate here on many of those things, but let me stick to the questions that related to the statement that I have delivered to the House today.
The right hon. Lady asked about the role that National Grid has played. Ofgem has opened an enforcement investigation into this incident to get to the bottom of exactly what National Grid has or has not done, and whether there are possible breaches of licence. That investigation should now take its course. There are clearly serious questions to answer, and that is exactly the point that I put to National Grid today. I have asked for an immediate response on what action it is taking and for assurances that there are no further maintenance backlogs that it has not acted on, and I expect that by the end of this week. Ofgem has also instructed a wider audit of maintenance work across the energy system, which will identify if there are any similar issues. On the point about being held accountable, clearly I am going to wait for the outcome of Ofgem’s investigation. It is the responsibility of Ofgem as the regulator to determine whether National Grid is in breach of any of its licence conditions and what the appropriate action should be if it is. I will wait for those findings to come through.
The right hon. Lady raised an important point about the physical barriers. Clearly there are differences because the time at which some of our infrastructure was built and the different standards that were in place at different times. We need to make a wider review to see what is actually possible with some of this infrastructure; it was not always possible to build to the standards we now expect, but everything that is being built now is being built to the highest standards. I want the same assurances that she has called for: to know that anything that was built previously is safe.
On the wider resilience questions, I am not going to get into a back-and-forward on the frankly quite ludicrous claims that the right hon. Lady made. I hope this is not an indication of the tone we can expect in the years ahead, because there are some difficult decisions for us all to wrestle with. There is the really important question about delivering our energy security in, as she says, an increasingly uncertain world. We are sprinting towards clean power to remove the volatility of fossil fuels from our system. She opposes all of that investment. There is also a critical role to play in upgrading the network infrastructure across the country, which her party also opposes.
There are some really searching questions for the Conservatives—who were, of course, in charge of this infrastructure for 14 years—about their role and what part they want to play. It is easy to shout from the sidelines with accusations. It is far more useful and important for a party that was in government for 14 years and is now the official Opposition to come up with some credible questions about how we deliver the energy system of the future. We are going to get on with delivering it.
Oral Answers to Questions
Debate between Michael Shanks and Claire Coutinho(1 year, 8 months ago)
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Claire Coutinho (East Surrey) (Con)
Last week, the National Energy System Operator published a full systems cost analysis of the Secretary of State’s flagship project to carbonise the grid by 2030. This morning, the Secretary of State said on several media outlets that the report shows that his plans will lower bills. I remind the House that the report assumes that gas prices are 40% higher than the Department’s own estimates, that the price of carbon price is at least double what it is now, that the Government can commission more offshore wind in the next two years than in the last six combined without moving prices, and that they can build the grid at a pace we have never seen before in this country, without any delays. Even if all that is achieved, page 78 of the report shows that the cost of the system will be higher. For clarity, would the Minister like to repeat at the Dispatch Box the Secretary of State’s claim that the NESO report shows that Labour’s system will lead to a lower cost of electricity?
Michael Shanks
What the shadow Secretary of State has just outlined quite coherently is that the Conservatives have no ambition in this space whatsoever, but we do. I am very happy for the right hon. Lady to outline where our ambition is. We will build faster than the previous Government, although I have to say that that would not be difficult. The shadow Minister sitting next to her, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), said quite clearly at their conference that the previous Government had built infrastructure far too slowly, and their former Energy Minister, the right hon. Member for Beverley and Holderness (Graham Stuart), said that their onshore wind ban was “always mad”. We are quite happy to pick up where they left off and deliver the clean power that this country needs.
Claire Coutinho
This is the ministerial team who told the electorate they were going to cut their bills by £300, without doing any homework to find out how those plans would work. They voted against our amendment to hold them to account on their own pledge just two weeks ago, and now they are trying to claim that the NESO report shows that their approach will lower bills when in fact it shows in black and white that the system will be much more expensive. Does the Minister not see that if they follow this plan, we will be a warning, not an example, to the rest of the world and that the British people will be colder and poorer as a result?
Michael Shanks
Time and again, the Conservatives run away from their record on this in office. The reason why people right across this country are paying more on their energy bills is that the Conservatives did not get us off the rollercoaster of fossil fuel markets, but we are now moving at pace. The right hon. Lady may want to keep us in the vulnerable state where we are reliant on international gas markets, but we are determined that we will not do that. We will bring down bills and deliver energy security. I am not ashamed to say that we will move with great ambition to deliver what this country needs and to deliver the good jobs that go with it.