Asked by: Alex Cunningham (Labour - Stockton North)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he is taking with the Minister for Brexit Opportunities and Government Efficiency to ensure the UK Emissions Trading System supports the UK’s energy resilience.
Answered by Greg Hands - Minister of State (Department for Business and Trade)
On 25 March 2022, a UK ETS consultation was launched, fulfilling the Government’s commitment to align the scheme with the UK’s net zero ambitions and consulting on options to introduce the necessary changes to the scheme. In doing so, businesses will be given the confidence to invest in the transition to cheap, clean homegrown energy, which is significantly reducing reliance on fossil fuels and exposure to volatile oil and gas prices on global markets.
Asked by: Alex Cunningham (Labour - Stockton North)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, when the consultation on the UK Emissions Trading Scheme free allowances will take place.
Answered by Greg Hands - Minister of State (Department for Business and Trade)
The consultation “Developing the UK Emissions Trading Scheme (UK ETS)”, which includes sections relating to free allowances, was published on 25 March 2022 and will run until 17 June.
Asked by: Alex Cunningham (Labour - Stockton North)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to ensure that Emissions Trading System free allowances do not adversely impact decarbonisation projects.
Answered by Greg Hands - Minister of State (Department for Business and Trade)
The Government is committed to protecting industry from carbon leakage as the UK economy decarbonises. A proportion of allowances under the UK ETS, worth several billion pounds a year at current prices, are consequently allocated for free to businesses at risk of carbon leakage.
The Government is currently conducting a review into free allocation policy. These proposals were included in the “Developing the UK Emissions Trading Scheme (UK ETS)” consultation, published on 25 March 2022, which will run until 17 June 2022.
Asked by: Alex Cunningham (Labour - Stockton North)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he plans to make an assessment of the potential merits of relaxing planning rules on the development of onshore wind farms in England.
Answered by Greg Hands - Minister of State (Department for Business and Trade)
Onshore wind is an important part of the energy mix, accounting for around a quarter of installed renewable capacity in the UK, but as one of the cheapest electricity generating technologies, we know that we will need more.
As set out in the Government’s Energy White Paper and Net Zero Strategy, a low-cost net zero system of the future will be comprised predominantly of wind and solar and to achieve this, we will require a sustained increase of locally supported onshore wind in the 2020s and beyond.
Asked by: Alex Cunningham (Labour - Stockton North)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to the Prime minister's oral contribution of 31 January 2022, Official Report, column 37, what recent progress the Government has made bringing forward a package of measures to tackle the high cost of industrial energy.
Answered by Lee Rowley - Minister of State (Minister for Housing)
The Government recognises this is still a worrying time for businesses facing pressures due to the significant increases in global gas prices.
My Rt. Hon. Friend the Secretary of State has met representatives of the UK’s high energy-using sectors frequently in recent months in order to better understand the impact on their business, and extensive engagement with industry continues across government at both a ministerial and official level. The Government’s priorities are to ensure supplies of energy are maintained.
In order to help ensure our industry remains strong and competitive, between 2013 and 2020, total relief to energy intensive industries for electricity policy costs of over £2billion was provided. This has so far helped over 270 businesses across the UK. In 2020 alone, the Government provided relief to Energy Intensive Industries for electricity policy costs worth over £470million.
In 2018, the Government announced £315 million of funding for the Industrial Energy Transformation Fund, which is supporting businesses with high energy use to cut their bills until 2024.
We are currently undertaking a review of the schemes which will enable decisions to be taken on their future format.
Asked by: Alex Cunningham (Labour - Stockton North)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what information his Department holds on the purpose of the daily standing charge on energy bills; and if he will make an assessment of the recent increases in those charges by (a) E-ON and (b) other energy suppliers..
Answered by Greg Hands - Minister of State (Department for Business and Trade)
The standing charge is a daily flat rate that E.ON and other suppliers charge their customers to cover the cost of providing a live supply regardless of how much energy they use. It includes charges from network companies for using pipes and power lines to carry gas and electricity supplies, the maintenance and installation of meters, billing and accounting. A small proportion of the standing charge also goes towards Government initiatives that help vulnerable households and reduce carbon emissions. Ofgem requires energy suppliers to separate out the standing charge from a tariff’s energy unit rate so consumers can see what the different charges amount to.
For millions of households the level of standing charge is protected by the energy price cap rate set by Ofgem. While the setting of tariffs is a commercial matter for individual supply companies, the energy unit rate and the standing charge together for a supplier’s default and standard variable tariffs must not exceed the level of the price cap. For consumers looking for a new fixed deal for their energy, suppliers can offer a range of tariffs including some with a low or even a zero standing charge and a higher energy unit rate to attract low energy users.
Asked by: Alex Cunningham (Labour - Stockton North)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the impact on energy consumers of the increase in the daily standing charge on bills imposed by (a) E-ON and (b) other energy suppliers.
Answered by Greg Hands - Minister of State (Department for Business and Trade)
The standing charge is a daily flat rate that E.ON and other suppliers charge their customers to cover the cost of providing a live supply regardless of how much energy they use. It includes charges from network companies for using pipes and power lines to carry gas and electricity supplies, the maintenance and installation of meters, billing and accounting. A small proportion of the standing charge also goes towards Government initiatives that help vulnerable households and reduce carbon emissions. Ofgem requires energy suppliers to separate out the standing charge from a tariff’s energy unit rate so consumers can see what the different charges amount to.
For millions of households the level of standing charge is protected by the energy price cap rate set by Ofgem. While the setting of tariffs is a commercial matter for individual supply companies, the energy unit rate and the standing charge together for a supplier’s default and standard variable tariffs must not exceed the level of the price cap. For consumers looking for a new fixed deal for their energy, suppliers can offer a range of tariffs including some with a low or even a zero standing charge and a higher energy unit rate to attract low energy users.
Asked by: Alex Cunningham (Labour - Stockton North)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the impact of storms (a) Dudley, (b) Eunice and (c) Franklin on (i) workers and (ii) operations in the North Sea oil and gas industry.
Answered by Greg Hands - Minister of State (Department for Business and Trade)
No significant impacts on North Sea oil and gas workers or operations have been reported as a result of recent storms. The UKs offshore oil and gas sector is accustomed to weather events, and offshore installations are designed to remain in production in a wide range of weather conditions. Exposed activities, such as maintenance, may be temporarily paused and logistical operations such as workforce transportation may be affected, but operators remain resilient and plan accordingly.
Asked by: Alex Cunningham (Labour - Stockton North)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the impact of storms (a) Dudley, (b) Eunice and (c) Franklin on working patterns in the North Sea oil and gas industry.
Answered by Greg Hands - Minister of State (Department for Business and Trade)
No significant impacts on North Sea oil and gas workers or operations have been reported as a result of recent storms. The UKs offshore oil and gas sector is accustomed to weather events, and offshore installations are designed to remain in production in a wide range of weather conditions. Exposed activities, such as maintenance, may be temporarily paused and logistical operations such as workforce transportation may be affected, but operators remain resilient and plan accordingly.
Asked by: Alex Cunningham (Labour - Stockton North)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he has any plans to help mitigate the disproportionate effect of high energy prices on all electric homes.
Answered by Greg Hands - Minister of State (Department for Business and Trade)
The Government is monitoring the significant increases in wholesale energy prices closely, and meeting regularly with Ofgem, suppliers and consumer groups to understand the future impact on consumers as well as to discuss potential mitigations.
The Government is committed to protecting energy customers, especially the most vulnerable. The Government has announced a package of support to help households with rising energy bills, worth £9.1 billion in 2022-23. This includes a £200 discount on their energy bill this Autumn for domestic electricity customers in Great Britain. This will be paid back automatically over the next 5 years. There will be a £150 non-repayable rebate in Council Tax bills for all households in Bands A-D in England. Additionally, the Government announced £144 million of discretionary funding for Local Authorities to support households who need support but are not eligible for the Council Tax rebate.
The Energy Price Cap will continue to protect consumers, ensuring they pay a fair price for their energy this winter. Low income and fuel poor households will continue to be supported with their energy bills through the Warm Home Discount, which provides eligible households with a £140 discount. Winter Fuel Payments and Cold Weather Payments will ensure that the most vulnerable are better able to heat their homes through the winter. The £500 million Household Support Fund will support vulnerable households with essentials over the coming months.