Asked by: Mark Menzies (Independent - Fylde)
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 promote manufacturing in the North.
Answered by Andrew Stephenson - Minister of State (Department of Health and Social Care)
The Government recognises that the North of England is home to a wealth of manufacturing assets that play a crucial role in boosting regional economies. Advanced Manufacturing – as identified in the Northern Powerhouse Independent Economic Review, published in 2016 – is one of the North’s ‘prime capabilities’, and an historic strength.
Through Made Smarter – our key national industrial digitalisation programme – we are investing over £140m to ensure that the UK is at the forefront of the Fourth Industrial Revolution.
In January 2019, we launched the Made Smarter North West Pilot; backed by £20m of government funding, this pilot is working with the Northern Powerhouse, and local partners, to provide support for up to 3000 manufacturing SMEs to adopt, and exploit, digital technology to increase their productivity. 600 of these SMEs will be able to receive intensive support, and 480 of those companies will be able to access grants of up to £20,000 to spend on specialist advice, kit, and technology.
In addition to Made Smarter, we are investing significantly in projects that will benefit the North, as well as the UK in general. We:
We want all areas across the country, including the North, to benefit from exciting new technologies that can transform industry, and society, giving our great cities the power, and resources that they need to reach their huge untapped potential.
Asked by: Mark Menzies (Independent - Fylde)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the contribution to the UK economy of the shale gas industry to date.
Answered by Claire Perry
The shale gas industry has the potential to provide the UK with a new domestic energy source, reducing our need for imports, providing more jobs, and contributing to economic growth. However, the industry is at the very early stages of exploration and we do not yet know how much of the UK’s shale resources can be extracted technically or economically and what the contribution to the UK economy could be.
We will continue to support responsible companies, working within our stringent regulatory regime, who are prepared to invest in this industry as they proceed with the exploration process, to test the size and value of the potential reserves.
Asked by: Mark Menzies (Independent - Fylde)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the contribution to the economy of Fylde of the shale gas industry to date.
Answered by Claire Perry
The Government believes that communities should experience direct benefits from hosting hydraulic fracturing sites in their area. At the exploration stage, £100,000 in community benefits will be provided per well-site when hydraulic fracturing takes place and 1% of revenues at production stage will be paid out to communities.
I am pleased to see that these benefits are already being realised from Cuadrilla’s operations in Lancashire. Cuadrilla has spent almost £9million directly with suppliers based in Lancashire, has over 700 local companies registered with its supplier portal and has provided over £200,000 for local sponsorship schemes.
Asked by: Mark Menzies (Independent - Fylde)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the potential effect of shale gas extraction on (a) domestic and (b) commercial energy tariffs.
Answered by Claire Perry
It is not yet known how much of the UK shale gas resource will ultimately be recoverable, or what rates of extraction, deliverability or reliability could be assumed if shale sources are found to be viable. Therefore the impact on energy tariffs has not been assessed to date.
The Government will continue to monitor progress of the shale gas industry and will revise its estimates, as appropriate, as the industry develops.
Asked by: Mark Menzies (Independent - Fylde)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what comparative assessment his Department has made of geological activity in Fylde (a) since the commencement of exploratory drilling at the Preston New Road Shale Gas site and (b) prior to such drilling.
Answered by Claire Perry
This is publicly available information:
https://www.bgs.ac.uk/research/groundwater/shaleGas/monitoring/lancashire.html.
Asked by: Mark Menzies (Independent - Fylde)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, for what reasons Ofgem recently increased the level of the pre-payment metre price cap.
Answered by Claire Perry
The prepayment safeguard tariff (price cap) tariff was introduced by the Competition and markets Authority (CMA) following its investigation into the energy markets. The methodology set by the CMA, and administered by Ofgem, to calculate the cap is based on wholesale costs, network costs, policy costs, operating costs and costs specifically associated with prepayment meters. The recent change reflected changes in these underlying costs.
Asked by: Mark Menzies (Independent - Fylde)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether the Regulatory Policy Committee will scrutinise the draft Domestic Gas and Electricity (Tariff Cap) Bill; and if he will make a statement.
Answered by Claire Perry
The impact assessment for the Domestic Gas and Electricity (Tariff Cap) Bill will be reviewed by the Regulatory Policy Committee.
Asked by: Mark Menzies (Independent - Fylde)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether his Department sought legal advice on the removal of appeal rights to an independent body as contained in the draft Domestic Gas and Electricity (Tariff Cap) Bill; and if he will make a statement.
Answered by Claire Perry
The draft Bill would place a new duty on Ofgem to implement a cap on standard variable and default tariffs. It does not remove an existing right of appeal. Energy companies would be able to challenge Ofgem’s decision on the setting of the cap by way of judicial review, and the Government believes that a Court is capable of considering these matters.
Government Bills are drafted by the Office of the Parliamentary Counsel based on instructions from Government lawyers. We are content that the provisions set out in the draft Bill are compliant with the law.
Asked by: Mark Menzies (Independent - Fylde)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether the removal of appeal rights for energy companies to an independent body, as indicated in the draft Domestic Gas and Electricity (Tariff Cap) Bill, will also apply to National Grid’s RIIO price controls.
Answered by Claire Perry
Proposals in the draft Domestic Gas and Electricity (Tariff Cap) Bill will only apply to the implementation of a cap on standard variable and default tariffs. Energy companies would be able to challenge Ofgem’s decision on the setting of the cap by way of judicial review. It does not remove an existing right of appeal.
Asked by: Mark Menzies (Independent - Fylde)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the answer of 30 January 2018 to Question 124845, on Energy: Prices, what assessment his Department has made of the effect of energy price caps on (a) consumers (b) employment and (c) investment in (i) Canada, (ii) the US, (iii) Spain and (iv) New Zealand; and if his Department will publish that assessment.
Answered by Claire Perry
We have made assessments on other countries regarding their energy policy. In those countries where there were, or had been, price interventions in the energy sector markets were either not previously liberalised, or had only recently been liberalised. This is very different to the situation in Great Britain, and so no useful comparisons can be drawn on the effect on employment and investment in those countries.