Draft Strategy and Policy Statement for Energy Policy in Great Britain
Debate between Amanda Solloway and Alan Brown(1 month, 1 week ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
I beg to move,
That the Committee has considered the draft Strategy and Policy Statement for Energy Policy in Great Britain.
The past few years have brought unprecedented changes and uncertainty to Great Britain’s energy system, but we have remained resilient. Last year, we laid the foundations for an energy system fit for the future with the landmark Energy Act 2023, the largest piece of energy legislation in the United Kingdom in a generation, which is world-leading in legally mandating net zero. The changes in that Act, including the powers to establish a National Energy System Operator—NESO—and new duties for Ofgem, mean that now is the right time to reaffirm the Government’s strategic priorities and policy outcomes in this strategy and policy statement.
The Strategy and Policy Statement for Energy Policy in Great Britain is developed according to part of the Energy Act 2013. The SPS sets out in clear terms the Government’s strategic priorities and other main considerations for energy policy, the policy outcomes to be achieved, and the roles and responsibilities of persons involved in implementing that policy. The Secretary of State, Ofgem and the National Energy System Operator —a new independent public corporation responsible for planning Britain’s electricity and gas networks and operating the electricity system—will be required to have regard to the strategic priorities set out in the SPS.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Can the Minister give us a timescale for when NESO will be operational as an independent body, in the way envisaged by the Government?
Amanda Solloway
I will come on to that in a moment.
The Secretary of State and Ofgem must also have regard for the policy outcomes contained within the SPS, and both parties must carry out their respective regulatory functions in the manner which they consider best calculated to further the delivery of the policy outcomes.
NESO is expected to be established this year. The SPS serves an additional purpose of setting out and clarifying the roles and responsibilities of NESO alongside Ofgem and the Government. The SPS is intended to provide guidance to the energy sector on the actions and decisions that are needed to deliver the Government’s policy goals, and places emphasis on where the Government expect a shift in the energy industry’s strategic direction.
As the independent energy regulator for Great Britain, Ofgem cannot be directed by the Government on how it should make decisions. Similarly, NESO is being set out to be operationally independent and free from day-to-day Government control. However, the SPS will provide guiding principles for Ofgem and NESO when it is established. The strategic priorities and policy outcomes within the SPS do not include the creation of any new policies or duties.
Amanda Solloway
Absolutely. That is the very reason we are doing this—to make sure that we achieve our net zero targets.
The statement will support strategic alignment between the Government, Ofgem, NESO and the industry, by making clear what the Government want to achieve in the energy sector. The legal framework of the Energy Act 2013 requires that Ofgem, NESO and the Secretary of State all have a duty to have regard to the strategic priorities within the SPS.
Ofgem must publish a strategy showing how it will further deliver the policy outcomes and its annual report must assess its contribution to deliver those outcomes. The SPS also acts as a tool to promote alignment between Government, Ofgem, NESO and industry. As per the Energy Act 2013, the SPS has completed two consultations. The first was undertaken with Ofgem and the Welsh and Scottish Governments, and the Government worked with all parties to make sure views were correctly captured before moving on to the second public consultation, which was held last summer.
Alan Brown
I refer the Minister to the 16th report of the Secondary Legislation Scrutiny Committee, which was published earlier this month on 7 March. It details the fact that there was consultation with Scottish and Welsh Ministers, as the Minister said. However, additional information provided by her Department makes it clear that the Welsh Government asked for the Welsh net zero targets to be included in the SPS, and that the Scottish Government asked for the same for the Scottish net zero targets and also for the networks section to be strengthened. According to her Department, information was added to the introduction for the Welsh and Scottish net zero targets, but I cannot find it in the introduction. I wonder if the Minister could provide clarity on where that was included in the documents.
Amanda Solloway
I will have a look at that information and see if we can get that to the hon. Member if it is not included.
The feedback throughout both consultations was generally positive, and stakeholders were keen to see the SPS implemented to give guidance to the sector on the roles of Ofgem, NESO and the Secretary of State in delivering the Government’s priorities for the energy sector. Since the consultation was concluded, officials have worked through feedback and, where appropriate, used that to inform the current iteration of the SPS before us. The Government are confident that this SPS reflects the right strategic priorities and policy outcomes for energy policy for the whole of Great Britain. The SPS reaffirms the Government’s commitments and priorities for the energy sector and, in doing so, acts as a tool to support strategic alignment between Government, Ofgem, NESO and industry. I commend this draft statutory statement to the Committee.
Amanda Solloway
I thank all right hon. and hon. Members for what have been, in all cases, heartfelt contributions. I also thank them for their scrutiny of the draft of the document. Some of the issues in hand fall outside my portfolio but within the Department. If there is anything I am unable to answer in this speech, I will respond in more detail to right hon. and hon. Members in writing.
I am confident that the strategic prices and policy outcomes in the SPS clearly establish what the Government are trying to achieve in the sector and why that is important. It demonstrates how smaller policy outcomes contribute to broader priorities, so stakeholders can be reassured about how their role fits into the bigger picture. I also hope the SPS sets out a clear description of the roles, responsibilities and remit of Government, Ofgem and particularly NESO in delivering the objectives. We have tried to provide enough information on NESO’s remit to give confidence in its role when established, while also recognising that its responsibilities will evolve over time.
As well as reaffirming our ambitions, the SPS will give encouragement to Ofgem to utilise the full range of its powers to ensure that those ambitions are realised, and that stability and confidence are restored across the sector. I am pleased that most right hon. and hon. Members welcome the SPS. I want to go into further detail in response to some of the questions posed today.
The hon. Member for Kilmarnock and Loudoun asked when NESO would be operational. Our aim is for it to be operational later this year, depending on a few factors, including agreeing timelines with key parties. We continue to work closely with National Grid plc, National Gas and other stakeholders to enable efficient transition while maintaining the safety and ability of the operation of the energy systems.
In response to the hon. Member’s question on Scotland’s net zero targets, I should say that the SPS notes that Scotland and Wales have established their own net zero targets. Then, on a further point, Ofgem is established as a non-ministerial Government Department so, like other Government Departments, it is accountable to Parliament. I will write to the hon. Member if I have failed to address any other queries.
Alan Brown
I would just like a wee bit more detail on what “accountable to Parliament” really means and what that looks like overall, in terms of Ofgem and its responsibilities.
Amanda Solloway
The hon. Member will understand the parliamentary protocol around how regulatory bodies operate. Ofgem is set up as a Government body. On the scrutiny, he will know that a Select Committee, for example, would be able to talk to Ofgem.
My right hon. Friend the Member for Chipping Barnet asked how the SPS will focus on the switch to renewables. The SPS is clear that driving a net zero transition by achieving Government targets for renewable and low-carbon deployment is a strategic priority for Government.
I turn to the questions from the hon. Member for Southampton, Test. NESO will take time to reach full maturity as a new organisation, so we have kept references to NESO at a high level in the SPS. NESO is being brought into existence and its roles are still in development, including spatial energy and regional system planning. We instead plan to reflect how best to cover NESO in its substantive role once it is established. The Government have the power to review and revise the SPS in preparation for or in connection with NESO’s designation and will therefore consider the future when it is appropriate to do so.
I thank my right hon. Friend the Member for Suffolk Coastal (Dr Coffey) for our previous conversations on what I know is an important issue. The SPS does not create new policy, but reaffirms Government’s existing priorities and sets out the roles of Government, Ofgem and NESO in delivering them. It is Ofgem’s role as the independent regulator, and NESO’s role as an independent system operator and planner, to decide how to go about achieving strategic priorities contained within the SPS. Their approach should be balanced in line with their duties.
In total, we received 140 unique responses to the SPS public consultation. The document summarising the responses, which was laid in the House alongside the SPS, details how we responded to that feedback. The SPS was cleared by the Home Affairs Committee and the parliamentary business committee before it was laid in Parliament on 21 February, and it is not a national policy statement for energy. The national policy statement for energy was published on 22 November 2023 and came into force on 17 January 2024.
With regard to the strategic spatial energy plan, we believe NESO has a key role to play in strategic planning for the energy system. The expertise of an independent NESO will be invaluable in creating the SSEP, but it is important that the plan is underpinned by proper democratic accountability. It will be produced through close working between the UK Government, the ESO, NESO—once established—and Ofgem. We will set out the full and clear expectations on governance and arrangements for each stage of the process in our commission to NESO.
Ultimately, we anticipate that the SSEP will cover the whole energy system, land and sea, across Great Britain. However, producing a comprehensive, multi-vector plan that effectively meets our future energy needs will naturally take time to get right. We are therefore commissioning the ESO, ahead of becoming NESO, to produce the first iteration of the SSEP, covering infrastructure for electricity generation and storage, including relevant hydrogen assets. That will foster a more efficient electric system design, promoting anticipatory network investments to enable the reduction of the waiting times for generation and storage projects to connect to the grid.
We also recognise the importance of protecting our environment and will ensure that any decisions on scale and location of infrastructure consider possible effects on the environment. The SSEP will go through an onshore and offshore strategic environmental assessment or an equivalent assessment under the environment outcomes report system, once it is in force. We also intend the SSEP to carry out a plan-level habitats regulations assessment. Planning policy will continue to take full account of legislation to protect the environment and habitats. As I said earlier, I will write to my right hon. Friend on other points she has raised.
In response to my hon. Friend the Member for Kettering, given Ofgem’s new roles, legislated for in the Energy Act 2023, and the establishment of NESO, now is the right time to publish the SPS. The SPS will give further guidance to the energy sector and support strategic alignment between Government, Ofgem, NESO and industry by reaffirming our priorities and commitments. Ofgem and NESO have a statutory duty to have regard for strategic priorities set out in the SPS, which makes it different from previous Government strategies.
Question put and agreed to.
Resolved,
That the Committee has considered the draft Strategy and Policy Statement for Energy Policy in Great Britain.
Oral Answers to Questions
Debate between Amanda Solloway and Alan Brown(5 months ago)
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Alan Brown (Kilmarnock and Loudoun) (SNP)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
As my right hon. Friend the Secretary of State indicated earlier, a social tariff can mean different things to different people. We are consulting suppliers and many stakeholders to ensure that what we are doing is the right thing. We are also looking at flexibility around the warm home discount.
Energy Trilemma
Debate between Amanda Solloway and Alan Brown(1 year, 1 month ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
I am going to go through my speech as fast as I can, because this has been an incredible debate. I would so much have liked to have had more time, but I want to allow my right hon. Friend the Member for South Northamptonshire (Dame Andrea Leadsom) to come back in at the end.
I welcome the opportunity to debate this important issue, and I thank all hon. and right hon. Members for their contributions. We have had an informed and interesting discussion. I particularly thank my right hon. Friend the Member for South Northamptonshire for bringing this important topic to the House. I also pay tribute to her for the important work she did in advancing the nation’s energy and climate security as Secretary of State with responsibility for those matters, as well as in her role as Energy Minister prior to that. I welcome the work that she and other Members have been doing more recently to contribute to this policy debate.
I agree with my right hon. Friend about the creation of the new Department for Energy Security and Net Zero, which I am sure that the whole House will welcome. It will deliver policies at the heart of the Government’s agenda and tackle the energy trilemma. Indeed, the Secretary of State was mindful of the trilemma as he laid out his priorities, which are:
“To set Britain on a path to energy independence, in other words, delivering energy security.
To bring bills down as soon as possible, and keep them down, so wholesale electricity prices are among the cheapest in Europe, delivering consumer security.
To decarbonise energy as part of our commitment to net zero, delivering climate security.”
As the Minister with responsibility for energy consumers and affordability, I will be working hard with the Secretary of State to bring down energy bills for households and businesses and to tackle fuel poverty.
The Government have a clear plan to deliver our priorities, set out in our Energy White Paper, published in 2020, and in our “Net Zero Strategy”, published in 2021. The British energy security strategy, published in April last year, charted a pathway to reducing our dependence on imported oil and gas and achieving net zero greenhouse emissions by 2050.
In the 2022 edition of the index, the UK was ranked fourth overall, as the hon. Member for Southampton, Test (Dr Whitehead) mentioned, ahead of G20 competitors including France, Germany and the United States. We are clearly doing something right. We should not consider the three aims of having secure, affordable and clean energy as being in competition with each other. In fact, enhancing security means decarbonising electricity, and both mean keeping energy bills affordable. To illustrate that point, I highlight the role that wind and solar play in our energy mix. They are not only the cleanest sources of power that we have, but the cheapest, and they contribute to our energy security by reducing our reliance on imported fuels.
I want to mention the contributions from a couple of other Members. My hon. Friend the Member for Banff and Buchan (David Duguid) has a great depth of knowledge and brings real experience to the subject. He has a genuine commitment to the subject, and he mentioned carbon capture, usage and storage. That is a priority for the Government, and we are progressing as quickly as we can. The funding package announced at the Budget is unprecedented and demonstrates His Majesty’s Government’s strong commitment to delivering CCUS in the UK.
Amanda Solloway
I am so sorry, but I just do not have time.
I would particularly like to mention my hon. Friend the Member for Crewe and Nantwich (Dr Mullan), who is a strong and consistent advocate for energy security and net zero. The UK currently does not have access to large naturally occurring geothermal resources that countries such as Iceland have, but I welcome the review he is doing and look forward to reading it.
To meet our ambitions on renewables, I agree with my right hon. Friend the Member for South Northamptonshire that we should accelerate the planning processes and networks infrastructure vital to bringing these projects to fruition. That is why the Government have committed to dramatically reducing timelines for delivering strategic onshore transmission network infrastructure by around three years, with an ambition to halve the end-to-end process by the mid-2020s. We look forward to the report from the Electricity Networks Commissioner, Nick Winser, this summer, and will take action in response to his recommendations.
We are committed to ensuring that projects benefit not only the nation as a whole, but the communities in which they are built. Members rightly call for an electricity system that is smart and flexible, and by the end of 2022 there were 31.3 million smart and advanced meters across Great Britain. The flexibility of the system is underpinned by a growing pipeline of electricity storage projects, with nearly 23 GW of storage already online.
Members have rightly pointed out the crucial role in energy security of reducing consumption through targeted energy efficiency measures, and we are already off to a good start. In 2010, only 14% of homes were in energy performance band C or better, but thanks to Government and industry action, 46% of homes now meet this benchmark.
The Government are bringing all this work together through the Energy Bill, which is the vehicle for delivering our strategy. It will modernise the way that we heat people’s homes, it will turbocharge British technology and it will liberate private investment, scaling-up jobs and growth.
To sum up, the UK is firing on all cylinders to deliver a green, resilient and independent energy system, with these three elements going hand in hand. As my right hon. Friend will know, the UK is a global leader not just in clean energy, but, as the energy trilemma index confirms, in cheap and secure energy. So it is only right that our ambition is to completely decarbonise our power system by 2035, subject to ensuring security of supply. This will provide the cheap, clean and British energy we need for decades to come.
Energy
Debate between Amanda Solloway and Alan Brown(1 year, 1 month ago)
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Amanda Solloway
The instruments were laid between 11 January and 23 February 2023, and their purpose is to ensure that benefits from the alternative fuel payment, both domestic and non-domestic, are passed through to consumers. Throughout this winter, the Government have delivered critical support to households, businesses and other non-domestic consumers in response to the unprecedented rise in energy prices. The Government brought forward emergency legislation on energy support, paving the way for this support package to be delivered rapidly across the entire United Kingdom.
The alternative fuel payments scheme provides support to households, organisations and businesses that do not use mains gas and use alternative fuels such as heating oil. Eligible domestic consumers using alternative fuels will receive a one-off fixed payment of £200. Non-domestic consumers will receive £150.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Can the Minister tell us how many households are still waiting to access the £200 payment?
Amanda Solloway
I thank the hon. Gentleman for that question. With his permission, I will get back to him with the answer.
The pass-through requirement regulations are an important part of the support package and of ensuring that support reaches those who need it. The alternative fuel payment and non-domestic alternative fuel payment pass-through schemes set out in the regulations take the same approach as other energy schemes, particularly the energy bills support scheme and the energy bill relief scheme. They make it mandatory for intermediaries to pass the financial benefit of the schemes through to end users, which is necessary because that benefit is being delivered through electricity suppliers. In some cases, a supplier will have a contract with an intermediary such as a landlord or a heat network rather than with the end user, so we need to ensure that the support that it provides to the intermediary is passed on to the end user in a fair way.
Let me clarify what I mean by “end user”. In the case of both the alternative fuel payment and the non-domestic alternative fuel payment, an end user is an individual who consumes energy and pays for its usage through an intermediary such as a landlord. We are talking about tenants of different types—they could be domestic tenants, businesses or any kind of organisation.
Like other energy schemes, the schemes set out in the regulations require that support be passed on in a “just and reasonable” way. The regulations have been drafted in that way to account for the many kinds of relationship between an intermediary and an end user. If we used a narrow definition of “just and reasonable”, we could run the risk of inadvertently excluding some intermediaries from the pass-through requirements.
The regulations also accommodate scenarios in which there are multiple end users to whom intermediaries pass on support. They make it clear when and how intermediaries should communicate with end users regarding the benefit that is being passed on.
Our approach to enforcement is consistent with the approach taken in other energy schemes, particularly the energy bills support scheme in Great Britain. If an intermediary does not pass on the benefit to a user who is entitled to it, that user will be able to pursue recovery of the benefit debt through civil proceedings. Should a court rule in the end user’s favour, the end user will be entitled to the payment plus interest at 2% above the Bank of England base rate.
The Government have published guidance on gov.uk to ensure that the requirements are clear to all parties. If necessary, there are also template letters that tenants can use to contact their landlords if they are concerned about their energy bills. The Government are working with a wide range of stakeholders to ensure that the pass-through regulations work for everybody in scope, including vulnerable people and vulnerable groups.
Energy Suppliers: Customer Credit
Debate between Amanda Solloway and Alan Brown(1 year, 2 months ago)
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Amanda Solloway
I noticed that point in the hon. Gentleman’s speech. Maybe we should look at whether there could be some automatic repayment. I believe that that has been looked into before, but I am certainly prepared to do so and to give an assurance on that.
Alan Brown
Everybody here welcomes what the Minister says about looking at automatic refunds. As my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) said, Ofgem does not currently require refund requests to be processed within a specific time. It is only if a customer closes their account to switch that there are stipulations on the time period in which their credit must be returned. The issue in the short term is that the companies are not obliged to keep to a timescale to return the credit, so I welcome the Minister’s comments about automatic refunds.
Amanda Solloway
I thank the hon. Member. This is an important debate, not only because it is on an important topic, but because it is important for me to listen and understand the issues.
Ofgem recently provided a progress update. It has opened formal compliance engagement with 12 suppliers and has required them to submit remedial action plans to address its concerns. To date, Ofgem has satisfactorily resolved 95% of the concerns and has secured several supplier improvements in relation to policies, processes and controls, credit balance arrangements and staff training.
Ofgem has proposed further measures to protect consumer credit balances. The reforms would require suppliers to have enough working capital to run without needing to rely on customer credit balances, about which concern has been illustrated today. The reforms should further ensure that suppliers do not gain a financial advantage from holding credit balances. Ofgem’s reforms will mean that when an energy supplier fails and Ofgem’s safety net quickly moves the customers to a new energy supplier, the customer credit balances with the failed supplier are limited in size and can, where necessary, be ringfenced.
I was unaware of the problem with smart meters, which I will certainly look into. I mentioned the app problem; I was unaware that there was an inconsistency between the reports from the app and from the website, but I am happy to look into that.
Once again, I thank the hon. Member for Inverness, Nairn, Badenoch and Strathspey for securing the debate and for his campaign to encourage customers to take more control over their energy account balances. I also thank him for noting that we must ensure that we are as helpful as possible. Customers must be at the heart of this, because it is the consumer who is affected.
The Government and Ofgem are taking clear and firm action to ensure that customers are treated fairly, are protected and receive good service. The Energy Security Secretary has written to energy suppliers about the importance of setting direct debit payments more accurately. He has also made it clear that protecting consumers is a top priority for this Government. Finally, one of the early meetings that I will have in my new role will be with the Ofgem CEO. I shall press him on what can be done to ensure that customers get their money back swiftly and easily, and to prevent suppliers from building up consumer credit balances.
Nuclear Fuel Manufacturing
Debate between Amanda Solloway and Alan Brown(2 years, 7 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
It is a great pleasure to serve under your chairmanship, Mr Betts. I thank my hon. Friend the Member for Fylde (Mark Menzies) for securing today’s really important debate and my parliamentary colleagues for expressing their support for the UK’s nuclear sector and future.
I will start by reaffirming the strategic importance of maintaining our sovereign fuel manufacturing capability, as set out in the 2018 nuclear sector deal. As many hon. Members have said, the UK is a world leader in the nuclear fuel cycle, which is a testament to the highly skilled workforce currently employed at the Springfields and Capenhurst sites and in the wider UK supply chain. Maintaining and developing that skilled workforce will be critical to delivering our net zero ambitions. I welcome the Westinghouse launch of the clean energy technology park last year. Such commercial ventures support collaboration and low-carbon research. Development and business are central to the UK’s transition to net zero. I am aware of the short-term challenges facing the Springfields site as the UK’s advanced gas-cooled reactor fleet retires. However, as we look forward to the 2030s, I agree with my hon. Friend that the site could and should have a bright future. That leads me to the Government’s commitment to nuclear power.
The 2020 energy White Paper sets out our vision for the transformation of our energy system, continuing to break the dependency on fossil fuels and moving homes and businesses to clean energy solutions. We have not yet made the full transition away from coal, let alone decarbonised our energy system, but “The Ten Point Plan for a Green Industrial Revolution” highlighted the key role of nuclear power in delivering the deep decarbonisation of our electricity system alongside renewables and other technologies.
This is an exciting time for the nuclear industry. This Government are clear that nuclear has an important role to play in decarbonising the electricity system, and in meeting carbon budget 6 and net zero targets. In the energy White Paper and “The Ten Point Plan for a Green Industrial Revolution”, this Government committed to advancing large, small and advanced nuclear projects as part of our future low-carbon energy mix, heralding what my hon. Friend the Member for Fylde called a golden age of new nuclear across the regions and nations of the UK, thereby contributing to the levelling-up agenda.
That includes at least one large-scale nuclear project, and in December 2020 we announced that negotiations with EDF on Sizewell C had begun. Those negotiations are already well under way. Moreover, as the Secretary of State has said in the House, we will bring forward legislation in this Parliament that will further commit us to creating more nuclear power in this country.
Alan Brown
What does the Minister think is a realistic timescale for our Government agreeing a deal with EDF on Sizewell C?
Amanda Solloway
I thank the hon. Gentleman for his question, and I will come on to that issue later.
As my hon. Friend the Member for Gloucester (Richard Graham) noted, nuclear could have a role in beyond grid applications such as low-carbon hydrogen production. Last month, we published the UK’s first ever hydrogen strategy, confirming our support for low-carbon hydrogen production across the United Kingdom. In addition, we have announced up to £385 million in the advanced nuclear fund to invest in the next generation of nuclear technologies, with an ambition to employ small modular reactors and to develop an advanced modular reactor demonstrator as early as the 2030s.
I also recognise the importance of developing our fuel-manufacturing capabilities to support these ambitions. My Department, in co-operation with the National Nuclear Laboratory, has delivered a £46 million advanced fuel cycle programme, aiming to develop world-leading skills and capabilities in advanced fuels and recycling. Recently, we announced a short extension to the programme, which will focus on advanced nuclear fuels for use in small and advanced modular reactors. The programme has been delivered at the National Nuclear Laboratory facility located on the Springfields site in the constituency of my hon. Friend the Member for Fylde.
I will also touch on the Government’s levelling-up agenda. We remain committed to addressing the economic disparities across the whole of the United Kingdom. The civil nuclear supply chain is playing an important role, currently supporting over 59,000 jobs across the United Kingdom in the areas where high-skilled, high-value jobs are needed most, including, for example, in the north of England and north Wales. As we develop the next generation of nuclear technologies, with the emphasis on high-quality manufacturing, I agree with the hon. Member for Strangford (Jim Shannon) that it would be excellent if the skilled workforce in Northern Ireland could play a part in that process.
I was delighted to hear that nearly 2,000 apprenticeships have been delivered on the Springfields site over the last 70 years. These kinds of training opportunities benefit not just the site and its workforce but the surrounding communities. Westinghouse and Springfields Fuels Ltd should be proud of their impressive achievement.
We keenly anticipate the outputs of the trial of the advanced nuclear skills and innovation campus at the Springfields site, which the hon. Member for Preston (Sir Mark Hendrick) drew attention to. We hope to see the successful collaboration between industry, academia and the National Nuclear Laboratory to support skills development. As my hon. Friend the Member for Bolton West (Chris Green) rightly pointed out, the objective should be to create careers, not just jobs.
As previously mentioned, the Government recognise the importance of maintaining and developing a strong nuclear skills base in the United Kingdom. I am aware of the plans for redundancies on the Springfields site this year. My Department has been working with Westinghouse, the National Nuclear Laboratory and the Nuclear Decommissioning Authority to explore opportunities to support the workforce on the Springfields site. We will also continue to encourage vendors and developers to maximise their UK supply chain content, including fuel, wherever that is possible, in order to support the economic growth of the UK nuclear sector’s supply chain.
Finally, I will reflect once more on the strategic importance of our sovereign fuel manufacturing capability and on the ability of the United Kingdom, as my hon. Friend the Member for Bolton West reminded us, to provide cost-effective support to reduce our reliance on imports, which may have a bigger carbon footprint. This Government would like to see the UK continuing to pioneer nuclear technologies in the lead-up to net zero. Our success will be underpinned by the capacity of our civil nuclear supply chain, including fuel manufacture. We are already considering, along with operators, fuel producers and the research and development community, how best to meet the needs of future nuclear power stations, including the opportunities provided by small and advanced modular reactors.
We also continue to work closely with our nuclear fuel industry and trade unions via the nuclear fuel working group, as noted by my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard), to explore ways to secure the industry’s future. Those discussions are wide ranging, and I understand that EDF and Framatome are actively involved. Further Government support is under review as a part of the spending review. Further communications on the subject can be expected following the settlement.
In the meantime, the nuclear fuel working group that we have set up will meet again this month and, as my hon. Friend the Member for Blackpool North and Cleveleys said, it is important that we continue the dialogue and make sure that opportunities and ideas are given proper consideration. My right hon. Friend the Minister for Business, Energy and Clean Growth is taking a very active interest in this important issue.
The Government have made a clear commitment to nuclear as part of our future low-carbon energy mix. The UK’s success in achieving our net zero ambitions will be underpinned by the critical work carried out in the civil nuclear supply chain. We will continue to work with the nuclear industry to maintain our sovereign capability and the benefits that it brings for the local workforce and surrounding communities.
Oral Answers to Questions
Debate between Amanda Solloway and Alan Brown(3 years, 1 month ago)
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Amanda Solloway
BEIS regularly has talks with Her Majesty’s Treasury on these issues. Let me reiterate that we plan to be a science superpower by 2024-25, with a £22 billion investment. We also have a Second Reading debate today on a high-risk, high-reward agency. Furthermore, in terms of the spending review, more than £40 billion across Government was spent on science.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Exiting the European Union
Debate between Amanda Solloway and Alan Brown(3 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
I beg to move,
That the draft Prohibition on Quantitative Restrictions (EU Exit) Regulations 2020, which were laid before this House on 9 November, be approved.
As I am sure hon. Members recognise, it is important that we have full sovereignty over our regulatory regime for goods at the end of the transition period. The statutory instrument will help to ensure that we are not challenged if we choose to diverge from EU regulations. At the end of the transition period, EU treaty rights on the movement of goods stemming from articles 34 to 36 of the treaty on the functioning of the European Union will be retained in UK law unless they are removed by this SI.
Alan Brown (Kilmarnock and Loudoun) (SNP)
I thank the Minister for giving way. Obviously, the statutory instrument is about divergence, and the UK Government talk about taking back control. What is the position on consent to the regulations from the devolved nations? More importantly, what discussions have the Government had with the devolved nations to make sure that their wishes are not overridden and that divergences are not forced on the devolved Administrations?
Amanda Solloway
I thank the hon. Gentleman for his question. I will come on to that later in my opening comments.
The EU treaty rights prohibit quantitative restrictions or equivalent measures on imports and exports, meaning that divergence from EU regulatory requirements could result in a challenge from a business or importer if they deem it a barrier to placing their goods on the market in Great Britain. To be clear, the SI is not a pre-condition for divergence: as of 1 January, Parliament will of course have the ability to introduce new regulations. Instead, it is about removing potential grounds for legal challenge based on retained treaty articles that have no place on our statute book once we have fully regained our independence.
The SI will remove the aforementioned EU treaty rights so they no longer apply in England, Scotland or Wales. It will not result in any immediate changes for goods in the UK but will protect our right to diverge from EU goods regulations in future, where we so choose.
The SI will protect our ability to regulate goods as we see fit and ensure that challenges do not require us to keep in line with the EU regulations. I commend it to the House.
Alan Brown
On a point of order, Madam Deputy Speaker. I asked the Minister a specific question about consent and the devolved Administration and the Minister said that she would come on to that in her speech. Can you advise me on how I can get that answer from the Minister?
Oral Answers to Questions
Debate between Amanda Solloway and Alan Brown(4 years, 1 month ago)
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Amanda Solloway
Yes, absolutely. We need to do that for research and development in all technologies, and I will welcome the opportunity to meet the hon. Gentleman in the future.
Alan Brown (Kilmarnock and Loudoun) (SNP)
The Minister says the UK is a world leader in offshore wind, but the reality is that too many manufacturing and supply chain jobs go abroad following the award of contracts for difference. Will she look seriously at including a quality assessment mechanism in the bid process to incentivise companies to use UK firms such as CSWind and BiFab?
Amanda Solloway
We are making sure that we get to 60% UK employment in manufacturing by investing in R&D. We are committed to doing that.