Grangemouth Oil Refinery: Energy Security

Christine Jardine Excerpts

Tuesday 9th January 2024 Commons Chamber

[The Minister for Energy Security and Net Zero (Graham Stuart)]

May I begin by thanking the hon. Member for East Lothian (Kenny MacAskill) for securing this important debate and colleagues across the Chamber for joining it? I recognise that news of a plan to transition Grangemouth refinery into an import terminal is undoubtedly a matter of concern for many people. However, I make clear that the Government are committed to ensuring continued fuel supply, protecting jobs and creating opportunities in Scotland and across the UK. The primary responsibility of my Department is for the energy security of the whole of the UK, including Scotland. On 29 November, I met the Scottish Cabinet Secretary, Neil Gray, and we agreed that both our Governments would continue to work closely on this issue through forums such as the Grangemouth future industries board. Scotland and the UK will continue to have reliable supplies of fuels after the transition, in line with the UK Government’s commitment to energy security and resilience.

Before I go into specifics, I want to recognise that Grangemouth refinery has been an important asset for the fuel supply of Scotland and the local economy since it opened in 1924. No final decision on the future of the refinery has been made, but the planning for the conversion of the refinery into an import terminal is a commercial decision by its owner, Petroineos. That reflects its view of the economic sustainability of the refinery in the context of expected refining margins, domestic demand projections and international competition. Even in this macroeconomic context, the UK and Scottish Governments are working together to understand all the options for the future of the refinery.

[Christine Jardine (Edinburgh West) (LD)]

As the Minister just said, Grangemouth is a vital economic factor for the immediate vicinity, for my constituents in Edinburgh West and indeed for all of Scotland. Will the Government continue to support Grangemouth, given its importance to the future success of the green freeport, of which it is a vital component, not least because of its future capability to produce the sustainable aviation fuel on which so many developments are predisposed?

[Graham Stuart]

The hon. Lady is absolutely right to champion such opportunities, of which there are so many going forward. That is why, if a decision is made on refining there, I believe that would be countermanded multiple times over by the opportunities in issues such as SAF, which she mentioned. Scotland and that area have such a role to play in delivering and continuing the UK’s global leadership in cutting emissions. We recently celebrated the fact that we have halved emissions—we are the first major economy on earth to have done so—and of course going forward we are ambitious than any other major economy on earth. Scotland has such a vital role to play in that.

Oral Answers to Questions

Christine Jardine Excerpts

Tuesday 28th November 2023 Commons Chamber

[Claire Coutinho]

I think the hon. Lady is putting a lot of words into the Climate Change Committee’s mouth there. What it actually said was that, in terms of emissions, it would make no material difference. As I have said, the UN’s emissions gap report showed just last week that the UK was expected to reduce emissions between 2015 and 2030 at the fastest rate in the G20 group. This is yet more doom and gloom from the Opposition. If we look at what we have actually achieved, we can see that we have the most ambitious targets in the world and we have set out unprecedented levels of detail. We will continue to do so.

[Christine Jardine (Edinburgh West) (LD)]

10. What recent assessment she has made of the effectiveness of the energy bills support scheme alternative fund and the alternative fuel payment alternative fund.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)]

The Government provide energy bills support through the energy bills support scheme alternative funding to over 150,000 households, and via the alternative fuel payment alternative fund to nearly 90,000 households that could not automatically access this vital support.

[Christine Jardine]

Energy bills are up 50% since 2021, but there was no mention of this in the autumn statement and £440 million earmarked for the most vulnerable households went unspent last year, yet in my constituency of Edinburgh West, pensioners, carers and disabled people who often have to use more electricity for life-saving equipment are paying those bigger bills. All of them are also paying higher standing charges than elsewhere in the UK. If the Chancellor will not commit to reopening the energy bills support scheme or the alternative fuel payment scheme, will the Secretary of State do so?

[Amanda Solloway]

Of course, as a Government we are looking at the standing charges; it is imperative that we do that and Ofgem is working through that. We have also given an unprecedented amount of support to households and non-domestic organisations. I reiterate that there is support at the moment. We have the £900 for the cost of living. We also have the disability allowance and other allowances. To give assurance, I meet regularly with all stakeholders.

Energy Bill [Lords]

Christine Jardine Excerpts

Report stage
Tuesday 5th September 2023 Commons Chamber

[Andrew Bowie]

I can indeed. I am delighted to tell my hon. Friend that alongside our proposed fund, we are committing to publishing an annual report to Parliament and to consulting on the barriers the sector faces when developing projects.

I am also very pleased to announce that His Majesty’s Government have reached an agreement with the Scottish Government to amend the Bill to secure their support for a legislative consent motion in the Scottish Parliament. The comprehensive set of amendments agreed with the Administration in Edinburgh will strengthen the Bill’s consultation provisions and require the Secretary of State to seek the consent of devolved Ministers before exercising powers under clauses 2, 3 and 293.

I would also like to take this opportunity to confirm to the House and to the Scottish Government that by virtue of clause 218(2)(a)(ii), the regulatory cost the GEMA can recover from gas and electricity licence holders from across Great Britain includes any costs it occurs performing the Scottish licensing function. The Government are disappointed that the Welsh Government have decided not to support the legislative consent motion for the Bill in the Senedd. However, as a sign of good faith the Government will extend the amendments agreed with the Scottish Government to apply in Wales and Northern Ireland where appropriate.

A number of Government amendments for consideration on Report relate to commencement. They ensure that clauses, such as those relating to the smart meter roll-out and low carbon heat schemes, will come into force as soon as the Bill gains Royal Assent. The remaining Government amendments are technical in nature and, as such, I do not propose to discuss any of them in great detail—I am sure Madam Deputy Speaker is delighted.

[Christine Jardine (Edinburgh West) (LD)]

I thank the Minister for giving way, but I notice that I cannot see any mention in the amendments of standing charges. I know that is a very difficult thing, but in my constituency there is a great deal of concern about the fact that there is no uniformity in the United Kingdom on standing charges. My constituents can pay around £100 a year more than people elsewhere in the country. Do the Government have any intention to address that issue, along with issues such as domestic insulation?

[Andrew Bowie]

I thank the hon. Lady very much for her intervention and her question. I am engaging with Ofgem on that very issue and am looking to convene a meeting in Edinburgh with all the significant players involved in energy transmission and production in Scotland at the earliest available opportunity, so we can discuss the issues regarding standing charges and other issues that affect Scottish bill payers. I would be very delighted to engage with her as we move towards that meeting taking place.

Energy Bill [Lords]

Christine Jardine Excerpts

2nd reading
Tuesday 9th May 2023 Commons Chamber

[Grant Shapps]

Again, I will just make a bit of progress. I am concerned that others want to speak in the debate.

Unlike wind power, nuclear energy is not dependent on the weather, so by ramping up capacity, we will help a lot. It is worth the House knowing that every single one of the operational reactors in this country was actually commissioned by a Conservative Government. I am delighted that Labour Members are now joining us on this, and I know that they also agree—although not all Opposition Members—that small modular reactors are an important part of our nuclear future. They will boost energy security, unlock thousands of jobs and play a crucial role in stabilising electricity prices in the long term.

[Christine Jardine (Edinburgh West) (LD)]

The Secretary of State mentioned jobs, and research by Robert Gordon University in Aberdeen has shown that 90% of the highly skilled professionals in oil and gas have skills that could be transferred to adjacent energies. However, there is currently a shortage of people going through higher education. What are the Government going to do to address the skills gap, but also to ensure that we do not lose employment in existing energy sectors in the way that we have in other industries, such as shipbuilding and steel, over the decades?

[Grant Shapps]

The hon. Lady is absolutely right about skills, and the skills gap is very important. I recently had a summit with our French counterparts that was specific to skills in the nuclear sector, where there are very similar issues. We are working with our colleagues in the Department for Work and Pensions, the Ministry of Defence and the Department for Education on exactly the subject of skills that she raises. My hon. Friend the Member for West Aberdeenshire and Kincardine is working actively with them on this Bill, and I know he would be delighted to discuss that with the hon. Lady.

Oral Answers to Questions

Christine Jardine Excerpts

Tuesday 18th April 2023 Commons Chamber

[Graham Stuart]

I entirely agree with my hon. Friend on that. This is why we set up the energy efficiency taskforce, to work with industry to make sure that we take forward a tremendously transformed situation from the appalling one in 2010 and accelerate and move forward even more quickly in the future.

[Christine Jardine (Edinburgh West) (LD)]

More than once this morning those on the Government Benches have congratulated themselves on the home insulation figures, but those figures could and should have been so much more impressive, if, after 2015, this Government had not abandoned Liberal Democrat policies to invest in renewables and insulate homes. The impact of that on my constituents has been fuel poverty. This winter, they are struggling to heat their homes, with still expensive carbon fuels, and there is a growing incidence of mould. When will the Government recognise that emergency insulation is needed?

[Grant Shapps]

We have worked very hard on making sure that homes are insulated. We have just announced another £1 billion for the Great British insulation campaign, which makes £12.5 billion over this Parliament and into the next one for insulation. That is one reason why nearly half of homes are now insulated, whereas the figure when Labour was in power was only 14%.