Oral Answers to Questions

Dan Poulter Excerpts

Tuesday 16th April 2024 Commons Chamber

[Justin Tomlinson]

I thank the hon. Member for her kind comments. While we scale up our clean energy success, including in renewables, which have gone from 7% to 40%, there is still a need for oil and gas. A failure to issue a new licence would make no difference to the consumption of oil and gas, but it would increase imports, which typically have higher emissions, and also damage our economy.

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

16. Whether she plans to support offshore energy grids.

[The Minister for Energy Security and Net Zero (Justin Tomlinson)]

Offshore transmission is central to the Government’s balanced approach to delivering an electricity network fit for net zero.

[Dr Poulter]

The Minister will be aware of the Norwich to Tilbury pylon proposals, which will put 50-metre pylons through swathes of the Norfolk, Suffolk and Essex countryside. He will also be aware that the recent electricity system operator review indicated that it will soon be cost-neutral to have an offshore option for that same energy transition, and that multiple points for connecting offshore wind turbines to the grid are facing planning problems. Will he do what he can to engage with National Grid and get it to do the right thing and look at a cost-neutral option of offshore transmission, rather than the current onshore proposal?

[Justin Tomlinson]

My hon. Friend has a long-standing record of making powerful suggestions on behalf of his constituents and neighbouring constituencies on this important issue. The ESO’s recent study considered a total of a nine alternative options for transmission routes in East Anglia, including three predominantly offshore options and two hybrid onshore and offshore options. It is important that we try to work with communities.

Green Energy: Ports

Dan Poulter Excerpts

Wednesday 18th October 2023 Westminster Hall

[Stephen Crabb]

I am grateful for my hon. Friend’s intervention. Banff and Buchan is a constituency with which I am very familiar, as he knows, and there are some exciting things happening. For a long time the north-east of Scotland was associated with fishing and oil, but there is a lot more to talk about now, so I look forward to hearing further contributions from him this afternoon.

To encourage the investment required for all the ports that we have an interest in and are talking about this afternoon, the targets that the Government are setting are really important because they set the level of ambition and send a signal to investors in the marketplace about what the Government want.

There are two documents that are particularly important in describing the opportunities flowing from the new energy environment that we are in. One is the energy security strategy published in April last year; the other, which was published in March this year, is “Powering Up Britain”, which speaks to the role of new renewable technologies in our energy mix and outlines the scale of the ambition. Because of my local port and our proximity to the Celtic sea, I have a particular interest in the Government’s ambitions for floating offshore wind. In those two Government documents, I believe there lies a major new industrial opportunity for our nation.

The targets that have been set include 5 GW of floating offshore wind, 10 GW of low-carbon hydrogen production capacity, up to 70 GW of new solar, and an ambition for between 20 million and 30 million tonnes per annum of carbon storage. That is an exciting and ambitious set of targets that the Government are setting out. Meeting them will require a lot of work and a lot of investment, and ports will be right at the centre of it.

Different ports will undoubtedly offer different capabilities according to size, location, local skills mix and local supply chains. It is too easy to say that there will be something for everyone, but if the floating offshore wind sector in the Celtic sea plays anything like the role that the Government are setting out for it in “Powering Up Britain”, it will generate new activity in multiple port locations across south Wales and south-west England.

But let us not get ahead of ourselves. The truth is that we still do not have any floating offshore wind projects up and running in the Celtic sea. That leads me on to the final section of my speech, in which I will outline the significance of what we have in my constituency at Milford Haven, as well as summarising the key asks that I want to put to the Government.

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

I feel this is an appropriate juncture to intervene. My right hon. Friend will be aware of the importance of Felixstowe port in Suffolk, which has almost 50% of the UK’s container trade. Through strategic investment, there is a great opportunity for the Government not only to support the economic growth of ports, but to support them in delivering the decarbonising agenda. In the case of Felixstowe, investment in the Ely junction will make a significant difference by potentially improving freight rail capacity to the port. Will my right hon. Friend join me in urging the Minister to recommit today to the Government securing timely funding for upgrading that junction and others in the east of England? That will allow improved freight transport to Felixstowe, will help to decarbonise the transport of goods to the port and will improve its economic capacity.

[Stephen Crabb]

I am grateful for that intervention. I am not familiar with the specifics of what my hon. Friend is talking about, but as I am generally in favour of upgrading junctions, I will echo his call to the Minister to support the investment required. His point about decarbonisation is really important; I might say a few words myself about decarbonisation in the context of the local energy industry in Milford Haven.

In the port of Milford Haven, we have the UK’s single largest cluster of energy-related businesses, with high-capacity oil and gas pipelines, electricity connections and a wide range of conventional oil and gas companies, as I referred to earlier. The energy sector in Pembrokeshire supports the employment of 5,000 skilled workers across Wales and the employment of many hundreds more throughout the wider supply chain.

Last week, alongside representatives of many companies at the port, I had the pleasure of celebrating the delivery of the 1,000th cargo of liquefied natural gas at the South Hook LNG terminal. This afternoon we are talking about the green energy revolution, but the truth—this is a point that the Minister understands very well—is that we will rely on oil and gas for decades to come, and the terminals in my constituency that have done a lot of the heavy lifting in the last couple of years in enhancing UK energy security will be as vital as ever. Those conventional energy companies are themselves taking huge strides and making big investments to decarbonise, reduce their own carbon footprint and fit in with the framework of policy and ambition that the Government have set out.

I commend those companies—South Hook LNG, Dragon LNG, the Valero oil refinery, the Puma oil import terminal—which are all part of a cluster around the Milford Haven waterway that is sharing best practice and working together. They are part of the wider south Wales industrial cluster, which has been charged by the Government with the mission of leading decarbonisation efforts. I look forward to hearing the remarks of my friend the hon. Member for Aberavon (Stephen Kinnock). The south Wales corridor—from Milford Haven in the west with its big hydrocarbon plants, through to Port Talbot with the enormous Tata steelworks, and then to Newport and the border of England at Gwent—accounts for a major chunk of Wales’s overall carbon emissions, so the south Wales industrial cluster’s efforts to decarbonise are vital. The Government support them, but it would be good for Ministers to engage even more with the cluster and particularly, from my point of view, with the energy cluster in Pembrokeshire.

In October last year, I led a debate in Westminster Hall about floating offshore wind. I will not repeat everything I said about the new industrial opportunity for Wales and south-west England that lies in the Celtic sea, but I underline the point that this is not some piece of green idealism. The Government’s targets for reaching net zero and ensuring a greater degree of energy security require industrial development in the Celtic sea on a very large scale. Milford Haven is in an ideal geographic location for the Celtic sea developments.

Milford Haven also has more than 50 years of energy industry skills and heritage. Many companies in the local supply chain are well able to adapt and are excited about the potential new opportunities from floating offshore wind. More than 20 companies have expressed an interest as potential developers in floating offshore wind projects in the Celtic sea, including large companies such as RWE and Equinor, which have global footprints and are already investing in Pembrokeshire ahead of the opening up of the Celtic sea. Other companies such as Floventis are already working with local schools and colleges to look at what kind of skills will be required and to excite young people about the green energy revolution. We will need many more people going into technical trades—more welders, pipe fitters, marine engineers, navigators and people who can work offshore—as well as project planners and all the other highly skilled jobs that are required to deliver such projects. It is an exciting time down in Milford Haven.

Let me wrap up by summarising a few asks of the Government. The first—the Minister has heard me ask this before, but I will ask it again—is that it would be great if he could visit Milford Haven, sit down with some of the companies that I am talking about, and get a sense of the excitement and the work that is happening. The previous Secretary of State made a fleeting visit in the middle of August to RWE’s net zero centre at its power station in Pembroke, but we need the Minister to engage with the whole sector. He has previously committed to coming down. Transport to west Wales is appalling—the Welsh Government need to pull their finger out when it comes to running train services, but that is a debate for another day—so it is difficult to get to. There are so many good Scottish colleagues present, so I will make the point that, given the number of visits that Scottish constituencies get, it would be great if Wales could have some of that as well. That is my first ask: come to Pembrokeshire and see what is happening.

Secondly, the bidding process for the floating offshore wind manufacturing investment scheme closed recently. I have written to the Secretary of State, copying in the Treasury. I strongly support Milford Haven’s application for FLOWMIS funding. I have made this point previously, and I will make it again this afternoon: if this fund is to help unlock strategic investment in port infrastructure, it has to be used in a targeted way. I love levelling-up funds—I love the way they are used and spread around—but this is not a levelling-up fund. It has to be used to encourage private developers to release their funding, to incentivise and to send a market signal. I encourage the use of that money. There is £160 million. It should be more, and hopefully it could be more. I would like to see Milford Haven and the port of Port Talbot in south Wales get their asks. Investment is needed in both locations. Everyone who is considering the industry of floating offshore wind in the Celtic sea will agree that Milford Haven and Port Talbot are the two western-facing ports in the Celtic sea where this will happen first.

Thirdly, we appreciate the support that the UK Government have given to establishing the Celtic freeport. I am delighted that Milford Haven, and Port Talbot 70 miles away, have a twinned arrangement and are partners in the Celtic freeport enterprise. A lot of work remains to be done on the governance and on getting the freeport up and running and doing its thing. I ask the Minister to show a real interest in that and to meet representatives of the Celtic freeport to capture their vision of how they want to use that to incentivise investment, particularly in supply chains, so that floating offshore wind does not happen in the same way as fixed-bottom offshore wind, where we ended up relying on companies based and doing work overseas. We want much more of the work for this new industry to be based in and close to our constituencies in south Wales.

My fourth ask of the Minister is on working with the Crown Estate, which I know he already does. If the Minister looks at what the Crown Estate has said ahead of its next leasing round, he will see that it is emphasising the importance of developers working with what they describe as integration ports. These are the ports where the kit is going to be assembled, and these are enormous pieces of kit. I take my hat off to Dan Labbad and his team, who are doing a very good job, but it is important that the plan that the Crown Estate is working on aligns with what the UK Government are doing. That aligned leadership is going to be important if we are going to make those strides and get the industry off the ground.

I was going to make a final point about contracts for difference, but the hon. Member for Strangford (Jim Shannon) will be leading an excellent Westminster Hall debate on that subject tomorrow afternoon, so I will let him make those points. I am sure that he and I think the same about the issue.

I will leave it there. I look forward to hearing from other Members.

Planning and Solar Farms

Dan Poulter Excerpts

Wednesday 19th July 2023 Westminster Hall

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

I beg to move,

That this House has considered planning and solar farms.

Today I would like to shed light on an issue that has the potential to have a significant adverse effect on the constituents I represent in Sleaford and North Hykeham. I am concerned about the industrialisation of our countryside through large-scale solar farms. Solar power does have its merits in reducing greenhouse gas emissions and the transition to a sustainable future. However, while acknowledging the merits of solar farms, it is also essential that I address the concerns that have quite rightly been raised by my constituents. Some of the solar farms proposed in my constituency would dramatically alter the landscape for the worse, shattering the character of what is not only beautiful countryside but highly productive arable land.

Rural constituencies such as mine have been plagued by applications for large solar farms. As I am sure is the case for many of my hon. Friends, my inbox is often filled with passionate pleas from constituents whose homes, and sometimes their entire villages, would be surrounded by a sea of solar panels. Not only will the landscapes they love and cherish be destroyed, but in many cases, it seems, people lack any effective means to stop such plans. It is a core tenet of our democracy that we listen to the voices of our communities and address their concerns. Transparency and an inclusive consultation process are key to fostering a sense of ownership and ensuring that those affected are heard and their concerns are addressed. Sadly, the consultation process for some solar farms has fallen short of expectations and failed to engage adequately with the affected communities.

The Government have produced plans to reach net zero and create sustainable and reliable energy production —for example, yesterday my hon. Friend the Minister announced plans to expand British nuclear. It is estimated by the Government that we will need to need use 0.5% of land to meet the solar panel target, but it is also estimated that 600,000 acres of south-facing industrial roof space is currently unused, and I do not believe that the Government anticipated all the panels being in Lincolnshire, or would wish for such an outcome.

There are essentially three ways to gain permission to build solar panels. The first is through permitted development rights. Planning permission is not usually needed for up to 50 kW on a domestic roof, or for up to 1 MW on a commercial roof. Between February and April this year, the Government consulted on expanding the permitted development rights for commercial installations—for example, on the roof of a warehouse. The consultation proposed removing the current threshold of 1 MW, as well as expanding rights for solar canopies on non-domestic car parks. That would liberate smaller developments that do not destroy the character of the countryside. The Government have not yet responded to the consultation, but the “Power Up Britain” document said that they would amend the relevant regulations by the end of the year, and I would appreciate an update from the Minister on when he intends to do so.

The second mechanism is for mid-scale farms that do not have permitted development rights but fall below 50 MW. These are applied for using local planning authorities—essentially, elected local councils. The planning guidance says that local planning authorities should consider the site, size, colour and design of solar panels, their visual impact, the effects of glint and glare, the need for renewable energy not to automatically override environmental protections and, pertinently, the cumulative impact of solar panels on local amenities and landscapes.

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

I congratulate my hon. Friend on securing the debate. On the point about local planning authorities having the power to look at and consider individual planning applications for solar farms under a certain size, does she agree that there is potentially an effective way forward here, which is for local authorities to introduce their own planning policy frameworks for solar farms to allow them to have local discretion to look at certain local circumstances that may exist in the national guidance?

[Dr Johnson]

My hon. Friend is right, but as I will come to later, where such frameworks are produced, they are being circumnavigated using the nationally significant infrastructure project process to avoid local community engagement.

The NSIP process is final way that planning can be attained for large-scale solar farms. According to part 3 of the Planning Act 2008, solar farms with a generating capacity above 50 MW are considered NSIPs. These are not decided locally; they are decided by the Secretary of State. NSIP applications, if successful, can contain an element of compulsory purchase orders, and from speaking to constituents, I am aware that some landowners feel intimidated by this fact. When they are being produced by a plethora of people prospecting and asking them to rent their land, they worry that if they do not comply, they will lose their land to compulsory purchase orders. The Government must address this.

[Dr Poulter]

There is a problem in Suffolk with solar farms being proposed, but very few of them have used that final mechanism that my hon. Friend has outlined. In a lot of cases I can think of in my constituency in mid-Suffolk, it has been down to the discretion of the local planning authority to examine on their merits. The lack of a local framework against which the planning authority judges these applications means that the developer is empowered and local communities are disempowered, and unfortunately a number of applications have gone through. Will she join me in pushing this issue with the Minister?

[Caroline Nokes (in the Chair)]

Order. I remind Members that interventions should be brief.

--- Later in debate ---

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

It is a pleasure to serve under your chairmanship, Ms Nokes, and to respond to this incredibly important debate. It is incredibly important. I represent a vast 1,900 square-mile rural constituency, so I understand the pressures that are being felt in many of the constituencies represented here today.

I thank my hon. Friend the Member for Sleaford and North Hykeham (Dr Johnson) for securing this debate. Let me say in advance that if I am unable to answer any of her questions today, I will get back to her at a later stage and will ensure that Ministers in the Department for Levelling Up, Housing and Communities and the Department for Environment, Food and Rural Affairs do so as well. I also thank my right hon. Friend the Member for Gainsborough (Sir Edward Leigh) and my hon. Friends the Members for St Ives (Derek Thomas), for North Wiltshire (James Gray), for Penrith and The Border (Dr Hudson) and for Central Suffolk and North Ipswich (Dr Poulter) for taking part. I also thank the hon. Members for Strangford (Jim Shannon) for Tiverton and Honiton (Richard Foord) for taking part. It is especially good to see one of my predecessors, the right hon. Member for South Holland and The Deepings (Sir John Hayes). It is always nerve-racking when a predecessor comes into the room, but I thank him for his kind words and assure him that he has left some big shoes to fill in the Department.

I assure everybody here that sustainability remains at the heart of the Government’s ambition for development. That includes the protection of the environment and local communities. Energy security, food security and protecting our environment are some of the key challenges we face in the UK. Meeting these goals is urgent and of critical importance to the country. We believe they can be achieved together for the United Kingdom. We believe that solar energy will continue to play a key role in helping to secure greater energy independence while building a more sustainable and greener future for generations to come.

However, the Government recognise that solar farms, as with any new infrastructure, will have local impacts. It is therefore essential that we have a robust planning system that not only helps to deliver energy security but protects the environment and local communities and supports wider Government ambitions, such as food security. As several hon. Members have pointed out, and has been pointed out to me in the past, we are not able to create new prime agricultural land.

The dramatic rise in global energy prices following the covid-19 pandemic and Russia’s invasion of Ukraine has emphasised the urgency of the need to build a strong, home-grown renewable sector. Solar energy is key to achieving this. Solar farms are one of the most established renewable energy technologies in the UK and the cheapest form of electricity generation. We have seen an increase in the number and size of developments coming forward and expect this trend to continue. In the net zero strategy, the Government committed to installing up to 70 GW of solar capacity by 2035. That represents a fivefold increase in our current capacity, and we need to maximise the deployment of all types of solar to achieve this ambitious target.

It is important to stress that this does not mean seizing large swathes of the countryside and turning them into industrial solar farms and storage units. Yes, ground-mounted solar will be needed, but smaller-scale commercial and domestic rooftop projects will be just as essential, if not more so. The Government believe that solar and farming can be complementary, supporting each other financially, environmentally and through shared use of land. Therefore, we seek solar deployment across the UK, looking for development mainly on brownfield, industrial and low and medium-grade agricultural land, and we encourage solar technology that delivers environmental benefits, with consideration for ongoing food production or environmental improvement.

I will come on to planning for solar farm developments, but I listened with interest to the hon. Member for Tiverton and Honiton (Richard Foord). As we could not know from his contribution, I looked up the Liberal Democrat policy on planning for solar farms. Some people listening in Somerton and Frome might be interested to learn that the Liberal Democrats’ plan is to remove restrictions on new solar and wind to accelerate the deployment of renewable power across the country. They want to remove some community input into the planning process for new solar deployment, which is certainly not the position of His Majesty’s Government.

Planning applications for solar developments below 50 MW capacity are determined by local planning authorities—in the case of the hon. Gentleman, it would be the Liberal Democrat-run authority in Devon—through the Town and Country Planning Act 1990, and in accordance with the national planning policy framework and the relevant planning policy guidance.

[Dr Poulter]

I thank my hon. Friend the Minister for highlighting the role of local authorities in determining some of the lower-output solar farms. East Suffolk Council is run by a Green-Liberal Democrat coalition, which has already given the green light to developers and controversial developments in Framlingham. What reassurance can he give my constituents that the Government will make sure that controversial applications for solar farms are not green-lighted by local authorities?

[Andrew Bowie]

I will come on to the role that the Government play in the planning process. It is really important that local authorities—be they Liberal Democrat, Green, Conservative or Labour-run—take into consideration and listen to communities when they have expressed deep concerns about the deployment of solar farms or, indeed, other energy infrastructure projects that may be planned for those constituencies. I urge those listening to the debate to hear that message, and I urge Members present to ensure that party colleagues of theirs who run rural local authorities also hear it loud and clear.

Planning applications for solar farms with over 50 MW capacity are decided by the Secretary of State through the nationally significant infrastructure project regime, in accordance with national policy statements on energy. There are currently no operational projects of that size in England. However, there are 23 projects currently in the planning system, with the latest—the Longfield solar farm near Chelmsford—gaining consent from the Secretary of State just last month, ahead of the statutory decision deadline.

Great British Nuclear

Dan Poulter Excerpts

Wednesday 28th June 2023 Westminster Hall

[Virginia Crosbie]

I thank the hon. Member for his intervention and for his kind words. He is a true champion for his constituency and certainly for the nuclear sector. I absolutely agree with him. We have to invest in this new technology, and the time is now. It is important for net zero and for all those fantastic jobs. We cannot achieve net zero without it; we need that energy security.

Nuclear’s record in local communities speaks for itself: it provides high-quality, long-term and skilled jobs that pay wages two or three times what people get outside the power station. My community and many others around the UK that have had nuclear power know that it delivers good-quality jobs and local investment—and they say they want more of it. That, as hon. Members may guess, is my particular interest in today’s debate.

We have made great progress on nuclear in recent years, introducing the new regulated asset-based funding model, investing in Sizewell C and putting money into the Rolls-Royce reactor design. We also had the Chancellor’s welcome announcement that we will green-label nuclear, crowned by the formation of Great British Nuclear. We even have, for the very first time, our very own Nuclear Minister.

I can attest to the wave of energy and optimism that GBN’s formation has given to the industry. The Minister will know that technology vendors and developers from all over the world have entered the small modular reactor down-selection process that GBN is running at the moment. Many have come to visit Wylfa in my constituency of Ynys Môn to see the best site in the UK for further nuclear development. The likes of GE Hitachi, Rolls-Royce and Last Energy have all toured the island.

Today, I want to focus on how GBN can convert reactor technology, sites and strong political support from the Government into new projects in constituencies such as Ynys Môn. I hope the Minister is listening carefully. If I start with the small modular reactor down-selection, we should expand the prize of winning. At the moment, that prize is co-funding to help to develop the winning technologies up to the point of a final investment decision.

That is a good start, but we can go further. The winner should get access to named sites that are suitable for building small modular reactors; access to a funding model, such as the regulated asset base model or contracts for difference, to help to raise money; and help from GBN to form the actual project companies that will develop, own and operate the nuclear power stations once they are built.

The first SMR being built in the western world, at Darlington in Ontario, Canada, followed exactly that model. About five years ago, Ontario Power Generation ran a selection process, as we are now, and at the start it was clear that whoever won the selection would build an SMR at the Darlington site and that Ontario Power Generation would develop, own and operate the site. The winners had a site, an order, and a project developer and operator. That is the model that we should follow, because that is how we give investors enough confidence to put their money into such projects.

I am delighted that the Energy Bill gives GBN the power to form subsidiaries and joint ventures with the private sector to do exactly that type of individual project development, and I want to hear how the Minister’s Department will support GBN in doing just that. More than that, I want to hear whether the Minister has thought about awarding sites and offering funding modes to the winners to accelerate the process of deployment and quicken investor interest in the UK.

If the Minister needs sites to offer, I have one in mind: the best site for new nuclear in the UK, Wylfa. Our need for new nuclear means that we have to build more large-scale nuclear as well as small-scale nuclear. Large-scale nuclear, which is often unfairly maligned, has actually had a banner year. All three major western designs—the EPR, the AP1000 and the APR-1400—have connected reactors and entered commercial operation. Coincidentally, I think that the owners of those designs have all expressed an interest in a Wylfa site. Will the Minister say what further thought has been given to other large-scale projects after Sizewell C to capitalise on that interest, and also set out his thinking on the circumstances under which we will pursue more large-scale nuclear in this country?

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

I congratulate my hon. Friend on securing this debate on a very important issue, which will hopefully help to secure Britain’s future energy security. One of the challenges with Sizewell C, which I think will be reflected across the country, is EDF’s failure to properly engage with many communities in Suffolk about their legitimate but easily accommodated concerns about the construction of the plant. What could the Minister do to ensure better engagement for future nuclear plants?

[Virginia Crosbie]

My hon. Friend makes an excellent point. One of the reasons why nuclear sites are successful is support from the local community. That is absolutely vital, as we see with development consent orders for planning. We have seen that with Wylfa, and we have certainly seen it with Hinkley. It is vital that companies engage with local residents.

The Minister will know that Hinkley Point C provides nearly 10,000 jobs on site and supports over 3,000 jobs throughout the construction period, with companies based in Wales, and that £815 million is expected to be spent throughout the Welsh supply chain during construction. There are 22,000 people working across the country, and more than £5 billion spent across the region. What a prize a large-scale project is for a local community. I ask that large-scale developments and SMRs be pursued with equal vigour.

I know, of course, that there is the issue of money. I am convinced that the private sector is willing and able to invest in nuclear if it knows that the UK Government are standing right behind it and the nuclear projects. The planning, regulation, site access and funding models on offer are all within the Minister’s gift, or the Government’s gift. I am sure that the Minister will understand why investors are keen to see Ministers stand by projects, as they have with Sizewell C. That is my request to the Minister: that GBN is able to offer the Sizewell C model —regulated asset base funding, a Government support package and a 20% direct Government stake in the project —to the next two projects that the Government target to get to FID, the final investment decision, in the next Parliament and to all future projects. That would certainly be a godsend to investors and give communities such as mine real hope that new projects will get off the ground.

I will end on this note. On the island, we have been talking actively about new nuclear at Wylfa for 15 years or more. It has not happened, and it has been difficult for the local community to deal with that disappointment and still put their confidence in nuclear as a way to create opportunities for young people on the island. But they still put their confidence in nuclear. They still want the projects, investment and jobs. They look to me, the Minister and his colleagues to get it done. I simply ask him to return the faith that they have put in us, and to help us to get new nuclear at Wylfa over the line. Diolch yn fawr.

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

It is an absolute pleasure to serve under your chairmanship, Sir George, and—my goodness me—to discuss nuclear with my hon. Friend the Member for Ynys Môn (Virginia Crosbie). The passion that she brings to this debate is unmatched. The term “champion” is bandied about a lot in this building, but she genuinely is one of the greatest champions for nuclear. Indeed, ever since she arrived here in late 2019, she has been an incredible champion in Parliament for her constituency and its interests.

My hon. Friend has an impressive track record of championing her constituency, as I have said, to remain at the heart of decisions on the future of nuclear power, the investment that it could bring and the jobs that it could create, both locally and across the United Kingdom. I will continue to encourage Government and Great British Nuclear to engage with communities such as hers that are considering whether their land might be suitable for the deployment of nuclear facilities in the near future.

The invasion of Ukraine and the subsequent rise in global energy prices have demonstrated the paramount importance of accelerating home-grown power and strengthening our national energy security. The hon. Member for Strangford (Jim Shannon) put that better than I ever could in his intervention. That is in addition to the significant contribution that nuclear could make to achieving our net zero objectives.

As part of our response, the Government have committed to ensuring that the UK is one of the best places in the world to invest in civil nuclear power, and are taking the necessary steps to revitalise the UK’s nuclear industry. Last year alone, the Government made an historic investment of £700 million and became a shareholder in the Sizewell C project, in support of our long-standing objective to take a large-scale nuclear project to the point of final investment decision in this Parliament, subject to all relevant approvals.

[Dr Poulter]

The Minister will also be aware that the Secretary of State overruled some of the concerns with the development control process that supported Sizewell C going ahead. Although most of us accept the importance of investment in projects such as Sizewell C, one of the main concerns was about the failure of EDF to engage with legitimate concerns across Suffolk and its communities about the construction process and the eventual building of Sizewell C. What reassurance can the Minister give to residents that lessons will be learned from that?

[Andrew Bowie]

Perhaps it will reassure my hon. Friend to know that I made it a priority to visit the Sizewell C site, not just to see the site and meet EDF and the Sizewell C company, but to hear from and engage with local communities, including those with concerns about the project, how the consultation exercise was run and the engagement with the companies involved. I look forward to continuing my engagement with those individuals and communities that are concerned about the project and the vast number of critical national infrastructure projects that will be built in and around the hon. Gentleman’s constituency. Those are critical pieces of national infrastructure, but in delivering this new investment into our grid and this incredible investment in Sizewell C, it is vital that we take communities with us and that they feel that they have had a say in the process of getting to the final decision on whether to proceed. I give my commitment, here today, that I will continue to meet the groups concerned and will do so right up to the point that there are spades in the ground at Sizewell. Indeed, whoever my successor is will do the same.

The British energy security strategy set out our ambition for deploying up to 24 GW of nuclear power by 2050, which would be 25% of our projected 2050 electricity demand. That includes two nuclear projects taking final investment decisions in the next Parliament. We also announced the creation of Great British Nuclear, which will be an arm’s length body responsible for driving delivery of new nuclear projects, backed with the funding that it needs.

GBN will be at the heart of a programmatic approach that will give industry and investors the confidence necessary to deliver projects at pace, reducing costs through learning and replication. Earlier this year, the “Powering up Britain” set out our plans for GBN to launch a competitive selection process for choosing the best small modular reactor technologies in the UK.

In April, GBN launched the first stage of this process in the form of a market engagement exercise. The second phase, the down selection process, will be launched over the summer, with an ambition to assess and decide on the leading technologies by autumn. The Government will provide co-funding to be deployed by GBN to support the development of those technologies and will work with successful bidders on ensuring that the right financing and site arrangements are in place, in line with the commitment to progress projects in the next Parliament. The total level of development funding will be subject to future spending reviews. I hear the suggestions from my hon. Friend the Member for Ynys Môn and will take them back to the GBN board.

GBN will work with the Government on access to potential sites for new nuclear projects to achieve our long-term ambition. This reflects our collective awareness of the growing local and regional interest in a number of sites for further nuclear development. We intend to publish consultation in 2023 as a first step towards the development of the new national policy statement for nuclear, to ensure our approach remains resilient to the needs of achieving net zero.

I assure my hon. Friend that community engagement will be central to the development of projects at each site. Developers will need to work with the host authorities and communities, statutory bodies and other key stakeholders to shape the proposals that will ultimately inform statutory consultation requirements and an application for a development consent order. Further engagement will also be undertaken as part of the wider regulatory processes to be completed prior to the construction and operation of a new power station.

The Government recognise the strong interest in and support for nuclear power across north Wales. The Government are also aware of the potential of the Wylfa site, which is included in the national policy statement for new nuclear power. Looking ahead, both Great British Nuclear and the national policy statement team would welcome any conversations with stakeholders who are considering whether their land might be suitable for the deployment of nuclear facilities in the future. GBN will, of course, support the Government’s consideration of further large gigawatt-scale projects to help us deliver on our net zero ambitions.

Our commitment to a nuclear programme and GBN will put the UK on a path to achieving its ambition and becoming a global leader in civil nuclear power and SMRs, which could include the creation of high-value jobs and the development of our capabilities. I would like to close by thanking my hon. Friend the Member for Ynys Môn for securing this important debate. I look forward to visiting Ynys Môn and continuing to engage with her and other stakeholders in the future.

Question put and agreed to.

Energy Company Obligation Schemes

Dan Poulter Excerpts

Tuesday 27th June 2023 Westminster Hall

[Ben Lake]

I am very grateful to my right hon. Friend for that important intervention and you will be unsurprised, Mr Paisley, to hear that I agree with her that there is an important opportunity to introduce emergency measures. At the end of the day, energy companies are making eye-watering amounts of profit at a time when households across the country are struggling. I think it is very appropriate for us to consider ways of recouping some of that potential income to put against this important measure.

Adjustments are required to get the scheme back on track so it can achieve its full potential. The first adjustment requires the UK Government to look again at ECO4’s cost assumptions. They were finalised in April 2022 and do not reflect current market conditions, including the escalation in costs caused by labour shortages and manufacturing prices. More recent cost assumptions, such as those included in the Great British insulation scheme’s impact assessment, reflect those price increases.

For example, the fixed assumed costs of installing external solid wall insulation, which comprises 12% of measures installed under ECO4 to date, increased from £4,200 in 2021 to about £5,000 in 2022—by almost 20%. Meanwhile, the UK Government estimate that the cost of installing cavity wall insulation for bungalows, as well as detached, semi-detached and end-of-terrace houses, has increased by 50% to 63%. That is all without factoring in the inflationary pressures we have seen in 2023 so far. At the start of 2023, insulation and associated material prices increased significantly, many by close to 10% and some by as much as 35%, compounding similar increases seen last year.

Another aspect of the scheme that requires attention is the minimum requirements threshold, which means that a household’s energy performance certificate must be improved to a particular level. For example, if band D and E homes are to be eligible for the scheme, they have to be upgraded to at least band C, and band F and G homes must be upgraded to at least band D. We should welcome the intent of that requirement. Providing support to the poorest households in the least efficient homes by bringing them up to a significantly higher energy performance rating is an important objective. Nevertheless, the requirement is proving to be a limiting factor on the scheme’s delivery. I have spoken to installers and energy suppliers who say that the minimum requirements are too inflexible compared with previous schemes.

It is suggested that the requirements are making it difficult to find eligible properties, and installers are reporting difficulties in proving how properties in higher EPC bands, such as those in band D, as well as on-gas properties, can meet the requirements. E.ON Energy estimates that around 90% of qualifying fuel-poor households cannot have works delivered to their properties, as either they fail to meet the minimum requirements threshold or it would be economically unviable to upgrade them to the levels required to meet it.

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

The hon. Gentleman is giving one of the best speeches I have heard in Westminster Hall in a long time, and he has some good evidence to back up his comments. I congratulate him on securing the debate. My constituency, like his, has a high number of rural homes. Many are reliant on oil-fired central heating and also struggle to fit into the qualifying criteria for the type of scheme that he has outlined. What advice does he have for the Government on how we can improve the flexibility of the schemes to ensure that oil-fired homes can qualify?

[Ben Lake]

The reality is that a very high proportion, if not the majority, of homes in rural constituencies find it difficult to access the scheme because they are not on the mains gas network. In my constituency, some 72% of properties are not connected to mains gas and they are struggling uphill to get on to the scheme. The Government would do well to look again at whether we can change the ECO Flex pathways to allow local authorities greater flexibility to support off-grid properties in particular. That might be a way forward. We certainly need to address the issue. If we do not, I worry that rural areas, which often have an older, less efficient housing stock, will be left behind. I am grateful to the hon. Gentleman for making that important point.

As greater investment is required per property to meet the minimum improvement threshold requirements, the current iteration of the scheme appears to be more exposed, and therefore more vulnerable, to the inflationary pressures that I mentioned earlier, so we need to look again at how it is funded. I ask the UK Government to look at that very carefully.

Another aspect of ECO4 that is welcome in principle, but which is putting pressure on those delivering the scheme, is the Flex pathway. The pathway is important, because it enables local councils to identify low-income households that are in need of support, but that are unlikely to be eligible under the scheme’s standard approach. It also provides an opportunity for local councils to better tailor energy efficiency schemes to their respective areas, and I refer back to the remark from the hon. Member for Central Suffolk and North Ipswich (Dr Poulter) about rural properties. The issue, however, is that local councils feel that the Flex pathway is too onerous and that the information required of them for each application takes up significant staff time and resources. Indeed, I am told that the level of detail required can make the Flex pathway inflexible when considering different local factors.

One of those factors is the nature of the housing stock in an area, and I have already mentioned that Wales has some of the oldest and least efficient housing stock in western Europe. I spoke to representatives of Gwynedd Council, who expressed concerns that the products available via ECO do not always work well with the design of older houses.

Energy Bill [Lords]

Dan Poulter Excerpts

2nd reading
Tuesday 9th May 2023 Commons Chamber

[Grant Shapps]

I met my right hon. Friend to discuss some of the ideas in the report and I am grateful for all of them, including the idea of cables running along existing transport routes. I am pleased to let her know that we are taking forward many of the suggestions from that particular committee, as well as those from elsewhere in the House. There is much in the Bill to assist with organising and planning, but there is much more to do as well. I am grateful for her assistance in all this.

By introducing business models, we want to get the advantage of that long-term potential geological storage, with revenues and a potential CCUS industry that could support something like 50,000 jobs, with another 12,000 in hydrogen by 2030. We will also build the market for low-carbon heat pumps to 600,000 installations a year by 2028, and accelerate the transition to ultra-efficient electric heat pumps to reduce our reliance on the volatile global gas market and improve our own energy security in return.

We will also bring forward reforms to test new methods of decarbonising heating, which is where we come back to the hydrogen trials. We will have a first-of-its-kind hydrogen village trial that will convert up to 2,000 properties to hydrogen for heating, instead of natural gas, and repurpose the existing gas network infrastructure for 100% hydrogen. Through that, we can find out about the efficiency, or otherwise, of building a hydrogen heating network. I put on record that I understand there are challenges, which is why we want to test this first.

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

There is a lot in the Bill that is commendable for improving energy security and decarbonising energy production, but where it is perhaps lacking some ambition is in reducing energy emissions, particularly for homes. We know that poorly insulated homes in particular are expensive, at a time of a rising cost of living, to heat, but we also know that we can do a lot more in this area. Will my right hon. Friend accept amendments as the Bill progresses to improve on the loss of energy and heat and on home energy efficiency?

[Grant Shapps]

My hon. Friend is absolutely right that it is always easier not to expend the energy in the first place, but to save it. That is why we have been pleased to get from something like only 14% of homes having a decent energy rating in 2010 to 47% now, and we will get to more than 50% this year. We have invested more than £12 billion in this work in the last spending period and going forward to 2025-28. We are serious about securing the energy efficiency of homes and he is right to highlight that as a key concern.

Energy Suppliers and Consumer Rights

Dan Poulter Excerpts

Tuesday 25th April 2023 Westminster Hall

[Wendy Chamberlain]

That is not dissimilar to some of the cases I have seen in North East Fife. It seems to be that if we speak to a different person at the end of the phone at a different time, we get a completely different outcome. That is simply not acceptable.

Citizens Advice has said that there was a 230% increase in energy complaints to its Extra Help Unit this winter. For the first time, that has made energy the top advice issue. This is not confined to Oxford West and Abingdon or North East Fife; it is taking place throughout the UK.

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

There is also a broader issue with the Government energy rebate during the winter period. People who live in park homes receive the energy rebate at the behest of the park home owner—they do not get a direct energy rebate from the energy company—but they are still potentially liable to the energy company. What would the hon. Lady suggest that the Minister do to ensure that park home residents receive the benefit of the energy rebates that the Government have made available, and to ensure that energy companies and park home owners are held accountable so that the energy rebates go to the residents of the park homes?

[Wendy Chamberlain]

I thank the hon. Gentleman for his intervention. I, too, have park homes in my constituency, and that issue has come up. At the moment, we are completely dependent on the good will and good conduct of park home owners when it comes to ensuring that those living in park homes get their rebates. We need to consider the legislative agenda. The Energy Bill, which I will come to, had its First Reading in the House today and we should certainly be thinking about that.

What I am trying to say is that contacting an MP has sometimes become the only route for constituents who seek redress; as constituency MPs, we all know that. That is widespread. We can see that something in the system is failing, which is why I secured this debate. The Government have a role in consumer protection and the energy market. Just today, two new Bills have been introduced to the House: one, the Digital Markets, Competition and Consumers Bill, is explicitly about consumer rights, and the other is the Energy Bill. Both are about making our system fit for the future. Over the last year, we have seen that the Government have a role in ensuring that the energy market is working for consumers and that people can afford to pay their bills.

I would like to outline some of the problems that my constituents have been having before I return to the question of consumer rights. Overcharging has already been mentioned. A quarter of all the correspondence that I have received has been about that, which suggests that a huge number of people in the country—thousands, if not hundreds of thousands—must have the same issue. We know that energy bills have gone up and that there has been action to help people cope, but this issue is not about that. It is about energy companies billing families huge sums of money for energy that they have not used and about families doing their best to manage the cost of living—keeping costs down, putting food on the table and keeping afloat—and finding themselves facing debts of hundreds of pounds.

The overcharging comes in two forms, and both are deeply harmful. Imagine that you are a direct debit customer who pays bills monthly, accruing credit on your account. Those payments might have gone up when you renewed your contract last year, but that is fine because you planned for it. You budgeted. It has been difficult, but you made it work because that is what we all have to do. You have done your best to reduce your energy usage to make sure you did not end the year in debt. You have done everything that you reasonably can—[Interruption.]