Energy Security Debate
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Ed Miliband
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(4 weeks ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
It is a privilege to speak in support of this Gracious Speech. This debate takes place in the shadow of the second fossil fuel shock in four years. Families and businesses across the country are deeply concerned about the impact of the Iran war on the cost of living—a war which this country did not start and this Government chose not to join, but which is having significant effects here at home, just like when Russia invaded Ukraine in 2022 and energy bills rocketed, and the British people and firms paid the price.
The argument at the heart of this Gracious Speech is that there is one overriding lesson of these two crises: while we remain exposed to the fossil fuel rollercoaster, we are deeply vulnerable as a country. Our sovereignty, our security and the British people’s living standards are undermined by this dependence and exposure, for a simple reason: we do not control the price of oil and gas, which is set on international markets. It is different from what it was like in the 1970s when we had fossil fuel shocks. There is an answer staring us in the face: energy independence through clean home-grown power that we control—clean home-grown energy that comes from our own wind, sun and nuclear resources that cannot be disrupted by foreign wars, that cannot be controlled by the whims of petrostates and dictators, and that means that our national security and energy security cannot be held hostage.
One commentator put it incredibly well in 2023, after Russia invaded Ukraine:
“Moving to home-based, clean power mitigates risks to bill payers, now and in the future”,
protecting consumers from
“volatility in international fossil fuel markets.”—[Official Report, 16 November 2023; Vol. 740, c. 53-54WS.]
I agree with that commentator—it was the right hon. Member for East Surrey (Claire Coutinho), the shadow Energy Secretary, in Hansard on 16 November 2023. I agree with her. The problem is that she no longer agrees with herself. Where the evidence says we need more renewables, not less, she opposes them. Where the evidence says we should electrify as much as we can, she says we should abandon support for people to get heat pumps. Where the evidence says electric vehicles can protect consumers, she opposes action for their take-up—not because the facts have changed, not because the evidence has changed, but because she has jumped on the anti-clean energy, anti-net zero bandwagon. I am very happy to give way to her, so that she can tell the House whether she agrees with herself.
Claire Coutinho
I will very happily ask the Secretary of State the question—[Interruption.] Well, he said he would happily give way; he does not look so happy now. In government, I started work on the true costing of renewables, because the Department does not have an accurate costing of energy—it does not have an accurate costing of clean power 2030. Why has he not published one?
Ed Miliband
It was not worth giving way after all. The shadow Secretary of State cannot answer the question.
Ed Miliband
I will not give way. [Interruption.] I will later on.
What a sorry state of affairs: the shadow Secretary of State cannot even agree with herself. There was a gaping contradiction at the heart of the shadow Secretary of State’s speech just now. For all the verbiage—for everything she said—she has no answer to the crisis before us, because even she cannot seriously believe what she is putting forward. The idea that new exploration licences for oil and gas will solve our energy security challenges is obviously nonsense. According to the National Energy System Operator, new licences will make no material difference to capacity and therefore security of supply. Nor will new drilling take a single penny off bills. Members should not take my word for it. When asked if new oil and gas would cut bills, the shadow Secretary of State said new licences
“wouldn’t necessarily bring energy bills down, that’s not what we’re saying.”
Several hon. Members rose—
Ed Miliband
I will not give way for a minute.
The shadow Secretary of State comes to the House with a plan which will not take a penny off bills, which will not give us energy security and which rejects the things she used to believe.
Ed Miliband
I am not going to give way again.
This is the difference with Labour: we are learning the lessons of the fossil fuel crises we face, and we are acting.
Dave Doogan
I am grateful to the Secretary of State for giving way. He is accused of being messianic in his approach to proscribing new oil and gas licences in the North sea. If it can be demonstrated that UK consumption of oil and gas is not falling at a rate that is equal to, or faster than, the rate of production in the United Kingdom, will he release his screeching U-turn on new oil and gas licences in the North sea?
Ed Miliband
The SNP has had more positions on this than the Kama Sutra, so it is genuinely hard to keep up. We have a very simple position: we want to keep existing oil and gas fields open for their lifetime. One of the things that the energy independence Bill will do is introduce transitional energy certificates—so-called tiebacks—which is what industry has called for. We are not in favour of a “turning off the taps” position, but I will be honest with the House: nor are we in favour of a “drilling every last drop” position.
Ed Miliband
Because if we did that, we would end up in climate disaster. That is the truth.
Ed Miliband
I am not going to give way.
Don’t take my word for it. This is what the Energy Transitions Commission, which includes energy companies, says:
“Any national strategy which assumes that all fossil fuel reserves must be exploited is incompatible with limiting global warming to safe levels”.
The truth is that new licences are totally marginal to the North sea.
Ed Miliband
I am going to make some progress, and then I will give way.
For nearly two years, we have been moving at speed on our mission to make Britain a clean energy superpower. We came to office amid a legacy of the irrational onshore wind ban; the fiasco of the allocation round 5 auction, with no offshore wind secured; and years of dither and delay on nuclear—the shadow Secretary of State amused me on nuclear, and I will come to that in a second. The Conservative Government left us exposed through 14 years of neglect, and we are clearing up their mess.
In less than two years—opposed every step of the way by the Conservative party—we have secured enough clean energy for the equivalent of 23 million homes through two record-breaking renewables auctions, but the lesson of these two fossil fuel crises is that we need to go further and faster.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
Will the Secretary of State give way?
Ed Miliband
I will make a bit more progress.
That is why we have already brought forward our next renewables auction and taken steps to fast-track the roll-out of renewables on public land. But renewables are only part of the story, and I want to come to nuclear, because this is going to be fun. Those drafting the Opposition amendment obviously have a real sense of humour. Here is the truth about their record. They promised a final investment decision on Sizewell C in the last Parliament and did not deliver. They promised SMRs and never delivered. They promised fusion and never delivered. We have delivered them all, and they have the cheek to complain when we are delivering the biggest nuclear building programme in half a century—delivered by this Labour Government.
I should welcome the fact that the shadow Secretary of State supports our nuclear regulation Bill, but I am bound to ask: why did her party not do it? Was it incompetence, idleness, ideology or a combination of all three? There is always a great quote from the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) that we can read out. This is what he said following the last general election: “After 14 years of Conservative Government, we are now in a position where it’s more difficult to build critical infrastructure than it was when we came into power”. It is a Labour Government clearing up their mess.
Mr Jonathan Brash (Hartlepool) (Lab)
Included in that list of achievements is the £12 billion deal signed last September to bring new nuclear to Hartlepool, making Hartlepool one of the biggest clean energy economies in this country. Does the Secretary of State agree that as we secure energy security, we must also secure economic security for those parts of the country that are left behind?
Ed Miliband
My hon. Friend is absolutely right, and this is what is so exciting. Contrary to what the shadow Energy Secretary said, we are seeing a renaissance of nuclear in this country, and not just through the Rolls-Royce programme—although we were very pleased to sign the agreement with Rolls-Royce alongside the Chancellor recently; there are also other routes to markets. We are very encouraging of the efforts of my hon. Friend, and others.
Ed Miliband
I will give way to the right hon. Gentleman, because he and I go back a long way.
Sir John Hayes
The Secretary of State and I do go back a long way, and we agree, actually, about the crisis of capitalism, in terms of the sacrifice of domestic production for imports; he and I have lot in common in that regard. He will understand that the economic uncertainty he describes and the need for greater national economic resilience applies to food too, so—while accepting that we should put solar on buildings and have offshore wind—surely he understands that by putting solar plants at scale on the most productive farmland, which is needed to deliver food security, his argument about economic resilience falls flat. Will he look at that again? There is a middle way. He and I do indeed go back a long way, so for heaven’s sake let’s compromise.
Ed Miliband
Well, we may agree on some things, but not on this. I have great respect for the right hon. Gentleman, so let me say this. Even the most ambitious plans for solar involve less than 1% of agricultural land—something like 0.6%. I say to Conservative Members that it is somewhat irrational that in relation to nuclear, they want to be builders not blockers, but in relation to everything else, they want to be blockers not builders. If we support the nuclear power plant, we have got to support the grid to connect that nuclear power plant. If we want to get away, as the right hon. Gentleman says he does, from our dependence on international fossil fuel markets, we need to support the cheapest, cleanest form of power, which is solar power. What an array of choices.
Jim Shannon
I want to see nuclear power in Northern Ireland, although unfortunately that is down to the Northern Ireland Assembly and it looks like there might be some obstacles. I welcome the Secretary of State’s commitment to tidal power, battery storage and green hydrogen. He has always been keen to ensure that Northern Ireland can also be part of the growth that is coming from here. Will he give Northern Ireland some encouragement that when it comes to moving forward with green energy, we are part of that plan across this United Kingdom of Great Britain and Northern Ireland?
Ed Miliband
I am always happy to work with the hon. Gentleman, for whom I have great respect, as are my team of Ministers.
Mr Perkins
The shadow Secretary of State did not take my second intervention when I attempted to get an answer from her. We know that Conservative Members propose to get rid of the energy profits levy, costing the Government about £12 billion, and they want to get rid of VAT, costing about £5 billion or £6 billion. We know they have a plan for oil or gas that might be here in four or 10 years, although it is owned by somebody else, and they believe they will use that collection of policies to reduce people’s energy prices. Does my right hon. Friend see any credibility in the plans from Conservative Members that he can share with us, because we have not heard it from them?
Ed Miliband
My hon. Friend makes his point incredibly well, and I do want to say something about renewables before I move on. At the time of the AR7 auction, the right hon. Member for East Surrey said that we should cancel that auction. As I said, that auction secured power for the equivalent of 16 million homes—[Interruption.] Perhaps Opposition Members could listen for a second. That included offshore wind at prices that are 40% cheaper to build and operate than new gas. At the time, the right hon. Lady shouted out from a sedentary position “Gas is falling!”, as a justification for her position—[Interruption.] She did say that. Today, the gas price is around 50% higher than it was then.
There is a really important point here: there can be no clearer demonstration of the gamble that Conservative Members wanted us to take. What a terrible call; what a foolish position. We are at a time of the greatest geopolitical instability in generations. Anyone who would rationally learn the lessons from when Russia invaded Ukraine would say, “We cannot gamble on low fossil fuel prices, because this is what happens.”
Ed Miliband
I am going to make some progress. By contrast, we stand for national security through energy security and energy independence.
How we protect consumers is very important. My right hon. Friend the Chancellor showed at the Budget last year that she took decisions to raise taxes, including on the wealthiest, so that we could cut bills for everyone, and we saw that happen in April. The Gracious Speech also includes legislation to raise the rate of the electricity generator levy from 45% to 55%, as part of our plan to break the link between electricity and gas prices, and act on the excess profits that arise from that link. We are also making a big call: keeping in place the windfall tax on oil and gas profits during this conflict. In the last few weeks, we have seen profits from major oil and gas companies soar.
Ed Miliband
No, I am not going to give way. These are unearned profits as a result of the war.
Ed Miliband
I will just make a bit of progress. We say tax those profits to help the British people.
Ed Miliband
No, I am not giving way. The energy profits levy has raised £12 billion since it was introduced in 2022.
Several hon. Members rose—
Ed Miliband
I am not giving way, no. Let me quote the right hon. Member for Richmond and Northallerton (Rishi Sunak), the former Prime Minister, who was the Chancellor at the time. These are not my words—this is not Red Ed; it’s Red Rishi! He said:
“The oil and gas sector is making extraordinary profits, not as the result of recent changes to risk taking or innovation or efficiency, but as the result of surging…commodity prices,”—[Official Report, 26 May 2022; Vol. 715, c. 450.]
He was right.
Ed Miliband
No, I am not giving way.
At this moment, what have the official Opposition, alongside the SNP, decided to call for? They have called for the Government to dump that policy. Let us get this straight: at the precise moment that the British people struggle with the effects of the war, those parties say that the priority with scarce resources is to cut taxes for the largest oil and gas companies making record profits. Let us be clear: no amount of false accounting or fuzzy maths can hide the facts about the idea of cutting these taxes at this moment of windfall profits to improve revenues.
Harriet Cross
I thank the Secretary of State for giving way. Just so that no one is under any false interpretation of what that tax does and how it works, does the Secretary of State understand that the tax does not apply to trading nor to overseas production? It is on production from the North sea, which is not where those profits are being made, is it?
Ed Miliband
The hon. Lady obviously does not understand that prices are going up, including from the North sea. Let us look at the amount that the tax raises. According to the Office for Budget Responsibility, even before this crisis the windfall tax was forecast to raise £5 billion by September 2027. Conservative Members—the official Opposition—have to explain: where is the money going to come from, then? They are going to cut that tax of £5 billion for the biggest oil and gas companies. By contrast, we believe that we should tax fairly and use the resources to help the British people.
Ed Miliband
I am not going to give way as I need to finish soon.
The energy independence Bill will legislate to help deliver the biggest investment in home upgrades in British history through our £15 billion warm homes plan. As part of this, we will act to help private renters. This is important, because it is about how we make sure that, in the drive to clean power, we help everybody in our society. It is a scandal that 1.6 million children living in private rented homes are suffering from cold, damp or mould, according to Citizens Advice. We say it is time to act. Minimum energy efficiency standards for renters were promised by the previous Government, then scrapped. The energy independence Bill will legislate for them by cutting bills for renters, and lifting 400,000 families out of fuel poverty by 2030.
Part of this goes to the question asked by the hon. Member for Strangford (Jim Shannon), who is no longer in his place. We believe that the drive for energy independence can deliver for workers and communities. We are already seeing the jobs that clean energy is creating across the country: 11,000 more workers in nuclear, according to the industry’s latest estimates, 8,000 more in offshore wind, with thousands more upgrading the grid, on the way to 400,000 extra clean energy jobs by 2030, and £90 billion of private investment announced since the election.
Ed Miliband
I am not going to give way.
We want to ensure that those jobs are good jobs, so we will amend employment rights legislation, as part of the energy independence Bill, to enable us to bring the rights of offshore renewables workers in line with those working in oil and gas. It is by driving forward in clean energy that we have the best chance of a fair transition in the North sea. Some 70,000 jobs were lost in less than a decade under the last Government. We are determined to lead the world in industries such as offshore wind, hydrogen and carbon capture, and we will continue to use North sea oil and gas for decades to come by keeping existing fields open for their lifetime. That is why the energy independence Bill will legislate to introduce transitional energy certificates, something the industry has welcomed. I also say to Reform Members that we look forward to debating their plans for fracking during the debate on the EIB, because fracking will make no difference to bills. It is dangerous and roundly opposed by local communities, and we will act on it.
Lizzi Collinge
Part of my constituency is in Lancashire, where fracking testing took place. We suffered earth tremors as a result. Does the Secretary of State agree that the British people do not want fracking in our communities, and do not want the risks that we saw in Lancashire?
Ed Miliband
My hon. Friend puts it well. There is something ironic about the fact that Reform says nationally that it wants fracking, but its representatives in Scarborough and Lancashire seem to say that they are against it. From now until the general election, we are going to be asking where Reform candidates stand: is it with their local community, or is it with the fracking industry?
Ed Miliband
No.
I have set out the approach to energy security that underpins this Gracious Speech. Above all, we will learn the lessons of the fossil fuel crises of our age. We will build our energy independence, tackle the affordability crisis, deliver good jobs and investment in our communities, and make the right decisions for today’s generation and future generations. I commend the Gracious Speech to the House.
Several hon. Members rose—