Prepayment Meters
Debate between Graham Stuart and Richard Graham
Richard Graham (Gloucester) (Con)
Mortgage providers now do well in engaging with customers, managing difficulties and greatly reducing the number of repossessions. Does my right hon. Friend agree that energy companies should do likewise, rather than turning to prepayment meter warrants on the slightest pretext? If the numbers of warrants do not come down, does he agree that more should be done to have specific reduction targets?
Graham Stuart
My hon. Friend is absolutely right. We have to make sure that all suppliers are fulfilling the requirements set by Ofgem. Ofgem’s inquiry into the treatment of vulnerable customers by energy suppliers found weaknesses across the board, and it is engaging with suppliers on compliance. The Secretary of State wrote to Ofgem again in the last few days to reiterate the importance of ensuring that that compliance work has real teeth and that suppliers fulfil their obligations to protect these people.
Electric Vehicle Battery Production
Debate between Graham Stuart and Richard Graham(1 year, 3 months ago)
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Graham Stuart
We are engaging with the Department for International Trade—as I hope the presence in the Chamber of my right hon. Friend the Minister for Trade Policy indicates—to make that case to investors. We have the green finance strategy, as I say, and our response to the Climate Change Committee and to the judicial review are coming up in the coming weeks, sending a real signal of the investability of the UK in the green sectors. I know that the hon. Gentleman, perhaps unlike the right hon. Member for East Antrim (Sammy Wilson), is an enthusiast because he can see the economic opportunity; if the hon. Gentleman can use the few feet between the two of them to educate his right hon. Friend, he will be an even greater politician than I thought he was already.
Richard Graham (Gloucester) (Con)
Last month, I spoke at the launch in London of the Indo-Pacific Net-zero Battery-materials Consortium, which brings together British and far eastern businesses, working with the support of the British and Indonesian Governments, to secure materials essential for battery production, such as nickel. Some politicians here today have talked about sprouting battery factories in the UK as if they were mushrooms, but the reality is that they depend on sources of materials. That is precisely what our Government are helping to facilitate.
Graham Stuart
My hon. Friend is a shining example of how the trade envoy programme can allow Members of this House to gain a deep understanding of other countries, engage with their Governments, and see in context how engagement with another country and its industries can contribute to the success of our own, to the mutual benefit of both countries concerned.
Marine Renewables: Government Support
Debate between Graham Stuart and Richard Graham(1 year, 5 months ago)
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The Minister for Climate (Graham Stuart)
It is a pleasure to serve under your chairmanship, Mr Hollobone, and I thank all those who have participated in the debate. Westminster Hall often shows the House in its best light, as we are able to focus on a specific issue such as this, and we have heard thoughtful contributions from across the Chamber. I congratulate the right hon. Member for Orkney and Shetland (Mr Carmichael) on securing this important debate. He has continued to be a champion for his constituents on this issue.
The British energy security strategy affirms that the Government will aggressively explore renewable technologies, including the potential of tidal power to contribute to a net zero-compliant future. Members will have been delighted that the Government established a ringfenced budget of £20 million for tidal stream developments in pot 2 of the fourth contracts for difference allocation round—AR 4—which has been referred to.
The contracts for difference scheme is our flagship mechanism, and it has been mentioned that the Government are very proud of it. Well, we are very proud of it. It has helped the UK to move from a pretty pitiful position in—let me pick a year—2010, say, to a position today where, instead of less than 8% of our electricity coming from renewables, the figure is more than 40%. That is a transformation, and we have led Europe in that regard.
The CfD scheme is our flagship mechanism for supporting the cost-effective delivery of renewable energy. That support will ensure that the nation’s tidal stream innovators get the opportunity they need to bring their cost of energy down and learn the valuable and exportable —a point made by a number of hon. Members—lessons that come with being the first in the world to deploy a cutting-edge technology at scale.
I have watched the transformation of offshore wind from my constituency in East Yorkshire, and if there is one thing I bring to this role—which is pretty overwhelming in terms of deploying all the technologies at speed, the grid and all the rest of it—it is a desperate desire to see us ensure we maximise our industrial and service capability so that we not only deliver at home, but build up a capability that can export and bring prosperity and a solution to the challenges globally.
I welcome the contributions that have been made today by Members across the House, who have shared their passion for ensuring that we get our policies right so that we maximise the chances of companies staying in Scotland, Wales, England and Northern Ireland and maximise the economic benefits. As well as being good in itself, that will help us to maintain the coalition—this is quite unusual in this country—of the many people who agree that action on climate is the right thing to do and that it can bring prosperity as well as environmental benefit.
The Government have delivered for the burgeoning tidal stream industry. It is now time for the developers to push on, to make good on their promises and their potential and to demonstrate the value for money and scalability that we need from our renewable energy technologies as we transition to an efficient and net zero-ready power sector.
The fourth contracts for difference auction in July this year saw four tidal stream projects, totalling 40 MW, win contracts at a strike price of £178.54 per megawatt-hour. Three of the contracts were awarded in Scotland, to MeyGen and two Orbital projects in Orkney, and one was awarded in Wales, to Magallanes. To put that into perspective, only 36 MW of tidal stream has been deployed worldwide between 2010 and 2020. We really are making significant strides forward. This is the first time that tidal stream power has been procured at this scale, and it provides the industry with a golden opportunity to demonstrate the cost-efficiency and proof of scalability that we need from our sources of renewable electricity.
We hope that other technologies can follow offshore wind in its remarkable reduction in price over just two auctions—from 2015 to 2019 it went from £120 per megawatt-hour to £39.50—but we cannot assume that just because it happened with offshore wind, it will happen with everything. We want to create genuine competitive tension between the technologies because we want not only to take an accelerated path to net zero but to do so in a way that, in the end, brings the UK the lowest and most competitive electricity costs as a base part of our energy system. That will put us in a position to be able to keep energy affordable for families but also make us industrially competitive. There is so much to play for. We have got to get the balance right, and CfDs have done a great job so far.
Richard Graham
The Minister is absolutely right, but the challenge for the marine energy industry in delivering that scalability is the certainty that 2021 will not be a one-off but the beginning of a series of contracts that will enable it to develop. Does he agree?
Graham Stuart
The broad parameters of allocation round 5 will come out this month, and the more detailed criteria will come out on the eve of its launch in March. I can say no more than that, but I think the direction of travel is fairly clear.
The results of allocation round 4 confirm that tidal stream is a home-grown industry of considerable promise, as colleagues have noted. The UK remains the world leader in tidal stream technologies, with half of the world’s deployment situated in UK waters. Given my passion when I came into this job, the last thing I want to see is British research and development and British invention turned into billion-dollar businesses in other places rather than here in the UK, which is what has happened so often. I want that development to happen here in the UK, and I want to work with colleagues.
I congratulate my hon. Friend the Member for Gloucester (Richard Graham) on his chairmanship of the APPG, with the right hon. Member for Orkney and Shetland as his deputy chair. It is so important that we have these specialist interest groups, which can keep Government honest and act as a ginger group—a caucus—to make sure that we think about and get our policies right, so that the promise is delivered.
Europe’s foremost tidal and wave energy testing centre—the European Marine Energy Centre—is on Orkney, as the right hon. Member for Orkney and Shetland said. We have new marine energy hubs developing on Anglesey and the Isle of Wight. In answer to the question asked by the right hon. Member for Orkney and Shetland, I would be very happy to meet him and discuss EMEC and its future.
We have a raft of brilliant developers designing and building tidal stream devices in the UK. That picture is so positive in large part because successive Governments have provided more than £175 million in innovation funding, of which more than £80 million has come since 2010. In 2018, thanks to the extensive support afforded under the renewables obligation mechanism, we were able to build the largest tidal stream-generating array in the world in the fast-moving waters of the Pentland firth.
Graham Stuart
I will not give way to the hon. Lady. We heard her generalised remarks earlier, and I think she had her opportunity.
There are two BEIS overseas funding streams that EMEC may be able to apply for in partnership with developers: the first is the £1 billion net zero innovation portfolio that provides support for research and development, and the second is the energy entrepreneurs fund, which provides small grants to developers of innovative energy technologies. In May this year, BEIS awarded a £5 million grant to a hydrogen technology developer based at EMEC. Two of the CfD AR4 projects are, of course, also based at EMEC, and will be paying lease fees to EMEC from 2026. There are a number of things there, but as I have said, I am happy to meet and discuss it.
Quite rightly, we talked extensively about export potential. We recognise the success of Nova Innovation and the supply of turbines to Canada, and note the support of UK Export Finance, for which I used to be the Minister responsible. I remember Nova coming over my desk and, notwithstanding some of the challenges, being keen to be involved. I remember saying, “If we can’t support someone like this, what are we here for?” I am pleased to see that UK Export Finance, our credit agency, has been able to support Nova.
With regard to further export potential, my officials have met their counterparts in Indonesia and the Philippines on the role of marine energy and what the UK can offer. We need a joined-up approach as we develop here. With the Department for International Trade and other colleagues, we are also reaching out across the world, to ensure that we can show that this is the place in which to develop these solutions and then export them.
I go back to the point about speeding up or expediting, as the hon. Member for Bristol East (Kerry McCarthy) referred to it. Government are working on reforming the planning and environmental consent system, to increase its efficiency and speed, while maintaining proper scrutiny of projects. That repeats what I have already said.
I thank my hon. Friend the Member for Gloucester, the chairman of the all-parliamentary group, for his kind words about my Department. I also thank the right hon. Member for Orkney and Shetland for his kind words about one of my predecessors, my right hon. Friend the Member for Spelthorne (Kwasi Kwarteng), and his interest in work here.
I look forward to receiving the paper in January. I have touched on the opportunities in Indonesia and the Philippines. I think I have dealt with the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) on the CfD delays. I have probably mispronounced her constituency, but I will keep trying—she can tutor me. On the issue of multiple technologies, there are provisions in the Energy Bill, which I am delighted to say we are pushing forward. We are hoping, with cross-party support, to push that through Parliament as quickly as possible. It has a lot of enabling facilities in it—
Graham Stuart
No; I am going to bring my remarks to a close, under the Chair’s steely eye. Notwithstanding the chairman of the APPG’s efforts to get people not to make comparisons, we want to get proper tension in the system. One great thing about tidal technologies is that they could offer that dispatchable power—the kind of baseload needed to balance the system. It is necessary to compare apples with apples. It is that kind of tension we need to judge how much nuclear, for instance, should play in our system. I am pleased to say that the £92, or whatever was the strike price for nuclear, now looks a tremendous bargain. Even Scottish nationalists might recognise that.
Westminster Foundation for Democracy: Funding
Debate between Graham Stuart and Richard Graham(2 years, 2 months ago)
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Richard Graham
I am grateful to my hon. Friend. She makes a very good point and her own work in Africa, which she continues today in her guise as the Prime Minister’s trade envoy in Kenya, absolutely confirms the point that she makes: in every continent in the world, there are countries in which sustaining this fragile plant is incredibly important. We should not be complacent about that in our own country, or across the pond in North America, either.
In this gardening analogy, the WFD is the constant gardener. We are there for the long term, and our projects need time to succeed. Let me give one example. I have seen our programmes in action in four of the countries in which our western Balkans project operates. I have no doubt that in all of them the project has been a success and great value for money. Were we to abandon the project in less than a month’s time when its funding expires, it would be another setback for open societies in the western Balkans. Yet that is precisely the risk, because the funding for the project, which comes from the conflict, stability and security fund—that is, the Cabinet Office—has not yet been decided. The work that the WFD has been able to do there, improving Parliament structures and scrutiny, helping more women into political leadership positions and so—this is the crucial aspect—reducing corruption, which is the scourge of faith in Government, is really important work, done indirectly by Her Majesty’s Government to help nations across the oceans.
Today, every organisation—barring a civil war or invasion—needs certainty in which to operate. During the pandemic, the Government provided that certainty for both businesses and the self-employed. It is therefore extraordinary that, having declared an end to the pandemic, and with departmental budgets agreed with the Treasury some time ago, until 6 o’clock yesterday evening I could not have told this debate what the WFD budget would be in less than a month’s time. Our outstanding chief executive Anthony Smith is here today, and we have roughly 100 staff in many countries around the world, and there are the rest of the governors, both political and non-political. For us to have to say in a board meeting last week that we could not sign off on a budget—only an indicative operational plan—is not an acceptable way for a non-departmental Government body to operate. It was with great relief, therefore, that I took the call last night from the office of the Secretary of State for Foreign, Commonwealth and Development Affairs, my right hon. Friend the Member for South West Norfolk (Elizabeth Truss), for the verbal confirmation of our core funding for 2022-23. I look forward to the written confirmation as soon as possible.
However, I stress that that does not resolve everything, for many of our projects are funded through official development assistance by individual missions. The western Balkans project, pooled by five embassies, is a good example of that. They still do not know what their allocations are. The good news on core funding enables us to complete a budget and a restructure with much greater certainty, and enables us to decide the party political programmes that are arguably the unique feature of the WFD, but it does not mean that all our programmes, or the jobs of the staff delivering them, are secured. I am sure that the Minister will recognise that I speak for many heads of mission and diplomats when I say that, for an organisation well-versed in understatement, the words “frustrating” and “disappointing” are polite ways of describing widespread feelings. I hope that we never have to slog through such agonising budget treacle for so long ever again.
Let me come back to the core purposes of the WFD and our constant reinvention. Our work cannot prevent rogue states from invading others, whether in Myanmar or Ukraine, but we do have the relationships, mentoring and knowledge such that, when freedom returns, we can help those societies to work better. For example, we have an understanding of what is not working in Bosnia and Herzegovina, and beyond. Western democracies want to know why the youth is voting with its feet to leave across the west Balkans, and were they to show the resolve in helping unblock these impediments to more open societies, it would reduce the tensions in that region that exist now and could yet lead to a new round of violence.
All Governments need the tools to help deliver what they believe in. This great country of ours believes powerfully in open societies and democracy—the values on which all of us were elected. Even after temporarily reducing our development spending to 0.5% of gross national income, we still spend over £10 billion a year, the vast majority of which goes on large, multilateral organisations, delivering important work through Save the Children, Oxfam and so on. In that enormous pond of development expenditure, the WFD is but a tiny drop—£6.5 million of core funding this year. However, we do answer to those values and the choice to stand up for them, as outlined in the Queen’s Speech and the integrated review paper that the Government wrote last year, which I still believe to be a very good definition of strategic choices that defend our interests.
Graham Stuart (Beverley and Holderness) (Con)
My hon. Friend has made a powerful case for the WFD and the work that it does, and through him I want to appeal to the Minister. It is only natural that any large bureaucracy protects itself first and the outsiders last. When there is a cut, it tends to cut off the tentacles, however valuable they are. I hope we will hear from the Minister a personal commitment to ensure that WFD and its work are not allowed to languish, and that they have her full personal support. I know that the Department and the wider civil service will hear that message if it is given clearly by the Minister today.