Gas-fired Power Stations

Debate between Jim Shannon and Graham Stuart

Wednesday 13th March 2024 Commons Chamber

[Graham Stuart]

Unlike the hon. Gentleman, I am not primarily concerned with words—I am primarily concerned with action—but in fact I did use the “emergency” word. I do not know whether I broke some golden rule which says that Ministers should not use it, but I do treat this as an emergency. I see the world warming up, I see the negative impacts of climate change, and that is why I spend every single day feeling proud to be part of the Department that is decarbonising its country faster than any other in the world. The hon. Gentleman should get away from rhetoric and start to focus on action.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for all his answers. While there is certainly an urge to prioritise our net zero promises, I am grateful to the Government for taking back-up precautions into consideration. As the Minister has often recognised in responding to questions from me, Northern Ireland plays an important role in our contribution to meeting the net zero targets. Will he therefore ensure that Northern Ireland is prioritised as a leading location for any new gas-powered stations that are to be built?

[Graham Stuart]

The hon. Gentleman sometimes gives the impression that he would like me to be running the energy system in Northern Ireland, but it is devolved—and we have Ministers there again, which is a cause for celebration. I will work closely with Ministers in Northern Ireland, as I do with Ministers in other devolved Administrations, because if we are to meet our net zero targets, Northern Ireland must deliver its own targets. Scotland has to deliver its targets, as does Wales.

We must work together, in a spirit of collaboration. We can do that, and if the hon. Gentleman can persuade his right hon. Friend the Member for East Antrim (Sammy Wilson), who is sitting beside him, that it can be done in a way that strengthens our economy as well, we really will have something to celebrate.

Offshore Petroleum Licensing Bill

Debate between Jim Shannon and Graham Stuart

Committee of the whole House
Tuesday 20th February 2024 Commons Chamber

[Graham Stuart]

The hon. Lady may not have been present for the previous stage of this Bill, but as she has been present for other debates in this House, I cannot claim that she is an absentee Member, so it is extraordinary that she is unaware of the amazing transformation in insulation in this country since 2010. Is she not aware that, in 2010, just 14% of homes were decently insulated? Today, the figure is well over 50%. We are spending £6.5 billion in this Parliament, and will commit another £6 billion between 2025 and 2028, precisely to deliver the transformation that she calls for. On top of that, we have the eco schemes, and obligations on industry. That is how we have taken ourselves from the parlous, shameful situation left behind by the Labour party in 2010 to one where, although there is still much more to do, 50% of homes are decently insulated.

[Jim Shannon (Strangford) (DUP)]

The Minister was very kind to come to my constituency in Northern Ireland to look at the potential schemes for sea turbines and the contract for difference arrangements. At the time, he indicated that, whenever the Assembly was up and running, the contract for difference scheme would be the responsibility of the Northern Ireland Assembly. He was very keen and eager to assist the Assembly. Is it his intention to contact the Northern Ireland Assembly to ensure that the CfD scheme can be promoted? His input into that will make a big difference.

[Graham Stuart]

I thank the hon. Gentleman, who is a consistent champion not only for his constituents but for the clean transition. I look forward to meeting and working with the new Minister for the Economy, who I believe has the energy portfolio in Northern Ireland.

The Bill will give industry the certainty that it needs to continue investing in the North sea, to strengthen our energy security, and to support the transition to net zero. The Government’s position is clear: we should, as far as possible, seek to meet continued UK demand for oil and gas from the UK’s own sources. That means continuing to use the North sea—a UK success story that has contributed billions of pounds in tax revenue and supports an industry of around 200,000 workers. The oil and gas industry, with its strong supply chains, expertise and skills, is vital to driving forward the net zero transition and the investment in clean technologies that we need to meet our net zero targets.

We all want the energy transition delivered in an orderly way that does not risk thousands of those jobs. Artificially reducing our production from the North sea or banning new licensing would do just that and jeopardise the energy transition, our progress towards net zero and our climate leadership, not to mention the billions of pounds in lost tax revenue. The Bill is about ensuring a smooth and orderly transition. New licences awarded under the Bill will manage the decline in domestic oil and gas production, rather than increase production above current levels, and they will give industry certainty by sending a strong signal of support for continued investment in the sector—investment that is necessary both for our energy security and to help deliver the energy transition. I commend the Bill to the House.

COP28

Debate between Jim Shannon and Graham Stuart

Thursday 14th December 2023 Commons Chamber

[Graham Stuart]

I am grateful to the hon. Gentleman for his question, which, as ever, is well informed and extremely reasonable. He is absolutely right. I visited the port of Nigg. I was interested to see nascent floating offshore wind work, fixed-bed offshore wind work and oil and gas work, and I wandered into a hall where they were making a large and sophisticated piece for Hinkley Point C, extraordinarily. That was all at Nigg.

The hon. Gentleman gets to the point about financing and whether the auction, which has been brilliant at lowering prices, has in fact helped drive too much of the industry out of this country. Behind the day job of transforming our generation, my passion will be to see how, without following some others with WTO-breaching local clauses, we can nudge and support more industry here. That is why we are bringing in sustainable industry rewards—non-price factors, in the jargon. We expect those to come in from allocation round 7 onwards as we work to make sure that we look after consumers first, while not missing any opportunity to utilise, maintain and grow jobs here. On offshore wind alone, our expectation—this is what the industry says—is that we will go from around 30,000 jobs in the industry today to more than 100,000 in the next six years. One of our biggest challenges is finding those people, training them and making sure we are ready to deliver them, as much as it is having more done here.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister very much for the positives in his statement and the significant targets that the United Kingdom of Great Britain and Northern Ireland is setting to achieve our goals. Some of the figures he has referred to are encouraging. I wholeheartedly support help for poor countries, as he will be aware. Will he outline the parameters of the loss and hardship fund that has been mentioned as they pertain to ensuring that the fulfilment of human rights obligations is in the requirements for any award?

[Graham Stuart]

I thank the hon. Gentleman for his as ever gracious question. One of our disappointments—there were things we were disappointed with in the UAE consensus—was the watering down of elements we would have liked to see on human rights. He is right to highlight that. We have always wanted loss and damage to focus on the most vulnerable. The least financeable of all are people in an already parlous economic position, often at low scale, who are under threat from climate change. We hope that the funding that has been created for loss and damage can complement adaptation funding as well as mitigation work, and have climate justice at its heart. We have to look after the weakest and poorest on the planet. However unsympathetic the science, we have to ensure that policy recognises the realities for people all over the world.

Contracts for Difference Scheme

Debate between Jim Shannon and Graham Stuart

Thursday 19th October 2023 Westminster Hall

[Graham Stuart]

I will make a little more progress, if I may.

The CfD scheme is a major UK success story. It has secured more than 30 GW of capacity, including 20 GW of offshore wind, since 2014. It has driven down the price of offshore wind by about 70% in that time, helping to grow the industry and its supply chain both in the UK and globally, although as the hon. Member for Manchester, Withington says, I have previously publicly expressed the desire to do more. We are coming forward with non-price factors as a way of encouraging more of the supply chain to be in the UK. But have no doubt: this has been a phenomenal success for us, for British jobs, for British consumers and for the world. We have the four largest offshore wind farms in the world, with more than 14 GW already in operation and a further 77 GW in the pipeline. It is a pleasure for me that of course the largest offshore wind farm in the whole world is Hornsea 2, named after a small town in my constituency. The UK is a world leader in floating offshore wind, with one of the largest amounts of operational capacity anywhere in the world, at 80 MW to date.

The hon. Member for Strangford says that the results of allocation round 5, which concluded in September, were disappointing because the total capacity secured was less. As I have said, I do not accept the characterisation of that round, because it has in fact realised the highest amount, on an annualised basis, of any of the rounds we have ever run. It resulted, in fact, in more projects—95—than we have ever seen successfully done, even though it covered just a one-year window. The round delivered a combined total of 3.7 GW, which is enough to power the equivalent of 2 million homes. As I have said, there was more than double the number of onshore wind projects. We also secured—I have touched on this already—another good result for solar, and four times as many tidal stream projects as AR4 did.

I pay tribute to the right hon. Member for Orkney and Shetland (Mr Carmichael) for his doughty support for the sector. I did not realise that his involvement had stretched to 20 years, but when I visited his constituency he was there to characteristically champion the industry. For the first time in our CfD, we had success with geothermal. This vital new renewable capacity was procured in a competitive auction set against, as I say, a backdrop of highly challenging macroeconomic conditions.

[Jim Shannon]

I thank the Minister for that clear achievement. I remind him that the key technology for Northern Ireland is onshore wind. There have been some advances, and I attended a meeting in Bangor, in the neighbouring constituency of North Down, where an offshore wind turbine was put forward as a possibility for the future. We cannot be part of that process unless the Minister’s Department can reconsider the fact that there is an absence of a functioning Northern Ireland Executive. Northern Ireland’s renewables projects are being uniquely disadvantaged. There is an opportunity to go forward—I am ever mindful of time, Dame Angela; please bear with me one second—and in 2013-2014 a decision was made. That was changed by the consultation process in 2019-2021. The recommendation was endorsed by 93% of the respondents. I gently ask the Minister that with that unique and changing position, there is a chance now and we should be looking at how we can better move forward together.

[Graham Stuart]

I thank the hon. Gentleman for that intervention. I will return to the issues relating to Northern Ireland, if I may. I entirely forgive the hon. Member for Coatbridge, Chryston and Bellshill, who is always a very genial Member, and anyone who has such a high opinion of the hon. Member for Strangford as he does is always welcome in this Chamber as far as I am concerned. This is not what the hon. Member for Coatbridge, Chryston and Bellshill does as a day job, so perhaps that explains the nature of his speech.

Let me dispense once again with the suggestion that consumers are £2 billion a year worse off because we did not secure any offshore wind in AR5. That figure is entirely wrong and misleading, because it does not take account of future wholesale energy prices. Projects that were unsuccessful in AR5, or chose not to bid, can participate in AR6 in 2024, which is just five months away. Having annual rounds means that there will be minimal delay to deployment at minimal or no additional cost to consumers.

The hon. Member for Coatbridge, Chryston and Bellshill highlighted the broader point that the UK, alone among major economies, has halved its emissions since 1990. It can be argued that it is alone among major economies on its path to reach net zero. It is important to note that if we are to stay on track to net zero, which is one of the reasons why the hon. Member for Strangford is so passionate, and he knows this, we need Wales, Northern Ireland and Scotland alongside England to make the appropriate changes. The hon. Member for Coatbridge, Chryston and Bellshill may or may not be aware, given that this is not his day job, that Scotland is behind the curve on performance. It is high on ambition, low on delivery relative to England, and he might want to bear that in mind and have slightly more—

--- Later in debate ---

[Graham Stuart]

Whoever comes into this Chamber, I would always take your advice, Dame Angela, but of course the hon. Member represents his party, and when he make allegations against the Government that are unfounded, and when his own Government are failing to deliver on their ambitions and are, in fact, behind the trend for England, it is only right and proper in the spirit of honesty and transparency that that is properly exposed. I know the hon. Member for Coatbridge, Chryston and Bellshill, who himself is not normally a shy person in the Chamber or otherwise, is someone who can easily take it, so I am pleased about that.

I will take no lessons either from Labour, which had only 5.4 GW of wind power when it left government in 2010. The Government have more than five times that amount, at more than 28 GW of wind power, and the four largest operational offshore wind farms in the world. It may be difficult for some to hear, but we know that Labour’s record on renewables is truly dismal. When Labour was in power, as recently as 2010, renewables made up less than 7% of our electricity mix; in the first quarter of this year, we had reached nearly 48%. Lessons will not be taken from His Majesty’s Opposition, let alone the Scottish Government, on this front.

The absence of offshore and floating offshore wind from AR5 was, as I have said, regrettable. These are challenging times for the offshore wind sector, with increasing global demand putting pressure on supply chains at the same time as increasing costs and core materials, resulting in price uncertainty both here and abroad. As both the Secretary of State and I have repeated on many occasions, our ambition for 50 GW of offshore wind, including up to 5 GW of floating by 2030, remains. I indicate to Members to look at the 77 GW of pipeline that we can see ahead. We are listening to the sectors and, as I have said, the annual auctions mean that we can respond quickly and incorporate learnings into the next round. We will publish the core parameters, including the administrative strike prices and pot structure, for allocation round 6 in the middle of next month.

I will turn to the main focus of the debate for the hon. Member for Strangford: the GB CfD scheme being extended to Northern Ireland. When the CfD scheme was being developed around 10 years ago, it was originally intended that it should extend to Northern Ireland as well as GB. For various reasons, which I will not go into here, that did not happen. In December 2021, the Northern Ireland Executive published their energy strategy, the “Path to Net Zero Energy”, in which they set out the intention to implement a support scheme to bring forward investment in renewable electricity generation in Northern Ireland. The strategy indicated that the Northern Ireland Executive were, at that time, exploring with the UK Government the possibility of extending the GB CfD scheme to Northern Ireland, with a view to the inclusion of projects from Northern Ireland in the 2023 allocation round. If that was not possible, the strategy said that the Executive would seek to put in place an alternative support mechanism for investors.

In January 2022, the Northern Ireland Executive published the first of their two action plans, outlining progress towards implementing their net zero strategy. In it, the Executive said that they would consult on proposals for a renewable electricity support scheme for Northern Ireland. In February this year, the Executive made good on that commitment and published a consultation inviting views on design considerations for a renewable electricity support scheme for Northern Ireland. The consultation closed in April, and the Northern Ireland Executive are currently undertaking follow-up work on the scheme’s design, informed by the consultation responses they received.

I understand that officials in the Northern Ireland Department for the Economy aim to publish the design of the scheme this year, as committed to in its 2023 energy strategy action plan. The consultation clearly sets out the direction of travel: Northern Ireland wants to have its own bespoke support scheme for renewables. In June 2022, Northern Irish and UK Government Ministers agreed that the significant challenges of integrating Northern Ireland into the CfD scheme meant that Northern Ireland would be better off pursuing its own scheme. That objective had cross-party endorsement in the Northern Ireland Executive before they dissolved last year.

I believe that the hon. Member for Strangford and I agree that a bespoke support scheme for renewables is the preferred means of securing investment in renewables for Northern Ireland. However, he has argued that the Northern Ireland support scheme cannot be implemented while the Northern Ireland Executive are suspended. If I am putting words in his mouth that he does not agree with, he will intervene on me. He believes that allowing Northern Irish projects access to the GB CfD scheme is the best available option for delivering investment and faster deployment of renewables in Northern Ireland. He knows that I do not agree with him on this.

I do not believe that integrating Northern Ireland into the GB CfD scheme is viable. There are several significant challenges to integration, including systemic and technical barriers incorporating the characteristics of the single electricity market into the GB CfD model, as well as the reforms being considered in the GB review of electricity market arrangements. Furthermore, integration would require complex changes to the CfD payment mechanism, secondary legislation and industry codes, and would likely take several years to complete. Integration therefore would not lead to faster delivery of renewable energy in Northern Ireland, which I know the hon. Member for Strangford so fervently hopes for.

[Jim Shannon]

The Minister is summing up very well his opinion and my opinion. What we do not have is an agreement on how we take this forward. I know the Minister recognises that Northern Ireland is disadvantaged at the moment. What I was trying to seek was a method and a way forward. For that to happen, perhaps further discussions are needed with the Department of Enterprise, Trade and Investment to get its opinion. I feel that there is a consensus of opinion among those who wish to see that investment coming through. Perhaps what I am really asking is for the Minister to explore those possibilities as a potential way forward.

[Graham Stuart]

The hon. Gentleman always makes an extremely plausible and effective advocate for the ideas that he espouses. I—and the Government, I am sure—will remain open to discussions with those in Northern Ireland and with the hon. Gentleman to find solutions. We talked about some of the challenges of staying on the overall net zero pathway. Of the four Administrations, Northern Ireland is potentially the most off track, so there is a real need to find solutions and we always stand ready to work constructively to find the best way forward.

I continue to believe, however, that the development of a bespoke support scheme offers the best and quickest way for Northern Ireland to secure the investment in renewable electricity generation that it needs to achieve its net zero goals. I have not said it explicitly but, of course, energy is devolved, so we are looking to the institutions in Northern Ireland, on behalf of the people of Northern Ireland, to take this on. That is what we would profoundly like to see. I commend the work done by the hon. Gentleman and the Department for the Economy so far, and I encourage us all to support their efforts.

I will try—I hope reasonably briefly, with your permission, Dame Angela—to respond to a few of the other points that have been made. My hon. Friend the Member for Waveney chided me in return, to ensure that we do not rest on our laurels and that we respond appropriately to IRA and perhaps EU initiatives in the space. He talked about creating incentives, picking up on the supply chain development issues that many Members have touched on, and ensuring that seabed auctions are a good place to do that. As he knows, I set out the work that the Crown Estate is already doing to put conditions on at that stage, in addition to changes to the CfDs.

I take on board my hon. Friend’s points about the administrative strike price, and ensuring that we get it in the right place in order to balance keeping costs down for consumers with getting the generation that we want and need. We will set out the pot details in just a few weeks, so I will leave commenting on his appeal for a ringfenced pot for offshore wind. On his request for the pot to reflect the pipeline, that is the mechanism we use for the CfD. That is one of the reasons for setting out the core criteria in November and providing more details in March—precisely so that we can match the budget and the other elements that make up the CfD with a realistic assessment of the pipeline in place. His Majesty’s Treasury and the Chancellor will have heard my hon. Friend’s points on the issues that, sadly or otherwise, sit with the Treasury rather than my Department.

From the right hon. Member for Orkney and Shetland, I heard, as ever, his espousal and support for tidal, and he talked about setting a target for that. The Government remain open and we will continue to consider that, but we have not yet made a decision on whether it would be the right thing to do. It is about doing the right intervention at the right time, based on the stage of development of a particular technology. However, like him, I am proud of the fact that we have been able to see it come on, and see some of the developments in his constituency. The hope to see those operationalised and scaled up here in the UK, with a big and strong domestic supply chain, is one that gives real optimism for the future.

Offshore Wind Contracts

Debate between Jim Shannon and Graham Stuart

Tuesday 12th September 2023 Commons Chamber

[Graham Stuart]

I thank the hon. Gentleman for his constructive and effective question. He is absolutely right to highlight the challenges of making sure that we have the right transmission and connection infrastructure to facilitate offshore wind. We have to do that in a way that minimises negative impacts on communities, that rewards them for hosting it, and that looks at new technologies and innovations, just as we do in other areas, in order to facilitate that effective connection with minimal negative impact on communities that host.

[Jim Shannon (Strangford) (DUP)]

In light of the disappointing results of the CfD AR5 auction and given that I am always trying to be constructive in my contributions in this House, will Government revisit the exclusion of Northern Ireland renewable projects from the scheme, especially in light of the significant increase in onshore wind and tidal stream projects supported by the AR5? Northern Ireland is perfectly positioned for onshore wind and tidal stream to make a major contribution to energy security and net zero from AR6 and beyond. Will the Minister commit to enable Northern Ireland to be part of AR6?

[Graham Stuart]

I suggest that it is the hon. Gentleman and his colleagues who need to commit to facilitating that in Northern Ireland. Energy is devolved and it is up to them to get the devolved Assembly up and running. If they get devolved government going in Northern Ireland, they will unleash these opportunities. It is not for this Department, which is not responsible for energy in Northern Ireland.

Road Fuel Prices

Debate between Jim Shannon and Graham Stuart

Monday 3rd July 2023 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

This is a very welcome announcement, especially in respect of the information on fuel-price competition that will allow drivers to look for fuel at petrol stations that are closer and have better prices, thereby enabling them to save money. On any potential fuel fund offers, there is an older generation—I am probably one of them—who perhaps do not use apps and therefore do not understand how they work; what steps will the Minister take to ensure that they have access to information on fuel funding that is accessible for them and easily understood so that they, too, can take advantage of what is on offer?

[Graham Stuart]

I thank the hon. Gentleman for his question. I would not want to finish without mentioning that, as of Monday 26 June, unleaded petrol is 143.43p per litre, and that has reduced, on average, by 47.5p from June last year, and diesel is 145.6p per litre, and that has reduced by 53.3p per litre on the previous year. I will write to the hon. Gentleman to make sure that I can properly inform him in answer to his question.

Powering Up Britain

Debate between Jim Shannon and Graham Stuart

Thursday 30th March 2023 Commons Chamber

[Graham Stuart]

Talking of making policy on the hoof, my announcement today that the Department would take over the entirety of the planning system would cause something of a Whitehall ruckus. At least twice this week I have met colleagues from the Department for Levelling Up, Housing and Communities to ensure a joined-up approach across Government. That Department is alive to these issues, as is the Department for Environment, Food and Rural Affairs, my Department and the Ministry of Defence, which has equities here. Joining up and working across Government so that this is as seamless as possible—it is never entirely seamless—is at the heart of delivering the changes in the system that we need. My hon. Friend is right that planning is vital to that.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his statement. I have listened attentively to him, I have read the Government publication and, unfortunately, I did not see any reference to tidal energy. In Strangford lough we have a ready-made project. I was pleased to have the Minister over to visit the Queens University biology station. The scientists there were very happy to see him there and to have his input on the projects that we feel can make a difference. Will he outline whether the potential of tidal energy is getting the appropriate attention it deserves?

[Graham Stuart]

It was my great pleasure to be hosted by the hon. Gentleman at Strangford lough and to hear all about the potential strengths of the tides. I am delighted to see the growth of tidal energy. For offshore wind, it took quite a while to build up what was a nascent market. People said that we would never be able to lower costs offshore, yet we did. I think that tidal is on that pathway. I hope that the hon. Gentleman will welcome the ringfence, our continued support and our flexibility on budget as and when projects come through. We seek to drive the cost curves down so that, ultimately, we are technology neutral but support and nurse new technologies such as that, which have great potential.

Prepayment Meters: Ofgem Decision

Debate between Jim Shannon and Graham Stuart

Monday 6th February 2023 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his answers. Does he not agree that this treatment of customers—of the disabled, pregnant women and single parents with young children, some of whom were in hospital when they were moved to prepayment meters—if not already illegal, should be? What further steps will he take to prevent the big companies from being able to trample all over the little man and the little woman, not simply in this one aspect, but in the overall treatment of the ill and the vulnerable?

[Graham Stuart]

The hon. Gentleman may always come at the end of the questions, but his are rarely the weakest ones. He is absolutely right on this. If we need to do more to strengthen the regulator, we will do so, to make sure that, as he says, the people who feel themselves to be at the bottom of the pile are not ill-treated—we cannot have a system that does that. We have to have one that puts their interests at the top of our list of priorities.

Energy Bills: Self-disconnection

Debate between Jim Shannon and Graham Stuart

Wednesday 25th January 2023 Commons Chamber

[Graham Stuart]

I can assure the hon. Gentleman that we will look carefully at the cost pressures across different markets, as we did when we came up with the alternative fuel payment, which was originally £100 before we doubled it to £200. I know that that is making a difference in Northern Ireland, and it will make a difference in rural areas around the UK.

[Jim Shannon (Strangford) (DUP)]

I thank the Government and the Minister very much for all the help that they have been able to give businesses and households—there is much to appreciate, and we need to put that on record.

Just this morning, a number of businesses back home in Newtownards town, which the Minister visited last week, have informed me that they are seeking small business support. They say that they have turned their lights off, that they are supplying thermals for staff to keep warm, and that they cannot afford the current prices. Some have informed me that they face bankruptcy. Would the Minister consider a small business relief fund that could be applied to businesses throughout the United Kingdom of Great Britain and Northern Ireland?

Strangford Lough: Tidal Wave Energy

Debate between Jim Shannon and Graham Stuart

Tuesday 10th January 2023 Commons Chamber

[The Minister for Energy and Climate (Graham Stuart)]

I congratulate the hon. Member for Strangford (Jim Shannon). As I look around the Chamber, I am taken back to that Westminster Hall debate to which he referred; it feels like the gang is back together. This is an important debate, and I am pleased to see that he continues to be a champion for his constituents on the subject. I also see colleagues who were at that debate, including the right hon. Member for Orkney and Shetland (Mr Carmichael), who led it.

I will touch on energy support, which the hon. Gentleman referred to. After Putin’s barbarous invasion of Ukraine, we saw people’s energy bills soaring, and they were forced to turn their minds to the meter before turning up the thermostat in their homes. In that context, the Government were and are determined to do all they can to help the people of this country, including those in Northern Ireland.

In December, I was delighted to announce that all households in Northern Ireland would receive a single, one-off £600 payment to help with their energy bills. Payments will start this month. The funding has been provided to the energy suppliers to go out to those families. I hear the points that the hon. Gentleman made about the practicalities of that. In a market for which we are not normally responsible, we were determined to find a way to reach them, and we did that. I pay tribute to my officials who put in an astonishing amount of work to stand that up and get it going. That payment comes on top of the package of unprecedented assistance with energy bills that the UK Government have already provided, including the energy price guarantee, which has reduced the energy costs of every family, and the energy bills discount scheme, which has reduced them for every business in Northern Ireland as well.

As the hon. Gentleman rightly highlighted, we are here not just to think about the short term and this winter, but to look to next winter and all the winters to come, as we seek to build a secure energy supply that drives up growth, drives down bills and meets our net zero ambitions. The best way to do that is by investing in affordable, reliable, clean energy, because energy security and net zero go hand in hand.

The Government take their net zero commitment absolutely seriously. If we are to accelerate away from fossil fuels, rolling out renewable energy is fundamental. That is why, in last year’s British energy security strategy, we reaffirmed our commitment to renewables. That means making the absolute most of the opportunities that our geology and geography afford us to deploy transformative technologies, as the hon. Gentleman highlighted. Of course, tidal is an element of that. Tidal stream energy is a home-grown industry with considerable promise to deliver affordable, clean, secure energy for households and businesses across the country. I could not be more proud of the fact that we are leading the world in deploying offshore wind, which is another technology. Off the coast of my Beverley and Holderness constituency, there is the biggest wind farm in the world, joining the second, third and fourth largest windfarms in the world, with all of them generating energy from the high winds of the North sea.

Of course, with Britain being Britain, the weather can change from windy and sunny to still and cloudy in seconds. Even when that happens, we can still rely on the tides, as the hon. Gentleman rightly said. Tidal energy provides an opportunity to boost the resilience and diversity of our renewable energy system. It is an area where, with a raft of brilliant developers designing and building tidal stream devices in the UK, we currently lead the world. As he rightly said, let us not blow the opportunity that that provides us.

We have Europe’s foremost tidal and wave energy testing centre in the constituency of the right hon. Member for Orkney and Shetland: the European Marine Energy Centre in Orkney. We also have new marine energy hubs developing across the country, from Morlais on Anglesey to the Perpetuus Tidal Energy Centre on the Isle of Wight in England. Thanks in large part to £175 million in innovation funding for wave and tidal power research provided by successive Governments, as of last August our waters were home to half the world’s total deployment. Thanks to the extensive support afforded by the renewables obligation mechanism, in 2018 we were able to build the largest tidal stream generating array in the world in the fast-moving waters of the Pentland firth.

The Government remain open to considering well-developed proposals for harnessing the tidal range energy in the bays and estuaries around our coastlines, including, as the hon. Gentleman said, up and down the west coast. That includes barrage schemes and other alternatives. Any such proposal would need to demonstrate strong evidence of value for money in the context of other low-carbon technologies, as well as details of its associated energy system benefits and environmental impact mitigation strategies, before the Government could take a view on its potential or on the funding models appropriate for exploration. Revised criteria for a well-developed proposal will be published in the energy national policy statement which is coming out very soon.

[Jim Shannon]

In the last portion of my contribution, I referred to a Canadian company—I understand the right hon. Member for Orkney and Shetland is aware of it, too—which is keen to harness the tidal water movement of the narrows. I am a great believer that when we move forward, we can have partnerships between Government and independent companies to deliver that. Companies are in the business of making money and the Government are in the business of producing green energy, which I think they want to promote. Is that one of those things where the Minister could be instrumental in being positive and helpful?

[Graham Stuart]

That leads me naturally on to our system. What we try to do across all technologies, places and companies is to create an architecture that is fair, transparent and predictable—as much as that is possible. It therefore does not depend on me being sold on any particular company or solution, but allows, through decent mechanisms, the best to rise to the top. That is very much our aim.

Much of the success of tidal stream to date is down to contracts for difference, which the Government have produced and which I am delighted about. This is our flagship mechanism for supporting the cost-effective delivery of renewable energy, ensuring that the nation’s tidal stream innovators have the opportunity to bring down the costs of the technology and learn the lessons from being the first in the world to deploy it at scale. I am sure that Members were, like me, delighted that last year the Government established a ringfenced budget of £20 million for tidal stream developments in pot 2 of the fourth contracts for difference allocation round. This saw four tidal stream projects win contracts totalling 40 MW at a strike price of £178.54 per MWh. To put that into perspective, only 36 MW of tidal stream was deployed worldwide between 2010 and 2020. This is the first time that tidal stream power has been procured at this scale.

Marine Renewables: Government Support

Debate between Jim Shannon and Graham Stuart

Wednesday 7th December 2022 Westminster Hall

[Graham Stuart]

I am still answering the question posed by the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts). The offshore wind acceleration taskforce has been working really hard with the regulators, including Scottish and other devolved regulators, because they have their own systems and agencies. We are trying to make sure that we streamline and avoid duplication, and that anything that can be done in parallel is done; we are looking to improve that.

In a sense, offshore wind has been an exemplar for the overall grid system—that is not really the focus of this debate, but we are absolutely focused on that. We have got something called the holistic network design, trying to look at this issue in a more joined-up way for the first time, rather than just linear connections for individual ones, with the grid responding. We are looking at more of a planned approach, and the second holistic network design will come out soon. Floating wind in the Celtic sea, for instance, will be included in that design.

[Jim Shannon]

I thank the Minister for his comprehensive, detailed and helpful response. I just have one very quick question: if at all possible, could he facilitate us with a visit to Northern Ireland? We would be very pleased to show him Strangford lough—the narrows, the waters, and what they can generate. In my discussions with the relevant Minister in the Northern Ireland Assembly, he indicated that there needed to be a direction from Westminster as well, so that would be extremely helpful. I am asking in all honesty whether the Minister, in the generosity of his position, could facilitate that.

[Graham Stuart]

I have a serious problem with the hon. Member for Strangford (Jim Shannon), which is that he is a very hard man to say no to—I do resent that. I will certainly try; I think other duties may take me to Northern Ireland, and perhaps that is something I could fit in. I will certainly try to do so if I possibly can.

Let me pick up on a few of the points that have been made. I want to say a bit more on EMEC.

Energy Bills Support Scheme: Northern Ireland

Debate between Jim Shannon and Graham Stuart

Wednesday 30th November 2022 Commons Chamber

[Graham Stuart]

I cannot confirm a specific date in January, and I do not recognise what the hon. Gentleman says was offered by suppliers in June and July, but I will write to him and follow up on that to put it on record, at least for him and me.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his responses. The Government have been discussing energy support for Northern Ireland for some months now. Northern Ireland residents have been aware of the £600 energy payment, which my hon. Friend the Member for Upper Bann (Carla Lockhart) referred to, yet no payment has been made. Concerns have been raised by those who have prepayment meters, and the three companies I have spoken to—SSE, Budget Energy and Northern Ireland Electricity—have stated that they have experienced difficulties or have been reluctant to sign up to the scheme. Can the Minister advise us of how these problems are being addressed, and—with respect, Minister—can we have a timescale so we can tell our constituents when the money will be delivered?

Energy Prices Bill

Debate between Jim Shannon and Graham Stuart

Committee stage
Monday 17th October 2022 Commons Chamber

[Jim Shannon]

I want to begin by thanking the Government and the Minister for all that they have done thus far in the energy crisis. We all sometimes get a bit caught up with our lists of demands and the things we want done without appreciating the steps that the Government have taken; I want to put that on record before I start.

I am thankful that the people of Northern Ireland are to get the same support as those on the mainland. MPs from Northern Ireland had a Zoom meeting with the Secretary of State last Thursday, and we were very encouraged by what he said, by his delivery and by today’s legislation; this is good news and we thank him for that. Some 68% of households in Northern Ireland use oil, and there is a scattering of households across rural areas—some in my area and some out to the west of the Province—that still use coal, and we all know by how much the price of coal has jumped. The Secretary of State has given encouragement on how support will work for those who use the payment card system.

I want to make a plea on behalf of pensioners. Not every pensioner will use the £100 for energy, so I want to make sure there is a system whereby pensioners are protected and that, if they do not use all the money, the remaining sum can be carried over. The pensioners who have spoken to me about this want that reassurance.

My main reason for speaking is to make a plea for the working poor, as I did earlier in an intervention on the Secretary of State. I know that this finds receptive ears in the Minister and in the Government, because they see those issues that I see every day. There are people in full-time employment who were managing before the crisis but now have to find, for example, an extra £250 for their mortgage and an extra £30 a week for fuel for travel to Belfast from the peninsula. Dog food is also up by 30%, and groceries are up by 20%, with milk up from 99p last year to £1.75 this year—a 75% increase. Those are just a couple of examples of the massive increases that we are experiencing back home.

I go to work on an egg every day—two eggs, to be precise—but eggs are up from 99p for a six-pack to £1.39. Biscuits to go with a cup of tea, which we have in Northern Ireland with regularity, are up some 30%. Those are issues for the working poor, and that is not even adding in the energy issues. I want the Government to ensure that the working poor are key in what they do as they move forward. To be fair, I believe that they have.

I am thankful for the help given so far, but I believe that working families need that extra bit of consideration. They need help to get to work and help to pay for their groceries. They need an uplift in child benefit to allow them to ask for a wage increase. It is not about being able to take family holidays and eating out all the time; it is about surviving and being able to pay their mortgage and all else. What is being done to help those families? The Minister will give us some encouragement in summing up. It is good to have that on the record so that the people back home who ask me about these things will know what has been done. That is aside from energy costs, which are not even part of the equation at this stage.

There is the shop owner, for example, who cannot match the wage increases in the public sector, and her staff know that she cannot do any more than she is. How can we help them? It is great that public sector wages are going up, but how do small and medium-sized enterprises do the same? They cannot. The Government and the Minister must reach out and help. Those businesses are facing electricity bills at four times the previous rate. The hon. Member for Twickenham (Munira Wilson) referred to an increase of almost 550%. How can anybody absorb that? That is impossible.

The price of goods is up massively. Businesses are fighting to stay alive. The SMEs in my constituency—there is a large number of them—create employment across sectors. So never mind matching public sector pay; we must do more to secure jobs in SMEs by helping their owners.

I gave a commitment that I would not speak for too long, Mr Evans, so I will finish with this. I recognise that money does not grow on trees—if only it did, we could lift it off every day we wanted it—but we do need employment and businesses who hire people. For the working poor, will the Minister and the Government do that wee bit more to ensure that they will not suffer adversely through the crisis that we are all experiencing together?

[Graham Stuart]

I thank all speakers for their contributions, which have been typically thoughtful. It was a pleasure for the whole Committee and it seemed right to have the ever-genial hon. Member for Strangford (Jim Shannon) bringing the Back Bench contributions to a close. I have a lot to cover but will none the less try to keep myself to a limited time.

The hon. Member for Southampton, Test (Dr Whitehead), who spoke for His Majesty’s Opposition, asked whether we will need to amend the Bill because of the changes announced this morning by the Chancellor. Counsel’s advice is that we will not. The powers in the Bill fit perfectly well with that six-month period and any review and extension that comes thereafter. He also asked about the definition of electricity generators, including community groups, and the appropriateness of that. The affirmative procedure will be used for the first regulations precisely to allow us to define that, understand that and ensure that we are targeting the organisations we wish to target and excluding those we do not.

On Henry VIII powers, and why clauses 21 and 22 do not have sunset clauses, the Bill makes clear that the clauses must be used in response to the current energy situation, or in connection with the Act, regulations or schemes within it. The vast majority of the powers in the Bill are time-limited, including the powers to make regulations and schemes that might require such modifications and directions.

Oral Answers to Questions

Debate between Jim Shannon and Graham Stuart

Thursday 5th March 2020 Commons Chamber

[Graham Stuart]

I would have hoped that, after sufficient time in the House, the hon. Lady might have understood how a consultation worked. The consultation closes today, and I cannot comment on a consultation that has not yet closed. What I can tell her is that, as she will be delighted to hear, under this Government the UK has attracted more FDI than any other country in Europe. Indeed, we have attracted more FDI in aggregate than Germany and France combined. If she and her colleagues on the Labour Front Bench were to support business and enterprise in the way we do, instead of opposing them, we might see more jobs and prosperity.

[Jim Shannon (Strangford) (DUP)]

With Northern Ireland being recognised as the cyber-security capital of the United Kingdom of Great Britain and Northern Ireland, will the Minister outline what steps are being taken to highlight this massive international market?

[Graham Stuart]

As I said in an earlier answer, I was pleased to meet Northern Ireland representatives in No. 10 Downing Street yesterday. When I visited Belfast last year, I learnt more about the phenomenal tech, and in particular cyber, capability there is in Belfast. The Department is determined to make sure that the message of how investable and how strong Northern Ireland is, and what great capability it has, is understood through all our posts in countries around the world.