Oral Answers to Questions

Michael Shanks Excerpts

Tuesday 24th March 2026 Commons Chamber

[Iqbal Mohamed (Dewsbury and Batley) (Ind)]

1. Whether he has had discussions with the Chancellor of the Exchequer on global taxes on oil and gas companies in the context of the proposed UN framework convention on international tax co-operation.

[The Minister for Energy (Michael Shanks)]

This is a matter for the Treasury, although we remain closely engaged. The UN framework convention is focused on improving effective and inclusive international tax co-operation, not on creating specific global taxes on oil and gas companies.

[Iqbal Mohamed]

The combined market value of the six big oil super-majors has soared by more than $130 billion since the first US-Israeli attack on Iran, while my constituents and those across the country face higher bills. Will the Energy Secretary and the Government work with international partners to establish global taxes on the fossil fuel industry through the UN tax convention and help bill payers with their energy costs?

[Michael Shanks]

As I said, this is a matter for the Treasury, but we look closely at where we can co-operate around the world. This country’s windfall tax has raised £12 billion, funding public services and supporting the hon. Gentleman’s constituents and many others with the cost of living. We will continue to invest in bringing down bills, but we will also invest in the infrastructure that gets us off fossil fuels.

[Danny Beales (Uxbridge and South Ruislip) (Lab)]

2. What steps he is taking to increase grid capacity in west London.

[The Minister for Energy (Michael Shanks)]

We are delivering the biggest upgrade to the grid since the 1960s, using strategic plans to identify where new capacity is needed and accelerating infrastructure build. In west London, network operators have used innovative measures to help new developments to connect, despite exceptionally high growth in electricity demand.

[Danny Beales]

I thank the Minister for that response. As well as grid capacity for much-needed new homes and infrastructure such as Hillingdon hospital, capacity is needed in west London for the large number of data centres being proposed at a regional level. What actions are being taken to strategically co-ordinate those demands and, crucially, to secure local benefits such as jobs and heat capture to lower household bills? Those things are present in the local planning system in Hillingdon, but are not being secured.

[Michael Shanks]

My hon. Friend is right that strategic infrastructure planning is crucial, which is why we are engaging in the first ever national strategic spatial energy plan, which will lead to a centralised strategic plan for the future of the network. We are also looking at how we manage demand projects such as data centres across the country in order to get the greatest advantage. My hon. Friend is right to highlight the local benefits that can come from heat networks. We will be carrying out heat network zoning to identify where waste heat can be reused, which will bring huge benefit for communities. We are also delivering the jobs that go with the building of the network, ensuring the manufacturing and infrastructure jobs that the UK has missed for many years.

[Bob Blackman (Harrow East) (Con)]

The problem for the West London Alliance, which comprises six boroughs, is the lack of grid capacity, which means that new home developments and new projects providing business opportunities are frozen for a number of years, into the 2030s. Unless there is urgent action to provide more power to the grid, all those excellent projects will be frozen for far too long.

[Michael Shanks]

The hon. Gentleman has framed that perfectly. The challenge is not just about being able to get clean power into homes and businesses; on the demand side, it is also about how we can connect these critical economic growth opportunities. That is partly why we have cleared out the connections queue, so that more projects can connect. We have also launched a consultation to look at how we reform the demand side of the queue. Fundamentally, though, we have to build more grid—we have not built the grid that is needed since the 1960s. We are now embarking on the biggest grid upgrade in a generation, which is how we unlock the potential in communities like the hon. Gentleman’s and right across the country.

[Sonia Kumar (Dudley) (Lab)]

3. What steps he is taking to help prevent increases in energy bills for households.

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[Sarah Hall (Warrington South) (Lab/Co-op)]

7. What assessment he has made of the potential impact of trends in the level of methane harvested from landfill sites on energy security.

[The Minister for Energy (Michael Shanks)]

Methane harvested from landfill sites enables the generation of around 2.5 TWh a year, which is around 1% of the UK’s electricity. Many of those assets receive a subsidy through the renewables obligation, which expires in 2027. That generation has a supportive, but limited, effect on energy security. Given the high impact of methane, my Department and the Department for Environment, Food and Rural Affairs are considering long-term solutions to landfill gas methane capture and appropriate transitional arrangements.

[Sarah Hall]

At a time when families are already under pressure from high energy bills, what assessment has the Minister made of the risk that, without action before April 2027, declining landfill gas generation will undermine energy security and increase costs for consumers?

[Michael Shanks]

I reiterate that although methane harvested from such sites and used to generate electricity plays a role in electricity generation, it is less than 1% overall, so it is not an issue for our energy security. As the sites age, the amount of methane they omit reduces, and that reduction has been factored into our plans. We are looking at what transitional arrangements are needed to deal with both the methane issue and the electricity that is generated from it, and we will consult in due course.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister, as always, for his answers. It is important that we all get the advantages of the level of methane harvested from landfill sites. In Northern Ireland we also have landfill sites, with a lot of rubbish and therefore a lot of methane possibilities. I know that the Minister visits Northern Ireland regularly, so what discussions has he had with the relevant Minister there to ensure that we can get the advantages that he mentioned in his reply to the hon. Member for Warrington South (Sarah Hall)?

[Michael Shanks]

I thank the hon. Gentleman for his kind comments. My visits to Northern Ireland are important to me, and at the very first meeting of the reconstituted inter-ministerial working group we had a conversation on that exact question: how can we support the reduction of methane across the UK, and how can we support that through the electricity system? Clearly, that is a transferred matter in Northern Ireland, but I continue to have those conversations with colleagues in the Executive.

[Helen Morgan (North Shropshire) (LD)]

8. What assessment he has made of the effectiveness of the process for implementing nationally significant infrastructure projects in relation to electric lines.

[The Minister for Energy (Michael Shanks)]

The nationally significant infrastructure project regime provides a clear consenting route for nationally significant electricity lines, but processes have been too slow and we are determined to change that. Our reforms support the faster delivery of infrastructure, essential for strengthening our energy security in periods of global instability, while maintaining a robust and proportionate consenting process.

[Helen Morgan]

Green GEN Cymru, which is a sister company of Bute Energy, is in the latter stages of a very controversial process to secure planning consent for power lines for the Vyrnwy Frankton connection. The problem is that there is no substation at Lower Frankton in North Shropshire with which to connect those lines. We expect that proposal to come through later this year, but given Bute Energy’s widely reported links to the Labour party and National Grid’s obligation to connect new infrastructure to the grid, how can the Minister reassure my constituents that the whole process is not predetermined?

[Michael Shanks]

First, obviously I cannot comment from the Dispatch Box on a live application process. I have met a number of MPs to talk about this issue, and we are looking at all the available information. Ofgem has a role in regulating the individual energy companies that are part of this mix. I am not sure what the hon. Lady’s final point has to do with this particular planning application, but I am happy to write to her on that.

[Chris Murray (Edinburgh East and Musselburgh) (Lab)]

9. What assessment he has made of the potential impact of the middle east conflict on energy security.

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[Sarah Gibson (Chippenham) (LD)]

10. What recent progress he has made on improving connections to the electricity grid.

[The Minister for Energy (Michael Shanks)]

We are taking a strategic approach to planning grid capacity and halving transmission build times through reforms to consenting, regulation and supply chains. We are working with the National Energy System Operator and Ofgem to deliver on radical connections reform, prioritising those projects that are ready to connect and strategically aligned, and to speed up access to the grid nationwide.

[Sarah Gibson]

The grid connections reform process was intended to improve investor confidence by removing zombie projects and prioritising shovel-ready projects, but repeated delays from NESO mean that many developers are still waiting for their gate 2 connection offers, even for projects that are due to connect in 2026 and 2027. This is extremely damaging for investor confidence. Given the importance of the connection reform to the Government’s clean power 2030 ambitions, will the Minister tell us how the Government are ensuring that NESO and the network companies are working at pace to issue those gate 2 connections as soon as possible?

[Michael Shanks]

The hon. Lady asks an incredibly important question, and I share her frustration. I have reflected that frustration to all those involved in this process. It is worth remembering that we had more than 600 GW in a queue, and that this process has cleared out 300 GW. That was incredibly complex, and it is the first time that any country in the world has sought to do it. It is the first time that we have done it. Clearly we have learned a lot of lessons, but the process needs to proceed much faster than it has to date. There is a clear timeline to that happening, and the first gate 2 offers are going out now. I will continue to be closely involved in ensuring that happens. It is now a partnership between NESO and the transmission owners to get those offers out the door, and I will be doing everything I can to ensure that happens.

[Mary Glindon (Newcastle upon Tyne East and Wallsend) (Lab)]

11. What discussions he has had with private sector representatives on securing investment in clean energy industries.

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[Callum Anderson (Buckingham and Bletchley) (Lab)]

T7. I recently visited the Gawcott Fields Community Solar project, which is a local solar farm that uses the income from the clean energy it produces to invest in energy saving and environmental projects, and it is anticipated that it will invest £2.8 million over 25 years. Can the Minister update the House on how the Government will use the local power plan to ensure that even more of my communities—particularly rural and low-income ones—can take control of their own energy?

[The Minister for Energy (Michael Shanks)]

I congratulate all those in my hon. Friend’s constituency on what sounds like a fantastic project, and it is an example of what we want to see all across the country. The local power plan unlocks £1 billion of investment, with the ambition that communities right across the UK should be able to own and operate their own energy infrastructure, and the profits from that should flow into local communities.

[Stephen Gethins (Arbroath and Broughty Ferry) (SNP)]

T5. Mr Speaker, the energy bills crisis is happening right now, but you might not know that from Ministers’ responses today. The Scottish Government’s actions have helped to deliver clean, green, renewable energy as a net exporter, bailing out the UK Government in terms of heating oil as well. Will they work together, and will they respond positively to the First Minister’s call for a four nations summit?

[Michael Shanks]

We do work very well together, actually, contrary to what it might appear from the hon. Member’s contribution. He suggests, quite wrongly—twice now—that Scotland is generating all this electricity by itself. Of course, those projects are funded by bill payers across the UK investing in that infrastructure. His plan seems to be to take a third off energy bills with independence, with absolutely no credibility whatsoever.

[Mark Sewards (Leeds South West and Morley) (Lab)]

T9. Small firms are being hounded by unregulated third-party energy brokers. I welcome the Department’s commitment to appoint Ofgem as the statutory regulator for third-party intermediaries. When will the Minister introduce that legislation, and how will the Department work with Ofgem to end cold calling and misrepresentation in the non-domestic market?

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[Leigh Ingham (Stafford) (Lab)]

The Minister knows that Stafford residents are passionate about solar power, and they would like to see the Government go further, with a commitment to solar panels on all new car parks and industrial buildings, like they see in Europe and in France particularly. Does the Minister agree that this policy would help to reduce energy bills for homeowners, as well as protect our rural land, and will he meet me to discuss my campaign?

[Michael Shanks]

I am always happy to meet my hon. Friend, so I will do that. She is right: we want to cover as many rooftops in the country as we can with solar panels. Just today we have announced that plug-in solar will be available in the UK in the summer, allowing renters and others across the world to go into a supermarket, buy some solar panels, plug them in and save money. That is part of what we want to do to bring down bills across the country.

[Chris Coghlan (Dorking and Horley) (LD)]

The green firms that innovate the most, and young firms, have been shown to be particularly credit constrained. Will the Minister meet me to discuss what measures the Government are taking to increase credit supply, raise research and development, and increase economic growth?

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[Harriet Cross (Gordon and Buchan) (Con)]

We keep hearing the argument that it will take five to 10 years for new oil and gas to flow, and that therefore there is not point to starting new drilling, but the operators of Jackdaw and Rosebank say that both could be producing by the end of the year—it only needs the Secretary of State to approve that. Why is he denying the UK that supply of domestic fuel?

[Michael Shanks]

Those projects are continuing at the moment at the developers’ own risk. They are subject to a process, which the Conservative party will understand because this matter ended up in the courts under the previous Government. We are dealing with that process. Ultimately, none of those projects would take a penny off bills—that is the argument we are making. The Conservatives have no plan for bringing down bills; we have.

[Tristan Osborne (Chatham and Aylesford) (Lab)]

Medway Maritime hospital in my constituency is benefiting from a £25.9 million investment to introduce heat pumps and other measures. Does the Minister agree that we could invest in public sector provision to reduce bills in schools, hospitals and other buildings across the country?