National Energy System Operator: Blackout Risk

Debate between Michael Shanks and Iqbal Mohamed

Wednesday 15th July 2026 Commons Chamber

[Michael Shanks]

First of all, investment is necessary to bring down the costs in the long term. We are currently paying to constrain the renewables that are generating often much more electricity day after day than we are able to get to homes and businesses. Instead of doing that—paying to both turn off wind and turn up gas somewhere else in England to fill the gap—we should be building a transmission system that brings that clean power to houses and businesses across the country. That requires an initial investment, but that investment is repaid, long into the future, from the virtually free fuel that comes from solar and wind. Many, many projects were built under the previous Government and I am very happy to champion those projects, but the problem is that they did not connect them.

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

I welcome the Minister’s response so far, amid the shocking allegations that staff covered up the greater risks of power blackouts during the recent heatwave, but it is not just heatwaves and climate change that are increasing demand for electricity. Artificial intelligence data centres are expanding rapidly across the UK and internationally, bringing with them significant demands not only for electricity, the demand for which is estimated to double globally by 2030, but for water for cooling, land, construction and infrastructure. Will the Minister set out what steps his Department is taking to ensure that the rapid expansion of AI infrastructure does not compromise our energy security, increase the risk of supply shortages or blackouts, place unsustainable burdens on local infrastructure, or leave local communities bearing the costs while others reap the benefits?

[Michael Shanks]

The hon. Gentleman asks a number of important questions about the role of data centres in the future of the country. First, there is a real opportunity if we get this right, but I take his challenge about properly planning where they should go. Data centres are an opportunity to soak up some of what we are currently constraining, which will actually bring down bills. If we can deploy them in the right places, we get a greater customer base for electricity, rather than consumers paying to switch off.

Secondly, AI is a huge opportunity for us as a country and it will become increasingly important to have sovereign capability here in the UK. In the energy space, there is a real opportunity to utilise AI to run the system in an even more efficient way. The hon. Gentleman is right to say that we have to get this absolutely right so that local communities get the benefits and not any downsides. We are working through a data centre strategy with my colleagues in the Department for Science, Innovation and Technology. On the energy side, we are working to ensure that we are getting the best possible locations for the benefit of the energy system and consumers.

Oral Answers to Questions

Debate between Michael Shanks and Iqbal Mohamed

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.