Oil and Gas
Pippa Heylings Excerpts(6 days, 22 hours ago)
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Pippa Heylings (South Cambridgeshire) (LD)
We need to be clear that this energy crisis is, in effect, an oil and gas crisis and shows us yet again just how dangerous our overdependence on fossil fuels is. Just as with Russia’s invasion of Ukraine, the middle east conflict shows how a single geopolitical escalation can send energy prices soaring, leaving households and businesses here in the UK exposed to shocks beyond their control. History is now in danger of repeating itself: families struggling with higher gas, petrol and food prices while energy companies’ profits surge. Forecasts from Cornwall Insight suggest that, if the conflict continues, energy bills could rise by £332 this July—a £332 Trump war tax on our energy bills.
Yet what do we see in the Conservative response? More drilling, more dependence, more of the rollercoaster of volatile fossil fuel prices. Alongside Reform UK, the Conservatives who are here today to mislead the public on the need to “Drill, baby, drill” are the same ones who were gung-ho in urging the Prime Minister to join Trump in the illegal war that caused this very crisis.
Claire Coutinho
Can the hon. Lady explain why the production of oil and gas makes us more reliant on the consumption of oil and gas? Will she consider the example of Norway, which, despite exporting oil and gas, and getting tax revenue from it, has high electric vehicle penetration? Why does she conflate these issues?
Pippa Heylings
I believe that the Minister answered that question. Norway has a very different system, and it made different decisions about consumption, based on the faster and greater adoption of techniques and heat pumps. The dither and delay under the previous Conservative Government meant that we did not move forward and reduce consumption.
The truth is that expanding oil and gas production in the North sea—a mature basin from which we have already extracted 93% of resource—would do nothing to cut people’s energy bills, because any oil and gas extracted is sold on international markets to the highest bidder. Nor would it influence global prices, given that the UK can contribute only a tiny fraction of the global supply, even if new licences were granted. It would neither cut bills nor increase the security of supply.
Research by Uplift shows that fields licensed by the previous Conservative Government over 14 years have produced just over a month’s worth of gas to date. Energy security is national security; as long as we rely on fossil fuels, we rely on foreign dictators and petrostates. Trump’s national security report was clear: he will use his gas to project power, turning it on and off at will. The Conservatives and Reform have shown that when Trump says “jump”, they ask, “How high?” That is not energy security; it is energy surrender.
Harriet Cross
Just to confirm, is the Liberal Democrats’ position that they do not want new licences in the North sea?
Pippa Heylings
I can confirm that the Liberal Democrat position is not to support new fields for exploration in the North sea. Rather, we should accelerate our own home-grown clean energy, the price of which we control. Otherwise, our constituents will forever be at the mercy of a deteriorating world order.
Pippa Heylings
Let me turn to jobs, which matter deeply. Those working in the North sea are skilled workers. They have kept our lights on, and must be at the heart of any transition. A just transition recognises that, although we will need oil and gas for decades to come, the North sea is a mature basin, and oil and gas workers, as well as supply chains, need support to transition. Even though the Conservatives supported new North sea drilling, the number of jobs in the oil and gas industry fell by 70,000 when they were in government, but without this level of outcry or support.
I grew up in Hull—a city that knew the devastation of unmanaged transition. I saw, through my father’s work as a GP, the human cost of industries collapsing without a plan. Dockers, trawlermen and entire communities were left behind and lost pride. We must not repeat those mistakes. Yet in Hull today, we also see what success can look like. With investment in offshore wind, companies such as Siemens are creating skilled, well-paid jobs for the future building wind turbine blades—that means jobs and pride.
Pippa Heylings
Let me turn to climate change. Although fossil fuels are driving skyrocketing costs, they also drive the costs of the unabated climate change that is already hitting our farmers and our communities, through crippling flooding and droughts. Approving Rosebank alone would add nearly 250 million tonnes of emissions, pushing us beyond our climate targets and further out of line with the Paris agreement, which aims to protect us all. Opening new fields would worsen the climate crisis without cutting bills or improving energy security. It would exacerbate climate breakdown, which is a national security threat that drives instability, displacement and economic shocks.
Richard Tice
The hon. Lady criticises us for trying to extract oil and gas, so does she also criticise Norway’s successful and excellent programme of drilling 49 new wells last year? We drilled none.
Pippa Heylings
We have been taking out less gas for decades now, and those decisions were taken by successive Governments. We have seen the assessment on the security of gas supply: Norway’s geological situation shows that it has more left, while our basin has less and the supply is dwindling. Expanding North sea drilling is not pragmatic; it is reckless and incompatible with the UK’s climate commitments.
There is another path, however. The Liberal Democrats have been clear that we must break our overdependence on fossil fuels and decouple gas and electricity prices so that households benefit from cheap, clean power. The more we expand renewable clean energy through contracts for difference—provision introduced by the Liberal Democrats—the less gas sets the price, so families and businesses could have fixed renewable energy prices. We would go further in taking policy costs off energy bills, so that households feel in their pockets that the wind and the sun are cheaper than gas. We must also make homes cheaper to heat in the winter, and cool in the summer, with a more ambitious warm homes plan and a 10-year emergency home upgrade programme.
We should build on the Liberal Democrat success by getting the Government to commit today to putting rooftop solar on all new builds. Rejoining the EU’s internal energy market would reduce wholesale costs, make the trade of energy more efficient, and avoid higher costs. More drilling means more volatility, more insecurity and higher bills. The Liberal Democrats offer a different path: decoupled gas and electricity prices, and the lower bills that families and businesses deserve.
Sir Alec Shelbrooke
On the subject of the hon. Member for South Cambridgeshire (Pippa Heylings), it was a shame that she did not take my intervention, because she may have been able to answer this question. She was very keen to talk about what happened under the Conservative Government and how we need to have renewables, but does my right hon. Friend the Member for Beverley and Holderness (Graham Stuart) find it incredulous that at no moment did the hon. Member for South Cambridgeshire mention that it was Nick Clegg who cancelled all the nuclear power stations? He said that he was not going to invest in something that would not come along until 2022.
Draft Electricity and Gas (Energy Company Obligation) (Amendment) (Specified Period) Order 2026
Pippa Heylings Excerpts(1 week ago)
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Pippa Heylings (South Cambridgeshire) (LD)
The extension of the ECO scheme until December will be welcome news for the numerous insulation installers who have faced significant instability after the ECO scheme cliff-edge cut in the November Budget. However, the Liberal Democrats remain frustrated at the original decision to scrap the energy company obligation. Energy retrofit firms warned of a supply chain collapse after the Government pulled vital funding for upgrading damp, mouldy and draughty homes for the poorest households, as well as pulling funding from the small and medium-sized contractors that deliver the work. I am now hearing of thousands of redundancies among skilled installers coming down the line. What a waste and a crying shame—putting businesses and livelihoods at risk over this period.
It is also concerning that there are no carry-over arrangements for when the scheme ends. The National Insulation Association made its concerns clear in the consultation, opposing the cut and saying that any extension should come with a pro rata increase in obligation levels. Equally, the lack of detail in the warm homes plan for ECO’s replacement, with a suspected 18-month delay to delivery, means that next winter there will effectively be no operational national fuel poverty strategy. Given the middle east energy crisis, reducing energy demand is one of the best ways to help lower-income households reduce bills. Improving building fabric could cut heat demand by 15% to 20%, which would also help to reduce risk and balance the grid, reducing the peak heat gap in winter, as research by Energy Systems Catapult shows.
It is shocking that 90% of solid-wall homes are still uninsulated. That is why the Liberal Democrats keep calling for a 10-year emergency home upgrade scheme that would offer free insulation to low-income households.
Draft Warm Home Discount (England and Wales) Regulations 2026
Pippa Heylings Excerpts(1 week, 5 days ago)
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Pippa Heylings (South Cambridgeshire) (LD)
We agree that bringing down energy bills is a priority. It is especially necessary given the crisis in the middle east, which exposes families and small businesses once again to soaring fossil fuel prices, as seen in the spike in price for those who must use oil for heating, including in my constituency of South Cambridgeshire. The Liberal Democrats therefore agree with the extension of support through the warm home discount until 2031 to support those in fuel poverty. The Government should also consider other measures, such as tackling the growing energy debt, which is a spiralling crisis in this country, and creating a social energy tariff, for which the Liberal Democrats have long called. It is crucial to ensure that such support, including support from energy suppliers, is targeted to reach those who need it most.
Although the legislation before us updates some important data sharing provisions for the warm home discount, I urge the Minister to learn the lessons of the covid pandemic and the 2022 energy bill crisis and immediately enact a data sharing scheme between more Government Departments—not only DWP but the NHS and others—to determine eligibility. I also urge the Minister to devolve that scheme, where necessary, to local authorities to enable them to deliver targeted support to those who need it most. Meanwhile, we need to urgently decouple gas and electricity prices so that families and businesses feel the benefits of the clean energy transition and are not on the rollercoaster of volatile global energy prices.
We also call for a swifter roll-out of the warm homes plan. The cheapest form of energy is that which we do not use, and an effective insulation programme for struggling families across the country would bring down bills and lift households out of fuel poverty. The Government’s changes to the energy company obligation programme have meant that we have an effective delay of about 18 months to insulation programmes, which has put hundreds of small and medium-sized upgrade and retrofit companies at risk. The changes also potentially mean that this winter a Labour Government does not have an operational national fuel poverty strategy.
Heating Oil Support
Pippa Heylings Excerpts(2 weeks ago)
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Madam Deputy Speaker (Caroline Nokes)
I call the Liberal Democrat spokesperson.
Pippa Heylings (South Cambridgeshire) (LD)
We welcome the Government finally taking action to protect households from soaring energy costs due to the middle east crisis, following calls from those on the Liberal Democrat Benches and MPs of all parties. However, today’s intervention is a sticking-plaster solution, with too many households potentially falling through the cracks and not receiving support. We have heard that those families who must use oil for heating are the most exposed and defenceless, caught in the crossfire of Russia’s war in Ukraine and now the volatility in the middle east.
The heating oil market needs regulating. The Liberal Democrats are calling for the immediate introduction of a three-month VAT holiday on heating oil, as well as a proper price cap, because these households deserve the same protection as those that use gas and electricity. The real way to protect households and businesses is not by parroting Trump’s “Drill, baby, drill” mantra and buckling in for more roller-coaster rides that burn a hole in people’s pockets but by accelerating the transition to secure, home-grown clean energy that we control and extending preferential treatment to the warm homes plan, to help those homes that use heating oil to electrify and get off volatile fuel that we do not control.
Will the Government agree with the Liberal Democrats and set a price cap for heating oil to shield off-grid households? Also, if the Government want to provide targeted support, will they learn the lessons from the covid pandemic and the 2022 energy crisis and immediately enact a data-sharing scheme between Departments, including the Department for Work and Pensions and the NHS, and devolve this to local authorities to enable them to deliver targeted support to those who need it the most through, right now, the crisis and resilience fund that they want to be adopted on 1 April?
Martin McCluskey
I thank the hon. Lady for her constructive tone, for working together on some of this, and in particular for her comments on the need to move towards a transition to ensure our energy security and, ultimately, to lower bills.
On the hon. Lady’s point about a cap, the market for heating oil, as she will know, is very different from the market for electricity and gas. The reason that the price cap was introduced many years ago was the potential loyalty penalty that existed, whereby consumers who were with an individual company for a long time were penalised for that. Heating oil, by contrast, is supplied through a highly competitive market. That is why we have asked the CMA to look at this in more detail and we will examine its findings to establish what regulation may be required.
On the hon. Lady’s comments regarding the warm homes plan, the low income fund will target many of those people. She may also be interested to know that about 50% of the grants given out under the boiler upgrade scheme are to rural homes, many of which will be in this situation, that are transitioning from oil heating to electrified heating through a heat pump.
Energy Markets
Pippa Heylings Excerpts(3 weeks, 4 days ago)
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Madam Deputy Speaker (Judith Cummins)
I call the Liberal Democrat spokesperson.
Pippa Heylings (South Cambridgeshire) (LD)
The conflict in the middle east reminds us again how dangerously exposed the UK is to volatile global fossil fuel markets. Forecasts by the Joseph Rowntree Foundation have shown that, just as happened after Putin’s illegal invasion of Ukraine, energy bills could go up dramatically, placing further pressure on families and businesses that are struggling, while energy companies make profits. The leader of the Liberal Democrats, my right hon. Friend the Member for Kingston and Surbiton (Ed Davey), asked the Prime Minister yesterday to give a cast-iron guarantee that he would not let energy bills rise by £500 this year, but he did not. Will the Secretary of State give that guarantee?
Why are we so exposed? Because of our heavy reliance on gas, limited storage capacity, dependence on imports, and falling domestic liquefied natural gas inventories. As recently as January, the Conservatives were arguing in favour of continued reliance on gas, due to the price falling at that time, but it has taken less than two months for them to be proven wrong. Meanwhile, given the instability in European energy markets caused by the ongoing conflicts, I am glad to hear that the Secretary of State has engaged with energy counterparts in the EU. I would like to hear more details of their analysis of the potential impact on supply, prices and regional energy security.
Ed Miliband
I agree with the hon. Lady on her fundamental point about why we are exposed. Cost of living support is obviously a matter for the Prime Minister and the Chancellor, but I reiterate to her that the Chancellor showed a willingness to act on these issues in the Budget because she recognised the pressures that families are facing, and that the cost of living crisis is by far the biggest issue facing our country. At Prime Minister’s questions, the Prime Minister again reiterated that we are carefully monitoring the situation. The Government have shown their willingness to intervene, and if necessary, we will intervene again.
On the wider points that the hon. Lady makes, the most important thing to emphasise is that we have to go back to the fundamentals. That means driving forward with clean power and the insulation of homes. Our European counterparts, whom she asked about, face similar challenges. Through the International Energy Agency, we are all engaged on some of the issues around oil stocks that I raised in my statement. She is absolutely right that co-operation with our European colleagues is particularly vital at this time.
Local Power Plan
Pippa Heylings Excerpts(1 month, 2 weeks ago)
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Madam Deputy Speaker (Caroline Nokes)
I call the Liberal Democrat spokesperson.
Pippa Heylings (South Cambridgeshire) (LD)
The Liberal Democrats welcome the Government recognising what communities across the country have been saying for years: community energy is one of the most powerful ways to cut bills, rebuild trust in the energy system, rebuild local resilience and take people with us on the journey to net zero. We campaigned hard to see community energy written into the Great British Energy Act 2025, alongside many people—although not everybody here today it seems—in this House and the other place, and alongside community groups such as the South Cambridgeshire Climate and Nature Group and other community organisations across the country.
We believe in localism, empowerment and giving communities a real stake and ownership in our clean energy future. I thank the Minister for working with us to make sure that we did get that into the 2025 Act. As we rightly move away from volatile fossil fuel costs controlled by foreign powers, we must ensure that our new clean energy system puts communities first. It must mean giving people the power to generate, own, and, crucially, sell their own clean energy locally, with profits reinvested in the places where the energy is produced.
We welcome the local power plan in principle, but the devil is in the detail. First, what happened to the Government’s pledge of £3.3 billion for community-owned energy, when today we are hearing about £1 billion of investment? We do not want to follow the Conservative Government’s retreat from ambition on local clean power. It is not the time to scale back ambition.
Secondly, on the crucial issue of local empowerment, regulation is needed. Organisations such as Power for People constantly told us that there are, as the Secretary of State said, barriers to access fair local markets. They welcome this plan, too, echoing the Minister’s promise that the Government will establish local energy supply models. The local power plan—I have looked through it very quickly—talks about the regulatory changes necessary, but when will they come through? The energy transition has to happen not to communities, but with them—
Oral Answers to Questions
Pippa Heylings Excerpts(1 month, 2 weeks ago)
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Pippa Heylings (South Cambridgeshire) (LD)
The cost of electricity is still too high, and, as we have heard, businesses are struggling to pay their energy bills. While the Government have offered help to the energy-intensive industries, it is the small and medium-sized businesses in my constituency and around the country that still feel overlooked and forgotten. Liberal Democrat researchers have estimated that 3.1 million SMEs saw a total bill increase of £7.6 billion when the Conservative Government ended the energy bill relief scheme. When will this Government finally help SMEs—the small businesses, the backbone of our economy—to see off their crippling energy bills?
Chris McDonald
The hon. Lady and I agree that more needs to be done to alleviate the high energy costs for small businesses. I used to run an energy-intensive small business myself, and I know how difficult that is. She is also right to point out that this is the legacy that the last Government left us.
We are pushing forward to 2030, when we will have lower energy costs and more secure energy in the UK, but we recognise that more needs to be done to support small businesses—although we are already helping with measures such as our zero carbon services hospitality trial, which is now delivering support for 600 hospitality SMEs across the UK, and the provision of £200,000 to fund improvements in the UK business climate hub and help SMEs with their carbon emissions.
Pippa Heylings (South Cambridgeshire) (LD)
Trump’s national security report made it clear that he wanted to use America’s gas to project geopolitical power. We must not replace Putin’s gas with a reliance on Trump’s gas. That is why signing the Hamburg declaration was a step in the right direction, strengthening energy co-operation with our European neighbours. We need to go further, and we should host the next North sea summit, demonstrating UK leadership. Has the Secretary of State managed to get the Treasury to see sense and agree to hosting the next summit?
Ed Miliband
Not yet, but the hon. Lady makes a really important point, which is that energy security from home-grown clean energy is important here, but that we should also work with our European allies.
Warm Homes Plan
Pippa Heylings Excerpts(2 months, 1 week ago)
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Madam Deputy Speaker
I call the Liberal Democrat spokesperson, who has two and a half minutes.
Pippa Heylings (South Cambridgeshire) (LD)
We have been asking for the warm homes plan for Christmas for the past two years. It is better late than never, but we have mixed feelings in unwrapping it. The Liberal Democrats have long called for an emergency home energy upgrade scheme with free insulation and heat pumps, and we have recently submitted proposals for low-interest loan schemes, so we really welcome this significant investment by the Government in low-carbon heating.
It is folly for anyone to think that we can rely on Putin’s Russia or Trump’s America for the gas to heat our homes, so it is right for the Government to help households make this shift. Every solar panel, heat pump and battery installed will protect families from volatile fossil fuel costs and make homes cheaper to both warm and cool, which is a key point. However, I share the concerns of the energy efficiency sector about the balance that is being struck between insulation and electrification. As the Secretary of State said, we have seen fuel poverty rise and rates of insulation fall over the last five years, and the UK has some of the least energy-efficient housing in Europe, leading to serious health problems and cold, damp, Dickensian home conditions.
Despite our warnings, there is still no clarity in this plan about what will replace the ECO programme, leaving supply chains in limbo and skilled installers going bankrupt. The delay—I will call this out—could leave us without an operational national fuel poverty strategy over the coming winter. We hope that is not the case, and we will therefore hold the Government to account on this and other things that have been mentioned. The gas and electricity price reform has been postponed again, and efficiency standards for landlords have been weakened.
Thank you so much for taking on board the rooftop revolution on the back of the New Homes (Solar Generation) Bill introduced by my hon. Friend the Member for Cheltenham (Max Wilkinson), but the future homes standard is still missing in action. We cannot afford more failures. We welcome this significant investment, and there is no time to waste.
Madam Deputy Speaker
I welcome the hon. Lady’s thanks, but it is not down to me; it is down to the Secretary of State. We must stop using the word “you”.
Oral Answers to Questions
Pippa Heylings Excerpts(2 months, 3 weeks ago)
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Pippa Heylings (South Cambridgeshire) (LD)
Thank you, Mr Speaker, and happy new year.
It is freezing outside and, tragically, more than 4,000 households in my constituency are living in fuel poverty. The Government’s decision to cut the energy company obligation, which was the key mechanism for delivering home insulation and energy efficiency, without any details about what will replace it, risks pushing more families into fuel poverty. The businesses and supply chains that have fulfilled ECO contracts for more than a decade have been left in limbo. Again, we have heard no date for the plan. Will the Secretary of State or the Minister finally say when it will be released, thus ending uncertainty for businesses and the suffering of households?
Martin McCluskey
The warm homes plan will be published soon and I look forward to conversations with the hon. Member about how we roll out its ambitious measures. ECO did not target those in fuel poverty successfully enough—we spent far too much on something that did not deliver the right results. Instead, the warm homes plan will provide £1.5 billion of additional capital support, targeted at people on low incomes. That is in addition to, for example, local authority grants, which target billions of pounds at low-income households. However, I am more than happy to have further conversations with the hon. Member when the warm homes plan is published.
Pippa Heylings (South Cambridgeshire) (LD)
Brexit excluded us from the EU’s internal energy market, costing the UK a huge £350 million annually. Will the Secretary of State confirm how he will accelerate progress towards the UK-EU internal electricity trading agreement to bring down costs and ensure energy security in these volatile times?
Ed Miliband
The hon. Lady makes an important point, which is that we need to make sure we take advantage of co-operating with our European neighbours. One way we can do that is the internal electricity market, and we will be negotiating on that basis. We will obviously look at the costs and benefits for the UK, but anything we can do to lower costs, lower bills and co-operate with our European neighbours to our advantage is what we should be doing.
COP30
Pippa Heylings Excerpts(4 months ago)
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Pippa Heylings (South Cambridgeshire) (LD)
COP30 was the first climate summit since the world experienced a full year of global warming above 1.5°C. That is a stark reminder of the urgency we collectively face. At home, due to extreme weather, our farmers faced their worst harvest on record and lost billions in income from arable crops, while we saw devastating wildfires, doubling records, that wiped out national parks and local environments that are precious to everyone. These are the costs of inaction and climate breakdown here in the UK.
I was proud to be part of a cross-party group of MPs who attended this COP and to carry with me the hopes of young people in South Cambridgeshire who sent me pictures, videos and poems. Freya, aged 11, wrote:
“I don’t want to just inherit my future. I want to be able to shape the decisions and actions that others are taking on my behalf, because I am afraid.”
I want to commend Brazil, the Secretary of State, the UK negotiating team and all those who worked tirelessly to keep the COP process alive, despite relentless attacks from climate denialism, delay and deception. The multilateral system is far from perfect, but it is the best alternative we have for global co-operation on climate change. There were positives: the pledges to cut methane; the recognition of the links between climate, nature and public health; the commitment to triple adaptation finance, which we know from Hurricane Melissa in Jamaica is absolutely critical; and the demonstration by business that the transition is an economic imperative and opportunity.
The global climate action agenda is just so inspiring and has a massive impact, but we know that hope was not matched by delivery: there is still no credible plan to reduce the gap between current national commitments and the reductions needed to stay below 1.5°C; the refusal to reference fossil fuels and the transition away in the final text, despite it being the root cause of the crisis, was a staggering failure; and the Prime Minister’s unexpected and inexplicable decision not to support the Tropical Forests Forever Facility was really, really disturbing. This was what Brazil launched: an innovative investment facility to save tropical forests and give them a value while standing.
Ed Miliband
I agreed with much—not all—of what the hon. Lady said. On her overall point about the fact that we have so many countries driving forward with action, she is absolutely right. On her point about the gap to achieving 1.5°C, she is also absolutely right. In a sense, part of what the future of these COPs will be about is each country driving others towards greater ambition, because we know we need greater ambition. It is also important to look at where the world has come from. The multilateral process has all kinds of maddening aspects to it, but it has definitely made progress. On the point about business, she is absolutely right and that is really striking. The fact of the agreement and the fact of this staying on track is an important signal to business, just as the Climate Change Act 2008 is an important signal to business here at home.
On the hon. Lady’s point about the TFFF, let me say candidly that we have a very difficult fiscal situation in this country. We have not ruled out contributing to investing in the TFFF in future. It is, as the Prime Minister said, something that we will keep under review. Overall, I thank her for her support, because we want to keep as much of the cross-party consensus as we possibly can on this really important matter.