Oral Answers to Questions
Seamus Logan Excerpts(1 week ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Kerry McCarthy)
My hon. Friend is a real champion for his constituency, and for the benefits that the development of fusion will bring. We continue to invest and to have discussions with international counterparts. There is a very bright future for fusion, and for his constituents as a result.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
The Minister will be aware of the switch-on of Moray West offshore wind farm at Buckie, in my constituency, last week, creating jobs, delivering clean energy and helping our nation to achieve net zero. Does the Minister accept that the current transmission charging regime poses significant and immediate threats to investment in offshore wind in Scotland? Will he meet me and industry representatives to explore that matter further?
Michael Shanks
We were delighted to switch on the wind farm; the Secretary of State for Scotland was there to push the button last week. It is a fantastic example of the potential of offshore wind. Of course, I am happy to meet the hon. Gentleman. I have already met him, and had a very enjoyable conversation, and I am very happy to talk about the issue. The review of the electricity market arrangements that we are going through will look at the issue of transmission charges. It is an important conversation to have, and I am happy to speak to him on the subject.
North Sea Oil and Gas Workers: Transitional Support
Seamus Logan Excerpts(1 week, 6 days ago)
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Seamus Logan (Aberdeenshire North and Moray East) (SNP)
It is a pleasure to serve under your chairship, Sir Desmond. I thank my hon. Friend the Member for Aberdeen North (Kirsty Blackman) for securing this important debate and for her thoughtful and passionate speech introducing it. Many colleagues have made excellent speeches, and I will not repeat their points.
The just transition must be both just and fair, so that sectors and communities are not left on the industrial scrapheap as they were during the Thatcher years. If the just transition means anything, it must mean something for the north-east of Scotland. It cannot be left to the market alone to sort those things out. To give one small example, I have recently been lobbied by the plumbing industry. A crisis is coming in a few years’ time because the financial problems facing the training and education sector mean that it cannot possibly meet its demands. One thing the Minister could do is nudge the private sector to invest in apprenticeships in those areas, so that we are preparing alternatives for young people as North sea basin declines.
The Scottish Government set up their Just Transition Commission in 2018 to provide scrutiny and advice on delivery. Northern Ireland is currently consulting on setting up its own commission; Wales established its commission in 2013. Where is the UK-wide just transition commission? The UK Government launched their North sea consultation in March as
“a dialogue with North Sea communities”
to develop a plan for making the best of this transition. I trust that in his closing remarks the Minister will tell us how that is going.
The chairman of GB Energy—perhaps the flagship project of this Government, with its headquarters in Aberdeen—described its work as “a very long-term project,” with the much-promised 1,000 new jobs taking perhaps 20 years to realise. Even then, it will be a mere drop in the North sea when it comes to replacing the jobs that will be lost in the years ahead. Unite’s Scottish secretary Derek Thomson recently said:
“If you look at how many jobs are going to go in the north-east, if GB Energy does not pick up the pace and start to move workers in there and start to create proper green jobs, then I’m afraid we could be looking at a desolation of the north-east.”
“Speeding ahead” is an interesting choice of words for the Secretary of State in this context, given that any decision on funding the Acorn project at St Fergus is now in a most uncertain position in the June spending review.
I have been asking about this since I was elected. The UK Government were able to find £22 billion for carbon capture schemes in Merseyside and Teesside last autumn, but they could not dig deep enough into their pockets for Scotland, which has much of the infrastructure already. I await June’s announcement with trepidation as speed and commitment to North sea communities in the north-east of Scotland have been thin on the ground so far from the UK Government. Will the Minister please give us a clue about the Government’s plans?
The Acorn project, the new power station at Peterhead and the investments in key strategic ports at Peterhead and Fraserburgh are key components of the just transition. A Robert Gordon University review of UK offshore energy workforce skills transferability showed that 90% of the oil and gas workforce have transferable skills to work in adjacent energy sectors. The just transition needs buy-in from the UK Government. It cannot be left to market forces, which are even more unpredictable in the current political climate, thanks to Trump and the ongoing energy crisis, and of course Putin too.
Households are facing a third rise in energy costs since Labour came to power. Indeed, the vast majority of the UK’s offshore wind capacity is owned by companies outside the UK. The typical North sea turbine contains more than three times as much material from abroad as it does from domestic manufacturers. The wider context is an energy market that is, paradoxically, working against both the interests of the consumer and the companies and investors who want to realise the green energy industrial revolution. If Members do not believe me, they should take a deep dive into zonal pricing.
The clean industry bonus, an extra revenue support in contracts for difference rounds, has the potential to bring quality jobs to the UK and in particular Scotland and the north-east of Scotland, but there is an absence of detail on whether specifics such as job quality will be a requirement for investors to receive financial support from the Government. Does the Minister acknowledge that private investment does not necessarily guarantee good, secure jobs? How will he ensure that the clean industry bonus delivers good-quality jobs in Scotland and supports workers currently reliant on the North sea oil and gas industry?
Andrew Bowie
Of course, the hon. Gentleman is right that it is a declining basin—everybody is aware of that—but we must be careful about the language we use about it. We should point out the positives that can be achieved through further investment and recognise the profits being realised by energy companies engaged primarily in the extraction and exploitation of oil and gas underneath the North sea. They will be investing in those new technologies, and they need to convince shareholders—who are deciding whether to invest in the middle east, south-east Asia, the United States of America or elsewhere in the globe—that the North sea is still an attractive place to invest.
The language that we use about that basin and the industry in the United Kingdom is incredibly important, so I urge the hon. Gentleman to engage with the industry and speak to individuals—as I have; I know that the Minister, the hon. Member for Aberdeen North and others do too—because that is exactly what they tell us. They want to contribute to the transition—indeed, they lead it—but they want the negative atmosphere overshadowing the North sea to change. That means changing some of the rhetoric and language used to describe the industry, which is so important to the economy of the north-east of Scotland.
Seamus Logan
I appreciate the hon. Gentleman’s point about the choice of language, but will he confirm whether he and his party still believe in net zero and the drive towards achieving our climate targets?
Andrew Bowie
Yes, of course we believe in net zero, but not in setting arbitrary targets and dates that are unachievable without making this country poorer or more reliant on foreign imports for our energy supply. The fact is that imports of LNG have doubled just to keep the lights on as we actively accelerate the decline in our own North sea oil and gas industry. That is nonsensical—it is madness. It is an act of national self-harm. We should revert to our policy of maximum economic recovery from the North sea while doing all we can to ensure that the companies involved invest in new technologies.
Oral Answers to Questions
Seamus Logan Excerpts(1 month, 2 weeks ago)
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Ed Miliband
My hon. Friend should not be so shy and retiring. He makes a really important point. I listened to the interim shadow Secretary of State, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), on the radio this morning. He made net zero 2050 sound like a target dreamed up by me, but it is not. It was Theresa May, the former Conservative Prime Minister, who legislated for net zero by 2050. The hon. Member was her Parliamentary Private Secretary at the time—he was supposed to be the man implementing it. She set the target because it was the right thing to do, so that we can have cleaner home-grown energy, get the jobs, and protect future generations.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
The plans for a green generator at the Peterhead power station in my constituency are shovel-ready, but they depend on approval for the Acorn project at St Fergus. On 12 November last year, the Minister for Industry stated in response to a question from me that more information would be available on the track 2 projects “in the coming months.” Given that four months have passed, can the Secretary of State provide an updated timescale and outline what the next steps will be?
Ed Miliband
I support the Acorn project; it is really important. For reasons that the hon. Member will understand, the right time to make decisions will be at the spending review in June.
Fuel Poverty: England
Seamus Logan Excerpts(2 months, 3 weeks ago)
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Ellie Chowns
I thank the hon. Member, and I do plan to comment on that topic.
A lady wrote to me saying that she now lives wrapped in blankets. Constituents have shared with me their particular needs relating to their health conditions and just how damaging it is not to be able to afford to keep warm.
The hon. Member for Normanton and Hemsworth talked about the outrageous profits made by the energy companies, and I share his extreme frustration and distress at that situation. The Government could go even further to ensure that we do not see what is essentially price gouging. Constituents struggling in fuel poverty are the ones who are basically bearing the costs, and at the same time the big energy companies are making profits in the billions each year. It is absolutely extraordinary.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
Far be it from me to intrude on the grief of elected Members in England and their constituents, but this is Westminster, which is currently responsible for energy laws across the UK. Although devolved Governments have a role to play in reducing fuel poverty, the biggest levers of change, as the hon. Member would surely agree, are in the remit of the UK Government. I am thinking of the coupling of electricity prices—when electricity is increasingly generated here, on this island—with the global gas market; the nonsensical decision to cut the winter fuel payment; and the ongoing failure of the Government to reduce fuel bills, which are going up for the third time since July.
Ellie Chowns
I thank the hon. Member for his comments and agree that we must see the decoupling of electricity prices from gas. That situation currently contributes to the problems that people face.
We have established that the problem of fuel poverty is related in part to prices, which the Government have levers to control, but also to Government policies. I would like to talk in particular about three areas: targeted support to households in fuel poverty; insulation policies and how we deal with the housing stock that we already have; and how we ensure that future housing is future-proofed so that nobody who moves into a new house has to pay through the nose for energy.
On targeted support, I have criticised in the House a number of times the Government’s nonsensical decision to completely cancel the winter fuel allowance for all except a small number of people. Very large numbers of people in my constituency have written to me and still do, expressing great distress at the impact of that decision on them. I cannot urge the Government too strongly to reconsider and ensure that next winter we do not have thousands of people in my constituency, and millions of people throughout the country, facing increased fuel poverty because of the Government’s decision to stop the winter fuel allowance for so many who still need it. We also need there to be targeted support—I welcome the comments of the hon. Member for Normanton and Hemsworth about a social tariff—and help to repay for those in energy debt.
On the fundamental structural question of the quality of housing, the problem is essentially that our homes leak heat. People are paying money for energy that is going out the windows, up the chimney and out of the roof. It is a total waste. What will the Government do to tackle this? The previous Government destroyed the energy efficiency programmes. We need a nationwide, house-by-house, street-by-street home insulation programme to ensure that the energy that people buy stays in their homes. I really hope that the Minister will make concrete commitments to go further and faster to insulate homes.
Lastly, new homes must be built to the highest possible energy efficiency standards. If the cheapest time to insulate a home is at the point of construction, why are we not ensuring that all new homes are built to zero-carbon standards, to ensure that all the heat in a home stays in it?
Jim Shannon
I will certainly do the best I can, Mr Efford.
The issue, no matter what, starts in Westminster—it is a fuel poverty debate on England that affects everybody in this great United Kingdom of Great Britain and Northern Ireland—and decisions are made, right here, in this House. With that in mind, I ask the Minister again, will she speak to the relevant Minister on how we can do better?
Seamus Logan
Would the hon. Member agree that reforming energy standing charges would be an easy way to cut costs for consumers, especially those living in rural areas such as in my constituency? It seems absurd that daily standing charges can vary so wildly. Would he agree that they are often higher in areas with huge energy infrastructure, such as my constituency?
Oral Answers to Questions
Seamus Logan Excerpts(4 months, 2 weeks ago)
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Ed Miliband
My hon. Friend is right about this. We must not have short memories here, because the truth is that the cost of living crisis that we saw after Russia’s invasion of Ukraine not only hit families and businesses across Britain, but continues to hit them today. That is why the drive for clean power is so important. Every solar panel we put up, every wind turbine we erect, and every piece of grid we build makes us more secure as a country.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
End of Radio Teleswitch Service: Rural Areas
Seamus Logan Excerpts(5 months ago)
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Dave Doogan
I thank my hon. Friend for his intervention. He has raised a couple of points. One is really important, and that is whether or not customers have an option. They actually do not have a realistic option. The radio teleswitch service is coming to an end at the end of June next year, and they will not want to be in the position where they do not have a smart meter that can toggle between a reduced-rate tariff and a full-price tariff. That would be ruinously expensive.
My hon. Friend also touched on the communication, and the quality thereof, that supply companies are having with their customers. One of the reasons that the uptake is so slow is that people do not have confidence in smart meters—and why would they? There were plenty of problems with the smart meter roll-out just for regular electricity customers who want to know how much electricity they are using. The stakes are far higher for electric-only customers who heat their homes with electricity. They need confidence that their smart meter will actually work. I will come on to that point in a second.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
My hon. Friend mentioned Energy UK, and my hon. Friend the Member for Moray West, Nairn and Strathspey (Graham Leadbitter) mentioned the number of people in his constituency who use the service. I think it is in the region of 3,000 in Aberdeenshire North and Moray East. Those people need clarity about what is going to happen. Does my hon. Friend agree that households need clarity on these proposals, and that the Government should use all means available to them to ensure that the roll-out is fair and that reassurance is provided to customers?
Dave Doogan
The operative word of my hon. Friend’s intervention was “fair”, and I will come on to exactly who owns the risk.
Oral Answers to Questions
Seamus Logan Excerpts(5 months, 3 weeks ago)
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Kerry McCarthy
The final investment decision on Sizewell C, as I understand it, is expected soon. We will hear more about support for that in the next spending review. Fusion energy has huge potential, not just in the long term but from the innovation we are already seeing in that sphere, which I very much welcome.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
The Minister of State, Department for Energy Security and Net Zero (Sarah Jones)
On 4 October, the Government announced £21.7 billion over the next 25 years to launch the UK’s carbon capture, utilisation and storage industry. We will provide further details on the next steps for CCUS, including track 2 projects such as Acorn, in the coming months.
Seamus Logan
I thank the Minister for her encouraging answer. Acorn, including the St Fergus site in Aberdeenshire, not only has a significant role to play in achieving net zero in Scotland, but has the capacity to accept carbon from mainland Europe. This project could help the UK and Europe to achieve their net zero goals, and is significant not only for the port of Peterhead in my constituency, as the Minister knows, but for the local power station, which shares the same integrated ambitions. Acorn presents very significant opportunities, representing hundreds of millions of pounds in new investment, new jobs and economic growth for the north-east, for Scotland and for the UK. Can the Minister accelerate the decision making on the Acorn project, and will she commit to funding in 2025?
Sarah Jones
We are committed to track 2, and I recognise the huge advantages of Acorn that the hon. Gentleman has highlighted. Our record £21.7 billion investment demonstrates our long-term commitment and gives industry the certainty it needs. The ups and downs of CCUS under the previous Government did not provide the certainty that people required, and certainty is what we are looking to deliver. We understand that people want clarity, and we will be making further announcements in the coming months.
Renewable Energy Projects: Community Benefits
Seamus Logan Excerpts(6 months, 3 weeks ago)
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Seamus Logan (Aberdeenshire North and Moray East) (SNP)
I am pleased to serve under your chairmanship, Dr Huq. I thank the hon. Member for Inverness, Skye and West Ross-shire (Mr MacDonald) for calling this important debate.
Aberdeenshire North and Moray East, which I represent, and the constituency of my hon. Friend the Member for Moray West, Nairn and Strathspey (Graham Leadbitter) are the two constituencies most affected by these developments; I do not think anyone would contradict me on that point, which the Minister well understands. How are they affected? Well, the fisher folk are having to move among the pylons, the farmers are having to deal with the pylons and the underground cabling, and these are areas of outstanding natural beauty.
Those are important points to take on board, but I want to speak primarily about community benefit. The principles that guide us are early engagement, flexibility of approach, transparency and the recognition of community needs, but they are not statutory, which is part of the problem. They need to be put on a statutory footing.
In his maiden speech, the hon. Member for Inverness, Skye and West Ross-shire proposed
“that 5% of revenue from all newly consented renewable energy generated both onshore and offshore should be paid to community benefit funds.”—[Official Report, 5 September 2024; Vol. 753, c. 510.]
I find it very difficult to disagree with him on that point.
I also want to give a little bit of perspective. On 2022 figures, UK investment in new wind farms was €500 million; in Scotland it was €2.6 billion. That gives a sense of proportion. In the Highland area at the moment, 301 turbines have been approved under planning rules but not yet built, which far outstrips any other area of Scotland, including the constituency that I represent. In the midst of all this fuel poverty, Scotland’s people—particularly in my area, which is one of the coldest parts of the UK—are paying the highest standing charges in the UK. That has to change.
There are great benefits associated with community benefits given by these companies. I have an excellent example in Fraserburgh in my constituency, where the Moray East project made a substantial donation. I look forward to similar developments in the near future.
Several hon. Members rose—
Mark Garnier (Wyre Forest) (Con)
It is a great pleasure, as ever, to serve under your chairmanship, Dr Huq. I congratulate the hon. Member for Inverness, Skye and West Ross-shire (Mr MacDonald) on bringing forward this important debate. He raised this subject in his maiden speech, so he is clearly passionate about it. As someone who has been here for 14 years, it is a great pleasure to hear so many newly elected MPs bringing fresh perspectives to the House. Parliament is a better place for new MPs coming in and sharing their experiences; two minutes is not enough for some of these speeches.
In his maiden speech, the hon. Member raised valid concerns about the industrialisation of the countryside, which is an issue that all of us, certainly on the Conservative Benches, have consistently guarded against. Our belief is that the need for renewable energy must be balanced with the preservation of rural landscapes, ensuring that development is sustainable and respectful of local communities. Aside from his desire to see money flow back into communities, that is the only way we will get the public to support any plans for net zero and a decarbonised energy grid, as we heard from the Liberal Democrat spokesperson, the hon. Member for South Cotswolds (Dr Savage).
Unfortunately, the new Government immediately began to torment rural communities in their crusade for carbon neutrality by 2030 by removing key protections from the national planning policy framework just days after the election. Those provisions required developers to demonstrate that onshore wind projects had community support and that local planning impacts were properly addressed. In the new Secretary of State’s first week, he disregarded the previous Secretary of State’s legal planning guidance, which stated that the best and most versatile agricultural land must be avoided for new solar farm applications and that the cumulative impact of many solar farm applications must be considered together. Those decisions by the new Labour Government undermine the very communities that bear the burden of hosting new energy infrastructure while ensuring minimal benefit.
Even more concerningly, we understand that the Government intend to consult on bringing large onshore wind proposals into the nationally significant infrastructure project regime, which would further centralise decision making and diminish local input. It is vital that the Government listen to the views and concerns of local communities about onshore wind. Residents should have a say in projects that directly affect their environment and not be sidelined by top-down diktats from Westminster. We must ensure that local voices are heard and that community consent remains central to the planning process for renewable energy projects.
I also note the previous Government’s approach to community benefits and our commitment to ensuring that communities hosting vital energy projects were directly rewarded. We announced plans that people living near transmission infrastructure could receive up to £1,000 per year in electricity bill discounts—I am not sure it was per year, actually—providing meaningful financial relief to local households. In addition to those savings, we announced that funds would be available for local projects, empowering communities to invest in the initiatives that matter most to them, whether that is improving local parks, enhancing energy efficiency or supporting education programmes for young people. We had intended to publish guidance this year on making that a reality, so this debate is timely in allowing the Minister to give an update on all those plans.
When it comes to the impact of new grid infrastructure, pylons across much of our countryside will concern our residents most, and Labour’s accelerated push for pylons across rural landscapes threatens to blight our countryside. The rush to meet unrealistic targets will impose unnecessary visual and environmental costs on rural Britain, with little regard for the long-term impact on our natural beauty. The National Energy System Operator, formerly known as the National Grid, recently published a report that says that while grid enlargement by 2030 means pylons, grid enlargement by 2034 allows enough time to underground those connections and, at the same time, provide £600 million of savings in grid delivery.
The shadow Secretary of State, my right hon. Friend the Member for East Surrey (Claire Coutinho), highlighted during the election campaign that our party remains committed to protecting our landscapes. We propose learning from Germany where underground power lines have become the default presumption in designated areas such as national parks. That approach not only preserves the character of those unique places, but respects the wishes of local communities. Crucially, it could save bill payers money in the long term.
Over the last decade, technological advances have made it increasingly feasible to bury power lines, especially in sensitive areas. Unlike the new Government, we would have undertaken a rapid review to assess the advantages of alternative network technologies compared with overhead pylons. By exploring options such as underground cables and other innovative technologies, we can achieve energy grid decarbonisation without the impact on our countryside that Labour is apparently prepared to accept.
It is vital that we approach the energy transition with a clear vision that balances that transition with the need to protect our countryside and safeguard community interests. Labour’s plans seem short-sighted and fail to strike that balance.
Although we have real concerns regarding the Government’s plans for the countryside, I am extremely supportive of technologies that could have real community benefits—those that are innovative and easy to deliver, and that produce cheaper clean energy. I recently met experts from the University of Oxford and Oxford Photovoltaics, or Oxford PV, to discuss breakthroughs in solar power generation. They are working incredibly hard to produce lightweight solar panels so that the roofs of factories and warehouses can be used for solar panels without having to reinforce the building underneath.
Seamus Logan
Is the hon. Gentleman aware that the National Farmers Union of Scotland accepts the arguments and the case for pylons as opposed to underground cabling?
Mark Garnier
That is great. If people accept pylons, that is absolutely fine, but there are an awful lot of people who do not and we can look at where the alternatives could be cheaper.
Oral Answers to Questions
Seamus Logan Excerpts(6 months, 4 weeks ago)
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Miatta Fahnbulleh
We want to work with anyone who will help us reach vulnerable households. I am very happy to meet my hon. Friend to look at the full range of options available.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
Ofgem’s review of standing charges options paper closed for submissions on 20 September. Can the Minister offer any hope for bill payers in Scotland that they will stop being penalised with the highest standing charges on these islands? When will we see lower charges?
Miatta Fahnbulleh
We as a Government are committed to getting down standing charges. Ofgem has consulted and will report back in due course.
Carbon Capture, Usage and Storage
Seamus Logan Excerpts(6 months, 4 weeks ago)
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Ed Miliband
Let us be absolutely clear about this, because that was a significant intervention from the hon. Gentleman. Here we have what claims to be the party of working people opposing jobs for working people right across the country. That says all we need to know about the hon. Gentleman: outside this House, he pretends to be in favour of good industrial jobs for Britain; in this House, he opposes them.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
I welcome the announcement that has been made, but the Acorn project in St Fergus, between Fraserburgh and Peterhead in my constituency, has been waiting for years, following a promise of jam tomorrow from the last lot. Opposition colleagues have asked for a definitive statement regarding progress on the project. I know that it is a track 2 project, but I am deeply impressed by the extent to which the Secretary of State is prepared to move things forward rapidly, so can he please give us some sort of timescale for the Acorn project today?
Ed Miliband
I am grateful to the hon. Gentleman for the tone of his question. I do understand that, just as track 1 was led a merry dance by the last Government, so too was track 2. The current Government have been in power for three months. We are moving at speed, and we have got track 1 over the line. These are obviously decisions that the Chancellor will have to make in the spending review, for reasons the hon. Gentleman will understand. I just say to him that we are absolutely committed to track 2, including Acorn.