Michael Shanks MP: speeches

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Speeches

10 Jun 2025 · Topical Questions · Hansard source
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The right hon. Gentleman is wrong on two fronts. First, we are not closing down oil and gas. It will continue to play a part for many years to come, but there is a transition under way, as there has been for many years. The truth of the matter is that, while we want to create the jobs that come next, he turns his face against all the investment in what those jobs will be, which means that, under his plan, the transition will not lead to a future for that incredibly skilled workforce. We are determined to do it differently, so that there are good, well-paid jobs in the future and a secure energy mix for decades to come.
10 Jun 2025 · Topical Questions · Hansard source
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I am very happy to meet my hon. Friend. There are a number of schemes like this already. The Mining Remediation Authority has a number of projects under way. There is huge potential, and I am happy to meet her to discuss it.
10 Jun 2025 · Decoupling Electricity and Gas Prices · Hansard source
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I always agree with my hon. Friend, but on her initial point, I probably do not. I am not sure that we do all agree in this House that we should remove the volatility of fossil fuel prices. Some want us to remain linked to fossil fuels for longer and longer. We are determined to remove that vulnerability from people’s bills, so that we do not face the price spikes that many families still struggle with. She is right to point to targeted support as well. We are looking at social tariffs. Part of the challenge is that the phrase means different things to different people, but we are clear that bringing down bills for everyone is a top priority for this Government, and the clean power mission is how we will do it.
10 Jun 2025 · Decoupling Electricity and Gas Prices · Hansard source
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The House will have heard the shadow Minister’s failure to welcome solar panels on a hospital and a school in his constituency, but he can deal with his own constituents. On the question of the emissions trading system, on one side, we have National Grid, Energy UK, the Carbon Capture and Storage Association, Make UK and the Confederation of British Industry welcoming it. On the other side, we have the shadow Minister and the deputy leader of the Reform party, the hon. Member for Boston and Skegness (Richard Tice). I think I know who I would take my advice from.
10 Jun 2025 · Decoupling Electricity and Gas Prices · Hansard source
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I thank the hon. Gentleman for his expertise in this area, which he often brings to the House. He is absolutely right that decoupling from volatile and expensive gas prices is critical, and the journey we are on to develop clean power by 2030 will do that. Our objective is to deliver a clean power system where gas only provides the back-up, rather than setting the price, as it currently does. Too often—80% of the time—we rely on gas to set the price. We are trying to remove that, and to build a clean power system for the future.
10 Jun 2025 · Decoupling Electricity and Gas Prices · Hansard source
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Accelerating the clean energy transition away from insecure and expensive fossil fuels towards cheap, clean renewables and nuclear power will help decouple gas and electricity prices. As a result, we will reduce the exposure of consumer bills to volatile international crises and ensure that we never again face the kind of cost of living crisis that the last Government presided over.
10 Jun 2025 · Decoupling Electricity and Gas Prices · Hansard source
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On the Government Benches, we are trying to cut people’s bills as quickly as possible. The hon. Gentleman was a core part of a Government who failed to do that for many years. I am surprised that he did not rise to congratulate Great British Energy on its investment in solar panels on schools and hospitals, because his constituents are benefiting from one on a hospital and one on a school. He should welcome that.
10 Jun 2025 · Rosebank Oilfield · Hansard source
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The consent to develop the Rosebank oilfield was deemed unlawful by the courts. The developer will need to reapply for consent, including an assessment of emissions from burning the fuel produced. We will produce guidance on the environmental assessment of those emissions in due course.
10 Jun 2025 · Rosebank Oilfield · Hansard source
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We published the consultation on what we will do with the EIA guidance as quickly as we could. We are now analysing that. It is a complex issue, as I am sure the hon. Lady will understand. We will publish the response and the process that will now be put in place as soon as possible. Any developers that wish to reapply will then be able to do so.
10 Jun 2025 · Rosebank Oilfield · Hansard source
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I will be careful about what I say in this particular case and on the specific application for obvious reasons. We will be publishing guidance very soon on how the scope 3 emissions—the end-use emissions —will be assessed. Any developers with any projects that wish to reapply will then be able to do so. Each project will go through a regulatory process and be considered on its individual merits.
10 Jun 2025 · Fossil Fuels · Hansard source
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I will not be drawn on confirming whether the hon. Gentleman’s constituency is the most beautiful part of England—I will leave that to him. However, what he proposes sounds like a fantastic idea and I am happy to meet him to discuss it further. We see huge potential for a whole range of renewables. Those kinds of innovative projects—smaller scale as well—are what could deliver not just benefits for the system but real benefits for the communities that host them.
10 Jun 2025 · Fossil Fuels · Hansard source
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The right hon. Gentleman and I have discussed this in the House before. He is right to point out that we see an important partnership with Morocco across our economy, and we have outlined more of that in the last few days. The proposal he discusses is from a private company and, like the previous Government, we have been looking at it. We will say more in due course.
10 Jun 2025 · Fossil Fuels · Hansard source
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My hon. Friend is absolutely right, representing, as he does, a beautiful part of Scotland and one with huge potential for such schemes. That is why Great British Energy announced £4 million of funding for community energy projects in Scotland, working with the Scottish Government to drive those forward. We see, as my hon. Friend rightly points out, the huge benefits not just of delivering clean power, but of the social and economic value for the communities that host it. We are clear that community-owned energy has huge untapped potential and huge benefits for communities. We want to see much more of it, and Great British Energy will help deliver it.
10 Jun 2025 · Fossil Fuels · Hansard source
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My hon. Friend will not be surprised that I completely agree with her. Today, we have announced a new golden age of nuclear power in this country after decades of dither and delay; in fact, I think that the last switch-on of a nuclear power station was before I was even born. [ Interruption. ] It is not that long ago. We are driving forward the real potential that we see in nuclear power, and the Secretary of State will make a statement on that later. That is how we deliver thousands of well-paid, skilled jobs across the country and the important energy security that we need. I hope that we will see SMRs in every part of the United Kingdom, including in Scotland.
10 Jun 2025 · Fossil Fuels · Hansard source
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Happy birthday to you, Mr Speaker. We have been busy since we last met for oral questions. We have confirmed that rooftop solar panels will be standard on all new build homes and have funded £650 million of clean energy upgrades for over 200 buildings. We have also delivered the first solar projects for 11 schools, secured Royal Assent for Great British Energy—the UK’s first national publicly owned energy company in 70 years—launched the marine energy taskforce, signed a green industrial partnership with Norway and kick-started community energy right across the country. We are ambitious in our plans. There is much more to do, but we are doing more than any other Government to reduce our reliance on fossil fuels.
10 Jun 2025 · Fossil Fuels · Hansard source
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We consulted on a detailed plan around the future of energy in the North sea, which includes a detailed section on workforce planning. I am sure the hon. Lady was able to submit a response to that consultation, and we will look carefully at her views. We take the question of workforce incredibly seriously. Jobs will be created right across the clean power mission, including in the biggest upgrade to the transmission infrastructure that we have seen in this country for many years, much of which her party seems to oppose.
10 Jun 2025 · Fossil Fuels · Hansard source
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My hon. Friend makes two important points. First, on the importance of decarbonising heating across the country, the electrification of home heat will be an important way of delivering cheaper bills for people and reaching our decarbonisation targets. Secondly, on the important matter of debt, I know the Minister for Energy Consumers has been doing work with Ofgem, and we have been looking at a debt relief scheme for exactly those sorts of questions. Clearly, we want to support as many households as possible to move on to cheaper heating in the long term. We will continue to push forward that work.
10 Jun 2025 · Grid Capacity · Hansard source
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Increasing grid capacity is critical. We are halving the development time for new transmission infrastructure through reforms to planning and supply chains, so that we can deliver the grid capacity needed to achieve clean power by 2030 and meet the doubling of electricity demand by 2050.
10 Jun 2025 · Grid Capacity · Hansard source
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We have outlined significant reforms to the connections queue. There is currently more than 740 GW in that connection queue. Clearly, that is an unsustainable amount of demand for connection to the grid, and most of it does not really exist, as my right hon. Friend the Secretary of State pointed out. We have put forward significant reforms, so that we prioritise projects that are ready to connect to the grid, and have strategic importance to the grid. The clean power action plan will drive forward what those strategic outcomes are. That work is under way, and the National Energy System Operator is considering those proposals. It will free up a huge number of projects from the connections queue, allowing new projects to join, and, crucially, allowing for demand projects that will help deliver economic growth.
10 Jun 2025 · Grid Capacity · Hansard source
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The hon. Gentleman makes an incredibly important point that outlines why this work is so important. There are two parts to it. The connections reform is crucial, so that we have a queue of projects that are strategically relevant and ready to be delivered. The second part is that we have to build significantly more grid infrastructure, and it is incumbent on all Members of this House to not oppose that grid infrastructure and then come here and say that they want new demand projects to be able to connect. Instead, they need to take a practical approach and say, “We’re going to have to build some new grid in this country if we want to unlock the huge potential of AI growth zones and other demand projects in the economy.”
10 Jun 2025 · Grid Capacity · Hansard source
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On a day when we are announcing new nuclear schemes, I am almost tempted to ask: which party brought Chinese investment into the heart of our nuclear infrastructure? The Conservative party. In every decision taken about the energy sector and more widely, if there are questions about national security, they are taken forward in the usual way. We invest hugely in ensuring that all our critical national infrastructure is safe and secure from cyber-threats and other threats. That work continues and is a top priority for the Government. We are building the clean power system that delivers energy security, and the Conservatives are opposing it.
10 Jun 2025 · Grid Capacity · Hansard source
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As so often, my hon. Friend is correct on these matters. He usually has a quote that shows that, just a few months ago, Opposition Front Benchers agreed with us on many of these matters, but have suddenly changed their position. As my hon. Friend says, our proposals are not only critical to delivering energy security in an increasingly uncertain world, but to tackling the climate crisis, which has such an impact on our lives now and in the future, and to the economic opportunities of the 21st century.
2 Jun 2025 · Draft Contracts for Difference (Miscellaneous Amendments) (No. 2) Regulations 2025 · Hansard source
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We are somewhat through the looking glass with the response from the shadow Minister, the hon. Member for West Suffolk, who seemed to forget in his long list of things that were wrong with the contracts previously that it was his Government that agreed them. This Government have sought to improve every single aspect of the contract: halving the subsidy, improving sustainability, only running on the system when it is required, and delivering security of supply. He talks about being reckless and irresponsible. What would have been reckless and irresponsible is to come here and say that we do not care about the security of supply and the importance of finding the dispatchable power that we need. That is the decision that we are here to allow the Government to take forward—
2 Jun 2025 · Draft Contracts for Difference (Miscellaneous Amendments) (No. 2) Regulations 2025 · Hansard source
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I beg to move, That the Committee has considered the draft Contracts for Difference (Miscellaneous Amendments (No. 2) Regulations 2025. It is a pleasure once again to serve under your chairmanship, Mrs Hobhouse. The draft regulations were initially laid before the House on 11 March, but they were re-laid on 2 April to correct very minor drafting errors. On 10 February, I made a statement to the House confirming that, following a public consultation, the Government intend to introduce short-term support for large-scale biomass generators to ensure the UK’s continued security of supply. As set out in our response to that consultation, legislative changes are needed to enable the Government to provide support to existing biomass generators through a new low-carbon dispatchable contract for difference. I stress that, while the draft regulations will allow for new support to be provided, the final decision will be taken following the conclusion of internal assessments and commercial negotiations, which are ongoing. Before I cover the provisions of the draft regulations in more detail, I will briefly set out the Government’s position on large-scale biomass generation, which provides around 5% of the UK’s annual electricity generation. Current support for these generators under CfDs and the renewables obligation ends in 2027. It is critical to the Government that we maintain security of supply, even if that means making hard decisions. I will briefly set out the range of factors that we considered before deciding whether to provide further support for these generators. First, we took analysis from the National Energy System Operator and concluded that, without further support for large-scale biomass, the country could face security of supply risks between 2027 and 2031. Relying on alternative options, such as newly built gas plants, to come online in that timeframe would carry significant risks. The Government will not take chances on our energy security. Secondly, we undertook comprehensive analysis of the costs of biomass against the alternatives. Our central projections show that, on the right terms and if playing a much more limited role in the system than today, biomass generation can be the lowest-cost option for bill payers during that period. Lastly, we will introduce strengthened sustainability requirements from the outset of any new agreement. Importantly, the draft regulations will also allow the sustainability measures to be enhanced throughout the duration of the contract, in line with the latest scientific evidence or global best practice. Those factors represent a substantial shift from past arrangements on sustainability and value for money. However, we recognise the strength of concerns about the use of unabated biomass. It is not a long-term solution. We are determined that, the next time these decisions are made, the Government will not be left in the circumstances that we were this time. We will therefore do the work that was not done by the previous Government to build strong and credible low-carbon alternatives, so that we have proper options in four years’ time. During my oral statement earlier this year, I also confirmed that the Government had agreed heads of terms for a new CfD with Drax. The draft regulations will enable that CfD, if a final decision is taken to provide it, but they will also enable similar agreements with any other biomass generators. I remind the Committee that the draft regulations are about ensuring only that we have the option available to respond to security of supply needs and to deliver low-carbon electricity to the grid at the lowest cost to the consumer. I know, however, that many Committee members are interested in the details of a potential agreement with Drax, the largest biomass generator in the UK. The proposed agreement with Drax would limit generation to times when the system and, in turn, consumers most require it. When renewable power is abundant, Drax will not generate, and consumers will benefit from cheaper wind and solar instead. That means that Drax will only be supported to operate less than half as often as it currently does. As a result, the deal would halve the amount paid in subsidies, compared with existing arrangements—that is equivalent to a saving of nearly £6 per household in annual bills—and, when compared with the alternative of procuring gas in the capacity market, it would save consumers £170 million in subsidies each year. The agreement also introduces tough new measures on sustainability, and we will appoint an independent adviser to support the development of policy and practice in biomass sustainability and ensure that they keep pace with the emerging science and international landscape. The draft regulations will amend the Contracts for Difference (Definition of Eligible Generator) Regulations 2014 such that a person is eligible for a CfD in respect of a “biomass station” where it is intended that the existing biomass station will continue to provide electricity. Simply put, this will enable a new low-carbon dispatchable CfD to be signed with existing biomass generators, which is not currently possible. As is the case today, the Low Carbon Contracts Company will be the counterparty to any new CfD. The second part of the draft regulations relates to sustainability. The Government support the use only of sustainable biomass, and we continue to review sustainability requirements so that we can remain aligned with the latest evidence. The draft regulations will amend the Electricity Market Reform (General) Regulations 2014 to allow the Secretary of State to direct the LCCC to implement amendments relating to sustainability obligations within the new CfD. That will mean that the Government can make changes to sustainability requirements within the new contract, to ensure that they keep pace with the latest evidence. Before I conclude, I want to thank the Public Accounts Committee for its review and report on wider biomass policy. My Department is carefully considering the contents of that report and will respond in due course. The Government will do whatever it takes to deliver energy security and to protect bill payers now and into the future. The draft regulations support that commitment. They make the necessary amendments to enable support to be provided to biomass generators when existing schemes end in 2027. That will enable us to maintain the UK’s security of supply, deliver value for money for consumers and enhance sustainability requirements. I commend the regulations to the Committee.
2 Jun 2025 · Draft Contracts for Difference (Miscellaneous Amendments) (No. 2) Regulations 2025 · Hansard source
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We are considerably off the topic of the draft regulations, but since the shadow Minister makes the point, I will answer the question. We have not said that there will be no new oil and gas. We have said that there will be no new licences to explore new fields, taking into account all the available evidence, which is that the North sea is a declining basin. If we manage it properly, we can have a future energy process in the North sea that delivers on carbon capture, hydrogen, offshore wind and oil and gas for many years to come. There is much more on our oil and gas policy that we can discuss, perhaps in a different debate. On these particular draft regulations, the shadow Minister asked a number of questions, which I am happy to follow up on. On the KPMG reports, perhaps he did not see, but I wrote on 25 February—as soon as I could following my statement in the House, because I take these things very seriously—and the chief executive of Ofgem responded on 12 March. Both letters are in the Library and the shadow Minister can read them. The KPMG reports do not belong to the Government or to Ofgem; they belong to Drax, and it is for Drax to decide whether to release legally privileged documents. Clearly, analysis that NESO provides to the Government is sensitive, for very good reasons—a considerable amount of what NESO does in running the energy system must be kept secret, for commercial reasons and so that the Government and NESO can freely exchange information—but it published a summary of its advice on its website, which, again, the shadow Minister can look up. On the points made by the hon. Member for Thornbury and Yate, first of all, we are back from recess, which means we are back to work. The Government do not have time to waste, hence, I am afraid, we scheduled consideration of the draft regulations for the first day back; we have things to get through. She made the point that there are alternatives to biomass. A number of others have made that point, too, but they have yet to name the alternatives and what can be built within two years to provide the necessary supply. We do not think that there is a long-term future for unabated biomass—we agree on that—but the crucial point is that we have a short-term security of supply issue that we have to resolve. We need dispatchable power when we need it, and the alternatives—gas, as the shadow Minister says—are considerably more expensive. The Conservative party might want to consign us to much more of the fossil-fuel casino and higher bills for all our constituents. This is a short-term decision for us to move away from that. We have significantly increased the sustainability requirements and we will appoint an independent sustainability adviser to provide expert advice and challenge to both Government and providers on sustainability policy and delivery. We want to take sustainability much more seriously than the previous Government did, but this is an essential short-term measure to ensure the security of supply across the country. The draft regulations—copies are available in the room if Members have not had a chance to read them—will enable the Government to continue to deliver security of supply at the lowest possible cost for consumers while protecting and enhancing vital sustainability measures, and I commend them to the Committee. Question put.

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