Michael Shanks MP: speeches

Speeches

• 9 Dec 2025 · Net Zero Transition: Consumer-led Flexibility · Hansard source

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  No, I don’t intend to—do not worry, colleagues. This is an important debate, however, and I thank the hon. Member for Thornbury and Yate (Claire Young) for securing it. She made a point that those in the industry make regularly to me: that this is too often a footnote in the discussion about achieving our future energy security. It should not be. It should be much further up the agenda. It is not for want of trying; I often talk about it, but it is regularly the bit that gets cut out of interviews before they are broadcast. The Government are certainly talking about these issues. The hon. Lady outlined perfectly the problem of how we get cheaper, more secure power to homes and businesses, and the three fixes: building more grid, strategically planning where energy is built in the first place, and utilising flexibility. The truth is that we need to do all three at a pace never before seen in this country. I will come back to those points, but I welcome her recognition of them. My hon. Friend the Member for Washington and Gateshead South (Mrs Hodgson) made a fantastic speech, as always. She is a fantastic champion for the north-east and a long-standing campaigner on the issue of how we can reduce fuel poverty. She made the point that we risk losing the opportunity of getting cheaper power to people’s homes and bringing down their bills, and she mentioned the fantastic innovations out there already. I have had the pleasure of seeing a number of them. When I visited the Mining Remediation Authority recently, I had the genuine pleasure of hearing about the mine water heating scheme. That is a fantastic example of how we can utilise something that we used decades ago to power the country. There is also a social justice argument, as those communities who still have deep scars from that period can benefit from cheaper bills in the long run. I also want to recognise the point the hon. Member for Thornbury and Yate made about the equality aspect and how we will bring everyone with us on this transition. I will return to that point, but first I want to return to first principles and say why the Government are committed to delivering clean power by 2030. At the heart of that mission is an energy system that delivers flexibility for consumers: not forcing consumers to make choices, but giving them the opportunity to make choices that bring their bills down, and to use technology for the betterment of their lives in a way they choose. The clean power action plan outlined 10 GW to 12 GW of consumer-led flexibility. I think that in the months ahead we will be talking much more about that part of the action plan. The Government have had to move very quickly in the first 16 months to deliver on the auctions in offshore and onshore wind, to lift the ban on onshore wind and to deliver much more solar than we have ever seen, but flexibility has been hugely important in the background, and we will say much more in public about it in the coming months. Let me respond briefly to the core argument that the shadow Minister, the hon. Member for Mid Buckinghamshire (Greg Smith), made about the clean power mission: “The UK is a world leader in renewable energy…and we must go further. Energy security means national security. We must replace imported fossil fuels with cheaper, cleaner, domestic sources of energy. That is how we will ensure that the UK never again suffers the rising prices caused by Putin’s weaponisation of energy following his invasion of Ukraine.” —[ Official Report , 22 November 2023; Vol. 741, c. 21WS.] Those are not my words, but the words of the shadow Secretary of State, the right hon. Member for East Surrey (Claire Coutinho), in November 2023. I am not quite sure what has happened to the Conservative party in two years, but the Conservatives seem to have completely changed not just their position, but their understanding of the facts and science behind what they were saying then. The right hon. Member, who was Secretary of State at the time, made my argument just as well as I could ever seek to. I will leave it at that. A just transition has the power to unlock enormous benefits for people right across the country. It is why we have pledged to deliver clean power, because we know it is cheaper and it removes the volatility of which all our constituents are still facing the cost. It will shield consumers from the volatility in global gas prices, over which we have absolutely no control, but it will also create new jobs in industries right across the country. It is the economic opportunity of the 21st century. The role of storage will be important. The hon. Member for Newton Abbot (Martin Wrigley) talked about a school trip to Dinorwig; in Scotland, I think every single school child went to Cruachan, the hollow mountain, which is another pumped hydro power station. Although pumped hydro may be a technology from the last century, it is critical in this century as well. Indeed, the Government have launched the first new long-duration energy storage in 40 years. It is a critical way of dispatching clean power and storing it for when we absolutely need it, so it still plays an important role. Consumer-led flexibility will play an important role in getting renewable energy to people’s homes. It will help us to balance the grid and ensure that we have supply when we need it. It enables us to take advantage of low-carbon energy and reduce periods of peak demand and the associated infrastructure needs. It also involves financial rewards for those who choose to shift their electricity use to times when supply is more abundant, cheaper and cleaner. Smart meters are a key part of that. As we all know from our constituencies, we would all have liked to see a more efficient roll-out of the smart meter programme over the years, but 70% of meters across Great Britain are now smart or advanced meters, with more than 40 million homes and businesses having them installed. We will continue to monitor the roll-out in Government very closely. Indeed, I chair a working group that is looking at how we can deliver market-wide half-hourly settlements much faster. That is really important so that consumers and businesses benefit directly from having a smart meter and new technology.

• 9 Dec 2025 · Net Zero Transition: Consumer-led Flexibility · Hansard source

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  It is a pleasure to serve under you today, Mr Vickers. I am frequently told that consumer-led flexibility does not get enough time, but I now have almost an hour to talk about the Government’s plans on it. I intend to use every moment I have.

• 9 Dec 2025 · Net Zero Transition: Consumer-led Flexibility · Hansard source

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  Lower your expectations.

• 9 Dec 2025 · Net Zero Transition: Consumer-led Flexibility · Hansard source

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  I will come to the hon. Gentleman’s point. I always appreciate the kindness of his contributions, although he needs to lower his expectations of mine. He rightly mentioned the statistic that 68% of households in Northern Ireland have oil heating, which he raised with me in a previous debate. That figure surprised me, and it is a reminder of the complexity of the different circumstances across the United Kingdom of Great Britain and Northern Ireland. I work closely on this issue with Northern Ireland Executive colleagues in the Department for the Economy, and we share much of our good practice to make sure that everybody comes with us on this journey. I will shortly say more on the hon. Gentleman’s point about gas. We are already seeing consumers benefiting from flexibility. Last year, the demand flexibility service saw over 2 million households and businesses save money by flexing their demand. We are committed to ensuring that all consumers have the option to participate, not just those who can afford certain technologies. The Government have committed £1.5 billion through the warm homes plan, which will help to upgrade low-income households. The Government will also work to ensure that flexibility is simplified and accessible for all consumers who want to take part, not just the tech savvy and those who are already able to. We have to remember that flexibility brings down the price for everyone, even those who are not participating, because of the benefits it brings to the overall system. As we shift away from gas, consumer-led flexibility will become even more vital for managing an electrified system. Crucially, it will bring down bills for all consumers, not just those who actively participate. The Liberal Democrat spokesperson, the hon. Member for Newton Abbot, gave a figure on the direct benefit from consumer-led flex, and a more flexible system is estimated to save up to £10 billion a year overall because of that efficiency. It is hugely important. The hon. Member for Strangford (Jim Shannon) asked about the transition. Obviously, connecting to the gas network is difficult in Northern Ireland, and this is a huge opportunity for many households to jump a step—from oil heating to heat pumps and other technologies. There is a real opportunity for those households to benefit, perhaps even more than some other households, if we get the transition to consumer-led flex correct. I look forward to more conversations with the hon. Gentleman on that issue. The other point I want to make is about the role of technology. Consumer-led flexibility is becoming increasingly automated, which means that consumers can benefit from these opportunities with little or no intrusion in their daily lives. Indeed, I have seen examples where consumers have set up technology and let it run for months at a time. For example, an EV owner can plug their car into a smart charger, which will optimise charging so that it happens at the most cost-effective times of the day, while still meeting the battery charge they need the next morning, saving a significant amount of money. I recently had a great opportunity to visit Flexitricity in Edinburgh, which is a fantastic business—not least because it has a fantastic view of Edinburgh castle, although that was not my reason for visiting. My visit brought home two things: first, the cutting-edge technology and innovation that we already have in this space; and secondly, how this is an opportunity to create high-paid, skilled jobs across the country. I met a number of apprentices and people who had changed career to be part of that innovation—the business is a fantastic example. I thank the Association for Decentralised Energy, some of whom I see in the Public Gallery today, for joining me on that visit and for the work they do. We recently published the flexibility road map, which sets out specific, measurable actions for DESNZ, Ofgem and NESO to deliver the flexibility we need. The road map sets out a strategy and clear actions to make sure we can deliver on this. It acknowledges that the Government, in partnership with Ofgem and NESO, will need to take a leading role in making sure this is a priority for those organisations. The publication puts consumers at the heart of what we want to achieve. The road map is a first step. To deliver it, we know we have to sustain that momentum. As many hon. Members have said, agreeing that this is the right thing to do is not enough; we have to get on with delivery. This debate is perfectly timed, because this afternoon I will attend the first clean flexibility road map quarterly forum to make sure we are driving progress on this. That was already in the diary, but this debate is perfect timing. I thank the ADE for all its engagement and expertise on this matter, and I thank all the organisations working in this space for raising innovative and creative ideas for how we can make this happen faster. This is an area where the Government do not always know best, and the innovation from the private sector and communities across the country will help us to deliver this transition. It is crucial that the Government continue to hear that, and that we continue to be challenged to move further and faster. We have seen good progress on leadership, which goes hand in hand with our work on the road map and on the appointment of a flexibility commissioner. We will be able to announce who we are appointing very soon, and they can then get on with driving this work forward as part of the clean power mission. Leadership is important more generally in this space. As politics moves away from a fact-based, rational discussion of the challenges this country faces, it is ever more important that we have these debates on the detail of how we deliver such important policies. We must also recognise that we are making progress. There is sometimes a tendency to think that nothing is happening, but a huge amount is happening: the migration of consumers to half-hourly settlement has begun and is making great progress; NESO is about to consult on the next iteration of the demand flexibility service; Ofgem is assessing how to recover costs through bills in a way that is fair and efficient; and we have consulted on our smart secure electricity systems programme, including how we can make it easier for electricity consumers to participate. All that work going on in the background will start to have a real impact on people’s lives in the coming months. I thank everyone for their contributions to this debate. The Government are committed to delivering a clean power system, because that is the only way to bring down people’s bills in the long run, to remove the volatility of fossil fuels, for which we are paying the fossil fuel penalty, and to deliver energy security in an increasingly uncertain world. Flexibility is at the heart of this, and for us to have a genuinely just transition—one that brings people with us—we have to do what is challenging. This is a new way of working. It is different, and it will require people to think differently about their energy use and about how we deliver the change as a country, but opportunity is right at the heart of this—we should never forget that opportunity is the prize if we achieve this. We will continue to work across Government and across the energy sector so that people can take advantage of the benefits of consumer-led flexibility and so that, ultimately, we end up with a 21st-century energy system that recognises that all our lives have changed in the last few years in how we consume electricity. Every single projection suggests consumption will increase over the coming years, so it is hugely important that we take these steps now so that the people of this country benefit from the energy transition that is under way. I thank everyone again, and I thank the hon. Member for Thornbury and Yate for securing this important debate.

• 18 Nov 2025 · Clean Energy Transition: New Nuclear Power · Hansard source

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  My hon. Friend is a fantastic champion of her community and of the potential of businesses in her community to contribute to this. We have been clear as a Government that we want UK supply chains to benefit from these projects and to deliver their world-leading expertise across all our civil nuclear projects, including the SMR programme, Hinkley Point C and Sizewell C. To achieve this, we will continue to engage with industry right across the country and to address any barriers to entry into the nuclear sector, particularly for small and medium-sized enterprises who might not know exactly how to enter the supply chains, to ensure that they are in the best possible place to take advantage of the huge number of opportunities that will be created by this new golden age of nuclear in the UK.

• 18 Nov 2025 · Clean Energy Transition: New Nuclear Power · Hansard source

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  We know that to bring down bills for everyone, we need a clean power system that includes nuclear providing the stable baseload across the country. That also benefits Northern Ireland through the interconnectors, but obviously energy decisions are reserved in Northern Ireland. We are committed to bringing down the cost of these projects as much as possible, and also to ensuring that we get the economic advantages. When these projects are on the system, they will deliver clean, secure power made here in the UK for generations, and that is how we will deliver energy security and get us off the volatility of fossil fuels, which is what has been driving up bills for the hon. Gentleman’s constituents and mine for so long. This is the answer for our energy security and for good jobs right across the country.

• 18 Nov 2025 · Clean Energy Transition: New Nuclear Power · Hansard source

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  We are delivering the biggest nuclear building programme in a generation, overturning the legacy of the Conservatives, who failed to complete a single project in their 14 years in office. Just this week, we announced that the flagship small modular reactor project would be based in Wylfa, bringing thousands of jobs to north Wales and also right across the country in the supply chain. Great British Energy Nuclear’s ambition is that 70% of supply chain products across the SMR fleet will be British built.

• 18 Nov 2025 · Renewable Energy Sources: Funding · Hansard source

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  Great British Energy and Great British Energy Nuclear will invest over £8.3 billion this Parliament in home-grown clean power. We will keep backing renewables through contracts for difference, which secured record amounts of solar and the world’s largest floating offshore wind farm last year. Allocation round 7 will build on this success, for which we have already announced a budget of over £1 billion across offshore wind. The results will be announced in due course.

• 18 Nov 2025 · Renewable Energy Sources: Funding · Hansard source

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  Yes. The hon. Lady touches on a number of points. The transition means building on the industrial strategy that we outlined as a Government, because are not agnostic about industrial policy—we care that things are built in this country again. That is why there is a £1 billion supply chain fund to ensure that we get the economic advantage of the clean power transition, as well as energy security. There is a broader question around building up the skills to ensure that there is a future workforce that can take advantage of that. She and I both know that that sits with the Scottish Government, who are woefully underfunding further education—a route that so many young Scots might take to create the opportunity to embark on a career in the energy sector—so I hope there will be a change of Government in Scotland soon.

• 18 Nov 2025 · Renewable Energy Sources: Funding · Hansard source

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  It sounds like a great idea. I am very happy to meet my hon. Friend and representatives from the trust to discuss that.

• 18 Nov 2025 · Clean Power: Energy Sovereignty · Hansard source

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  Clean power is the route to energy security and energy independence for the United Kingdom. For far too long, families have faced high energy bills thanks to our exposure to international fossil fuel markets over which we have no control. Through our clean power mission, we are ending that situation by rolling out clean, home-grown power that we control.

• 18 Nov 2025 · Clean Power: Energy Sovereignty · Hansard source

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  My hon. Friend is right to say that his constituents in Glasgow—and constituents right across the country—have faced sky-high energy bills because of our exposure to fossil fuels. Although very little Russian gas came into our system, we remained exposed to the volatility of the international markets. The Opposition want us to go back to the fossil fuel casino and hope that this time we get a better hand, but we are determined to protect the public of this country in the long run from those price spikes and to ensure that we have energy security because of clean power grown here in the UK, delivered by jobs that we are investing in. That will help to remove the volatility that so many of our constituents have faced for too long—energy security, good jobs and tackling the climate crisis.

• 18 Nov 2025 · Clean Power: Energy Sovereignty · Hansard source

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  The hon. Lady is right: domestic production is important, which is why we have said that for decades to come, oil and gas will continue to be part of our energy picture in the UK. The number of imports has been increasing for a long time—it is not a recent trend. The North sea has been in transition for decades, and we must build up the energy that comes next. On her specific question, we consulted on what the future of the energy profits levy will look like. It comes to an end in 2030, and it is a matter for the Chancellor at the Budget. On the future of the North sea generally, we had a wide-ranging consultation, including on the future licensing position, and our pragmatic plan will be published in the coming weeks.

• 18 Nov 2025 · Large-scale Solar Farms · Hansard source

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  My hon. Friend is absolutely right. There is a broad consensus across the House that if we can put solar on rooftops, that space can be utilised to generate clean power. We are ambitious and excited about the opportunity to put solar panels on as many rooftops as possible. We consulted recently on whether car parks should have solar panels on them. We are looking through the responses to that consultation and will say more in due course, but wherever possible, if we can generate clean, cheap power by utilising rooftops for solar, we want to do it.

• 18 Nov 2025 · Large-scale Solar Farms · Hansard source

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  There were 14 years when the Conservative party could have had a land use framework or a centralised strategic spatial energy plan, but it did not. We are now doing those things, and there will be an alignment between the strategic plan for energy and the work that DEFRA is doing on a land use framework. On solar, even the most ambitious plans for the roll-out of ground-mounted solar would use only 0.4% of UK land by 2030. These projects are important for the hon. Gentleman’s constituents and for people across the country if we are to bring down bills as quickly as possible, and of course they go through a rigorous planning process.

• 18 Nov 2025 · Large-scale Solar Farms · Hansard source

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  I always welcome consensus in the House, so I am delighted to hear that there is still consensus on rooftop solar. The Conservatives have moved away from so many of their previous positions and I was not sure if this was going to be another, although I wonder why that rooftop solar was not built over the past 14 years. But we will leave that to one side. On the hon. Gentleman’s question about land use, we have been clear that ground-mounted solar will play an important part as the energy cannot all be generated from rooftop solar, but we want to ensure that communities are part of the decision making. The planning process is hugely important in that, but we also recognise that some communities have felt that there has not been a joined-up strategic approach. That is why we are publishing the strategic spatial energy plan, alongside the land use framework. Even in our most ambitious scenarios, 0.4% of land will be taken up with solar.

• 18 Nov 2025 · Large-scale Solar Farms · Hansard source

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  Ministers in my Department have regular discussions with Cabinet colleagues on a range of matters, including solar policy, but the large-scale solar projects that are given to the Secretary of State to make quasi-judicial planning decisions on are not part of such conversations. Solar power remains a hugely important part of our energy mix. It is the cheapest and fastest to deploy, and will be a key part of how we meet our mission for clean power by 2030.

• 18 Nov 2025 · Community Energy Projects · Hansard source

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  Through Great British Energy’s local power plan, we are rolling out the biggest expansion of community energy for decades. We are supporting projects with funding through the community fund, and Great British Energy will also support communities to roll out small and medium-scale renewable energy projects by providing commercial, technical and project planning assistance. That will increase its capacity to build a pipeline of successful projects owned by local communities.

• 18 Nov 2025 · Community Energy Projects · Hansard source

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  I thank the hon. Lady for that question, and pay tribute to all those involved in Stockport Hydro for the work they are doing. Clearly, it has been too much of a challenge, and we need to make it easier. Alongside much-needed funding, we must make the regulatory landscape much easier, and across Government we are having a review of regulation to ensure that we can move faster to build things in this country. Nowhere is that more important than in communities that have come together to deliver a project. That is good for us as a country, good for social and economic growth and good for local communities, and we need to make it easier. I am happy to discuss the issue further with the hon. Lady, because these are the kinds of projects that we want across the country.

• 18 Nov 2025 · Topical Questions · Hansard source

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  I think the shadow Secretary of State has a bit of a cheek talking about anyone’s action on the climate crisis when she has completely reversed her own position on it. The UK’s climate leadership is an incredibly important contribution to the world’s action on the climate crisis. That crisis is not a future threat, but a very present reality. The UK has been a part of the forest initiative; we have supported Brazil and others to make that happen. Of course, coming up to a Budget and with tight fiscal considerations, we want to make sure that every pound of British taxpayers’ money is spent. We have not ruled out any future support for such schemes. Britain’s leadership at COP and at other international forums is important for our own economic interests, but also for tackling the global climate crisis.

• 18 Nov 2025 · Topical Questions · Hansard source

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  That sounds like just another example of the chaos that Reform-led councils across the country are inflicting on communities. The truth is that we had just a few moments ago an example of why local councils thinking about the impact of climate change is so important, and we now have Reform councils dismissing the very action that would protect communities from devastating floods and other impacts of climate change. It is important that we stay the course, recognise that the climate crisis is important and do everything possible to protect communities.

• 18 Nov 2025 · Topical Questions · Hansard source

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  Let me say that the Father of the House was also very reasonable in the meeting that we had; I am glad that we had that opportunity. If we hit the absolute ambition of the solar roll-out, we will have 0.4% of land, but as I said to him, I recognise that a number of projects in particular areas have not been strategically planned for a long time. That is why we are bringing forward the strategic spatial energy plan, so that we plan the system across the whole of Great Britain and so that communities feel that things are being done not to them, but with them.

• 18 Nov 2025 · Topical Questions · Hansard source

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  First, I am sure the whole House would echo my hon. Friend’s comments about her constituents in Monmouthshire. Our thanks go to the emergency services, who have done an incredibly diligent job in difficult circumstances. She is right that it is yet another example of where the climate crisis is not some theoretical future threat, but a present reality. We have to tackle the climate crisis as quickly as possible. That is why this Government are doing everything we can to get off of fossil fuels, while also investing in flood defences across the country.

• 18 Nov 2025 · Topical Questions · Hansard source

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  I pay tribute to my hon. Friend, who has worked extremely hard with the Government and with the national wealth fund to ensure that we are bringing projects forward. More than 100 projects came forward for that £200 million investment by this Labour Government through the wealth fund; we are considering all of them, and hope to make announcements soon. However, as my hon. Friend will understand, given the substantial amounts of public money involved, we must ensure that due diligence in respect of all those businesses and projects is complete before we can make any announcements.

• 18 Nov 2025 · Topical Questions · Hansard source

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  One reason why we are so keen for the supply chain for the upgrade of our grid to be in the UK is our wish to ensure that there are opportunities for factories in constituencies such as my hon. Friend’s, and I recently met her, along with my right hon. Friend the Secretary of State for Scotland and XLCC, to discuss those opportunities. XLCC is currently changing its business model but remains committed to being part of the supply chain for cables in the future, and we will continue to do everything we can to support it.