Here are the climate-related sections of speeches by MPs during the Commons debate Draft Contracts for Difference (Miscellaneous Amendments) (No. 3) Regulations 2025.
18:00 Kerry McCarthy (Labour)
The regulations were laid before the House on 2 June this year. At the Global Offshore Wind conference this month, the Secretary of State for Energy Security and Net Zero reaffirmed our commitment to strengthening our energy security through the development of home-grown, low carbon power, while delivering a fair price for consumers. That is the best way to bolster our energy security, getting us off the rollercoaster of global fossil fuel markets. It is the best way to spark economic growth across the country, with hundreds of thousands of new jobs, particularly in our industrial heartlands, and it is the best way to tackle the climate crisis for today and future generations. That is why the Government are on a mission to make Britain a clean energy superpower, with clean power by 2030. The regulations will clearly contribute to that mission.
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18:07 Nick Timothy (Conservative)
I am pleased to respond to the draft regulations for the Opposition. Under this legislation, the Secretary of State for Energy Security and Net Zero will be given new powers to view anonymised CfD bids before setting the budget for the next auction of contracts, due to take place later this year. That means that he will know ahead of time exactly how much will be procured if he sets the budget at a certain level, and therefore what the strike price will be. That poses questions about exactly how much the next round of CfD contracts—AR7—will end up costing the taxpayer.
Why are Ministers having to pump so much more money into CfD contracts? It is because of the Government’s ideological rush to decarbonise the grid within five years. That requires a massive expansion in wind power over the next two auctions, and the result will be higher prices forced on to households and businesses. We know that not just from experience and an understanding of how renewable technologies work, but because it has come from the horse’s mouth, too. Behind closed doors, a senior RWE executive has admitted that there would be “spikes in prices” and predicted that the “consumer risks losing out”. In other words, bills are going up. It would be nice if we could have such honesty from the Government.
This is the reality of net zero. Last January, a combination of dark skies and low wind—what has now become known as Dunkelflaute—brought Britain to the brink of blackouts. That was avoided only thanks to our remaining gas fleets, which the Government say they want to run down. The Prime Minister has promised categorically that decarbonising the grid by 2030 will not cause any power shortages, blackouts or energy rationing, yet unreliable solar contributed to a lack of inertia in the Iberian grid that could have prevented their power outages. In Britain, customers have paid over half a billion pounds already this year for power generated by wind, with which the grid cannot cope.
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Kerry McCarthy (Labour)
The shadow Minister talked about one of his favourite subjects: curtailment payments due to there not being grid capacity for wind. He will know, because he has been told this before in answer to previous questions, that we absolutely understand that issue, and we are prioritising increasing grid capacity to prevent it. Chris Stark, the former chair of the Climate Change Committee, is heading up mission control, and he is working every day—and possibly most of the night—to ensure that we give priority to the right projects in the grid connection. It is like towels on deckchairs; we weed out some of the projects that we know will never come to fruition, and we ensure that we invest in grid infrastructure so that we can make the most of the renewable energy being produced.
I am not sure it is worth our rehearsing the conversations about the cost of getting to net zero. I was going to say, “We are very much of the opinion”, but it is not an opinion—we know that the best way to bring down consumer bills in the long term is to get to clean power by 2030. We know that renewables will be cheaper for consumers and less volatile. Home-grown clean energy means that we will not be reliant on imported oil, gas and renewables. They are not only greener but faster to deploy and cheaper to build.
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Kerry McCarthy (Labour)
The UK is a world leader in offshore wind, with 15.9 GW generating electricity. We have the highest deployment in Europe and are second in the world only to China. This policy intervention is another strong signal of the Government’s commitment to scale up deployment of fixed-bottom offshore wind to the benefit of businesses, bill payers and local communities. The instrument will build on the success of the CFD scheme—I will be polite and not mention how AR5 went under the previous Government compared with AR6 under us—adapting it in line with market and technological developments, and contributing to the UK’s crucial net zero targets and 2030 clean power mission. I commend the draft regulations to the Committee.
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