Here are the climate-related sections of speeches by MPs during the Commons debate Electricity Market Review.
13:04 Ed Miliband (Labour)
On the fairness test, under reformed national pricing, there would be one national wholesale price, as now. As I have said, under zonal pricing there would be different wholesale prices in different zones. Lower prices will tend to occur in zones with more renewable energy and a smaller population, and higher prices in those with less power and more people.
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13:16 Claire Coutinho (Conservative)
When faced with a choice between protecting the profits of wind developers and cutting bills for the British people, the Secretary of State has chosen the wind developers, who know that they have him over a barrel. In setting himself an unachievable 2030 target that was based on ideology and ideology alone, he was telling those wind developers that he has to buy whatever they are selling, no matter the price. A little over a year ago, the Secretary of State told the country that bills would come down by up to £300, but his statement today shows that when push comes to shove he will choose higher bills for the British people to fund profits for renewable energy companies. Worse still, what he did not mention is that today’s announcement means higher bills to pay wind farms billions in constraint payments not to produce energy but simply to switch off.
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13:26 Pippa Heylings (Liberal Democrat)
The Secretary of State outlined his three tests. To ensure that British consumers are not exposed to an unknown level of risk, will he publish his cost-benefit analysis and set out what impact the changes will have on customers’ bills? We will also be looking keenly for the much-needed joined-up approach between planning for renewable energy infrastructure through the strategic spatial energy plan, and the land use framework and local area energy plans, which, worryingly, are a bit out of sync.
Renewable energy can be the cheapest, most secure source of power, but for many people, seeing—and feeling it in their pocket—is believing, and under the current system, many are struggling to see it. Alongside the changes announced today, I hope the Secretary of State will consider other Liberal Democrat proposals, just as they did when putting into practice our proposals for rooftop solar on all roofs. We would like to see free insulation and heat pumps for people on low incomes and the introduction of a social tariff for energy to protect the most vulnerable.
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13:34 Deirdre Costigan (Labour)
I thank the Secretary of State for his statement. It is clear that zonal pricing would not only waste valuable time in the race to reduce our reliance on costly fossil fuels; it would see my constituents in Ealing Southall, many of whom are on very low incomes, and indeed families across London paying more for their bills. Does he agree that this Labour Government’s plan to invest in clean, cheap, renewable energy and to reform energy pricing for the whole country as one is a fairer and more effective way of reducing bills for everyone?
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Ed Miliband (Labour)
I thank my hon. Friend for that really important question. The impact on Scotland is an important dimension here, because Scotland has really exciting plans to drive forward renewable energy, particularly offshore wind. It can be a massive job creator for the future, and it is something we are really focused on. One other issue with zonal pricing is that I fear it would have had quite an adverse effect on the Scottish green economy, which was a point powerfully made by lots of different stakeholders. I can definitely say to my hon. Friend that we are 100% committed. We think that Scotland has a rightful place as an energy capital and an energy powerhouse, and offshore wind is a crucial part of that.
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09:30 Seamus Logan (SNP)
I appreciate the high-wire nature of the act that the Secretary of State and his ministerial team are trying to deliver, but there are two litmus tests in Scotland that are absolutely crucial. First, private investment is essential to make the journey to net zero happen. Secondly, Scotland is such an energy-rich country, as he referenced, and yet we are paying the highest prices for tariffs and standing charges. Will his statement make it easier for private investment to come in and deliver us towards that journey to net zero, and does he foresee lower energy costs for consumers in Scotland?
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09:30 Chris Murray (Labour)
Last summer was the hottest on record and this summer may be even hotter still. The world faces a climate crisis. To tackle that, we need to move fast to net zero, and Scotland’s energy sector will be crucial in this country’s achieving that. To do that, we need to encourage—not discourage—investment, and we cannot waste any time. Does the Secretary of State think the decision will help Scotland boost its energy sector and through that, this country’s fight against climate change?
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09:30 Ed Miliband (Labour)
My hon. Friend speaks with great expertise and passion on these issues. On his first point, it is worth saying something about this, and I hope to say more on it in the next week or so. The impacts of climate change that we are seeing around the world are the new normal, I am afraid, but they are not normal in comparison with the past. We are seeing some horrifying scenes around the world, and the warming of the planet makes them much more likely to happen, so there is real urgency, and he is right to emphasise that. He is also absolutely right that Scotland will play a pivotal role for the UK in answering the questions on energy security and tackling the climate crisis. I believe the announcement today will help in that endeavour.
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09:30 Ed Miliband (Labour)
My hon. Friend is right to raise the issue of grid connections. We inherited an absolutely broken system that was massively oversubscribed, with a zombie queue, lengthening delays, and nothing happening, basically. That is why we have ended the first come, first served system and are doing a much more intentional, planned system for the grid. That is good for connecting renewable energy, but the other crucial thing is that by working out which energy projects we need and which we do not, we free up the queue for industrial projects. That is the key, and that is the work that NESO is currently embarked upon. I hope that it will help businesses in his constituency and across the country to deal with the obvious and acknowledged frustration they have on grid connection.
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09:30 Alex Barros-Curtis (Labour)
I thank my right hon. Friend for his statement. I want to put on the record my thanks to the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Rutherglen (Michael Shanks), for the extensive conversations that he has had with me and other Welsh Labour MPs on our concerns about zonal pricing, and that we felt it would fail the “fair and affordable” test that the Secretary of State has outlined today, so I welcome this statement. Now that we have had this announcement about reform national pricing, will he assure my constituents and businesses that they will see lower consumer bills as a result?
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