Michael Shanks
MP for Rutherglen · Labour · United Kingdom
“In the past two years, during which I have had the privilege of doing this job, my hon. Friend has frequently shared her experiences as an electrical engineer, and she is right. I, too, am in awe of the grid and of the work that its operators do day in, day out as part of the extremely complex job of balancing supply and demand 24/7.”
“First, on the point about this somehow being a Government project, it is absolutely not. That is why my answers to the right hon. Member for Tatton reflected the fact that, right now, private developers across the country in a whole range of sectors are developing private propositions for all sorts of things.”
“As I have said to the shadow Secretary of State before, though, she is conflating two things, I think wilfully. There are questions to be asked about things that have been raised with her by whistleblowers, which we will now investigate.”
“My hon. Friend is absolutely right, and that was the point I was going to come on to. Community engagement is absolutely critical. It is an absolutely firm expectation from Ministers that any of these large-scale infrastructure projects should have meaningful engagement with communities.”
“There was a lot there, but I am sorry that the hon. Gentleman is not happy to see me at the Dispatch Box. I am very happy to see him in his place, and to be here to answer this important urgent question. On security of supply, let me say that, yes, renewables are not going to be the entirety of our mix at all times.”
“I am aware of that. Councils can take a view on a whole range of things; I do not think there is anything controversial about a council making its views known on a particular project. It is very welcome to do that, and that is why we have democratically elected councillors in this country. On a final point by the right hon.”
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“While that is a limited number of responses, the issues raised were broadly consistent. Respondents commented primarily on the scale of the proposed increases, including the cumulative impact over successive financial years, and made comparisons with inflation rates, and they expressed concerns about the transparency of the underlying cost base and the timing of implementation. OPRED considered the consultation responses and concluded that the new rates accurately reflect the cost of carrying out its regulatory functions, despite being higher than the rate of inflation. OPRED acknowledged that the timing of the rate increase could cause issues for industry in relation to planning and budgeting, but it saw this as part of an anticipated annual process.”
“That is consistent with the Treasury’s “Managing Public Money” principles, which require full cost recovery where appropriate. The revised hourly rates were approved by the Treasury in January 2026. The draft fees regulations will amend the charging provisions by increasing the hourly rate for environmental specialists to £256 and for non-specialists to £130—there will be a quiz at the end to make sure that people know the difference between those two sets of numbers. OPRED formally consulted the offshore industry on the rate change proposals and the cost base revision in February this year. The consultation, which launched on 17 February and closed on 13 March, sought views on the proposed rates and their implementation, and we received five responses.”
“OPRED’s fees are determined by multiplying the appropriate hourly rate by the number of hours worked by environmental specialists and non-specialist staff. The current hourly rates have been in force since July 2025. Having reviewed its cost base, OPRED has concluded that the existing rates needed to be revised to reflect today’s costs for regulatory services. During the review, OPRED also identified that some regulatory costs were not being fully recovered, in particular the cost of statutory advice from nature conservation bodies and certain costs associated with the UK energy portal, which is OPRED’s digital system for delivering regulatory services. The revised cost base ensures that all eligible costs are met by those who benefit from the services, rather than by the taxpayer.”
“OPRED recoups the eligible costs of its regulatory functions from industry in the offshore oil and gas sector in two ways: first, by using regulations that are covered by these draft fees regulations; and, secondly, by five charging schemes. The charging schemes do not require legislative change and will be amended administratively. OPRED’s average income from fees is about £7.3 million annually, recovered from about 100 companies. Currently, the fees that OPRED charges are based on rates of £210 an hour for environmental specialists and £114 an hour for non-specialists. Environmental specialists are technical staff who carry out the functions of the Secretary of State, and non-specialists are support staff.”
“I beg to move, That the Committee has considered the draft Pollution Prevention and Control (Fees) (Miscellaneous Amendments) Regulations 2026. It is a pleasure to serve in this Committee under your chairmanship, Ms McVey. The draft regulations were laid before the House on 14 May. Before I outline the provisions to be made by the statutory instrument, I will briefly provide some context. The Offshore Petroleum Regulator for Environment and Decommissioning, which for the sake of all our time I will now call OPRED, minimises the impact of the offshore oil and gas sector on the environment by controlling air emissions and discharges to sea, and by reducing disturbance over the life cycle of operations, from seismic surveys through to post-decommissioning monitoring.”
“The shadow Minister and I have this bout regularly, and he makes the same points as he always does. I congratulate him on the one by-election that his party has won, but I am afraid that I do not have time to name all the by-elections it has lost in recent years. However, I am absolutely delighted to find a bit of consensus between our two parties, and I welcome his support for the regulations. On the wider point, as I have said repeatedly, our domestic oil and gas industry is hugely important and will continue to be so for many years to come, but so too is investing in the future of our energy industry beyond oil and gas. I hope that the same consensus we saw at the start of the shadow Minister’s speech might yet be found on our wider investment in the North sea, which benefits his constituents and indeed those of the new hon.”
“Member for Moray West, Nairn and Strathspey (Graham Leadbitter) says—and I believe him—that he cares about. It will help the industry to have clarity on the SNP’s policies. On devolving energy policy, many of the things he calls for, including further investment in renewables, have been driven by the strength of being part of the United Kingdom, of pooling and sharing investment in those hugely successful projects in Scotland, which I suspect would not be possible— [ Interruption. ] He is about to intervene to tell me how it would be possible, if they were devolved, to fund all those renewable projects and a whole series of other things, and how the electricity market would work in an independent Scotland. I am sure he will briefly explain that to us.”
“Member none the less. I also welcome the hon. Member for Strangford (Jim Shannon), who is ever charming and kind to us all. We could all do with a daily affirmation from him in our debates. I certainly appreciate it. This debate has been helpful for a number of reasons. The shadow Minister and I know each other’s arguments well enough by now, so there was nothing hugely illuminating in his speech, and I suspect there will not be for him in what I have to say. It was illuminating to hear from Scottish National party that it now has an energy strategy, but it is being kept secret. I hope we will see that strategy published soon, because for three years we have not known the SNP’s policy on oil and gas and a whole range of other things. That matters for the industry that the hon.”
“It is a pleasure to serve in this debate, Ms Furniss. I thank the hon. Member for Bromsgrove (Bradley Thomas); at least I know his constituency, even if the shadow Minister does not—so much for being an hon. Friend. I also thank those who have contributed to the debate; the shadow Minister reeled off all the constituencies, so I do not have to, and I am eternally grateful to him. I warmly welcome the hon. Member for Aberdeen South (Douglas Lumsden). I was also a by-election MP and know what it feels like to arrive in this place without a cohort of 100 other new people. I wish him the best of luck finding his way around this building. I got on hugely well with his predecessor and appreciated his contributions—at the risk of misleading the House, I must say for the benefit of Hansard that that was sarcasm, but I welcome the hon.”
“I am afraid that that is at the heart of the problem with the argument put forward by the Opposition, because they say that we need to build up the jobs that come next, but then oppose all the decisions that drive forward that investment. They criticise that there are not enough jobs coming from renewables but then say that we should not invest in the renewables projects that create those jobs. That is not a coherent argument to have.”
“I have made my position very clear on that project. We were carrying out national security assessments, which should always rightly take priority. The First Minister of Scotland has been briefed on the security grounds for doing that. He is aware of why we reached the decision that we reached. I am obviously not going to comment further on that. Our national security always comes first. Something that I have always said in this role is that our domestic production in the UK does matter. It sustains jobs and it delivers tax receipts and the gas that flows into our pipes every single day. We are not a Government that are for turning off the taps, and we never have been. But we are for recognising that a transition is under way and that investing in what comes next is critical.”
“The most accessible oil and gas has been extracted. Production has been in decline for a quarter of a century, and it reduced by approximately 75% between 1999 and 2024. That did not begin in July 2024.”
“It is about stewarding the future of the North sea through collaboration and through managing all the opportunities that come, as well as an obligation to work together. There is always rightly a lot of heat in these debates, but I honestly believe that underneath it all there is a lot more consensus about the need, not for one or the other, but for all the energy that we can get and for all the jobs that come from it. I will briefly say what our position is on the North sea. Gas has been flowing into this country for more than 60 years and is continuing to flow into this country 24/7. I was pleased to be at Bacton gas terminal a few weeks ago to see the skilled work that they do to manage up to a third of this country’s gas. It will continue to be a vital resource for decades to come, but it is also a basin that has been in decline.”
“Burying our heads in the sand and ignoring the realities of the need for us to fund this transition properly will not protect a single job, nor will it create a new one. Nor will abandoning the sector entirely and turning off the taps as others would seek to do. I notice that this is yet another energy debate where no Green MPs—who have the most extreme positions on this issue—have bothered to turn up. It must never become a binary conversation. The North Sea Future Board, which I chair, has just produced a statement on what we are seeking to do to drive forward this transition. That says that, at the heart of it, that transition is not about one industry being pitted against another.”
“We have seen too many failed economic transitions in the past, so we have to learn the lessons from that. As hon. Members have made very clear today, we must also see the huge potential that comes from the projects that we need in the future, not least in the supply chain that will build many of the projects that we need as part of our transition to clean energy. That will come from those very workers, so it is hugely important that we put them at the centre of all of this. We also have to recognise that this did not somehow just start happening in July 2024. We have been in a period of transition for decades now. A third of jobs in the industry have been lost in the past 10 years, and we cannot accept that failed status quo any more.”
“My hon. Friend is right on that point, and I will come to it in a moment because it is the main thrust of my speech. I will start with what my hon. Friend the Member for Na h-Eileanan an Iar (Torcuil Crichton) said and also welcome Donald MacKinnon into his place. I know he will be a strong advocate for the western isles. My hon. Friend rightly recognised that this is about a sense of identity. Yes, it is about a job and a pay packet at the end of the month, but it is also about a sense of belonging to an industry that many people have worked on in incredibly difficult circumstances for a long time. Since I came into this job as Energy Minister two years ago, and as a Scottish MP and someone who has friends and family working offshore right now, I have always said that getting the transition right for those workers is central.”
“This is the pragmatic approach that industry has called for, recognising that the most economically viable route to sustaining the fields is to have a tieback to an existing field that produces new oil and gas. That maintains the critical infrastructure and supply chains, as well as prolonging jobs. That is what industry called for, and that is the pragmatic approach we took in the North sea future plan.”
“Because we want to steward the future of the basin and have a strategic plan that industry can get behind. Very few of the licences that have been issued in the past few years have come to production, so they are not the route to that, but the process had so far not had clarity from the Government. That is why we said what we said on licences. The second part of our manifesto commitment, which is often ignored in this conversation, is that we will continue to manage existing fields over their lifetime. We are not rescinding any licences—we are not saying that new production could not come forward in existing licensed fields—or rescinding any projects that currently exist. My hon. Friend the Member for Na h-Eileanan an Iar made a point about the importance of tiebacks.”
“A fair, managed and prosperous transition means investing in all of that—in offshore wind, carbon capture, long-duration energy storage in Scotland and elsewhere, and in supply chains so that we are building energy in Britain again, not towing it in from somewhere else and offshoring the jobs. That is the opportunity in front of us. None of this will be easy. We will have to wrestle with some real challenges, but if we move fast to invest in the future and take a pragmatic position, I believe the North sea has a strong future ahead of it. I do not pretend that it is straightforward or that that will somehow give comfort to the workers who are facing it just now, but I am absolutely committed to making this work, and so are the Government. I thank the hon.”
“I recognise that needs a pragmatic position on our side, but it also needs a pragmatic position from those who, in recent years, seem to have become anti the very investment that will drive forward the future of the North sea. It is not possible for us to secure the long-term future of the North sea purely by calling for new licences in oil and gas. Anyone who believes that is the long-term answer is ignoring the reality in front of us. Oil and gas is hugely important, but the transition works only if we also invest and build up what comes next. We need both of them.”
“I gently say to him that we had to pick it up with no planning done in advance, and I am afraid it is not possible for us to get projects off the shelf, invest money in them and get them built immediately. We need business and industry to come forward with propositions, and the Government have an open door to engage with them directly on how we can deploy that money to Grangemouth. I meet them regularly to make sure that is happening, and we will continue to do that. Again, I thank the hon. Members who have participated. It is hugely important that we talk about these issues. I hope we can also find a way, at some point, of reaching some consensus on how we can have an all-energy approach to the future of the North sea.”
“It is perhaps more important now than in recent years that we recognise that, in an uncertain world, our energy security is a hugely important part of how we build much more security at home. The point made about refinery capacity was right. We lost two refineries in this country, and I regret hugely that we did not do more to prevent those closures in the years leading up to them. We have now to protect our four refineries, which are hugely important sovereign capacity. In a global fuel crisis, those refineries have been key to ensuring that Britain has not suffered fuel shortages. We have to continue to support them. On the point made by my hon. Friend the Member for Alloa and Grangemouth (Brian Leishman), we committed to invest £200 million in the future of Grangemouth, and other projects are coming through.”
“Friend the Member for Mansfield (Steve Yemm), we recognise that the clean energy workforce of the future has to have strong and fair protections, be trade unionised and have good, well-paid jobs. That is partly why, for offshore wind, we have driven forward the fair work charter as part of the clean industry bonus, so that rights are at the heart of these jobs and that, wherever possible, workers can transition from oil and gas into these jobs with good terms and conditions. That was opposed by some Conservative Members when we took it through Parliament recently, but I hope that they will rethink, because it is hugely important. The hon. Member for Bromsgrove made a point about energy security, which is absolutely right. Our energy security is our national security.”
“Let me turn to the critical issue of the workforce. Under the North sea future plan, we will introduce a statutory objective for the North Sea Transition Authority to consider workers, communities and supply chains in its decisions. The NSTA has been looking at how it can support the transition for a long time, but this gives it a statutory objective to do so. This is not just about production and infrastructure. It is about people and places; it is about the workers who built the North sea success story, and with it the success of the British economy, the communities that supported it and, crucially, the supply chains that go with it. We will also extend employment rights and protections to offshore renewables workers, and I hope that everyone in this House will support that. Coming to the point made by my hon.”
“The right hon. Gentleman raises an important point about what the stewardship of the basin has to look like, and he made another important point earlier about not conflating oil and gas. Equally, the story we tell about the North sea is often what the North sea looked like 30 or 40 years ago. It has changed significantly; the operators in the basin have changed, but so too has the structure of many of the operations. The North Sea Transition Authority has a role in planning the future of the basin and identifying issues relating to sustainability and infrastructure. It also has a role in looking at how we can do more around, for example, the electrification of platforms, so that we can reduce emissions from the platforms wherever possible and tie into offshore wind projects where possible.”
“Friends the Members for Mid Cheshire (Andrew Cooper), for Chester North and Neston (Samantha Dixon), for Wallasey (Dame Angela Eagle), for Ellesmere Port and Bromborough (Justin Madders), for Derbyshire Dales (John Whitby), for High Peak (Jon Pearce), for Wirral West (Matthew Patrick), who joins me on the Front Bench, and the Mayor of the East Midlands, Claire Ward, have all raised questions, some very similar to those raised by the hon. Member for Chester South and Eddisbury. They are legitimate questions about how we ensure that safety is a paramount consideration—”
“This is about protecting our industrial base as well as building what we need for the future. Although I welcome the hon. Lady’s important point about low-carbon cement, this is not an either/or situation. There should be a place for innovation. Where we see technological solutions coming forward, we should support them as much as possible. I agree with her point about prevention being better that cure, but we also need to protect the industries that we have and the jobs that go with them. I hope that we can do both. I welcome the chance to talk about the specifics of the Peak Cluster project, which the hon. Lady particularly wants to talk about. I also welcome the conversations that I have had with a number of other hon. Members over the past few months on this issue. My hon.”
“We want the UK to be at the forefront of that and to capture as much of that potential as possible. We have several advantages that make us well placed to take that forward. Our first clusters in the UK are projected to support an average of 4,800 direct jobs, while the sector as a whole can deliver up to 50,000 jobs and £2.8 billion of gross value added by 2050, and includes jobs included in north-west England and north Wales. The question of how we reduce emissions from cement has been referenced. The HyNet cluster, which I visited a few months ago, and Padeswood cement works are examples of projects that are moving forward where carbon capture technology not only reduces our emissions and creates jobs in the process, but protects jobs at the cement works that have been rooted in that community for decades.”
“In our view, carbon capture plays a part in that. I was reflecting on the commitment by previous Governments to this. The shadow Energy Secretary, the right hon. Member for East Surrey (Claire Coutinho), put it very well in December 2023, when she was the Energy Secretary: “Thanks to the UK’s geology, skills and infrastructure, we are in a unique position to lead the way on carbon capture technologies.” I welcome those comments because they set out the right approach to take, but I think there are now some new ideas among Conservative Front Benchers. CCUS at home is one part of the story, but the story is also about how we export that technology and expertise abroad. McKinsey recently forecast that the global investment in the industry could be worth up to £135 billion by 2035.”
“I recognise that the project she mentioned has a lot of interest from her constituents, as well as those in neighbouring constituencies, but it is part of the wider carbon capture industry in the UK, so before I come to those specific points, I will take a moment to explain our wider position on carbon capture. Carbon capture, usage and storage will decarbonise industry and power in a way that drives economic growth and supports jobs, as well as our climate goals. Through CCUS we can produce flexible, low-carbon power, displacing the use of unabated gas when renewable energy sources such as solar and wind are not available. CCUS will be critical. I welcome the hon. Lady’s recognition that our pathway to reducing our carbon emission matters, and that the route we take to get there matters as well.”
“I congratulate the hon. Member for Chester South and Eddisbury (Aphra Brandreth) on securing the debate and on her work gathering her constituents’ views. I genuinely welcome the tone that she has taken. As a personal reflection, I miss the fact that a great many subjects that we used to debate in this place used to be debated in that tone, with a genuine desire to get the right outcome, with a bit less heat and a bit more substance. I hope that we can get back to that in debates about the energy sector. I will come to the points raised by the hon. Lady in a moment.”
“I will take interventions in a moment—I have clearly started something. The major thrust of the hon. Lady’s speech was about how the voices of communities are heard in the consultation process.”
“My hon. Friend makes a very important point. The National Wealth Fund is independent in the decisions it makes. It has clearly made decisions based on the Government’s ambitions on carbon capture, but on this particular project it made investment independent of my Department, which has not made any funding commitments to the Peak project. That should be seen as just a decision for the National Wealth Fund and not as any wider support from the Government at this stage.”
“That is the balance that we seek to achieve as a Government—taking the views of local people seriously, but also building the infrastructure that this country needs for the future. I genuinely thank the hon. Member for Chester South and Eddisbury for bringing this debate before the House, and my hon. Friends for contributing to it. Question put and agreed to.”
“Lady raised a number of other points, which I will happily pick up with her in more detail, but let me make a final point in closing. We want to be a Government who drive forward on reducing our carbon emissions and build the technologies of the future, but we do not govern by diktat. The views of local communities matter—they matter deeply to me, but also to the Secretary of State and to this process. The only way this works for everyone involved is if those views are taken seriously, and if communities feel that their views are taken seriously by all those involved. We must also all recognise the really important benefits that come from carbon capture and the pathway we are on as a Government.”
“No decision has been made by the Government either to support the project or on the development consent order process, which will be completed once the proposal is submitted and will be completed in the way that these processes always are—in a quasi-judicial way, by the Secretary of State. Let me respond to a couple of specific challenges raised in the debate. On safety, it is really important to make the case to the public that carbon capture is a very tried-and-tested technology that has been deployed across industry and power generation at scale for a long time. Geological carbon dioxide storage has been in operation for decades, and Norway has stored CO 2 since 1996, with more than 20 million tonnes stored so far. Our regulatory regime rightly has to raise the safety levels to ensure that continues. The hon.”
“If that does not happen, the submission will simply not be taken forward. I am aware that proposals have received a number of local stories in the press and that a public petition has received many signatures. Let me echo something that the hon. Lady said. There is a way to engage in this process. Robust comments are important, as people care deeply about these things, but abuse targeted at either those involved in the project or hon. Members is not a productive way to take this work forward. I hope that there will be a process in which people feel they can genuinely participate. As I understand it, the Peak Cluster has plans for more extensive consultation later this year, before any final proposals are made.”
“I agree with my hon. Friend, and I will come on to that point. I appreciate the importance of consultation, but I thought the hon. Member for Chester South and Eddisbury put it very well. Consultation is not a briefing exercise; it is a listening exercise, and a reshaping of things on the basis of what we hear back. I will say more about that in just a moment. Let me be really clear about how this project is being developed. The Peak project is being developed independent of Government and is at an early stage. It is crucial that developers engage fully with local communities as they develop the proposals, and they will have to work towards introducing a proposal into the planning system. I have been very clear with developers directly that the project has to take local views into account and offer clear benefits to local communities.”
“By building on the foundations that we laid in AR7, the draft regulations will strengthen the procedures and simplify the operation of the scheme, which will drive progress towards clean power by 2030, while of course helping us in our No. 1 mission of securing value for money for bill payers. I commend the draft regulations to the Committee.”
“The Government published a draft of the framework setting out the proposed requirements for AR8 on 1 June, and invited stakeholder views. The final version will be published in early July, before the round opens to applications. These amendments received strong stakeholder support in a recent public consultation, which showed broad recognition that the changes will improve the experience of applicants during the assessment process, support more effective competition and secure better value for money for consumers. This approach reflects our continued close engagement with industry in the development of the CfD scheme.”
“It should streamline the process and ultimately increase the number of participants in the auction, which will help us by driving greater competition and better value for money for bill payers. Thirdly, the regulations clarify how NESO is to treat applications where eligibility has not yet been decided by the point at which the regulations require NESO to proceed with the auction. In the light of operational experience from AR7, this amendment will remove some ambiguity in existing regulations. Finally, the draft regulations provide for procedures or information relating to the implementation of several of the measures that I have just described to be set out in the contract allocation framework—a statutory document that contains the eligibility criteria and rules governing how NESO must allocate CfDs in an allocation round.”
“As the CfD scheme has grown in popularity, the volume of applications has increased significantly, with several hundred submitted in recent allocation rounds. Eligibility checks are always robust, but larger numbers of applications increase the risk of errors in assessment decisions. This amendment will ensure greater consistency and fairness in how the eligibility requirements are applied. Secondly, the draft regulations will enable NESO to consider additional information or documentary evidence submitted by applicants when examining appeals from non-qualification decisions. That change will help to avoid projects being disqualified for minor or trivial omissions from their applications.”
“Such achievements show how the CfD scheme—our key path to deliver on our mission of clean power by 2030—strengthens Britain’s energy security. The regulations that govern the scheme are kept under review to ensure that they remain fit for purpose. The draft regulations will make the following three targeted amendments to improve the future operation of the scheme. First, they will enable the National Energy System Operator to correct certain types of error it makes during the assessment of applications by issuing new or amended qualification decisions, where evidence supports that. NESO, in its role as the CfD delivery body, assesses applications against the eligibility criteria and determines whether applicants qualify to participate in the competitive allocation process.”
“Friend the Energy Secretary outlined a package of measures to go further and faster on clean power, including bringing forward the opening of AR8 to July to provide certainty for clean energy investors. The most recent allocation round, AR7, alone secured 14.7 GW of clean, home-grown generating capacity across 201 new projects. AR7 built on the success of AR6—out in September 2024—which secured more than 7 GW of renewable capacity across Great Britain. AR7 was the most successful renewables auction in European history. The reforms we introduced for AR7 boosted competition and investor confidence, and secured renewable capacity at strike prices 40% lower than the cost of building and operating a new gas power plant.”
“I beg to move, That the Committee has considered the draft Contracts for Difference (Allocation) (Amendment) Regulations 2026. The draft regulations were laid before the House on 20 April. They make several minor and technical amendments to improve the operational efficiency of the contracts for difference scheme during the assessment of applications. Subject to the will of Parliament, the Government intend to introduce those targeted and practical measures in time for allocation round 8, which opens on 20 July. For the interest of Committee members, the CfD scheme is the Government’s flagship policy for supporting new low-carbon electricity generation in Great Britain. CfDs are awarded through annual competitive auctions, with the lowest-priced bids being successful. In March, in response to events in the middle east, my right hon.”
“I give the Conservatives credit for that, even if they do not wish to give it to themselves. What they did not do, however, was build the grid to connect those projects up. We were left with generation right across the country and a grid that was completely out of phase. A lesson for us to learn from the 14 years of Conservative Government is to build the grid to connect the clean power to households, to connect the economic growth opportunities that we need badly, and to get us off the fossil fuel rollercoaster as fast as possible, so that we are not forcing families to pay sky-high prices for gas, which we can never control. That is what the draft regulations help us to achieve, and I commend them to the Committee. Question put and agreed to.”
“We are determined not to drive forward our energy system in that way. From an energy security point of view, there has never been a clearer argument than what we are facing right now. Only four years ago, we faced exactly the same question with Russia’s invasion of Ukraine. We have to learn the right lessons, not continue to make the same mistakes. The last point that I would make—with your patience, Mr Stringer, because none of this is in the draft regulations—is on curtailment and storage. The hon. Gentleman is right to highlight the cost of building the grid, but as much as I would love to take credit for this Government for building the renewables projects that are generating clean power in this country, the truth is that most of them were built under the previous Conservative Government.”
“AR7 was the most successful renewables auction that we have ever had. Crucially, however, it was an auction that brought in prices 40% lower than those for building and operating new gas. That was before the situation in the middle east arose. I do not have the actual figure for what the difference would be now, but we can all safely assume that with the price of gas where it is today, it would be a significantly higher saving now than it was then. That is the truth of the hon. Member for Mid Buckinghamshire saying that he opposes forcing families to pay more; what he is proposing is to force families to pay for gas, which is significantly higher in price right now, and is often much higher. He is gambling that at some point in the future gas prices might come down, so everything will be okay.”
“I welcome the comments of both hon. Gentlemen, in particular those of the hon. Member for West Dorset, who spoke to the actual draft regulations. I thank him for his support. I also thank the official Opposition for their support for all that we do in energy policy, or so it seemed from the speech of the shadow Minister, the hon. Member for Mid Buckinghamshire. The hon. Member for West Dorset spoke about increasing the CfD lifetime, but we did extend the CfD from 15 to 20 years. We recognised the impact on the cost of investment, which brought down—or played a part in bringing down—some of the bid prices into the auction. We will maintain those changes into AR8 before we open the round. On the more general points that were made, I think that there is a moment here to reflect.”
“With that new-found consensus on the clean power mission, I am happy to report to the House that we are making good progress towards our targets. We delivered the most successful renewables auction in history through allocation round 7, securing enough home-grown power for 11 million homes, as well as delivering a record-breaking 269,000 solar installations last year, the majority of which were on rooftop sites. By moving further and faster towards electrification, we are reducing our dependency on global fossil fuel markets and delivering energy security here at home.”