UK Parliament / Open data

Energy Bill [HL]

Proceeding contribution from Lord Callanan (Conservative) in the House of Lords on Tuesday, 12 September 2023. It occurred during Debate on bills on Energy Bill [HL].

I thank all noble Lords for their contributions. I will first deal directly with the points by the noble Lord, Lord Kerr. What should I say about this? He is, of course, prescient in his observations, but this has been a long-standing policy—effectively of the Treasury, which is unwilling to fund many of these policies from general taxation. Therefore, a lot of previous subsidies, such as the warm home discount, are levied on energy bills. That has been a long-standing policy through a number of Governments and different Treasuries. I wish the noble Lord luck in his campaign to change the mind of His Majesty’s Treasury on these matters.

Moving on to the other issues, let me deal first with the points made by the noble Baroness, Lady Bennett. The problem for the Greens on this is that any sensible energy system in the UK—this is recognised also by the Opposition and we are grateful for their support—needs nuclear power, because it is a source of carbon-free electricity. Of course, many Greens, the more progressive Greens who have looked at our energy system properly, also support the use of nuclear power. I would point the noble Baroness to a very interesting website that I was looking at, called Greens for Nuclear Energy. This is a statement from a series of members of the Green Party who take a sensible and progressive view about this. Looking at the needs of the energy supply system and the need for decarbonisation, they have come to the same conclusion as many other sensible experts: that there is a need for nuclear power in this country.

The website says:

“Greens For Nuclear Energy seek to influence the Green movement’s key organisations and institutions”

in favour of nuclear energy because

“We need every available low carbon power source to combat catastrophic climate change”.

They therefore believe that

“the increasingly urgent need to deal decisively with our emerging climate crisis makes continued opposition to nuclear energy irrational for environmentalists and reduces our chances of averting a climate catastrophe.”

Perhaps the noble Baroness would want to go away and look at some of the more sensible members of her own party.

The invasion of Ukraine and the subsequent rise in global energy prices have demonstrated the paramount importance of accelerating our homegrown power and strengthening our national energy security. This is

in addition to the significant contribution, as I have just said, that nuclear would make to achieving our net-zero objectives because it is very low carbon. Nuclear technology generates zero direct carbon or other greenhouse gas emissions and has one of the lowest life cycle emission rates among generating technologies. The Committee on Climate Change, the International Energy Agency and the UN Economic Commission for Europe—alongside some sensible Green members—have all highlighted the role that new nuclear electricity generating capacity, in partnership with renewables, can play as part of our diverse energy mix while helping us to achieve net zero.

Great British Nuclear will de-risk new nuclear developments by, among other things, co-funding selected technologies through their development. This will provide greater certainty for investors to develop projects over the long term required to deliver new nuclear generation capacity on to the electricity grid. We intend to fund Great British Nuclear’s initial operating costs via grant in aid. It will be subject to standard NDPB reporting and accountability requirements, which will be set out in Great British Nuclear’s framework document.

The terms of investment in development projects will be bespoke and negotiated on an individual basis. The key goal will be to deliver on the Government’s commitment to increase nuclear energy capacity in Britain, while of course ensuring, as always, value for money for the taxpayer and the bill payer. We are legislating to ensure that Great British Nuclear has the long-term operational mandate needed to carry out the role that government intend for it. The amendments set out the framework within which Great British Nuclear shall operate in facilitating the deployment of nuclear reactors in Britain.

I spoke earlier about the comments of the noble Lord, Lord Kerr. The EII support levy, like the other measures in the British Industry Supercharger, would simply constitute a rebalancing of existing electricity costs away from EIIs and on to other energy users, who have traditionally received more protection from higher energy prices than some in industry.

At the end of these debates, I am grateful to all noble Lords who have contributed. In particular, I thank my colleague in the other place, Andrew Bowie, for guiding the Bill through the House of Commons. I also thank the department’s Bill team and all the other policy and legal officials across various government departments who have been involved in this huge and landmark piece of legislation. They who have worked tirelessly to deliver it. I particularly thank the House authorities, parliamentary staff, clerks and doorkeepers, and all noble Lords who have contributed to the evolution of this landmark Bill.

Type
Proceeding contribution
Reference
832 cc814-5 
Session
2022-23
Chamber / Committee
House of Lords chamber
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