18 Mar
Question
Electricity Grid Decarbonisation

The question session focused on the electricity grid decarbonisation, addressing the estimated costs and implications of achieving this by 2030. Discussions reflected varied viewpoints on infrastructure development, financial implications, and the political direction towards achieving net zero emissions. The debate scrutinized the impact of decarbonisation on local communities, electricity bills, and the broader energy security framework.

UK electricity bills are currently the highest in Europe compared to gas.

The high comparative cost was cited as a driving factor for reducing fossil fuel reliance.

Outcome

The session ended with reiterated commitments to lower bills and the importance of infrastructure to meet decarbonisation targets. Divergent views on local implementations and cost exposures were apparent, pointing to a need for political consensus and strategic planning.

Key Contributions

Mr Louie French
Conservative

Raised concerns regarding cost estimates for grid decarbonisation by 2030 and highlighted local infrastructure challenges, particularly due to Labour's planning reforms.

James Wild
Conservative

Criticized the lack of cost transparency and the imposition of pylons and substations against local preferences, stressing the potential reliance on foreign supply chains.

Michael Shanks

Defended the Government's clean power mission, highlighting job creation in renewable sectors, and stressed the need for infrastructure development to support decarbonisation.

Bill EstersonChair of the Select Committee
Labour

Supported transitioning from fossil fuels and inquired about rebalancing infrastructure levies to reduce energy bills.

Ms Polly Billington
Labour

Questioned the cost implications of abandoning the consensus on net zero targets and the risks of increased reliance on fossil fuels.

Nick TimothyShadow Minister
Conservative

Voiced concerns about hidden costs and the potential rise in carbon prices, challenging the Minister to promise lower bills.

Original Transcript
Mr Louie French
Old Bexley and Sidcup
Con
Question
UIN: 903230

2. What recent estimate his Department has made of the cost of decarbonising the electricity grid by 2030.

James Wild
North West Norfolk
Con
Question
UIN: 903235

7. What recent estimate his Department has made of the cost of decarbonising the electricity grid by 2030.

The Parliamentary Under-Secretary of State for Energy Security and Net Zero
Michael Shanks
11:39

Our clean power mission will end our dependence on volatile fossil fuel markets, giving the British people the energy security they deserve and driving jobs and investment into our communities.

We are already seeing the impact of the clean energy transition, with thousands of jobs being created across the country in CCUS—carbon capture, usage and storage—hydrogen and offshore wind, and more nationally significant solar power being approved in eight months than the previous Government managed in 14 years.

Mr French
11:40

The London power tunnels project has been a positive story locally in Bexley, as National Grid has worked with the community to minimise disruption with a plan to restore the site.

However, the Labour Government’s planning reforms have led developers to propose two extensive industrial battery storage facilities on a nature conservation area and farmland locally in Bexley that do not meet fire safety guidance.

While we need infrastructure, does the Minister agree that weakening green belt protections against residents’ wishes and damaging nature in the process to meet Labour’s unrealistic grid targets will result in bad developments in inappropriate places?

Michael Shanks
11:41

I am glad the hon. Gentleman draws attention to the London power tunnels. My right hon. Friend the Secretary of State and I have visited them recently and they are a fantastic example of engineering and of what we can achieve if we set ambitious targets in this area. I gently disagree with the hon.

Gentleman on the wider point, however, as we are going to have to build infrastructure across the country to get the benefits of the renewable energy that we are generating, and battery storage is important for that.

Of course communities have a voice through the planning system and it would be wrong for me to comment on individual applications, but the hon. Gentleman and his colleagues must remember that we cannot simply block every infrastructure project that needs to be built.

We need to build for the economic growth of the country and for our energy security.

James Wild
11:41

Once again the Minister has failed to answer the question about the cost estimate, but we do know that the Government’s dogma-driven 2030 target will drive up costs and that we will see pylons and substations imposed in Walpole in my constituency and across the country against the wishes of local people.

That will damage our countryside and it relies on Chinese supply chains, which the Energy Secretary visited only over the weekend.

When will the Government realise that their approach of ruling out underground options and attempting to buy off local communities on the cheap, rather than listening to them, will only drive opposition to their plans?

Mr Speaker
11:42

I call the Chair of the Select Committee, Bill Esterson.

Bill Esterson
Sefton Central
Lab
11:43

UK electricity bills are the highest in Europe compared to gas.

Evidence given to the Select Committee suggests that the Government are absolutely right to reduce our reliance on fossil fuels, and it is a shame that some Opposition Members have abandoned an evidence-informed approach to policymaking.

Can the Minister confirm whether the Government are considering rebalancing the infrastructure levies on our energy bills, as a way of reducing electricity bills in the immediate future and as a down payment towards 2030 and beyond?

Michael Shanks
11:43

The Select Committee Chair makes an important point. Along with the Minister for Energy Consumers, my hon.

Friend the Member for Peckham (Miatta Fahnbulleh), I am looking at all options, because it is important that we bring down bills and that we are building an energy system that protects us from the volatile fossil fuel markets in the future.

There are trade-offs to be made when rebalancing that we need to be aware of, in particular whether a diminishing number of gas customers can pay bills if we were to transfer levies, but we are looking at all options and are, of course, looking at how we review with Ofgem the wider question of standing charges to make sure we bring down bills.

My hon. Friend is right to say of the journey that we are on—and that the Conservative party used to be on, and on which there used to be consensus—that our transition to net zero is important for energy security and for the climate, but also for protecting bills in the long term.

Ms Polly Billington
East Thanet
Lab

The Minister is clearly aware of the foolhardy decision by the Opposition to abandon the political consensus on net zero, but has he made an assessment of the cost to the consumer of pursuing that disastrous path, which would lock us into our dependence on polluting fossil fuels, volatile oil and gas prices, and the whims of foreign dictators?

Mr Speaker
11:45

I call the shadow Minister.

Nick Timothy
West Suffolk
Con
11:45

The Government’s rush to decarbonise the grid means more hidden costs, more curtailment payments, more balancing payments, more subsidies and a higher carbon price. Will the Minister guarantee that our carbon price will remain lower than the European price for the remainder of this Parliament?

Michael Shanks
11:46

I think the hon. Gentleman knows more than anyone about the work that the previous Prime Minister Theresa May did in this area—work that his party is now moving away from rapidly.

The Conservatives were right then: the only way for us to bring down bills, deliver economic growth and tackle the economic opportunities is for us to be on this journey together. Conservative Members used to strongly believe in that.

We will continue on that path because it is the right thing for the country to do.

Nick Timothy
11:47

That was a long-winded answer, but the Minister did not actually address the question, and I think he just gave away that it is Labour’s secret plan to increase the price of carbon—a massive rise in the carbon price—adding hundreds of pounds to families’ bills and decimating British industry.

Given Labour’s election promise to cut bills, will he take this moment—he can look up into the camera if he likes—to promise the country that by the next election bills will be lower, as Labour promised? Yes or no?

Michael Shanks

Never mind long-winded answers—that was a very long-winded question. I have not revealed any secret plans, but the Conservatives have revealed their not so secret plan, and I can tell the county that it is just as disappointing as the one the country rejected seven months ago.

We have been very clear that it is our commitment to bring down bills, and we are determined to deliver on that. Unlike the Conservative party, which left consumers across the country exposed to volatile fossil fuel markets—the hon.

Gentleman is right to point out that bills went up and up and up when his party was in government—we will bring them down. His party wants to take us back to the fossil fuel casino but we will not do that.

All content derived from official parliamentary records