Michael Shanks

Michael Shanks

Labour — Rutherglen

Speaking in the House of Commons on 11 February 2025

Debate

Cost of Energy

Contribution

Good morning; it is a pleasure to speak in this debate under your chairmanship, Mr Western. May I thank the hon. Member for Bath (Wera Hobhouse) for securing this debate and, actually, for all our engagements over the past seven months? She always helpfully challenges the Government from a place of real passion and commitment, and I appreciate her words of wisdom, even if I do not always entirely agree with them. In fact, we have had countless debates on energy policy with a number of people in this room—it is beginning to become a bit of a weekly club here in Westminster Hall—and I appreciate all the points that have been raised. May I say to the hon. Member for Strangford (Jim Shannon) that I just cannot get enough of his contributions? Having not spent enough time in the Commons yesterday, we are back again today, but I am appreciative none the less. I will come to his points about Northern Ireland later. I will start where the hon. Member for Bath started: on the public’s view about the cost of energy. She made an important point about how central energy costs are not just to the cost of living crisis that our constituents are still living through, but to their belief in the Government’s ability to change things, so it is important that we tackle these issues. As the hon. Member for Beaconsfield (Joy Morrissey) rightly said, this Government were elected on a manifesto that contained pledges on energy. I am privileged to have the job of Energy Minister, because for the first time in a very long time we have a Government with a key mission to fix the energy system in this country. The truth is that it needs to be fixed because of what we inherited from the previous Government. The energy crisis in 2022 was just the peak that highlighted how vulnerable we are to the rollercoaster of the fossil fuel markets. The cost of energy continues to have a devastating impact on our constituents and communities right across the country. Although consumers are protected to a certain degree by the energy price cap, our energy costs are determined by volatile markets outwith our control. As long as we remain exposed to that, the risk to our constituents is that we will face yet another price spike in the future. My hon. Friend the Member for Northampton South (Mike Reader) made the point well that after 14 years of Conservative Government, we have to not just turn around one bit of the energy system, but deal with the whole series of occasions on which the previous Government failed to make decisions that would grapple with the scale of the problem. That is why I announced yesterday in the main Chamber our transitional support for Drax and biomass. The truth is that we got a good deal for consumers and for sustainability, but we had to make that decision. We had no other options because the previous Government left us with no long-term plan for energy security. That is why we believe so firmly in our clean power by 2030 mission, which, by creating home-grown renewable energy, will help us to reduce our dependence on volatile fuel markets and will protect bill payers for good. Great British Energy will play a vital role in that mission by accelerating our deployment of clean energy so that Britain can become a clean energy superpower. Crucially, it will also invest in the supply chains that bring manufacturing jobs for renewable energy to our country.

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