Michael Shanks MP: speeches 2025

Speeches

• 13 Jan 2025 · Gas Storage Levels · Hansard source

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  Let me repeat what I said a moment ago: even if we were to take much more gas from our continental shelf, it would still be traded on the international market. The reason why the right hon. Gentleman’s constituents and mine still face a cost of living crisis is our exposure to petrostates and dictators around the world. He would clearly like to expose us to them even more, and I think that the Conservatives would support him in that, but we want to get ourselves off the rollercoaster of volatile fossil fuels and deliver a clean power system that is cheaper in the long run and delivers energy security. That is what is best for consumers, and for all our constituents.

• 13 Jan 2025 · Gas Storage Levels · Hansard source

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  These are commercial decisions for Centrica, although if it brings those decisions to us, we will of course look at them. Let me reiterate that the UK has a robust set of storage facilities to ensure security of supply. Rough is one of them, but at moments such as this, in the winter, it is not the most important, because it is the slowest to move gas into the system. The remainder are in an entirely robust state and will continue to deliver, but as I have said, what it chooses to do with its site is a commercial matter for Centrica.

• 13 Jan 2025 · Gas Storage Levels · Hansard source

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  Let me say two things to the right hon. Gentleman. First, our approach to China is that we will co-operate when it is in our interest to do so, and will challenge when necessary. That is the point that the Chancellor is making. Secondly, the way to ensure that what he describes does not happen, and that we build as much as possible in this country, is to build an industrial base in this country and to bring clean power jobs to the UK. The last Government failed to do that. We are driving forward an industrial strategy that will ensure that the jobs that arise from the clean power plan that we designed are in this country. The Opposition can either support that or oppose it.

• 13 Jan 2025 · Gas Storage Levels · Hansard source

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  That is a very good question. I thank the hon. Gentleman for giving me a second chance to reiterate that we inherited a whole series of plans that were not delivered. We have moved forward as quickly as possible to deliver significant projects, but we have also moved forward the competition on small modular reactors. [ Interruption. ] The shadow Minister says, “All you had to do was sign it off.” Maybe he forgets the state in which he left some of his policies when he departed office.

• 13 Jan 2025 · Gas Storage Levels · Hansard source

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  Conservative Members ask, “When?” —they had 14 years in power, and in 14 years did not build a single new nuclear project. The former Minister for nuclear, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), loves to shout about all the consultations that he launched, but he did not build a single new nuclear power station. My hon. Friend is right to make the point that we should move forward with nuclear—we want to see nuclear projects move forward as quickly as possible. My hon. Friend the Minister for nuclear is moving forward with two of the biggest projects, as well as the small modular reactor competition. We are quite rightly going through a process to ensure that it is as robust as possible, but we will have more to say in due course.

• 7 Jan 2025 · Draft Electricity Capacity Mechanism (Amendment) Regulations 2024 · Hansard source

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  I thank the shadow Minister for his support. I have no doubt that in 2025 we will have many debates on the “Clean Power 2030” action plan, and I look forward to hearing his support for our work. As I said in opening the debate, the draft regulations are technical in nature. They are about ensuring security of supply long into the future, and I hope the Committee will support them today. Question put and agreed to.

• 7 Jan 2025 · Draft Electricity Capacity Mechanism (Amendment) Regulations 2024 · Hansard source

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  I beg to move, That the Committee has considered the draft Electricity Capacity Mechanism (Amendment) Regulations 2024. Good morning and happy new year to all members of the Committee. It is a pleasure to serve under your chairmanship this morning, Mr Efford. The instrument revokes and alters several provisions of the assimilated regulation 2019/943 of the European Parliament and of the European Council of 5 June 2019 on the internal market for electricity relating to the capacity market, which from now on I shall refer to as the assimilated electricity regulation. Before I outline the provisions of the draft regulations, I shall briefly give some context. Great Britain’s capacity market was introduced in 2014. It is designed to ensure that sufficient electricity capacity is available to meet future predicted demand, to maintain security of electricity supply. It is our main tool for that purpose, providing all forms of existing and new-build capacity with the right incentives to be on the system when we need them. It covers generation, storage, consumer-led flexibility and interconnection capacity. Capacity markets auctions are held annually one year and four years ahead of delivery to ensure that we have supply when we need it and to meet future peak demand in a range of scenarios, based on advice from the capacity market delivery body, the National Energy System Operator. Since its introduction, the capacity market has contributed to investment in just under 19 GW of new, flexible capacity needed to replace older, less efficient plant as we transition to the net zero economy. The capacity market was originally approved under European Union state aid rules for a period of 10 years. Following the UK’s withdrawal from the EU, a requirement in EU law for approval of up to 10 years was brought into our domestic law as part of the assimilated electricity regulation. To date, the capacity market has been successful in ensuring that Great Britain has adequate electricity capacity to meet demand, and it continues to be required to maintain security of supply and investor confidence. This will be increasingly important as further sectors of the economy are decarbonised through the transition to net zero, increasing demand for electricity. The draft regulations revoke and alters certain provisions relating to capacity mechanisms in the assimilated electricity regulation, including article 21(8), which requires that “Capacity mechanisms shall be temporary and shall be approved for no longer than 10 years”, and other references to such mechanisms being temporary. The draft instrument also revokes several provisions that require minor correction following changes made for the UK’s withdrawal from the EU, or that impose requirements that are no longer considered to be necessary. We are making these changes now because of the ongoing need for the capacity market to ensure sufficient investment in reliable electricity capacity. The domestic subsidy control regime was introduced after our withdrawal from the EU. It does not require subsidy schemes to be granted an approval or to be limited for a specified period. The approval requirement in the assimilated electricity regulation does not, therefore, reflect our post-EU exit arrangements. It is of course important to keep the capacity market under review, and there are several controls in domestic legislation, such as the Secretary of State’s discretion not to hold auctions, as well as a statutory requirement to review the capacity market every five years, which provides an opportunity to review the need for the scheme. They will all be retained in the domestic capacity market legislative framework. The draft instrument revokes and alters certain provisions related to capacity mechanisms in the assimilated electricity regulation, including the requirement for an approval lasting no longer than 10 years and references to capacity mechanisms being temporary. The aim is to ensure that our domestic legislative arrangements reflect the continued operation of the capacity market, which is Great Britain’s main mechanism for ensuring security of electricity supply. I commend the draft regulations to the Committee.