Category: Energy

The comments made by Greg Hands, the Energy Minister, on 6 April 2022.

Russia’s appalling aggression in Ukraine amid escalating global gas prices has shown the vital importance of strategic change to the UK energy system. We need to boost our energy resilience, reduce our dependence on expensive imports and slash emissions. The FSO will do just that.

The statement made by Greg Hands, the Minister for Energy, Clean Growth and Climate Change, in the House of Commons on 31 March 2022.

As the House is aware, the North sea transition deal was agreed with the oil and gas industry a year ago. This is a central part of the energy transition and a global exemplar of how an oil and gas producer can plan for a smooth transition away from our reliance on fossil fuels. The urgency of this transition along with the ongoing need for oil and gas has been highlighted by Putin’s war against Ukraine.

The role of the oil and gas authority has developed over the past few years, and its name reflected only one part of the work that it does. It has now changed its name to the North Sea Transition Authority. The Government were consulted and supports this change.

The new name better represents the breadth of work it now undertakes and its pivotal role in supporting the UK upstream oil and gas industry to achieve net zero emissions.

Oil and gas currently meet around 75% of the UK’s energy demand and they will continue to play a vital part in the energy mix for decades to come as we head to net zero. Oil and gas will have a key role to play in our transition to net zero, and sourcing gas domestically can have significant environmental benefits compared to importing it from abroad. The North Sea Transition Authority is helping the industry reduce its own emissions and is now considerably more active in supporting the broader energy transition.

Recent geopolitical events have also made it clearer than ever that security of supply remains of vital importance as the transition is achieved, and the North Sea Transition Authority will remain resolutely focused on its role in ensuring energy security as the body which stewards the oil and gas industry, both on and offshore.

The new name of the North Sea Transition Authority reflects the changing world and its changing role, but also the importance of our North sea to the UK’s energy future. The sector is also an important part of our economy, supporting around 118,000 jobs across the UK, and paying over £30 billion in tax since 2010.

I plan to return to update the House on progress in implementing the North sea transition deal in due course.

The comments made by Greg Hands, the Energy Minister, on 25 March 2022.

Our innovation has made the UK a green energy world leader and we are unleashing that now to help us further secure greater clean energy independence.

The Energy Entrepreneurs Fund is backing the next generation of inventors and innovators to drive forward cheap and reliable low-carbon technologies, create jobs and reduce our reliance on expensive fossil fuels.

The statement made by Greg Hands, the Minister for Energy, Clean Growth and Climate Change, in the House of Commons on 24 March 2022.

Today I will lay before Parliament a departmental minute describing a contingent liability arising from the issuance of a letter of credit for the energy administrators acting in the special administration regime for Bulb Energy Limited (‘Bulb’).

It is normal practice when a Government Department proposes to undertake a contingent liability of £300,000 and above, for which there is no specific statutory authority, for the Department concerned to present Parliament with a minute giving particulars of the liability created and explaining the circumstances.

I regret that, due to negotiations with the counterparty having only just concluded, I have not been able to follow the usual notification timelines to allow consideration of these issues in advance of issuing the letter of credit.

Bulb entered the energy supply company special administration regime on 24 November 2021. Energy administrators were appointed by court to achieve the statutory objective of continuing energy supplies at the lowest reasonable practicable cost until such time as it becomes unnecessary for the special administration to remain in force for that purpose.

My Department has agreed to provide a facility to the energy administrators, with a letter of credit issued, with my approval, to guarantee such contract, code, licence, or other document obligations of the company consistent with the special administration’s statutory objective. I will update the House if any letters of credit are drawn against.

The legal basis for a letter of credit is section 165 of the Energy Act 2004, as applied and modified by section 96 of the Energy Act 2011.

HM Treasury has approved the arrangements in principle.

The statement made by Greg Hands, the Minister for Energy, Clean Growth and Climate Change, in the House of Commons on 2 March 2022.

Today I will lay before Parliament a departmental minute describing a contingent liability arising from the issuance of a letter of credit for the energy administrators acting in the special administration regime for Bulb Energy Ltd (Bulb). This letter of credit replaces a previous one provided in December, announced within a written ministerial statement on 6 January, which has now expired.

It is normal practice when a Government Department proposes to undertake a contingent liability of £300,000 and above, for which there is no specific statutory authority, for the Department concerned to present Parliament with a minute giving particulars of the liability created and explaining the circumstances.

I regret that, due to negotiations with the counterparty only just concluding, I have not been able to follow the usual notification timelines to allow consideration of these issues in advance of issuing the letter of credit.

Bulb entered the energy supply company special administration regime on 24 November 2021. Energy administrators were appointed by court to achieve the statutory objective of continuing energy supplies at the lowest reasonable practicable cost until such time as it becomes unnecessary for the special administration to remain in force for that purpose.

My Department has agreed to provide a facility to the energy administrators, with a letter of credit issued, with my approval, to guarantee such contract, code, licence, or other document obligations of the company consistent with the special administration’s statutory objective. I will update the House if any letters of credit are drawn against.

The legal basis for a letter of credit is section 165 of the Energy Act 2004, as applied and modified by section 96 of the Energy Act 2011.

HM Treasury has approved the arrangements in principle.

The statement made by Greg Hands, the Minister for Energy, Clean Growth and Climate Change, in the House of Commons on 9 February 2022.

There will continue to be ongoing demand for oil and gas over the coming years. It is a clear choice between a transition that secures our energy, protects jobs and leads to innovation in new technologies like carbon capture and hydrogen, and an extinction for our energy sector, as I think the hon. Lady proposes. Flicking a switch and turning off our domestic source of gas overnight would put energy security, British jobs and industries at risk, and we would be even more dependent on foreign imports. The way we produce oil and gas is cleaner than in many jurisdictions, so it would be illogical to import them at further expense to Britain and our planet.

The fields referred to in these reports are already licensed, some dating back to as early as 1970, and are now going through the usual regulatory processes. All proposals are subject to a rigorous scrutiny process prior to consent, as opposed to licensing, by our expert regulators, including an environmental impact assessment and a public consultation. No decisions have been taken by the regulators, so it would be inappropriate to comment further on that process. However, to be clear, continued support for Britain’s oil and gas sector is not just compatible with our net zero goals; it is essential if we are to meet the ambitious targets we set for ourselves while protecting jobs and livelihoods.

As announced last year, and forming part of the North sea transition deal, we will introduce a climate compatibility checkpoint for any new licences to ensure that any future licensing rounds remain consistent with our goals. Meanwhile, we continue to make progress on developing new nuclear, which I think the hon. Lady also opposes, and renewables that will power our future. Today, we have announced that we are ramping up our options for our flagship renewable scheme, contracts for difference, establishing new industries, boosting investment and creating jobs in our former industrial heartlands.