The comments made by Kwasi Kwarteng, the Business and Energy Secretary, on 20 May 2022.
We are delighted to appoint Tim Pick as the UK’s first Offshore Wind Champion and begin the process of supporting British jobs and offshore wind manufacturers with £160 million of government funding.
Our announcement today represents another important step in our ambitious plans to accelerate offshore wind as a source of affordable, homegrown energy for the UK and drive down bills for households.
The comments made by Kwasi Kwarteng, the Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 13 May 2022.
Our new £120 million fund will push forward our plan to deploy a new fleet of nuclear power stations as part of a British nuclear renaissance.
By encouraging new companies to come forward and build in Britain, we can spur greater competition in the market to cut development costs so consumers benefit in the long-term.
Nuclear is central to our long-term plan bolster the UK’s energy security with cheaper, cleaner, home-grown power, while creating thousands of high-skilled jobs across our country.
The statement made by Kwasi Kwarteng, the Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 20 April 2022.
I wish to inform the House that the Government have today published their response to the consultation “Reforming Competition and Consumer Policy—Driving growth and delivering competitive markets that work for consumers”, which was published in July 2021.
In this response the Government reaffirm their commitment to boosting consumer rights and preventing scams and rip-offs. This includes modernising the existing framework of consumer rights to better reflect today’s shopping practices and in particular increasing digitalisation. We set out an ambitious set of proposals to enhance enforcement of consumer rights, by sharpening the powers of the Competition and Markets Authority (CMA) and the courts, delivering our manifesto commitment to tackle consumer rip-offs and bad business practices. The response sets out reforms to competition law to further the dynamism of UK markets, and ensuring the CMA is able to act quickly and effectively to support this.
Implementing these reforms will create a prosperous economy where consumers can engage in markets with full confidence that they will get a good deal; and where vigorous competition drives growth and innovation while minimising burdens on business.
This agenda was consulted on in summer 2021, and received strong support from a broad range of interested parties and stakeholders. We received 188 written responses to the consultation, and further engaged directly with stakeholders in a series of roundtables and meetings on specific matters to determine how to best implement these ideas. We are grateful for the views received through the consultation process and will use these views to refine our reform programme and seize the opportunity to build back better.
The Government have also published today:
The results of a UK consumer protection study; and a post-implementation review of the Competition Appeal Tribunal Rules 2015, including the response to the related call for evidence of March 2021.
Copies of the consultation response, together with the other documents, may also be found online at:
https://www.gov.uk/government/consultations/reforming-competition-and-consumer-policy.
https://www.gov.uk/government/consultations/post-implementation-review-of-the-competition-appeal-tribunal-rules-2015-call-for-evidence.
https://www.gov.uk/government/publications/consumer-protection-study-2022.
The comments made by Kwasi Kwarteng, the Business and Energy Secretary, on 8 April 2022.
This investment will unlock the enormous potential of hydrogen, advanced nuclear reactors and Carbon Capture to level up the UK energy landscape and deliver for businesses and households.
High gas prices and Russia’s aggression in Ukraine have highlighted the urgent need to produce more of our energy here in the UK.
That’s why we have set out bold plans to harness clean, cutting-edge, homegrown technologies and build the energy security we need for the future.
The comments made by Kwasi Kwarteng, the Business Secretary, on 1 April 2022.
We have never been more determined to make work pay, and by providing the biggest cash increase ever to the National Living Wage from today, we are giving a boost to millions of UK workers.
While no government can control the global factors pushing up the cost of everyday essentials, we will absolutely act wherever we can to mitigate rising costs.
With more employees on the payroll than ever before, this government will continue to stand up for workers.
The statement made by Kwasi Kwarteng, the Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 21 February 2022.
With your permission, Madam Deputy Speaker, I would like to make a statement on the electricity disruptions as a result of Storm Eunice and set out exactly how we are working to ensure that power is restored to people’s homes as quickly as possible. Storm Eunice brought severe weather, including wind gusts of up to 122 mph. That is among the highest speeds ever recorded in England. The Met Office took the unprecedented step of issuing a double red weather warning for Friday. Ensuing hurricane-force winds have caused extensive damage to buildings and trees. They have also caused power outages and widespread travel delays. After a day of disruption caused by Storm Eunice on Friday, Storm Franklin made landfall last night. It must be remembered in this difficult time that four people have tragically lost their lives in incidents related to the storms. My thoughts, and I am sure the thoughts of the whole House, are with the families and friends who have lost loved ones.
The Met Office estimates further strong gusts today, though not on the same scale as Storm Eunice. Some people, particularly in the south and east of England, have been without power for more than 72 hours. I want to reassure them that we have dedicated teams of engineers working night and day to get them reconnected as soon as possible. Continuing poor weather conditions have hampered those efforts, but I am pleased to say that, as of now, over 98% of those affected by the storms—more than 1.4 million customers—have had their power supply restored. However, as of 4 o’clock today, just under 30,000 households are still without power.
Today, the Minister for Energy, Clean Growth and Climate Change, my right hon. Friend the Member for Chelsea and Fulham (Greg Hands), has been in Sevenoaks in Kent to see the impact of the storm and to observe repairs. This weekend, I spoke directly to leaders at Scottish and Southern Energy Networks, and today I had conversations with leading managers at UK Power Networks and Western Power Distribution. They have given me assurances that restoration is happening as quickly as possible. The UK has been particularly badly hit by storms this year, but I am pleased to say that overall, our network operators and our brave emergency services have learned lessons about how we can improve our response, and we will continue to learn those lessons.
When I commissioned the review into our response to Storm Arwen in November, I made it clear that the very long delays some people faced to be reconnected were unacceptable. I am pleased to say that, where practical, network operators have already implemented improvements to their procedures. Additionally, operators are sharing resources and ensuring that engineers are sent to the worst affected areas. Welfare provisions are in place for those who are most in need, particularly the vulnerable members of our communities. Network operators are engaged with local partners to ensure that people are being supported. Catering units are travelling to badly hit areas, and smaller welfare units are providing hot water and other facilities to people who are adversely affected. I am extremely grateful to the network operators and the emergency responders who have been working very hard to keep people as comfortable as possible. I am aware that during Storm Arwen, the people experiencing the worst effects of the devastation had difficulty in communicating, and that people are still experiencing issues today. However, I am pleased to say that if they call their network operator by dialling 105 from their mobile, they should get a speedy response. That action will automatically route them to the right operator based on their physical location.
I believe this is the first time that three named storms have come in such quick succession, day after day, since the storm-naming convention was introduced a little less than a decade ago. This is a difficult time for many, but I have been reassured that operators are working extremely hard to make sure people are reconnected as quickly as possible, and in the next couple of days at the latest. My Department and I will continue to provide support and apply pressure, where needed, to ensure people are reconnected in a timely way.
The statement made by Kwasi Kwarteng, the Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 9 February 2022.
Since 2014 the contracts for difference scheme has been at the heart of our efforts to diversify and decarbonise our power system. Since 2010 we have increased the percentage of power generated from renewables from 7% to 43%, creating thousands of high-skilled jobs and bringing new industries to our former industrial heartlands.
To date contracts for difference has awarded contracts totalling almost 16GW of new renewable electricity capacity across multiple technologies. Since the first competitive allocation round (AR1), it has contributed to a more than 60% reduction in the per unit price of offshore wind, with substantial benefits for consumers. We opened our latest allocation round (AR4) on 13 December 2021. It is our largest yet, with an ambition to procure more new generating capacity than the last three rounds combined.
We want to further accelerate our low carbon power generation, making the UK less reliant on volatile fossil fuels and creating more home-grown power. This will help us to deliver a fully decarbonised electricity system by 2035.
To do this we set out an ambition to accelerate the deployment of low-cost renewable generation by undertaking a review of the frequency of the contracts for difference allocation rounds. The review of allocation round frequency has now concluded.
I have decided to increase the frequency of the allocation rounds to every year, from around every two years as it is currently. The next allocation round, AR5, will be brought forward to March 2023 and it is our intention that the subsequent allocation rounds will be held every 12 months in the following years.
In parallel, we have recently opened a consultation on changes to make AR5 more effective and forward-looking, particularly on the application process for supply chain plans.
Our review suggests that the move to more frequent contracts for difference allocation rounds is overwhelmingly supported by industry. Increasing the frequency of allocation rounds will help to encourage low carbon electricity generation, which may also encourage investment in supply chains, and benefit the UK in the longer term not least by protecting consumers from potentially volatile global markets.
These more frequent rounds will also support the delivery of those renewable technologies, such as onshore wind, offshore wind, and solar PV, which are key to decarbonising the power sector, creating jobs and bringing even more investment to our former industrial heartlands. This will sit alongside the Government’s commitment to bring forward another large-scale nuclear power plant this Parliament.
The contracts for difference scheme has been successful in deploying low-carbon generation and reducing the cost of capital for renewable technologies. As more renewables are added to the system, we will continue to consider how the scheme could evolve over the longer term to ensure it reflects the impact of renewables on the wider system, including total system costs.
The statement made by Kwasi Kwarteng, the Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 1 February 2022.
The leadership of the Advanced Research and Invention Agency (ARIA) has been the subject of much Parliamentary interest. Today, I am delighted to update the House that I have appointed Dr Peter Highnam as the agency’s first Chief Executive Officer and re-commenced the search for ARIA’s first Chair.
ARIA, the Government’s new science funding body, will focus solely on finding and funding ground-breaking research projects with the potential to transform the lives of people in the UK, and around the world.
This announcement comes at an opportune moment, as the legislation to create ARIA enters the final stages of its passage through Parliament, ahead of the agency becoming fully operational later this year.
Dr Peter Highnam will play a pivotal role in ARIA’s formative years by defining the agency’s vision, recruiting its first programme managers, and establishing its organisational culture. He will take post on 3 May 2022 for a fixed term of five years.
Dr Peter Highnam brings a wealth of experience to the role, as he has served as Deputy Director at the Defence Advanced Research Projects Agency (DARPA) since February 2018, and as acting director on two occasions. He has previously held positions as the Director of Research at the National Geospatial-Intelligence Agency, and as Director of the Intelligence Advanced Research Projects Activity. Born in the UK, Dr Peter Highnam holds a PhD in Computer Science from Carnegie Mellon University. He obtained his master’s degree at the University of Bristol, and his undergraduate degree at the University of Manchester.
The appointment has been made in accordance with the Governance Code on Public Appointments, following a fair and open competition overseen by an Advisory Assessment Panel.
To support Dr Peter Highnam, I am re-launching the campaign to find ARIA’s first Chair. Once appointed, ARIA’s Chair will have the unique opportunity to be a trusted counsel for Dr Peter Highnam as he leads the agency through its fledgling years.
The statement made by Kwasi Kwarteng, the Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 27 January 2022.
The UK was the first major economy to legislate for a target of net zero greenhouse gas emissions by 2050. As set out in the net zero strategy and the Prime Minister’s 10-point plan for a green industrial revolution, nuclear will continue to be an important and reliable source of clean electricity as we strive to decarbonise the UK economy. By 2050, we expect that the electricity system will be built on a foundation of renewables such as wind and solar, but these will need to be bolstered by reliable low-carbon power. The UK Government recognise that large-scale nuclear is the only proven technology available to provide continuous, low-carbon electricity at scale. Ministers are therefore firmly committed to deploying new nuclear in order to strengthen Britain’s energy security and reduce our exposure to volatile global gas prices, provided there is clear value for money for consumers and taxpayers.
In 2016 we took the decision to enter into a contract for difference over Hinkley Point C in Somerset, which is currently under construction and expected to begin generating power by 2026, when it will start providing 3.2 GW of electricity. However, with five of the UK’s six nuclear stations scheduled to close by 2028, the Government have made a commitment to bring a further large-scale nuclear project to a final investment decision during this Parliament, subject to value for money and all relevant approvals. To facilitate this, we have introduced legislation for a new financing mechanism, the regulated asset base (RAB) model, through the Nuclear Energy (Financing) Bill. It is estimated that RAB could lower the cost of each new large-scale nuclear power project by more than £30 billion, compared to the existing contracts for difference model. The RAB model is also expected to reduce Britain’s reliance on overseas developers for finance by substantially widening the pool of private investors to include British pension funds, insurers and other institutional investors from like-minded countries.
After Hinkley Point C, the Sizewell C project in Suffolk is the most advanced nuclear project in the UK. As a replica of Hinkley Point, Sizewell offers a high level of design maturity and an identified supply chain. The company developing the project has applied for both a development consent order and nuclear site licence and believes it can begin construction during this Parliament. If built, the new plant could deliver around 7% of the UK’s current electricity needs (enough to power the equivalent of around 6 million homes) and create tens of thousands of jobs across the country. New nuclear is not only at the heart of our plans to ensure greater energy independence, but to drive economic growth.
The Government entered into Sizewell C project discussions in January 2021. Following significant investment from EDF, the project requires additional financial support to further mature it to a point where other private investors (and, subject to value for money considerations and relevant approvals, the Government) could consider a direct investment in the project development company. Sufficient early development funding prior to the construction of major projects is a key determinant of subsequent project performance, and to this end the Prime Minister’s 10-point plan committed in 2020 to provide nuclear development funding for this purpose.
I am pleased to announce that I will today enter into an option agreement with EDF Energy Holdings Ltd, which provides Government with an option over the land at Sizewell C and conditionally over the shares in the development company in exchange for an option fee of £100 million. EDF Energy Holdings Ltd will invest that £100 million in further developing the Sizewell C electricity infrastructure project. Should the project reach a successful final investment decision, subject to value for money and all relevant approvals, the Government would recover this funding together with a financing return, either through an equity stake in the project, or in cash.
This agreement represents an important milestone for both the Government’s nuclear strategy and the project, which has the potential to significantly contribute to the UK’s decarbonisation and security of supply objectives. However, I am clear that this agreement does not represent a Government decision that the Sizewell C project will progress. Neither is it an indication that similar commercial arrangements would necessarily be desirable for other prospective nuclear projects. Decisions on the Sizewell C Project will be dependent on decisions in respect of planning and designation under the Nuclear Energy (Financing) Bill if passed into law.
Noting that the future of the Sizewell C project is not confirmed, the agreement the Government have reached with EDF provides the taxpayer with downside protection should the project not proceed. In return for the £100 million, the Government will be granted an option on the Sizewell site and conditionally over the shares in certain circumstances of the development company. In the event the negotiations with EDF do not successfully result in a positive investment decision satisfactory to all parties, then subject to certain conditions, taxpayers would be entitled to seek acquisition of either EDF’s shares in the Sizewell C development company or the site itself, or if neither can be delivered by EDF, the taxpayer would be entitled to a reimbursement of the £100 million with a financing return. This in turn would provide Government with the possibility of proceeding with alternative nuclear or low-carbon infrastructure, and therefore support the realisation of our net zero objectives.
Today’s announcement further demonstrates our commitment to energy security, investing in our thriving nuclear sector and creating thousands of jobs.
The comments made by Kwasi Kwarteng, the Business Secretary, on 4 January 2022.
The UK is world-renowned as an attractive place to invest but we have always been clear that we will not hesitate to step in where necessary to protect our national security.
The new investment screening process in place from today is simple and quick, giving investors and firms the certainty they need to do business, and giving everyone in the UK the peace of mind that their security remains our number one priority.