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Select committee: Economic Affairs Committee

UK energy supply and investment

Closed Opened 10 Feb 2022 Closed 16 Oct 2023 3 recommendations

Economic Affairs Committee Inquiry on parliament.uk ↗

Inquiry scope (the committee's words)
This inquiry explores how the Government can foster investment to ensure a resilient and affordable energy supply during the transition to net zero. The UK has committed to net zero carbon emissions by 2050, which will require a shift in the way energy is supplied with a greater emphasis on renewable and low carbon sources. This inquiry will explore what level of investment will be needed and in which sources of energy over the next decade and beyond. We would welcome written submissions. Please read our call for evidence . Useful information British energy security strategy

Where it stands

The inquiry is closed, opened 10 February 2022.

The committee has published 1 report, most recently 1st Report - Investing in energy: price, security, and the transition to net zero (21 July 2022) on 21 July 2022.

The government's response

Published 11 October 2022.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government's response sets out measures on energy bills, domestic supply and net zero, accepts or notes some recommendations in part, and says some matters are for regulators, companies or the Bank of England.

  • On onshore wind, it "acknowledges" that more will be needed for net zero and energy security, and says it will "consult on how we do this later this year" for projects with strong local backing in England.
  • On the Future System Operator, it concludes a public corporation is the most effective model, and says it "could be established by or in 2024", depending on factors including legislation and timelines.
  • On nuclear life extensions, it says it "has no formal role in these decisions", which are for EDF and the Office for Nuclear Regulation.
  • On stranded oil and gas assets, it "notes" the Committee's points but believes private companies "are better placed to make judgements on commercial investments".

Read the government's response ↗ Report an error

Recommendations and conclusions

All 3 recommendations and conclusions

Reports

All reports

Evidence

  • 12 oral evidence sessionsLatest 14 June 2022
  • 36 witnesses
All evidence

Recent activity

Meetings and visits

Recommendations and conclusions 3 shown

Recommendation 4

Recommendation · 1st Report - Investing in energy: price, security, and the transition to net zero (21 July 2022)

Recommended (the committee's words)
We recommend that the Government publishes an energy demand reduction strategy. To strengthen public confidence, the Government should work with the financial sector to provide financing options and increase incentives for investment in energy efficiency measures. In addition, the Government needs to set clear signals so supply capacity can be increased along with steps to support the development of resilient supply chains and workforce skills. It should have a clear, practical delivery plan which learns from the failings of previous initiatives. The strategy should be published as soon as possible.

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Recommendation 18

Recommendation · 1st Report - Investing in energy: price, security, and the transition to net zero (21 July 2022)

Recommended (the committee's words)
We recommend that the Government encourages schemes to compensate residents for energy projects built in their areas. This already happens for certain onshore wind projects but should be extended to other forms of low-carbon generation, or grid infrastructure.

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Recommendation 19

Recommendation · 1st Report - Investing in energy: price, security, and the transition to net zero (21 July 2022)

Recommended (the committee's words)
We recommend that energy security objectives be included in the National Planning Policy Framework alongside the existing climate change objectives.

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Reports

1 report

Oral evidence sessions

12 sessions

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Date Session and witnesses Source
14 Jun 2022
Oral evidence session
Fayyaz Muneer · HM Treasury, John Glen MP · HM Treasury 		View ↗
24 May 2022
Oral evidence session
Akshay Kaul · Ofgem, Rt Hon. Greg Hands MP · Department for Business, Energy & Industrial Strategy 		View ↗
17 May 2022
Oral evidence session
Chris Grigg · UK Infrastructure Bank, John Flint · UK Infrastructure Bank, Sarah Breeden · Bank of England 		View ↗
10 May 2022
Oral evidence session
Jason Bordoff · Columbia Climate School, Marco Alverà · Snam, Matt Harper · Invinity Energy Systems 		View ↗
26 Apr 2022
Oral evidence session
Mark Carney · United Nations, Martin Pibworth · SSE plc, Zoisa North-Bond · Octopus Energy Generation 		View ↗
5 Apr 2022
Oral evidence session
The Lord Turner of Ecchinswell · Institute for New Economic Thinking, Tom Greatrex · Nuclear Industry Association, Tom Samson · Rolls-Royce SMR 		View ↗
29 Mar 2022
Oral evidence session
Mike Zehetmayr · EY, Simon Virley · KPMG, Sonja Gibbs · Institute of International Finance, Steve Smith · National Grid 		View ↗
22 Mar 2022
Oral evidence session
Dr Jack Sharples · Oxford Institute for Energy Studies, Ian Simm · Impax Asset Management, Michael Liebriech · Liebreich Associates, Professor Michael Bradshaw · The University of Warwick, Simone Tagliapietra · Bruegel 		View ↗
15 Mar 2022
Oral evidence session
Ed Northam · Green Investment Group, Simon Redmond · SP Global 		View ↗
8 Mar 2022
Oral evidence session
Dan Monzani · Aurora Energy Research, Sir Dieter Helm · University of Oxford 		View ↗
1 Mar 2022
Oral evidence session
Catherina Hillenbrand Von Der Neyen · Carbon Tracker Initiative, Christophe McGlade · International Energy Agency, Dr Nina Skorupska CBE · The Association for Renewable Energy and Clean Technology, Mike Tholen · Offshore Energy 		View ↗
22 Feb 2022
Oral evidence session
Emma Pinchbeck · Energy UK, Julian Critchlow · Department for Business, Energy and Industrial Strategy, Paul Spence · EDF 		View ↗

Who gave evidence

36 witnesses

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WitnessOrganisationSessions
Akshay Kaul · Director of Infrastructure and Security of Supply Ofgem 1
Catherina Hillenbrand Von Der Neyen · Head of Research Carbon Tracker Initiative 1
Chris Grigg · Chair UK Infrastructure Bank 1
Christophe McGlade · Head of the Energy Supply Unit International Energy Agency 1
Dan Monzani · Managing Director, UK and Ireland Aurora Energy Research 1
Dr Jack Sharples · Research Fellow Oxford Institute for Energy Studies 1
Dr Nina Skorupska CBE · Chief Executive The Association for Renewable Energy and Clean Technology 1
Ed Northam · Head of Europe and UK, Macquarie Green Investment Group 1
Emma Pinchbeck · Chief Executive Energy UK 1
Fayyaz Muneer · Deputy Director, Green Finance and Prudential Policy, Financial Services Group HM Treasury 1
Ian Simm · Founder and CEO Impax Asset Management 1
Jason Bordoff · Co-founding Dean Columbia Climate School 1
John Flint · Chief Executive UK Infrastructure Bank 1
John Glen MP · Economic Secretary HM Treasury 1
Julian Critchlow · Director General, Energy Transformation and Clean Growth Department for Business, Energy and Industrial Strategy 1
Marco Alverà · Author of The Hydrogen Revolution Snam 1
Mark Carney · Special Envoy for Climate Action and Finance United Nations 1
Martin Pibworth · Chief Commercial Officer SSE plc 1
Matt Harper · Chief Commercial Officer Invinity Energy Systems 1
Michael Liebriech · CEO Liebreich Associates 1
Mike Tholen · Director of Sustainability Offshore Energy 1
Mike Zehetmayr · Financial Services Risk, Compliance and Regulatory Technology Leader EY 1
Paul Spence · Director of Strategy and Corporate Affairs EDF 1
Professor Michael Bradshaw · Professor of Global Energy The University of Warwick 1
Rt Hon. Greg Hands MP · Minister for Energy, Clean Growth and Climate Change Department for Business, Energy & Industrial Strategy 1
Sarah Breeden · Deputy Governor for Financial Stability Bank of England 1
Simon Redmond · - SP Global 1
Simon Virley · Vice Chair KPMG 1
Simone Tagliapietra · Senior Fellow Bruegel 1
Sir Dieter Helm · Professor of Economic Policy University of Oxford 1
Sonja Gibbs · Managing Director and Head of Sustainable Finance Institute of International Finance 1
Steve Smith · Head of Group Strategy, Market Fundamentals and Internal Consulting National Grid 1
The Lord Turner of Ecchinswell · Chair of Energy and Transitions Commission Institute for New Economic Thinking 1
Tom Greatrex · Chief Executive Nuclear Industry Association 1
Tom Samson · CEO Rolls-Royce SMR 1
Zoisa North-Bond · Chief Executive Octopus Energy Generation 1

Correspondence

11 letters

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PublishedDirectionLetter
11 Oct 2022 To committee Letter from Rt. Hon. Jacob Rees-Mogg, Secretary of State for Business, Energy & Industrial Strategy to the Chair (27 September 2022)
11 Oct 2022 To committee Letter from the Bank of England to the Chair of the Economic Affairs Committee (21 September 2022)
7 Sep 2022 To committee Letter from the Chair of the Economic Affairs Committee, to the Rt Hon Jacob Rees-Mogg MP, Secretary of State for Business, Energy and Industrial Strategy (6 September 2022)
6 Sep 2022 To committee Letter from Infrastructure Bank to the Chair of the Economic Affairs Committee (6 September 2022)
1 Aug 2022 To committee Letter from the Department for Business, Energy & Industrial Strategy to the Chair of the Economic Affairs Committee (22 July 2022)
22 Jul 2022 To committee Letter from Richard Fuller MP, HM Treasury to the Chair of the Economic Affairs Committee (20 July 2022)
7 Jul 2022 To committee Letter from Lord Callanan Minister for Business, Energy and Corporate Responsibility to the Chair of the Economic Affairs Committee (16 June 2022)
21 Jun 2022 To committee Letter from the Rt Hon Greg Hands MP, Department for Business, Energy & Industrial Strategy to the Chair of the Economic Affairs Committee (31 May 2022)
21 Jun 2022 To committee Letter from Sarah Breeden Executive Director, Bank of England to the Chair of the Economic Affairs Committee (15 June 2022)
14 Jun 2022 To committee Letter from John Glen MP to the Chair of the Economic Affairs Committee (24 May 2022)
17 May 2022 To committee Letter from Paul Scully MP to the Chair of the Economic Affairs Committee (9 May 2022)

Meetings & visits

3 items

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DateTypeDetailSource
19 Jul 2022 Formal meeting (private meeting) Not recorded · Room 3, Palace of Westminster
12 Jul 2022 Formal meeting (private meeting) Not recorded · To be confirmed
5 Jul 2022 Formal meeting (private meeting) Not recorded · Room 3, Palace of Westminster