Energy Update

Question

Does the Minister accept that there is an urgent need to protect UK consumers and businesses from rising energy costs due to Russia's decision to cut off Nord Stream 1? What measures are the Government undertaking in response?

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Does the Government plan to freeze energy prices or implement a further windfall tax on oil and gas giants making record profits due to the energy crisis?

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Does the Government intend to decouple electricity prices from gas prices immediately and remove its ban on onshore wind?

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I thank the Minister for his statement and for the brief advance notice that we had. I think that we can all agree that this is a statement of astonishing vagueness and complacency... Does he accept that this announcement today puts an even greater sense of urgency on the need to protect the price of gas from outside the UK, both for businesses and for domestic customers, and what measures are the Government undertaking to make that happen?

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Does he think that the Government should freeze energy prices... Is he prepared to commit to decoupling the price of electricity from the price of gas now, particularly given the weight that renewables now have in the market?

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The Minister said that the rise in price was a result of the attack on Ukraine. It is much more than that: it is a deliberate part of the attack on Ukraine. Is not the essential ingredient of any scheme that the Government bring forward that it encourages customers to reduce their consumption?

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The MP welcomes the Minister's acknowledgment of insufficient current proposals for energy security and net zero but criticises the lack of updated investment in renewables, Rough gas storage facility, decoupling of renewables from gas, grid upgrades, and acknowledges 6.5 million households are in fuel poverty with an expected increase to 9 million if the energy cap increases as planned. He questions the Minister's red line for acceptable fuel poverty numbers and seeks clarification on tax cuts proposed by the incoming Prime Minister and their impact on low-paid workers. He also queries Hinkley Point C's budget overruns and delays, Sizewell C's estimated construction costs of £63 billion, and requests an updated estimate from the Nuclear Decommissioning Authority for nuclear clean-up costs. Finally, he calls for a freeze in the energy cap and urgent support for businesses as well as a review of budget allocations to councils and devolved governments.

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The MP welcomes the Minister's statement and expresses concern over schools potentially not being able to pay their utility bills due to high energy costs, raising fears of school closures on certain days.

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The MP asks why the Rough gas storage facility off the Yorkshire coast was closed, questioning whether it left the UK with inadequate storage capacity. She now seeks an admission that closure was a mistake.

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The MP appreciates the Energy Minister's efforts to assist businesses, highlighting concerns over energy bill increases for small engineering companies. He inquires about long-term proposals to decouple electricity bills from gas prices.

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The MP criticises the outgoing Prime Minister's suggestion to buy a new kettle as an energy-saving measure, arguing that it is out of touch with struggling families.

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The MP highlights the plight of local hospitality, leisure, and indoor play sectors due to rising energy prices and seeks assurance that these sectors will receive necessary support.

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The MP criticises the Business Secretary's winter energy security update for failing to mention energy efficiency and calls for a retrofit revolution with immediate action on insulation.

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I thank my right hon. Friend for visiting my constituency to meet industrial energy users. It is good that the energy-intensive industries compensation scheme is being extended, but firms in many sectors, such as engineering, glassmaking, ceramics or hospitality, do not qualify for the scheme despite relying on large amounts of energy for their core business, with many facing bill increases of 500%, 600% or 700%. What can be done to help them survive and to protect the jobs that my constituents rely on?

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According to Electric Radiators Direct, Bradford ranks highest in the country for the difference between average resident income and average yearly energy bill. Friends of the Earth claims that 52% of neighbourhoods in Bradford are among the worst affected across England and Wales. Everybody in the country knows and we in this House know that the energy profits levy is in fact a windfall tax—a Labour idea. We have another suggestion for the Minister: freeze energy prices. The Government can name it what they want. We have the ideas, and we are handing them over. What is stopping the Minister freezing energy bills?

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My right hon. Friend will be aware of Blackpool residents’ strong objections to fracking, which has already been explored at the Preston New Road site a few miles outside my constituency. Fracking should take place only where it is supported by local communities and only if people can feel the benefit directly in their pockets. Does he agree that a few thousand pounds off energy bills would be quite an inducement for people living close to a fracking site?

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Lewisham Council’s energy bill has already doubled from £7 million to £14 million a year, with bills set to go up further. But instead of setting out a plan of support, the Tories have spent this summer fighting among themselves and have even claimed that rising costs should be found from existing public sector budgets—budgets that have already been decimated over the last 12 years. We need serious leadership and a plan now, so will the Minister commit that, in any emergency Budget, public services will be properly supported with rising energy costs?

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I am grateful to the Minister for his answers on support for energy-intensive industries such as those in my area. He knows that Teesside is the centre of the green industrial revolution in the UK, with our nuclear power station at Hartlepool, wind power manufacturing on both the north and the south side of the river, and large-scale carbon capture, utilisation and storage and hydrogen production in Redcar and Cleveland. As well as looking at new measures to increase such supply, we must tackle demand. Does he agree that we should invest further in energy efficiency and retrofitting homes, as many families could save hundreds of pounds on their energy bills by simply insulating their homes properly?

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The annual energy costs of a bar on my patch in Shoreditch—it is part of a large chain—have gone up from £30,000 last year to £120,000 this year. All energy contracts are now being renegotiated, with some experiencing an uplift of at least 300%, and since the pandemic some electricity suppliers are refusing to supply the hospitality sector. The Minister has given warm words, but there are two issues there. Will he give us comfort that he will act on at least one of them by talking to the energy suppliers about making sure that more of them can at least compete for the business of these important hospitality businesses?

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There is clearly consensus across the House about the need to decouple the price of electricity from the cost of gas. I very much welcome the Minister’s remarks that that is being actively looked at in government. May I encourage him to go a little further, given that we are in this little moment of an interregnum, exploit his licence and tell us what might be the obstacles to doing that quickly and, if we wanted to do it, how fast it could be done?

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I met a range of organisations during the recess. Most recently, I met David Findlater, the managing director of Calder Millerfield in Dalmarnock, which has been making bakery and butchery products in the area and employing local people for over 60 years, supplying supermarkets and fast food establishments. Its annual prices have gone up from £160,000 for electricity and £30,000 for gas to £712,000 for electricity and £80,000 for gas. It does not know how it will keep going as a business and meet those bills. It wants to hear urgently from this Government that help is coming. Will the Minister give it that assurance?

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I listened to Edwina Currie this morning telling people to put foil down the back of their radiators to improve energy efficiency. She seemed to miss the point that many of my constituents are not even thinking of switching their radiators on in the first place. I just wonder about those in the left-behind neighbourhoods—the very poorest. In my patch, in Orchard Park, 29% of households are in fuel poverty before we even start, against the national average of 13%. What will the Minister do for those people on Orchard Park who are not able to switch their radiators on this winter?

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Thanked the Minister for ensuring direct discount on electricity bills to consumers in Northern Ireland and questioned the reliance on renewables, suggesting exploitation of UK gas reserves instead. Questioned about 93 contracts for difference, seeking assurance that companies will not refuse to activate them.

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Asked about urgency of support for businesses facing energy contract increases, citing an example of a 300% increase for a family-run business.

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Cited extreme energy bill increases for small businesses in Bath, questioned short-term and long-term support plans from the Government.

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Described struggles for businesses in his constituency due to energy bill increases, requested urgent support.

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Called for urgent action to cut energy costs and questioned renationalisation of energy industry, citing France’s success.

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Criticised UK energy policy for Scotland, suggested that Scotland needs more power.

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Described a business closure due to energy costs, questioned appropriate intervention.

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Questioned fairness towards prepayment metre users who face immediate disconnection upon exceeding debt limits.

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Many industries in Teesside are facing closure due to high energy costs. The MP asks for comprehensive assistance for non-qualifying energy-intensive industries and seeks assurances that the Minister will find ways to help these businesses.

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Desperate messages from individuals, hospitals, care homes, schools, and businesses about rising energy costs are being received. The MP asks for an assurance that the Minister will immediately urge the new Prime Minister to make an announcement this week addressing both individuals/households and businesses.

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Manufacturing in the country faces a severe crisis, with companies like OGM Moulding Innovation facing massive energy cost increases and potential factory closures. The MP seeks an urgent commitment from the Government to come forward with comprehensive support packages.

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A local business, Dentec Hillington, faces a £54,000 increase in energy bills this year. The MP asks if the Government will have announced action by the time he visits the company on Friday.

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Business insolvencies are at a 60-year high, and the new Prime Minister's stance on handouts could exacerbate issues such as debt, homelessness, and insolvency. The MP asks for an assessment of these consequences if no reasonable offer is made.

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Concerns over Northern Ireland’s unique energy market system, given large elements of future support might apply only to Great Britain. The MP seeks assurance that businesses and households in Northern Ireland will have equal access to UK Government support.

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The focus on previously announced measures does not match the depth of current crisis. The MP urges decisive action to prevent job losses in small businesses, especially in hospitality.

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Concerns about housing associations' capacity to provide warmth for tenants and maintain the housing stock, given rising energy costs. The MP calls for a long-term preventive approach to energy security.

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Charities and churches are facing prohibitive increases in energy costs, potentially unable to secure contracts or maintain services. The MP seeks steps to support these entities.

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Rising energy costs disproportionately affect lower-income families, while tax cuts benefit higher earners. The MP suggests increasing taxes on higher-rate taxpayers to support those in need.

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People are really frightened about how they are going to get through this winter. One of my constituents, who is a widow with long-term health issues, has written to me to say that she will have to cancel insurance for her pets and get rid of her car. Her gas and electricity bill was originally £85 a month but now it will go up to more than £255 a month; her energy costs will basically triple. She is terrified about how she will manage this winter, as are many of my constituents.

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Many people across rural Scotland depend on heating oil to heat their homes. With winter approaching, that is a potential death sentence for vulnerable people in an already economically fragile part of Scotland.

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Some 60% to 70% of our energy is domestically produced, yet prices have skyrocketed. The price of producing it has not increased at all, so 60% to 70% of the bill increase is theft by the energy companies charging international rates to domestic companies. May I ask the Minister specifically about the £144 million discretionary fund?

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The energy price cap is set to double. Businesses have received no support with energy costs, households have simply not received enough and those in park homes have been completely ignored so far.

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Like many Members, I already have a great number of distressed constituents getting in touch with me desperate for some sort of help. Today, though, I want to focus my comments more specifically on businesses.

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On Sunday, just yesterday, one of my constituents closed his family shop, café and restaurant. He said that he had spent much of his life in the village in which he had grown up, but he said that energy costs were so high that he could not continue to trade there.