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Bulb Energy: Administration
24 November 2021
Lead MP
Kwasi Kwarteng
Debate Type
Ministerial Statement
Tags
TaxationClimateEnergyBenefits & Welfare
Other Contributors: 20
At a Glance
Kwasi Kwarteng raised concerns about bulb energy: administration in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
The Secretary of State for Energy Security and Net Zero announced that Ofgem has applied to the court to appoint energy administrators following Bulb's decision to exit the market. The special administration regime will temporarily protect consumers by ensuring continued supply at the lowest cost while maintaining market stability, with supplies remaining secure and credit balances protected. The Government plans to update the House once the court makes its determination.
Ed Miliband
Lab
Doncaster North
Question
Questions about Bulb's collapse, including the costs faced by taxpayers, the scale of regulation failure, the Government's response to gas price rises, and its handling of the cost-of-living crisis.
Minister reply
The Secretary of State clarified that 22 companies have gone bust since September. He defended the resilience of existing systems such as the supplier of last resort and special administration regime. He mentioned Ofgem's review of retail market operations, and dismissed Labour’s prophecies of doom following the pandemic.
Question
Asked about actions to ensure more domestic UK gas supply and expand generating capacity.
Minister reply
The Secretary of State highlighted the Government's commitment to nuclear power, with a 100% increase in capacity. He also announced the North Sea transition deal aimed at securing jobs and energy supply while transitioning towards net zero.
Question
Questions about Bulb’s collapse, including plans for coming out of special administration and its impact on consumers.
Minister reply
The Secretary of State disagreed with the hon. Gentleman's position against nuclear power, emphasising commitments to renewables as part of a 10-point plan. He also noted measures such as the warm home discount aimed at protecting vulnerable customers.
Question
Welcomed the Secretary of State’s commitment to making the temporary measure short and urged him to consider reforming the price cap for better fit, citing company bankruptcies and loyalty penalty issues.
Minister reply
Acknowledged Ofgem's consultation on retail price gap and affirmed support from the Department in addressing market discussions.
Jessica Morden
Lab
Newport East
Question
Asked about delays for customers moved to supplier of last resort after their original suppliers collapsed, raising concerns over bill uncertainties and debt accumulation.
Minister reply
Referred to the successful transfer process under supplier of last resort and offered to discuss specifics in her constituency.
Bob Blackman
Con
Harrow East
Question
Asked about steps being taken to increase gas supply amid global price rises.
Minister reply
Highlighted the diversity and security of UK's gas supply, citing domestic and Norwegian sources and emphasising protection through supplier of last resort.
Alex Sobel
Lab Co-op
Leeds Central and Headingley
Question
Expressed concern over oligarchy in energy market with rising wholesale prices and collapsing companies, asked about fixing the broken market.
Minister reply
Rejected characterisation of market as oligopoly, noted effectiveness of retail price cap in protecting consumers.
Question
Asked for recognition that only bridging energy supply is gas and urged not to shut down UK continental shelf, highlighting security and affordability.
Minister reply
Agreed on importance of gas for security and affordability but stressed opposition to shutting down North Sea.
Layla Moran
Lib Dem
Oxford West and Abingdon
Question
Asked about number of energy suppliers at risk this winter and proposed a Northern Rock-style company as an alternative if supplier of last resort fails.
Minister reply
Stated that both supplier of last resort and special administrative regime are working, with Ofgem having chosen the latter for a specific instance.
Question
Asked about protection of direct debit payments made by Bulb customers.
Minister reply
Confirmed that consumer balances will be protected throughout the process.
Chris Bryant
Lab
Rhondda and Ogmore
Question
Questioned the claim that everything is working, citing millions worrying about bills, business struggles, and 22 companies failing.
Minister reply
Reiterated absence of government bailouts and effectiveness of supplier of last resort process despite current pressures.
Question
Asked about importance of diversifying energy supply sources to reduce exposure to volatile international gas prices.
Minister reply
Agreed on importance, highlighted commitments in the 10-point plan including offshore wind, solar power, and nuclear.
Question
Asked about criteria for company size to be considered too big to fail and questioned cost implications of market failure.
Minister reply
Explained Bulb was large enough to warrant special administrative regime rather than supplier of last resort.
Question
Asked about timeline for new nuclear power stations, current projects in Sheffield and future plans.
Minister reply
Noted commitment to one more large-scale project before end of Parliament and small modular reactors.
Sammy Wilson
DUP
East Antrim
Question
The Government’s rush to net zero is increasing fuel bills and fuel poverty, despite having enough domestic gas resources for 150 years. Why are the Government not exploiting these resources for energy security and to support the levelling-up agenda?
Minister reply
We do not apologise for our net zero agenda, which includes significant strides at COP26. We have imposed a moratorium on fracking due to public concerns over earthquakes but remain open to discussion.
Pontypridd
Question
Families face a cost of living crisis from rising gas prices, tax rises and cuts to universal credit. The Welsh Labour Government provides an additional one-off cash payment for vulnerable households. Will the Secretary of State follow this example?
Minister reply
We are supporting the most vulnerable through the warm home discount extension and maintaining the energy price cap to protect consumers.
Question
77% of Scottish businesses have seen an increase in their overheads since last year, with fuel costs making up a large proportion. Will the Secretary of State assess the likelihood of these costs being passed on to consumers?
Minister reply
The Chancellor has invested £400 billion due to covid support measures for many businesses across Scotland.
Catherine West
Lab
Hornsey and Friern Barnet
Question
Since the Budget, several companies have gone under. Will the Secretary of State look again at lifting VAT burden on households and small businesses to address inflation?
Minister reply
Taxation matters are handled by the Chancellor's department; we monitor market issues closely and work with Ofgem.
Clive Efford
Lab
Eltham
Question
Other countries do not face similar crises. Will customers be forced to pay for Government’s failure of regulation?
Minister reply
Our energy price cap protects consumers, and the market structure is working to protect them from high prices.
Shadow Comment
Ed Miliband
Shadow Comment
The Shadow Secretary of State criticised the Government for the collapse of 22 energy companies since September, raising concerns about the scale of costs faced by taxpayers due to the Bulb bail-out. He questioned the impact on bills and regulation, highlighting failures in policy over a decade that have left Britain more vulnerable to global price rises. Miliband also challenged the Government's handling of the cost-of-living crisis through cuts to universal credit and increases in national insurance.
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