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Energy Markets
05 March 2026
Lead MP
Ed Miliband
Debate Type
Ministerial Statement
Tags
EconomyTaxationEmploymentClimateForeign AffairsEnergy
Other Contributors: 33
At a Glance
Ed Miliband raised concerns about energy markets 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 statement by Ed Miliband discusses the impact of the conflict in Iran and the Middle East on global oil and gas markets, and the potential consequences for the UK. He highlights the disruption to energy supplies, particularly through the Strait of Hormuz, and notes that the UK is well-positioned with diverse energy sources, including North Sea production, pipelines with Norway, and interconnectors with continental Europe. However, the UK remains exposed to international oil and gas market volatility due to its role as a price taker. Miliband assures the House that the government is closely monitoring the situation and working with international partners to stabilise markets. He also outlines measures to protect households and businesses from rising energy prices, including the energy price cap, warm home discount expansion, and investment in home upgrades through the warm homes plan. Miliband emphasises the importance of transitioning to clean energy sources to achieve energy security and sovereignty, rejecting the argument for increased fossil fuel production. He cites the allocation round 7 renewables auction as a key initiative in this regard. The minister concludes by reiterating the government's commitment to tackling the cost of living crisis and working towards long-term energy security through renewable energy.
Graham Stuart
Con
Beverley and Holderness
Question
What are the consequences of the disruption in Qatar for UK energy supplies, and what measures are in place to ensure security of supply?
Minister reply
The disruption in Qatar has resulted in the cessation of LNG production, but it only provided 1% of the UK's gas supply last year. The National Gas and the National Energy System Operator are confident about the security of supply, and the UK benefits from strong and diverse energy supplies, including North Sea production, pipelines with Norway, and interconnectors with continental Europe. The government is closely monitoring the situation and stands ready to work with the International Energy Agency to support oil market stability if needed.
Roger Gale
Con
North Thanet
Question
What can the government do to ensure the security of UK energy supplies, especially in light of the current geopolitical instability?
Minister reply
The government is taking a long-term view on energy security by prioritising the transition to clean energy sources, which provides home-grown, secure, and controlled power. The AR7 renewables auction will supply enough home-grown, secure, clean power for the equivalent of 16 million homes. The government will continue to monitor the situation and work with international partners to defend the national interest and seek to bring the conflict to an end for the benefit of citizens and world stability.
Harriet Cross
Con
Gordon and Buchan
Question
The MP questioned the Secretary of State's lack of action in his statement and highlighted the importance of the North Sea oil and gas industry for national security. She called for the overturning of the ban on new oil and gas licences, the immediate granting of exploration licences, and the reduction of energy bills through the Conservatives' clean power plan. She also questioned the government's secret deal with China and its impact on energy security.
Minister reply
The Secretary of State acknowledged the importance of the North Sea but stated that tie-back to existing fields would keep existing oil and gas fields open for their lifetime. He explained that new exploration licences would not make a significant difference to production, given the long time from exploration to production. He also defended the windfall tax, which has raised £12 billion since 2022, and the need for a legally watertight environmental impact assessment process. He emphasised the government's commitment to the clean energy transition and the importance of learning from past fossil-fuel price crises.
Bill Esterson
Lab
Sefton Central
Question
The MP asked about the plans for short-term support for bill payers and the reformed national pricing consultation under way. He encouraged the Secretary of State to bring forward the reformed national pricing consultation so that bill payers can benefit from low-demand cheap electricity as an immediate response to the crisis.
Minister reply
The Secretary of State agreed with the importance of the price cap and its protection for domestic consumers. He highlighted the cross-party support for the price cap and the government's work to look at all options for short-term action, including the reformed national pricing consultation. He emphasised the government's commitment to act on bills and the ongoing work to support bill payers during the crisis.
Pippa Heylings
Lib Dem
South Cambridgeshire
Question
The conflict in the middle east reminds us again how dangerously exposed the UK is to volatile global fossil fuel markets. Why are we so exposed? Because of our heavy reliance on gas, limited storage capacity, dependence on imports, and falling domestic liquefied natural gas inventories. The leader of the Liberal Democrats, my right hon. Friend the Member for Kingston and Surbiton (Ed Davey), asked the Prime Minister yesterday to give a cast-iron guarantee that he would not let energy bills rise by £500 this year, but he did not. Will the Secretary of State give that guarantee? Given the instability in European energy markets caused by the ongoing conflicts, I am glad to hear that the Secretary of State has engaged with energy counterparts in the EU. I would like to hear more details of their analysis of the potential impact on supply, prices and regional energy security.
Minister reply
I agree with the hon. Lady on her fundamental point about why we are exposed. Cost of living support is obviously a matter for the Prime Minister and the Chancellor, but I reiterate to her that the Chancellor showed a willingness to act on these issues in the Budget because she recognised the pressures that families are facing, and that the cost of living crisis is by far the biggest issue facing our country. At Prime Minister’s questions, the Prime Minister again reiterated that we are carefully monitoring the situation. The Government have shown their willingness to intervene, and if necessary, we will intervene again. On the wider points that the hon. Lady makes, the most important thing to emphasise is that we have to go back to the fundamentals. That means driving forward with clean power and the insulation of homes. Our European counterparts, whom she asked about, face similar challenges. Through the International Energy Agency, we are all engaged on some of the issues around oil stocks that I raised in my statement. She is absolutely right that co-operation with our European colleagues is particularly vital at this time.
Graeme Downie
Lab
Dunfermline and Dollar
Question
I thank the Secretary of State for his very clear and measured statement. May I ask him about two points? First, if we see rises in bills in forthcoming months, can we ensure that the blame is placed firmly where it should be—on the actions of the Iranian Government in attacking and threatening the strait of Hormuz? Secondly, in the Energy Security and Net Zero Committee meeting yesterday, we heard from the chief executive of Ofgem that a prolonged period of closure of the strait of Hormuz would create an upward pressure on prices. He indicated during that evidence session that the market anticipated that it could manage a period of roughly two weeks. As the conflict continues to develop, does the Secretary of State have any sense of what might be meant by a “prolonged period of time” that would create upward pressure? Will he ensure that the Committee and the House are kept informed?
Minister reply
I thank my hon. Friend for his excellent questions. On the first point, he is absolutely right. I spoke to my counterpart, the Qatari Energy Minister, and it was the attacks on Qatar’s LNG terminals, and understandable fears for their workforce as a result of indiscriminate Iranian attacks, that led him to make his decisions. Iranian threats to the strait of Hormuz are preventing the passage of shipping, and my hon. Friend is absolutely right to emphasise that point. I will not speculate on my hon. Friend’s point about how long the conflict will last, but he is right to say that the longer the conflict goes on, the more impact there will be on bill payers and our economy. That is why it is in all our interests for this conflict to come to an end as soon as possible. On his other point, I undertake to keep the House and the Energy Security and Net Zero Committee informed.
Martin Vickers
Con
Brigg and Immingham
Question
Representing the constituency of Brigg and Immingham as I do, I recognise that the renewable energy sector is attracting investment and jobs into the area. However, I have thousands of people who work in energy-intensive industries, and their jobs are increasingly at risk. As with everything, compromise and balance are important. May I urge the Secretary of State to recognise that the energy costs for industry are crippling many businesses? We must do something to address that.
Minister reply
I absolutely recognise the challenges that many businesses faced even before the crisis. It is important to say that even before the crisis began, fossil fuel prices were still 40% higher than before Russia invaded Ukraine, and businesses were facing the impacts of that. We are taking action this April on the supercharger, but that is for only 500 or so of the most energy-intensive businesses. We are also taking action next April on the British industrial competitiveness scheme, which is for 7,000 businesses, but I recognise the point that the hon. Gentleman makes. Just as we are looking across Government at the situation that households face, and working on that, we are looking at the impact on businesses; indeed, I was talking to my colleague the Secretary of State for Business and Trade yesterday.
Toby Perkins
Lab
Chesterfield
Question
My right hon. Friend is absolutely right to expose the utter folly of responding to the situation that faces us by saying, “We need to stop with renewables and invest more in oil and gas.” It would be utter madness to learn that lesson. When we had the huge price spike as a result of Russia’s invasion of Ukraine, the fact that oil and gas was coming from the UK made no difference to the amount that our consumers paid, because it was all on the global market. Does my right hon. Friend agree that the marginal pricing system, which was set up at a time when 80% or 90% of energy was being generated by fossil fuels, is far less robust at a time when the figure for gas is down to 40% and shrinking the entire time, and more than 50% of our energy comes from renewable sources? Because renewables are cheaper, should we not look to benefit from that, rather than having a system that allows gas to set the price, even if it accounts for only 1% of our energy?
Minister reply
I agree with the first part of my hon. Friend’s question, so I will take the last part on marginal pricing, as that is the challenge, and be as brief as I can. I completely understand the logic of his question. One of the benefits of a clean power system is that gas will set the price much less of the time. One of the benefits of moving from the renewables obligation to contracts for difference is that it gives us a fixed price that is not subject to the marginal price of gas. I am sympathetic to the principle that my hon. Friend espouses, but the truth is that there are significant obstacles to getting to what he wants to see in a timely way and a way that is better for bill payers. Among all the other things, my Department continues to look at that.
Wera Hobhouse
Lib Dem
Bath
Question
The Energy Security and Net Zero Committee is running an inquiry into the costs of energy, as we have already heard from its Chair. With all due respect, I cannot understand how the Conservative Opposition can with a straight face deplore the cost of energy for bill payers while at the same time advocate prolonging our dependency on oil and gas. That is precisely what keeps our energy bills high. Let me come back to our inquiry. We heard from one of the witnesses from E3G that there could be costs of up to £500 per household in hidden profits due to the untransparent network charges put on to energy bills. Will the Government ensure that bill payers are given a full picture of the breakdown of profits across the energy sector?
Minister reply
I thank the hon. Lady for the point that she makes. It is worth saying that Lord Browne of Madingley, formerly of BP, was on the radio yesterday making precisely the same point that she and I have made. This is a man who used to run one of the world’s largest oil and gas companies, and he said that the lesson of this crisis is that we have to get on to clean power. On the hon. Lady’s point about networks, it is important to be transparent about that. It is also important to bear down on those costs, and I obviously discuss that a lot with the regulator.
Matt Western
Lab
Warwick and Leamington
Question
My right hon. Friend talks about the lessons learned. Despite my youthful good looks, I recall the 1979 Iranian revolution—the last Iranian revolution—which led to a fuel crisis globally. The importance of what we are doing is underlined by the need for the energy transition and the need to improve our domestic energy resilience. That is why we need to see more renewables and to roll out Rolls-Royce small modular reactors urgently and take a lead globally on that. My right hon. Friend talks about household support. What does he think President Trump was thinking about the impact that this situation would have on businesses and the humble motorist?
Minister reply
My hon. Friend was obviously a precocious five-year-old in 1979, with a great knowledge of and interest in politics. I will not speculate on the last part of his question, but what he said about the indiscriminate Iranian attacks is an important point to underline. The fundamental point he makes about driving forward with renewables, nuclear and all the things that get us off the markets is surely the lesson that we must all learn from this crisis.
Julian Smith
Con
Skipton and Ripon
Question
I thank the Secretary of State for his update. I echo the calls for support for business and keeping an eye on the impact of this crisis on business. For areas like mine in North Yorkshire, off-grid gas and oil customers do not have the same protection as many other energy customers. Will he and his team focus have regard to those customers as this crisis evolves?
Minister reply
I thank the right hon. Gentleman for his points about business and particularly about heating oil. It is a really important point, because people who are using heating oil are exposed to what is happening in the market. Obviously, it depends on when they restock their heating oil and, as I have said a number of times, how long the crisis continues, but he is right to raise that as an area we need to look at.
Ben Goldsborough
Lab
South Norfolk
Question
To follow on from the previous question, I represent a very rural constituency and there will be constituencies up and down the UK, particularly in Northern Ireland, that are heavily reliant on heating oil. Will the Secretary of State say what action will be taken in the medium and short term to address the price shocks?
Minister reply
We are aware of the issue and the price cap is a guarantee for domestic consumers. However, those using heating oil are more exposed and we will look into this issue. The Chancellor and the Prime Minister have shown a determination to act on the cost of living crisis.
Dwyfor Meirionnydd
Question
I appreciate what the Minister has said about heating oil, but 55% of households in Dwyfor Meirionnydd are off the gas grid and rely on alternative heating fuels that are not protected by the energy price cap. Will the Secretary of State consider something similar to the alternative fuel payment at this time?
Minister reply
We must learn the lessons from the previous Government’s response to the Russia-Ukraine crisis and will definitely bear in mind the points raised.
Perran Moon
Lab
Camborne and Redruth
Question
The Secretary of State is focused on onshore wind, offshore wind and solar, but will he think again about the Department’s policy on geothermal energy?
Minister reply
We celebrate the opening of the first geothermal energy plant in Cornwall and will definitely look at all technologies at our disposal if they can bring down bills and help us towards cleaner power.
Julian Lewis
Con
New Forest East
Question
Although it is discouraging to hear that no matter how much we extract from the North sea, it will not lower prices, security of supply is an important element of the mix. Is that not obvious?
Minister reply
We will keep existing oil and gas fields open for their lifetime and have a good dialogue with the industry on tiebacks to fields with new production.
Euan Stainbank
Lab
Falkirk
Question
There have been reports in the media of PetroChina being barred from all exports of diesel and gasoline by the Chinese Government. With PetroChina’s co-ownership of the Grangemouth import terminal, what assurances can the Secretary of State provide my constituents on the security of imported supply coming through Grangemouth?
Minister reply
We use negligible amounts of fuel from China and I can absolutely reassure the hon. Member and his constituents on security of supply.
Claire Young
Lib Dem
Thornbury and Yate
Question
On top of a rising tax burden, the fear of further energy spikes causes small businesses in my constituency to fear for their survival. Will the Secretary of State introduce new measures to support them?
Minister reply
The Government are focused on the impact of the crisis on households and businesses and will not hesitate to act. We will help small businesses to get better deals through better regulation of deals they get, and the Under-Secretary of State for Energy Security and Net Zero has a focus on how we can help small businesses.
Catherine Fookes
Lab
Monmouthshire
Question
Does the Secretary of State agree that a focus on renewable energy will deliver a triple whammy: energy security, lower bills, and reduction of climate change impact?
Minister reply
My hon. Friend is right. The Government are focused on the impact of the crisis on households and businesses and will not hesitate to act. We will help small businesses to get better deals through better regulation of deals they get, and the Under-Secretary of State for Energy Security and Net Zero has a focus on how we can help small businesses.
Jim Shannon
DUP
Strangford
Question
As soon as the first missiles were launched over Iran, those working in the energy sector were already warning that prices would escalate. What steps will the Secretary of State take to ensure that any rise is absolutely necessary and will not result in greater profits for certain people and companies?
Minister reply
The Government and private companies have a responsibility to ensure that the rise is absolutely necessary and will not result in greater profits for certain people and companies. The Government will be vigilant about the steps we can take to help people.
Alex Sobel
Lab Co-op
Leeds Central and Headingley
Question
Our race to renewables is important not just here in the UK, but around the world. Is the Secretary of State working with other countries to ensure that they are taking the same path towards the renewable transformation?
Minister reply
My hon. Friend is right. It is striking that so many countries now talk about this as an energy security issue. For the 80-plus countries that supported the road map for the transition away from fossil fuels at COP30, it was as much about energy security, about their own situation, about bills and about their fear of exposure as it was about the long-term threat that we face from the climate crisis.
Lincoln Jopp
Con
Spelthorne
Question
I thank the Secretary of State for his statement, which I read and listened to very closely. Is it fair to summarise the Secretary of State’s statement by saying that he is not going to do anything differently as a result of the conflict in Iran? I listened to and read the statement very closely, and it does not appear to me that we are going to change anything. It was more of a series of things that we are doing already.
Minister reply
No, I do not think that is right at all. The truth about these crises is that it is incredibly important that the Government look at everything we can do, particularly to help address the impact on families and businesses, as I said a number of times in my statement. I reassure the hon. Gentleman and the House that this Government have the right strategy on energy policy.
Clive Efford
Lab
Eltham and Chislehurst
Question
I welcome my right hon. Friend’s statement—all I can say is more power to his renewable elbow. During my time in Parliament, we have gone through various crises. The price of oil and gas goes up, our constituents and businesses pay higher bills, and the Conservatives learn nothing. They do not realise that the only way to provide secure and cheap energy is to have a secure supply here at home. None the less, we are stuck with oil and gas in the meantime. May I urge my right hon. Friend to be open to assisting our constituents and businesses if they see a severe spike in their energy bills?
Minister reply
I am glad to hear that my elbow is renewable, and I agree with my hon. Friend that we must be willing to act on behalf of his constituents and others.
Amanda Hack
Lab
North West Leicestershire
Question
I thank the Secretary of State for his statement. Households, businesses and charities in North West Leicestershire have highlighted some immediate pressures on the cost of heating oil and fuel costs in recent days. Does the Secretary of State agree that energy security across our country is vital and that cheap, clean power is key to delivering that security, so will he a share what additional work he will be doing to secure that for families and businesses in North West Leicestershire and beyond?
Minister reply
My hon. Friend is right to raise the issue of heating oil. As I have said a number of times, it is an important issue and is very much on our radar. On her wider point, she is absolutely right.
Oliver Ryan
Ind
Burnley
Question
The Secretary of State is right to say that, because of our reliance on oil and gas, we are a price taker, not a price maker. We are exposed, and families in Burnley, Padiham and Brierfield are worried. Will he continue to strengthen our home-grown sovereign energy supplies and production to keep driving down energy bills? Given the potential for future wholesale price volatility, will he look at getting suppliers in the room again to reduce standing charges, which people see as unfair, regressive and unrelated to their energy use?
Minister reply
Somebody asked me about standing charges earlier, and I neglected to respond. One important thing that we did was transfer the warm home discount to unit rates, which helped make a difference in bearing down on standing charges. I reassure my hon. Friend, and many of his constituents and others who are concerned about this issue—I talk to Martin Lewis and others about such matters—that we continue to look at it.
Rachael Maskell
Lab Co-op
York Central
Question
I really thank the Secretary of State for all that he is doing, but at times like this, we think about our most vulnerable constituents. Although the energy price cap will protect them for now, we worry about the longer term, not least moving into next winter. Can my right hon. Friend say what he is doing on social prescriptions and social tariffs to ensure that we protect the most vulnerable constituents?
Minister reply
An important decision that we took was to extend the warm home discount not only for this winter, but for five years ahead, to give an assurance to 6 million people, including those in my hon. Friend’s constituency, that they would have protection. She speaks so well for the most vulnerable in our society and in her constituency. I reassure her that we know about people’s exposure and continue to look at all the measures that we can take to help them.
Dave Robertson
Lab
Lichfield
Question
There is precious little good news around at the moment, but I may have some for the Secretary of State. I have listened to the contributions from those on the Opposition Benches, and I think I have discovered a new renewable energy source: the amount of hot air coming from that side of the House could surely heat 100 homes. At a time when prices are spiking and profits are about to rise, does the Secretary of State think that his constituents in Doncaster North would welcome it if we did what the shadow Minister suggested and cut the energy profits levy? My constituents in Lichfield, Burntwood and the villages would not appreciate it if we let companies off like that.
Minister reply
My hon. Friend makes his point in a very eloquent and amusing way. It is so important to recognise that crises like this show that gambling on low fossil fuel prices is dangerous, because the impacts of geopolitical instability on his constituents and those across the country are so great.
Luke Murphy
Lab
Basingstoke
Question
I welcome the Secretary of State’s statement, although I will gently disagree with one point. He said that he believes the Conservatives have failed to learn, or somehow forgotten, the lessons from Ukraine. I think that it is worse than that, and nothing more than short-term opportunism. They hoped that nothing like Ukraine would happen again and they forgot to learn the lessons, so bills were driven up and significant damage was done to our economy. Does he agree that the Conservatives’ short-term opportunism on energy security and national security is not in the long-term interest of our country?
Minister reply
I agree with my hon. Friend. It is incumbent on all of us to tell people, on the basis of the evidence, what we should be doing as a country. Today we have heard from Members of different parties a recognition that gambling on fossil fuels is incredibly dangerous.
Shaun Davies
Lab
Telford
Question
Today’s statement is a stark reminder that energy security is national security and economic security, and those who oppose clean, green British power are handing a gift to people who wish to do us harm. Will my right hon. Friend ensure that it is only the British interest that determines energy policy?
Minister reply
My hon. Friend puts it incredibly well: this is about clean, home-grown power that we control. We need to get off the roller coaster of fluctuations in international markets, which does such damage to families across the country.
Mary Glindon
Lab
Newcastle upon Tyne East and Wallsend
Question
At a time when the UK is increasingly dependent on and exposed to internationally traded LNG, does delaying the oil and gas price mechanism not risk reducing investment in domestic supply exactly when global markets are least stable?
Minister reply
I agree with my hon. Friend that driving to renewables and clean, home-grown power is crucial. I would also say, as I know she takes an interest in these things, that the North sea continues to play an important role in our energy mix and will do so for decades to come.
Brian Leishman
Lab
Alloa and Grangemouth
Question
It is interesting to note that, for the duration of this statement and the question and answer session, there has been zero participation from the SNP and Reform, which goes to show exactly how much both parties care about Scotland’s energy security. I appreciate that the Secretary of State will not be able to give an in-depth response at the Dispatch Box, but can he give any update on Project Willow at Grangemouth? Specifically, I want to know about the future jobs coming to the town and any potential Government ownership to secure our industrial security and Scotland’s energy sovereignty.
Minister reply
My hon. Friend is a very important advocate for his constituents and, indeed, for Project Willow. He will know that we have made a number of announcements about Grangemouth in recent months, but I can assure him that we will continue to drive forward on Project Willow. The Prime Minister has set out that £200 million will be available from the National Wealth Fund. We continue to work with private industry, because we are determined to create a future for Grangemouth and its communities.
Andrew Cooper
Lab
Mid Cheshire
Question
This will be a worrying time not only for households, but for the energy- intensive businesses in my constituency. Last year, we lost soda ash production from Northwich after 150 years, in part due to the high energy costs. What support does my right hon. Friend intend to provide businesses both to get through this crisis and into the future, so that we can ensure they stay viable and competitive?
Minister reply
The step forward we are taking is to give more help to the energy-intensives, both this April and when we get to help 7,000 businesses next April. However, I acknowledge—as I did to, I think, one of the Conservative Members—that there is further to go on helping businesses. Energy UK and the CBI have formed a joint partnership looking at these issues, and we want to work with them. As always, one challenge is the cost of action, but we recognise the issue that my hon. Friend has raised.
Samantha Niblett
Lab
South Derbyshire
Question
The statement, for which I am very grateful, really drives home the importance of energy security and the move to renewables, but food security is equally important. In my constituency of South Derbyshire, we have had a plethora of applications for battery energy storage systems and solar farms, because we have a close connection to two grids. I am not saying that we do not need that, but will the Secretary of State meet me, my hon. Friend the Member for Rushcliffe (James Naish) and other members of the Labour rural research group to discuss the benefits of a local area energy plan?
Minister reply
My hon. Friend speaks very well on these issues, and I am sure the Minister for Energy will meet the group’s members and talk to them about these issues. As she will know, we operate under guidance from the last Government about avoiding the best available land where at all possible. Even on the most ambitious plans, solar would occupy a very small fraction of agricultural land, although we had the largest ever solar auction in allocation round 7—
Shadow Comment
Harriet Cross
Shadow Comment
Harriet Cross criticises the government for failing to take concrete actions to secure energy supplies and reduce energy bills. She emphasises the importance of North sea oil and gas production, which provides a secure supply of energy that is not vulnerable to international market disruptions. Cross calls for the overturning of the ban on new oil and gas licences and immediate granting of licenses such as Jackdaw and Rosebank to protect the industry and its workforce. She also advocates for the end of the energy profits levy to stimulate investment and production. Cross further discusses the potential of nuclear energy as a reliable and affordable source of energy security, urging the government to act on the Fingleton review recommendations. She criticises the government's secret energy deal with China, viewing it as a threat to energy security. Cross concludes by highlighting the Conservative party's clean power plan, which she claims could reduce bills by 20%, and urges the government to adopt this plan.
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