Commons Sense

House of Commons · Ministers' Questions

Public Ownership of Energy System

Tuesday 21 May 2024 · 5 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 1 Not answered 0

Key points

  • Liz Twist questioned the government's failure on energy, proposing a publicly owned clean energy company to reduce bills and create jobs.
  • The Minister cited potential costs of 61 billion to 82 billion for a publicly owned energy company, which would burden taxpayers or consumers.
  • The Minister emphasized the importance of working with businesses to secure investment and deliver cheaper energy bills for consumers.

Topics (select to filter)

Questions & Answers

Q1 Liz Twist Lab Blaydon and Consett
Economy Energy
Context

The question addresses the failure to control energy prices, with families across Britain facing high bills while oil and gas profits soar. It references successful publicly owned clean energy companies in other countries.

Question

Every family in Britain is paying the price for the Government's failure on energy, with bills through the roof while oil and gas profits have soared. A publicly owned clean energy company would allow us to take back control of our energy, cutting bills and creating jobs across the UK. Why are the Government letting their ideological stubbornness get in the way of supporting families, when they could follow other, successful countries and set up a publicly owned clean energy company like Great British Energy?

Answer from Justin Tomlinson

I thank the hon. Lady for her question, but I do not think that consumers will. The TUC itself has highlighted the potential £61 billion to £82 billion cost that will be landed either at the taxpayer's doorstep or directly on to consumers' bills, which is nothing to be thankful for.

Not addressed: The specific ask was not addressed regarding setting up a publicly owned clean energy company

How: Redirecting To Potential Costs

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Q2 Liz Twist Lab Blaydon and Consett
Energy
Context

The question highlights the historical context of consumer spending on energy, noting a decrease after privatisation and argues against the proposed public ownership.

Question

In 1985, just before privatisation, 4.2% of total consumer spending was on energy bills. Between 2000 and 2020, that dropped to between 2% and 3%. Even last year during the war in Ukraine, it only hit 3.6%. Does my hon. Friend agree that, as he has already said, the suggestion from the hon. Member for Blaydon (Liz Twist) would wallop consumers?

Answer from Justin Tomlinson

We have to work with businesses to secure investment. We have secured £300 billion for low-carbon technologies since 2010, as we boost UK energy production, our energy security and, ultimately, deliver cheaper bills for consumers.

Partly answered

Not addressed: The specific ask was not addressed regarding agreement with the potential negative impact on consumer bills.

How: Redirecting To Investment In Low-Carbon Technologies

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Q3 Dominic Raab Con
Energy
Context

The question addresses the issue of foreign-owned companies benefiting from British energy production while consumers face high bills.

Question

When it comes to who controls and benefits from our energy system, why does the Government refuse to put the British people first? As we have heard, foreign-owned firms, whether France's EDF or Denmark's Ørsted, reap the rewards of energy produced in Britain. As they benefit British people pay the price, exposed to sky-high energy bills and beholden to volatile international prices. Why is the Minister so opposed to putting power back into the hands of the British people?

Answer from Justin Tomlinson

There is not a single country around the world that thinks Governments alone can deliver increased energy security. By working with businesses, we can unlock the private investment to do it. And talk about irrational: imagine a career politician, the shadow Secretary of State, running UK energy. Consumer bills would rocket.

Not addressed: The specific ask was not addressed regarding putting power back into the hands of the British people.

How: Redirecting To Potential Risks With Politicians

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Q4 Kerry McCarthy Lab Bristol East
Brexit Energy Business & Trade
Context

The question uses a real-world example of the Bristol City Leap project, highlighting success in partnership with Vattenfall and Ameresco.

Question

The Minister is completely missing the point, so I will use a real-world example. In Bristol, we have set up the 20-year Bristol City Leap project with Ameresco and Vattenfall, a partnership between the public and private sector that will help the city to cut carbon dioxide, bring down bills and deliver green jobs. Actually, the Government are piloting a similar project in York, because it has been such a success in Bristol. But why should it be Vattenfall, a 100% Swedish state-owned firm, rather than a British equivalent, such as Labour's GB Energy, that benefits? Why can Swedish taxpayers profit from investing in our future, but British taxpayers cannot?

Answer from Justin Tomlinson

Politicians with zero business experience are high risk. It was not so long ago that the shadow energy security Minister highlighted the success of Robin Hood Energy, backed by Nottingham City Council, which delivered a £38 million loss.

Not addressed: The specific ask was not addressed regarding why foreign companies are benefiting instead of UK equivalents.

How: Redirecting To Potential Risks With Politicians

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Q5 Kerry McCarthy Lab Bristol East
Energy
Context

The initial question addresses an assessment of public ownership merits.

Question

Whether she has made an assessment of the potential merits of public ownership of the energy system.

Answer from Justin Tomlinson

No.

Not addressed: The specific ask was not addressed regarding potential merits of public ownership.

How: Brief And Non-Committal

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