MS 13 - Energy 2022-2023

[Michael Marshall]

Mr. Speaker,

I will be laying out the government’s current comprehensive approach to the energy price cap, as well as energy markets.

The government is currently considering tying a windfall tax on supply side profits to pay for a freeze on the energy price cap. We are in consultations now and could happen before the next price cap comes into effect with the diligence of our Civil Service. This would be meant to provide confidence to households in their budgeting. This is the first step we are taking nationally.

Our next steps nationally will include continuing our commitments to provide insulation to ever more households. We will be expanding our Winter Preparedness Campaign to a full-year and full-scale Energy Resilience Campaign. To initiate and continue that campaign we will be providing vouchers to homeowners and businesses to redeem in insulating their properties. This mobilises the private sector to handle the demand for more insulation nationwide with government providing the capital behind this Whole Nation effort. Furthermore, we will be exploring plans to increase our gas storage capacity to avoid shocks into the future

In pursuit of market reforms we will be exploring Ofgem’s recommendations to delink renewable and fossil fuel prices, and we will engage the European Commission to consider placing mutual price caps on wholesale energy prices. We will propose the European Commission does so in exchange for international financial commitments to implement renewable energy plans. To increase supply we will also coordinate with international partners to encourage oil and gas producers globally to increase output.
 

Both expanding renewable energy funding while increasing the incentives to produce more non-renewable energy at home and abroad will be our path to solving the global energy crisis in the short and long term. 
 

This is how we mobilise the Whole Nation to meet the demands of improving cost of living. I will be issuing a follow-on statement on addressing the cost of food, creating more food security, and doing so in a way that is beneficial to public health and finances alike.