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Tag: 2022

  • Kenny MacAskill – 2022 Speech on Energy Price Capping

    Kenny MacAskill – 2022 Speech on Energy Price Capping

    The speech made by Kenny MacAskill, the Alba MP for East Lothian, in the House of Commons on 8 September 2022.

    Although any help is welcome, this package is insufficient by far for the poor and generous in the extreme for the rich. The perversity of having an energy-rich Scotland and fuel-poor Scots remains, and it is clear that not only will people grow cold this winter but some may well die. There should have been a full freeze, and it should have been funded through a windfall tax. There should have been action on VAT, and there are other omissions that have not been addressed and where a lack of clarity remains. We need to change the dysfunctional energy market, not just accelerate nuclear or fracking, and address the iniquities that still exist and that have not been touched, or at least made clear.

    First, the injustice of prepayment meters remains: the poorest and most deprived, who are often most dependent on power and energy, are paying higher standing charges and higher tariffs. That has not been touched, while support has been given to the very wealthy, and it must end. It is easily done through a direction to Ofgem, and we all know the energy companies are capable of delivering it.

    Similarly, although there is a welcome announcement that some action will be taken on unregulated fuels, a discretionary fund would be inadequate. That is especially the case in the north of Scotland, but it is also the case in my constituency. People who are off the gas grid depend on heating oil, biomass and other fuels. Those fuels should not only be covered by a fund that people might be able to dip into; the fuels should be regulated. The Secretary of State should ensure action is taken, because people in the coldest areas are the ones who will suffer.

    Our dysfunctional electricity system remains. It is tied to the price of gas, yet 97% of Scotland’s domestic electricity supply is produced from renewables. We are paying sky-high prices that depend on foreign gas prices, as opposed to the price of the renewables on our doorstep and of which we have a surfeit. That is perverse, especially when, as others have said, Scotland is self-sufficient in gas.

    This package simply rewards the rich; it does not address the problems of the poor. It is inadequate, and enough is enough. This is not enough to end the crisis, nor is it enough to end the action that people will take.

  • Mike Wood – 2022 Speech on Energy Price Capping

    Mike Wood – 2022 Speech on Energy Price Capping

    The speech made by Mike Wood, the Conservative MP for Dudley South, in the House of Commons on 8 September 2022.

    The speed and scale of the support announced by the Prime Minister is hugely welcome and, obviously, hugely necessary for the many households that simply could not have afforded energy bills of £3,500. Together with the £400 payments to each household, the £650 to those on low incomes and the £300 to pensioner households, it will make a real difference. I hope that we can have some clarification on the position of those residential properties that are on commercial meters, perhaps because they were converted from commercial businesses.

    The support will also make a real difference to many businesses, whether they are energy-intensive businesses, such as those in ceramics and glassmaking in my constituency, or whether they are in hospitality. Similarly, perhaps we can have further clarification on the position for those businesses that have recently had to enter into new contracts. Will they still be able to switch to the new price cap or the support that has been announced?

    Let me deal with the criticisms that have been made. There is some superficial political attraction to extending the windfall tax—of course, we already have a windfall tax set at 25% on top of the 40% tax already paid by British oil and gas producers. The attraction is more superficial and political than real and effective, because the revenue that an extension would raise would be small in comparison with the cost of the necessary support. It would affect less than half of the oil and gas we use in the UK, because that is what is produced in the UK. Making UK oil and gas production less competitive will, in the medium and long term, reduce our energy security at the worst possible time. That is something that we cannot afford.

    It has also been suggested that the package will affect price signals. As a reformed economist, I know that economists can sometimes dwell a bit too much on good theory and ignore the real world, but I find it hard to credit that people would be less careful with their energy when the price cap is at £2,500 than they would be if it were £1,000 higher. Clearly there would be a huge impact if energy were free, but we are already at a level at which people are being very careful with what they use.

    This is the right package, and it is an effective package. We need to get it into the pockets of households and businesses—

    Madam Deputy Speaker (Dame Rosie Winterton)

    Order.

  • Richard Burgon – 2022 Speech on Energy Price Capping

    Richard Burgon – 2022 Speech on Energy Price Capping

    The speech made by Richard Burgon, the Labour MP for Leeds East, in the House of Commons on 8 September 2022.

    Six months ago, households faced energy bills of £1,300. Today, we are told that doubling that and fixing prices at £2,500 is the best we can do to help. It is not. People were struggling with their energy bills last winter and many more will struggle this winter, too, with prices doubled. Private energy profits are being put before the needs of people all while energy firms are set to make £170 billion in excess profits. This is a huge transfer of wealth with big corporations hoovering up even more of the wealth in society, paid for by millions of ordinary people. The new Prime Minister, a former Shell employee, has been frank: energy firms, in her view, should be able to keep those undeserved excess profits.

    A different principle should guide us. The companies should not be allowed to make a single penny from excess profits in this crisis. That will require a package of measures from public ownership to full windfall taxes and caps on the prices at which North sea oil and gas can be sold. That should all be guided by the principle that energy should be run for the public good. The public support these policies. There are growing movements for them. The debate is not going away; today has not solved this crisis.

    Today’s announcement on energy prices, without a windfall tax, does not limit the profits of the North sea oil and gas companies, and it is at great social cost. The claim that we need to protect the profits of North sea oil and gas firms to guarantee their investment is completely bogus, because they were investing when they were making their normal profits just a few months ago. They were never expecting this windfall. Taxes on oil and gas companies overseas, including in Norway’s North sea fields, are much higher than they are here, even at current windfall tax rates.

    Energy security cannot be achieved by making ourselves more dependent on the expensive fossil fuels that have driven this crisis. We do not need more North sea exploration. We do not need fracking. Let us be clear: that gas will not be cheaper. It will be sold at world prices and, anyway, gas is nine times more expensive than renewables. Retrofitting would save people money and reduce our gas use, so the greater reliance on fossil fuels is quite simply ideological. The Government are using the crisis to undermine their own inadequate climate responsibilities.

    The profits of fossil fuel companies are being put before the people and before the planet. This approach is quite simply failing people who are today hit by higher bills, and I am afraid that it will also fail future generations hit by climate catastrophe.

  • Virginia Crosbie – 2022 Speech on Energy Price Capping

    Virginia Crosbie – 2022 Speech on Energy Price Capping

    The speech made by Virginia Crosbie, the Conservative MP for Ynys Môn, in the House of Commons on 8 September 2022.

    I share in the thoughts and prayers for our Queen and her family.

    The energy crisis has hit rural communities such as mine on Ynys Môn particularly badly. On Ynys Môn, schools, shops and employment are often too far away for walking and public transport is sparse. A car is not a luxury; it is a necessity. As our farming community relies on vehicles and fuel-driven equipment, their production costs have risen significantly. We have a larger than average elderly population who need to stay warm in our sometimes harsh winters, and many of my constituents are reliant on liquified petroleum gas and gas to fuel their homes. That is common in rural communities, but there is often little local competition. With no price cap, families are vulnerable to steeply rising costs, and I am pleased that that is being addressed.

    My Ynys Môn constituents need help, and they need help today and over the coming months to heat and power their homes and businesses. Our Prime Minister has now outlined her plans, and I am hugely proud of the support that we are providing to help with the immediate problem, which is on top of the £37 billion committed by the former Chancellor. We need to do more to protect the UK from such crises in the future. I know that our Prime Minister has not lost sight of the longer term while providing support in the short term, and I welcome her enthusiasm for nuclear. She has already spoken about the need to take back control of our energy security, invest now in large-scale energy production and incentivise communities to support energy production in their area.

    The people of Ynys Môn, which is also known as energy island, already welcome that local production. Companies such as Morlais and Minesto have received Government backing to set up tidal energy systems off our shores. We are home to stretches of offshore wind and solar farms thanks to Government subsidies and support. We have Wylfa, once a flagship of British nuclear power with all the potential to reclaim that position following this Government’s commitment in the British energy security strategy and the new Nuclear Energy (Financing) Act 2022. The Holyhead hydrogen hub received £4.8 million of funding in last year’s Budget. With companies such as Bechtel and Rolls-Royce keen to re-establish nuclear production at Wylfa and BP Mona looking to Ynys Môn to support large wind farms in the Irish sea, my constituency can be at the forefront of UK power generation for decades to come.

    A new large-scale nuclear plant at Wylfa on Anglesey could generate enough power for every home in Wales and more, and small modular reactors could provide cheap energy to local families and businesses in shorter timescales. On behalf of my Ynys Môn constituents, let me say that it is important that the Government take into account the unique energy demands of rural communities’ in short-term support plans and that we grasp the benefit of incentivising communities to welcome local energy production so that we can secure our long-term domestic energy supply swiftly.

  • Daisy Cooper – 2022 Speech on Energy Price Capping

    Daisy Cooper – 2022 Speech on Energy Price Capping

    The speech made by Daisy Cooper, the Liberal Democrat MP for St Albans, in the House of Commons on 8 September 2022.

    Earlier this week I raised the plight of households, small businesses and care homes in my constituency. I am sure that, like me, many of them will be truly shocked that it is the British public who will have to bear the burden of paying for this energy crisis while energy companies continue to make their millions. Today, however, I have a number of specific questions to put to Ministers, and I ask the Minister who will sum up the debate to address them.

    The written ministerial statement refers to an equivalent guarantee for businesses. Does that include care homes, and what additional support will they be given in view of the pressure that they are under? I also want to raise the subject of women’s street safety. I have received an email from my local council, Hertfordshire County Council, saying that the bill to keep streetlights on has increased by 60% in just a few short months, and it already costs an extra £2.3 million a year to keep them on after dark. The council is not yet talking about turning the lights off, but if it does, will there be contingency measures in place to ensure that we keep crime down and that people—particularly women—are safe on our streets after dark?

    I welcome the announcement of a fund to cover park homes, and people on heat networks and those who use heating oil, but how will the fund work, how big will it be, and will there be an information campaign aimed at those who can benefit from it? The Government’s own estimates suggest that one in every 100 households is impacted by that non-conventional relationship. By my calculations, that is more than a quarter of a million properties. For each of them to receive £400, there would need to be at least £100 million in that fund.

    We need a revolution in renewables. RES is the world’s largest independent renewables company and is based in my constituency of St Albans. It has more than 40 years of experience and expertise. RES tells me—and Friends of the Earth agrees—that footnote 54 of the national planning policy framework stops it from installing new onshore wind farms even in areas where there are no objections from local residents. I am absolutely no fan of fracking, but it is absolutely obscene and absurd that this Government are saying that it is okay to reopen fracking if communities are okay with it, but not onshore wind. I asked them please to review that footnote.

    Finally, on solar panels, in January I asked the Housing Secretary to make it a requirement for all new suitable buildings to have solar panels. The Government have not conducted the assessment of how much roof space is available, but I urge BEIS to go further than looking at the floor space that is available in these non-domestic buildings and work out precisely how much roof space is available right now to have solar panels installed.

  • Marco Longhi – 2022 Speech on Energy Price Capping

    Marco Longhi – 2022 Speech on Energy Price Capping

    The speech made by Marco Longhi, the Conservative MP for Dudley North, in the House of Commons on 8 September 2022.

    May I, too, send my deepest thoughts and good wishes to Her Majesty the Queen and her family? I am sure that the people of Dudley North will want to send theirs as well.

    We know that too many people have borne the brunt of covid in recent times, and that too many are bearing the brunt of the cost of living crisis in which we now find ourselves. Some of them say to me, “Marco, what are you doing to help us? I am going to have to choose whether to turn on my hot water or feed my children.” As for local businesses, a local business owner contacted me this week saying they are having such extreme difficulties with energy prices that they feel they have no choice but to streamline staff in order to continue trading and paying their bills.

    No one should ever find themselves in a position in which they have to make such choices, whether they are a business or a household. Ordinary hard-working people should not be suffering with anxiety about how they will make ends meet this winter. Like our new Prime Minister, I want to ensure that my constituents—indeed, all our constituents—have the support they need and have certainty for the months ahead. I am therefore pleased that the Prime Minister is taking immediate action to provide support and peace of mind for so many.

    Madam Deputy Speaker, the words that I would like to use to describe Vladimir Putin are not appropriate for the polite company of the House, but it is because of him that we are having this debate. Of course, covid did play a large part in the cost of living crisis, but it is Putin’s bully-boy tactics that are cutting off Europe’s energy supply and plunging us into the freezing waters that we are facing. Putin does not care whether Jenny in Gornal can feed her children and get them to school. Putin does not care whether Dorothy in Sedgley can heat her home in her old age. Putin does not care whether John in Dudley has to close his business and lay off all his staff because he cannot pay his energy bill and continue to employ them. Putin just does not care—but I do, and I know that all of us here do.

    Winter is coming and we know what could come with it, but it does not need to be an inevitability, and now, thanks to our new Prime Minister, it will not be. The long-term plan to strengthen and secure Britain’s energy supplies, reopening the North sea, opening up fracking and investing in nuclear, will ensure that our children and grandchildren do not face these issues as they reach our grand old ages. The new support being pledged today goes a long way to reassure individuals, families and our local businesses. Our new Prime Minister is on our side, not just in the short term but in the long term.

  • Imran Hussain – 2022 Speech on Energy Price Capping

    Imran Hussain – 2022 Speech on Energy Price Capping

    The speech made by Imran Hussain, the Labour MP for Bradford East, in the House of Commons on 8 September 2022.

    We must not forget that for months this Tory Government saw the oncoming tidal wave of rising energy bills this winter, but chose to do nothing about it. For months they callously and deliberately left people in limbo, creating unimaginable uncertainty for those who face colossal energy bills this Christmas, and for months they let fear spread among those preparing to make a desperate choice between heating their homes or putting food on the table. What is worse, however, is that for months the current Prime Minister, who was a Minister in this Government for a decade, was content to go along with this grossly negligent plan of inaction, wasting valuable time when we could have been protecting people.

    Today we heard the Prime Minister, at the Dispatch Box, refer a number of times to “immediate” and “urgent” support. That is disingenuous, frankly. The Prime Minister cannot suddenly pretend that she entered the Government just today. She has been a senior Minister in previous Governments for the last decade, and she could have taken action—along with the previous Government—months ago, rather than putting people through this uncertainty.

    As is customary among Conservative Members, there have been a number of instances of smoke and mirrors. We have heard numerous references to a price freeze, but it is simply not true that prices are being frozen. As has been pointed out by other Members, what we are seeing is a rise of at least £500 in the price that people are currently paying, and a rise of hundreds of pounds more in the price that they were paying originally—hundreds of pounds more than my constituents can afford to pay.

    There has also been silence from the Prime Minister on who will actually pay for this. What is crystal clear—the Prime Minister has spelled it out—is that those who will not pay for it are the corporate oil and gas barons who have made a profit of £170 billion. In this, her first week as Prime Minister, she has made her direction of travel absolutely clear: she will go on driving a wedge between those who continue to become wealthier and those who continue to suffer poverty, and she will always side with the big corporations rather than with ordinary working people.

  • Maria Miller – 2022 Speech on Energy Price Capping

    Maria Miller – 2022 Speech on Energy Price Capping

    The speech made by Maria Miller, the Conservative MP for Basingstoke, in the House of Commons on 8 September 2022.

    Following Mr Speaker’s announcement, I join other hon. Members in passing on my warmest wishes, on behalf of the people of Basingstoke, to Her Majesty the Queen and her family.

    I warmly welcome the rapid action that the Government and the Prime Minister have taken since the new Government’s formation earlier this week—not only the short-term support that has been announced today, but the focus on long-term solutions to the problems we face. Clearly the energy price guarantee will provide enormous certainty and reassurance to many, many families, including those who have contacted me over the summer months.

    I think that, following what some Members have said today, the Government will want to take some time to ensure that there is clarity about how the new energy price guarantee will sit alongside the existing energy bills support scheme, which will already be providing a great deal of support for many of the vulnerable groups to which Members across the House have referred. Both schemes will ensure that people have the support and certainty that they need in these difficult times.

    Following representations that I have received from people who live in park homes and are on heat networks or who, like many of my constituents, use heating oil, I was especially pleased to hear that they would receive support. However, may I echo the comments of my right hon. Friend the Member for Forest of Dean (Mr Harper) and suggest that it would be useful to know exactly how that support will come into play?

    I was extremely pleased to hear from the Prime Minister about the support for businesses, charities and public services, which will be equivalent to the support for residential properties for six months, although, again, it would be helpful to understand quickly how that might work in practice. Charities, in particular, will be planning up to 12 months ahead for how their operations will work. Many of them operate in community centres and village halls, providing childcare facilities that are essential for our residents.

    Finally, may I take this opportunity to broaden the debate by encouraging the Government to bear in mind industries that have been hit by the increase in gas prices? I am thinking particularly about the fertiliser industry. As you will know, Madam Deputy Speaker, gas is used to create fertiliser, which is why it is relevant to the debate. The scaling back of production throughout Europe means that many farmers, particularly those in my constituency—I met some of them on Friday—are sowing seed for harvesting next year without knowing whether fertiliser will be available. Perhaps the Government could make an early statement on how we will provide surety of supply, given the impact of gas prices on their production.

    We are in a difficult situation, and I am pleased that the Government have acted so speedily.

  • Stephen Flynn – 2022 Speech on Energy Price Capping

    Stephen Flynn – 2022 Speech on Energy Price Capping

    The speech made by Stephen Flynn, the SNP MP for Aberdeen South, in the House of Commons on 8 September 2022.

    I paid particular attention to the very small note that came out from the Secretary of State for Business, Energy and Industrial Strategy earlier, especially the line that says:

    “This will save the typical household £1000 a year.”

    One thousand pounds a year? It is almost as if the cap that is being put in place at £2,500 a year is not double what energy prices were just last summer. It is almost as if the Government do not understand the sheer scale of the financial problems facing households right across the country. It is not just about energy prices. Inflation is at a 40-year high, interest rates are at a 30-year high and wages are at a 20-year low, yet we are being told that we should be happy about energy bills being frozen at £2,500 per year. It is absurd.

    Obviously it is not just households that will struggle, but businesses. A number of businesses have been spoken about today, and I have spent most of the summer getting emails from businesses that are being utterly crippled by the costs in front of them. Up to now, the Government have not even lifted a finger, and what they are proposing will not go far enough. Businesses will continue to close because of energy prices.

    This whole debate really frustrates me for a particular reason, which is that I happen to represent a constituency famed for oil and gas production. Somewhat ironically, it was the Unionist parties in this Chamber that told us in 2014 that oil and gas were running out, yet now they tell us that 100 additional new licences will be given out. Barring that irony, however, is it not absurd that energy-rich Scotland, which produces six times more gas than we use, is even having to face an energy prices crisis? Gas makes up just 14.4% of our electricity production, yet the price of that gas dictates all.

    The fact that the vast majority of our electricity comes from low-carbon sources means absolutely nothing. The fact that it comes primarily from renewables means absolutely nothing when it comes to the costs being imposed on the people of Scotland by this UK Government and the continued failure of their energy policy. If the UK Government want to do just one thing, here is a suggestion for the new Secretary of State: will this Government finally decouple renewables from gas prices? That would make a huge difference, and it would not cost a single penny.

  • Richard Graham – 2022 Speech on Energy Price Capping

    Richard Graham – 2022 Speech on Energy Price Capping

    The speech made by Richard Graham, the Conservative MP for Gloucester, in the House of Commons on 8 September 2022.

    I join all colleagues, here and not here, and everyone in Gloucester in sending the warmest wishes of support to Her Majesty the Queen and to members of the royal family.

    Today’s announcement, which was made within 48 hours of the new Government being formed—no small achievement—will bring huge certainty and reassurance to residents in my constituency and elsewhere, to those living in park homes, to charities and to those across the public sector, as well as to the small businesses in particular that are already suffering. It is critical, because it puts a cap on the maximum average energy bill. The crucial word is “maximum” because, as my right hon. Friend the Member for South Northamptonshire (Dame Andrea Leadsom) said, there are huge advantages in a programme of advice and best practice being led by the Government and helping us all to reduce our energy consumption. Schools, for example, could hugely benefit from solar panels that could sell all the energy generated during the long summer holidays into the grid, thereby bringing their annual bills down considerably.

    There are lots of good things to welcome in today’s announcement, but there are a few things in particular that I would like to raise with Ministers. First, the green levies that will now be temporarily suspended have already been committed elsewhere. Who is going to pay for them now? Presumably it is the taxpayer in general.

    Secondly, the national insurance contribution increase was predicted to raise £36 billion over three years for health and care budgets. How will that be delivered now? The task before our new Secretary of State for Health and Social Care is big on generating better outcomes, but reducing the inputs will surely make that harder.

    Thirdly, there is the contribution of energy companies. We have heard a lot today, quite rightly, about how they are already paying some 66% tax in real terms. None the less, there is a huge difference between profits, which are good, and war profiteering, which is bad. The new Secretary of State for Business, Energy and Industrial Strategy could shed light on how the energy companies are to contribute to this national challenge.

    The hon. Member for Vauxhall (Florence Eshalomi) said that the rules on fracking would be completely ripped up. I do not think that that is the case, because the crucial barrier is local support, which has been conspicuously absent so far. I doubt that we will see any real change in practice.

    There is one last thing to add. A lot has been said about the welcome commitment from this Government to nuclear and renewables,

    “to embrace diverse sources of energy.”

    May I encourage the new Secretary of State to follow the great example of his predecessor in supporting marine energy?