Treasury

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Friday 24th May 2024

(1 month, 3 weeks ago)

Written Corrections
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The following extract is from the debate on the Finance (No. 2) Bill in Committee of the whole House on 8 May 2024.
Gareth Davies Portrait Gareth Davies
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Current oil and gas prices are higher than normal, and OBR projections indicate that high prices will persist over the next five years. The ESIM is a mechanism that switches off the EPL if, for a period of six months, the average prices of both oil and gas fall below set thresholds. Those thresholds are currently $74.21 per barrel for oil and 50p per therm for gas, and are based on a 20-year historical average to the end of 2022—before higher energy prices began—and are adjusted each April based on the annual change in the preceding December’s consumer prices index.

—[Official Report, 8 May 2024; Vol. 749, c. 634.]

Written correction submitted by the Exchequer Secretary to the Treasury, the hon. Member for Grantham and Stamford (Gareth Davies):

Gareth Davies Portrait Gareth Davies
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Those thresholds are currently $74.21 per barrel for oil and 57p per therm for gas, and are based on a 20-year historical average to the end of 2022 —before higher energy prices began—and are adjusted each April based on the annual change in the preceding December’s consumer prices index.