Energy Costs for Businesses

Debate between Lord Evans of Rainow and Lord Hunt of Kings Heath

Tuesday 17th December 2024 Lords Chamber

[Lord Evans of Rainow]

To ask His Majesty’s Government what plans they have to reduce the cost of energy for businesses in the United Kingdom.

[The Minister of State, Department for Energy Security and Net Zero (Lord Hunt of Kings Heath) (Lab)]

My Lords, the Government believe that the only way to protect bill payers permanently, including businesses and non-domestic organisations, is to speed up the transition away from fossil fuels and towards homegrown, clean energy.

[Lord Evans of Rainow (Con)]

I thank the Minister for that Answer, but Britain’s energy cost for business is the highest in the G20, with Russia, China and the United States having the cheapest. Gary Smith, general secretary of the GMB union, says that Labour’s green strategy is “naive”, displays a

“lack of intellectual rigour and thinking”

and will lead to job losses. Does the Minister agree with Gary Smith? If not, why not?

[Lord Hunt of Kings Heath (Lab)]

My Lords, that is not how I recognise our energy policy. The noble Lord will have seen our action plan towards clean power, published at the end of last week, which sets out how we intend comprehensively to move towards clean power by 2030. I just say to the noble Lord that the highest price that businesses paid for electricity was in 2023, under the Government in which he was a member. What that shows is that, if we remain dependent on the volatility of international fossil-fuel prices, we will always be vulnerable to the kinds of spikes we have seen. That is why we need clean power and homegrown energy.