Energy: Prices and Supply

Lord Howell of Guildford Excerpts

Thursday 14th July 2022 Lords Chamber

[Lord Callanan (Con)]

The noble Baroness is of course right, and the answer to the question is yes, we recognise this maybe unlikely risk, which is nevertheless a risk. That is why I indicated in the Answer that we have acted to secure additional back-up capacity if needed for this winter.

[Lord Howell of Guildford (Con)]

My Lords, there is a good deal more we can do internationally with our like-minded friends to curb the appalling increase in energy prices which is about to hit households in this country yet again, and even more ferociously. However, does my noble friend accept that in fact, indirect taxes on energy add to the headline consumer prices index, and that if one could bring that down, it would also vastly reduce the Government spend on having to update their outlays on index-linked causes, including benefits? Does he accept that if you take down one, you will take down the other? I do not think that is widely understood by the social experts and commentators in the press, and I wonder whether it is understood by the Treasury. However, it is a way forward.

[Lord Callanan (Con)]

My noble friend is tempting me to say what is understood and is not understood by the Treasury, which is perhaps a road I should not go down. Of course, the point is right. The contribution of energy to the consumer prices index is particularly important, and my noble friend is also correct about the proportion of indirect taxes on energy bills.