Energy Markets

Baroness Bennett of Manor Castle Excerpts

Monday 9th March 2026 Lords Chamber

[Lord Whitehead (Lab)]

My noble friend is right that, quite uniquely within the UK, Northern Ireland has a preponderance of oil used for heating, as opposed to the relatively small percentage in England, Wales and Scotland. It is particularly important that we get a grip on heating oil and kerosene in general at an early stage in this process. That is why the Government have undertaken the initiative today to make sure that the industry is very clear about how it manages the price of heating oil for the future and does not engage in price gouging as a result of this particular energy crisis. But prices in general will probably be subject to the duration of this war. Part of the process has to be to make sure that this war comes to an end as soon as it can, that supplies are secured, and that confidence is restored in the fact that energy can pass reasonably unhindered from the site of the war to its destinations. The UK Government are very involved in doing that.

[Baroness Bennett of Manor Castle (GP)]

My Lords, an investigation today by the Guardian finds that a series of government announcements to

“mainline AI into the veins”

of the UK economy are riddled with “phantom investments” and what the Guardian describes as “shaky accounting”. In the light of this Statement on energy markets, is this not perversely a good thing? Does the Minister agree with me that we need to be thinking about the kind of energy use that is truly beneficial and efficient, both environmentally and economically, given that, as Ofgem concluded last month, 140 proposed data centre energy projects could need more power than the current peak demand? I agree with the noble Lord, Lord Moynihan, that we have to keep powering the incubators for ill babies in hospitals. That is surely more important than generating AI slop of pictures of Jesus Christ made up of shrimps.

[Lord Whitehead (Lab)]

I thank the noble Baroness for that interesting image of what we do not want to happen, as opposed to what we do want to happen. Of course, what we want to happen is real, low-carbon energy projects, and there is an enormous amount of investment—£90 billion is the figure from 2024—going into the low-carbon green economy at the moment, running three times as fast as the general economy. However, that investment has to be in real things. An issue that Ofgem is dealing with at the moment is distinguishing between what you might call tyre-kicker projects that want to come online in order to fund a speculative project, and those that really are necessary for our energy renaissance as a low-carbon energy superpower. The only way to become an energy superpower is to have a super-powered energy economy of real projects with real connections that actually do the business in the way the noble Baroness suggested, rather than being diverted into things that may or may not happen and are largely speculative at the moment in their promotion and origin.