Economy Update

Baroness Blackstone Excerpts

Thursday 26th May 2022 Lords Chamber

[Baroness Penn (Con)]

My Lords, the structure of the French energy market is different from our own. Different interventions are appropriate in different circumstances, but the generosity of the approach we have taken is comparable. On electricity generation, it is more complicated. As I have said, we have taken time to design the levy so as not to deter investment and we are looking very carefully at the scale of the extraordinary returns in the electricity sector and measures that could be taken in response. We have longer-term plans to reform that sector, but there may be a case for doing something in the interim and we are working urgently to look at that.

[Baroness Blackstone (Ind Lab)]

My Lords, the Minister has rightly admitted that a large part of the problem that the Government are facing is driven by energy prices. In that case, why are the Government still resisting the development of onshore wind—a rapid and cheap way of generating more power—when, if we doubled our capacity from this form of power, we could cut £6 billion off households’ energy bills?

[Baroness Penn (Con)]

This Government have invested significant amounts in renewable energy and will continue to do so. As we set out in our energy security strategy, we have a long-term path for both improved energy security and meeting our goals on net zero.