Energy Profits Levy

Baroness Worthington Excerpts

Tuesday 7th February 2023 Lords Chamber

[Baroness Penn (Con)]

I simply cannot agree with the noble Baroness’s interpretation of things. Many renewable electricity generators generate their electricity under contracts for difference, to which that regime does not apply. It applies only to exceptional profits related to the price of gas, and is nothing to do with the cost of investing in renewables. I can agree with the noble Baroness on the importance of investing in renewables, something on which we have a consistent track record. We have the largest wind capacity in Europe, and we are the second-largest deployer globally, behind only China. We have a lot more to do, but we have a strong track record on which to build.

[Baroness Worthington (CB)]

My Lords, in retrospect, would it not have been more sensible to have negotiated with the providers of those resources from the North Sea to our domestic consumers and capped the price? Instead, we have allowed prices to rise, with no underlying rise in the cost of production, to the cost of the consumer. The tax may be coming in, but is it going back out to the people in need? I very much doubt it.

[Baroness Penn (Con)]

I would like to reassure the noble Baroness on that second point. We have the energy price guarantee in place and specific support going to the most vulnerable households. It is at the forefront of our minds that people have faced a difficult winter and that energy prices will remain elevated for some time. We are also putting support into improved energy efficiency and insulation to help bring down bills.