Draft Energy Prices Act 2022 (Extension of Time Limit) (No. 2) Regulations 2026

Bradley Thomas Excerpts

Tuesday 1st September 2026 General Committees

[Bradley Thomas (Bromsgrove) (Con)]

It is a pleasure to serve under your chairmanship, Sir Desmond, and I congratulate the Minister on her appointment. The draft regulations extend the period during which the Government may exercise the existing powers under the Energy Prices Act 2022. Specifically, they extend the Secretary of State’s power to fund a proportion of the renewables obligation costs attributable to domestic electricity supply from 25 April 2026 until 25 October 2026.

No new powers are created through this instrument; it simply prolongs the exercise of powers that Parliament has already granted. The Minister has explained that the purpose of the extension is to support the Government’s policy of reducing domestic energy bills by transferring 75% of renewables obligation costs from consumers to the Exchequer, claiming that it will reduce household energy bills by an average of £150 from April 2026. However, the measure is solely another exercise by the Government in moving costs from one pocket to another. Households may pay less through their energy bills, but they are still expected to meet those costs through general taxation.

It is also worth reminding the House of what the subsidies are funding. The renewables obligation provides long-term support to renewable generators, with consumers now bearing the brunt of the cost. The Government are not, as they are claiming, tackling the underlying drivers of high energy prices; they are simply shifting the burden from energy bills on to the public finances. The Minister speaks of a commitment to lowering household energy bills by £300, yet household energy costs are now higher than when the Government entered office in 2024.

[Graham Stuart]

Is my hon. Friend as astonished as I am that the Minister—I know she is new to her post—has come here to propose a six-month extension of the movement of costs from bills to the Exchequer and cannot tell the Committee how much money that will cost? That is the most basic question a Minister would ask when drafting the instrument—hopefully refreshment has arrived for her and she will be able to tell us in due course. She cannot turn up to this House with a proposal like this and not know the basic money she is adding to the national debt. As I read this morning, which my hon. Friend may have seen, this comes at a time when we have record levels of costs on gilts—5.88%.

[Bradley Thomas]

My right hon. Friend is experienced in these matters. I would have thought that question would be in the 101 of presenting this instrument to the House.

We are pleased to see the Government finally adopt our Conservative party policy of abolishing the carbon price support on electricity generation, but their plan for the promised £300 savings is still nowhere to be found. While Labour transfers the cost of renewable subsidies on to taxpayers, the Conservative party has set out our cheap power plan to reduce the underlying cost of energy for households. That plan would abolish the renewables obligation altogether, accelerate the delivery of new nuclear power by cutting unnecessary planning barriers, remove VAT from domestic energy bills for three years and abolish the carbon tax. Together, those measures would reduce household bills by around £200—not simply move costs from one bill to another. Can the Minister outline what the Government’s plan for cheap power is, and if not, whether they are willing to accept ours as a solution? Finally, when, if ever, will households receive the £300 reduction in energy bills, as promised at the last general election?