UK Energy Costs

Debate between Elizabeth Truss and Andrew Stephenson

Thursday 8th September 2022 Commons Chamber

[The Prime Minister]

I want to make some progress on explaining how we will defray the cost of this intervention, which I think might answer some hon. Members’ questions before they ask them.

We will defray the cost of this intervention by, first, ramping up supply. Following on from the successful vaccine taskforce, we have created a new energy supply taskforce under the leadership of Maddy McTernan. The taskforce is already negotiating new long-term energy contracts with domestic and international gas suppliers to bring down the cost of intervention immediately.

We are also accelerating all sources of domestic energy, including North sea oil and gas production. We will be launching a new licensing round, which we expect to lead to more than 100 new licences being awarded; and we will speed up our deployment of all clean and renewable technologies, including hydrogen, solar, carbon capture and storage, and wind, where we are already a world leader in offshore generation. Renewable and nuclear generators will move on to contracts for difference, to end the situation in which electricity prices are set by the marginal price of gas. This will mean that generators receive a fair price that reflects their cost of production, further bringing down the cost of this intervention.

[Andrew Stephenson (Pendle) (Con)]

I warmly welcome the immediate action announced by the Prime Minister on the cost of energy, which will help families in my Pendle constituency and right across the United Kingdom. Next week is nuclear week in Parliament, so will she join me in supporting the roll-out of small modular reactors championed by Rolls-Royce, which has two sites in my constituency? We need this technology now, so will she go further and faster in driving forward the nuclear programme in this country?

[The Prime Minister]

My hon. Friend is absolutely right that small modular reactors are a very important part of our energy mix. They are produced here in the United Kingdom. They will help to boost growth as well as boosting our energy security.