Energy

Debate between Graham Stuart and Claire Coutinho

Wednesday 12th November 2025 Commons Chamber

[Claire Coutinho (East Surrey) (Con)]

I beg to move,

That this House calls on the Government to introduce a plan for cheap power by cutting public expenditure to remove the ‘Carbon Tax’ (UK Emissions Trading Scheme) from electricity generation and end Renewable Obligation subsidies; notes that the UK has the highest industrial electricity prices in the world and the second highest domestic electricity prices; further notes that high power costs are holding back economic growth and making households poorer; believes that cheap energy is essential to enable economic growth, the expansion of the artificial intelligence sector and the electrification of heating and transport; further calls on the Government to stop the Allocation Round 7 auction, which will lock consumers into high energy bills for decades; also notes that three quarters of the UK’s energy needs are met by oil and gas, and recognises the vital contribution of the North Sea industry to the nation’s energy security, to skilled employment, and to the public finances through billions of pounds generated in tax revenue; notes that shutting down domestic oil and gas production would increase reliance on foreign imports with higher carbon emissions; and also calls on the Government to end the ban on new oil and gas licences and to scrap the Energy Profits Levy in order to maximise investment in that sector.

Our cheap power plan would cut electricity bills for everyone by 20%, and under it, we take a common-sense approach to British energy security by backing the North sea. The plan recognises that the biggest problem the country faces is the cost of our electricity. It is a problem for living standards, for industry, for artificial intelligence and for electrification. The focus of any Government should be making electricity less expensive, not more expensive, as Labour’s plans will. They should be about making electricity cheap. Under our cheap power plan, we would axe the carbon tax—which has gone up by 70% this year under Labour, pushing up everybody’s energy bills—and scrap the renewable obligation subsidies, which result in some wind farms get three times the market price for electricity.

I would like to start by thanking the Liberal Democrats, who came out this morning as backing the second part of our plan. I would also like to thank Reform, which appears to have copy and pasted the plan wholesale, and the Tony Blair Institute, which just two weeks ago said that we need to ditch Labour’s disastrous clean power plan in favour of a cheap power plan that takes off carbon taxes. That sounds familiar.

[Graham Stuart (Beverley and Holderness) (Con)]

Even before my right hon. Friend came into the Department and asked for a whole-system energy cost analysis when I was the Energy Minister, our strategic objective was to be among the countries with the cheapest electricity prices in Europe by the 2030s. Does she have any idea why the Labour party has now dropped that as a strategic objective?

[Claire Coutinho]

I thank my right hon. Friend, who is so knowledgeable on matters to do with energy. He is right: the only people who have not got the message are Labour Members, who are on the wrong side of this debate. The Secretary of State promised to cut bills by £300, but bills have gone up by £200 since the general election. I warned Labour Members over and over again that this would happen, but they did not listen. Now, under their plans, energy bills will keep on rising. They might not want to hear that from me, but they should listen to the trade unions, or to energy bosses, who came to Parliament just a few weeks ago and, in a bombshell moment, said that even if gas prices went to zero, bills would still rise because of Labour’s plans. I would hazard a guess that their view is shared by the Prime Minister, given that he tried to sack the Secretary of State at the last reshuffle. What does the Prime Minister know that these guys don’t, I wonder?

Our electricity is already some of the cleanest in the world, but it is also the most expensive. If we want people to adopt electric cars or electric home heating, we need to make electricity cheap. If we want artificial intelligence or industry to succeed in this country, we need to make electricity cheap. If we want people to have a better standard of life, so that they can spend more money on their families than on their bills, we need to make electricity cheap. Our cheap power plan would cut electricity bills by 20%, and not just for a favoured few, whereas Labour is pushing up bills for 22 million families to give handouts to 6 million. Our plan would cut bills for everybody—households and businesses. It would mean £165 off the average family’s bill, but even more if they spend more—and we could do it now.

Great British Energy Bill

Debate between Graham Stuart and Claire Coutinho

2nd reading
Thursday 5th September 2024 Commons Chamber

[Claire Coutinho]

I will give way in a second.

The Secretary of State is setting up a new body when our energy sector is not short of state-run bodies. We have Ofgem, the National Energy System Operator, the Climate Change Committee, Great British Nuclear and, of course, the UK Infrastructure Bank, with £22 billion to provide debt, equity and guarantees for infrastructure finance to tackle climate change, set up by the former Prime Minister.

At this point, the taxpayer might well ask why they are coughing up twice for programmes that do the same thing. Here is why. When I read the Bill, tiny as it is, it rang a bell and, lo and behold, it is a carbon copy of the Infrastructure Bank legislation, so why do the same thing again? Well, there are a few important omissions and tweaks. First, while the Infrastructure Bank legislation sets out directions for governance by directors and non-executive directors, the Bill does no such thing. While the Infrastructure Bank legislation appoints an independent person to carry out a review of the effectiveness of the bank in delivering its objectives, the Bill does no such thing.

Lastly, while the Infrastructure Bank legislation gives special powers to direct investments to the Treasury—to independent civil servants—the Bill gives powers to the Secretary of State, who, as far as I am aware, has no investment background and no financial training and whose only period in the private sector, if I have this right, was as a researcher at Channel 4.

[Graham Stuart]

My right hon. Friend is absolutely right. The Bill sets out huge powers for the Secretary of State—he will be like the slim controller of the energy system, as he tries to interfere. But he has a track record in such cluelessness—the 2030 decarbonisation target. “We need more ambition,” he said. We had therefore hoped that the self-confessed nerd would know how to do it, but we had the letter in August to Fintan Slye of the Electricity System Operator, which set out the fact that the Secretary of State did not have a clue about how to deliver 2030 decarbonisation. The answer from Fintan Slye, if he were not in such an impossible position, would have been short: “It can’t be done. You need to do your homework.”

[Claire Coutinho]

I thank my right hon. Friend for his intervention. It is always a pleasure to see him in the Chamber making excellent points.

The question that I have is this: why has the Secretary of State set up a duplicate programme with no instructions for governance, independent review, investment plans or consumer savings that he can be judged by? Why should taxpayers’ money fund a similar entity when the only difference that I can discern is that it gives the Secretary of State unchecked power? What is it about the £8 billion of taxpayer money that he can direct without checks or balances that first attracted him to the idea of GB Energy? These are fair and reasonable questions for us as the Opposition to ask, and he must look to improve the governance in this Bill.

Let me turn to the promises that he made. The Prime Minister, the Chancellor, the Secretary of State and at least 50 Labour MPs promised their constituents in the July election that GB Energy would save them £300 a year on their energy bills. They said it on their election literature, on social media and in hustings. They said it because they were told to do so by the Secretary of State, but I listened very closely to his speech today and I did not hear him make a promise that GB Energy will save them £300 on their energy bills.

In a debate just before the summer recess, the Under-Secretary of State for Energy Security and Net Zero, the hon. Member for Rutherglen (Michael Shanks), would not repeat the promise either. That is because they all know that it is not true. In fact, one of Labour’s first acts in government has been to take away up to £300 from 10 million pensioners this winter, including two thirds of pensioners in poverty. It takes some nerve for the Labour party to say that it never wanted to do this, because the winter fuel payment was in the manifesto of the Secretary of State’s party when he wrote it in 2010. It was in there when he was leader in 2015, it was in there in 2017 and in 2019, but in 2024 it was omitted. There was no mention at all for the first time in 14 years.

I will give credit to the right hon. Gentleman—something that I do not always do. When he was leader in 2015, he put it in his manifesto that he would take the payment away from the top 5% of pensioners. He will remember that. He had the courtesy of telling the public his plans, but, professional politician that he is, I suggest that he would have clocked that it was not included this time round. He has been in politics for 30 years and would have known what that meant, so I hope that he can confirm today whether he had any conversations with the Prime Minister, the Chancellor or Morgan McSweeney before the manifesto came out. If so, he sent out those Labour candidates—all the people on the Benches behind him—with this false promise of the £300 energy savings when someone clearly knew that they were going to take that amount away from millions of pensioners this winter.