(1 day, 14 hours ago)
Lords ChamberYes, the noble Lord asks me whether there is a crisis and there is one in place at the moment. However, we have considerable difficulty in determining exactly its direction and depth, precisely because we do not know what the position is and will be, particularly concerning the Strait of Hormuz, for the future. The response to that crisis, as far as the Government are concerned, clearly has to be to take every measure possible to ensure that the Strait of Hormuz is open—and open without tolls—for the passage of fuel across the world, but we do not know how long that will last.
The plans that we are therefore undertaking, particularly given the prices that may be an issue in global fuel scarcity, with various people trying to cannibalise everybody else’s fuel supply, are under our control nationally. We can therefore indeed intervene, if necessary, to make sure that those prices remain as stable as possible and, particularly as far as those who are in fuel poverty are concerned, that more people do not fall into fuel poverty as a result of those problems.
Two of our refineries have shut under this Government and the remaining four are at risk from high costs and very high taxes. What has emerged from government discussions with our refiners to expand our refinery output? That is the way to national security—not relying on product imports from dangerous parts of the world.
I do not quite recognise the noble Lord’s description that the four refineries in this country are at risk. Those are very large and stable refineries. As he knows, they continue to refine the forms of crude coming into the UK into petrol and other fuel products. Those refineries are set up to provide a particular kind of output based on the crude oil coming into them, and that is not necessarily a full spectrum of fuel products. Therefore, part of a strategy, as far as fuel is concerned for the future, is to look at where those refineries can expand and increase their production if possible, and to make sure that, where they are not able to easily refine the things we need, we have secure sources of those for the future.
(1 week, 1 day ago)
Lords ChamberThe Government are looking actively at many different ways of going further and faster as far as the green energy revolution is concerned. Indeed, they are actively looking at the Greenpeace and Stonehaven report on not only delinking but strategic reserves for gas in future. My personal view is that what they are proposing is a little early in the cycle but, nevertheless, could be an important element later on, in how the system stabilises itself once it is mainly renewables and low carbon.
Is the quickest way to get energy prices down not to cut some of the rip-off taxes that the Government impose? How does imposing an extra windfall tax help?
Imposing an extra windfall tax, on those elements of the system that are within the renewables orbit but outside the CfD arrangements, takes away the excess profits that those elements make as a result of being aligned with gas in charging those volatile prices. So it is a very sensible thing to do, to make sure that excess profits are not taken from consumers but instead reside with them as lower prices.
(1 month ago)
Lords ChamberThe issue of fuel supply through the Strait of Hormuz is relative to world supply and world prices; that is, because the UK obtains only a very small proportion of its supplies from the Middle East, the effect is more likely to be on prices across the world as other people seek to make up their supplies from different sources. The noble Lord is right that how we clear the Strait of Hormuz for those supplies has to be a question of disengagement, détente in the present conflict, and negotiation not in an ideal world but with those with whom we find ourselves in a negotiating position.
My Lords, do the Government understand that they have already presided over the closure of two of our oil refineries with their high-carbon taxes and unfriendly energy policy? Will they take urgent action to avoid the closure of the remaining ones, which would leave us without domestic supply and with shortages?
The noble Lord will not be surprised to hear that I do not agree with his analysis of why the two refineries that have closed in the UK have done so, but the four refineries that we have in the UK are all producing well and in a robust condition. The Government will continue to monitor that process, but there is no reason to believe that further refineries are likely to close in the near future.