Energy Prices

Lord Howell of Guildford Excerpts

Wednesday 12th January 2022 Lords Chamber

[Lord Callanan (Con)]

I am not clear what further plans the noble Baroness is referring to, but, as I mentioned, we have a whole series of mitigations in place to protect precisely the people whom she mentioned. For example, the warm home discount scheme has helped millions of people at a cost of several billion pounds, and we will continue with policies such as that to help the most vulnerable.

[Lord Howell of Guildford (Con)]

My Lords, is it appreciated in this drama of exceptionally high prices that the whole process of moving to a decarbonised world and energy transition requires the most careful management of balance between supply and demand? If supply is discouraged or undermined while demand is still rising, we will get again and again the huge, volatile and extremely damaging rise in fuel and power prices that we have now. Is that not the main lesson to be learned from the mess that we are in now?

[Lord Callanan (Con)]

I know that my noble friend, as a former Energy Minister himself, is very experienced in these matters. Of course, the underlying point that he makes is right—but it is a transition that will take place over many years and, in the meantime, there will of course be considerable demand for fossil fuels.