Energy Bill [HL]

Lord Kerr of Kinlochard Excerpts

Consideration of Commons amendments
Tuesday 12th September 2023 Lords Chamber

[Lord Kerr of Kinlochard (CB)]

The Minister waxed lyrical about the scheme to provide subsidies for energy-intensive industries. We were deeply moved by his enthusiasm. He was silent on the clause that follows. He was talking about Clause 177, but Clause 178 sets out how the subsidies are to be paid for—by levies on all electricity users. I do not want this moment to pass without making the old-fashioned comment that I think it is best that subsidies are paid for out of taxation, rather than by levies.

Subsidies are a political decision by the Government; they are absolutely entitled to make those political decisions. But all electricity users are, at the moment, suffering from the political decision to instruct Ofgem to prioritise competition, which has led to the collapse of more than 30 supply companies. The costs of these collapses are being borne by us all in the levies on our electricity bills. You can debate whether it is honest or dishonest for political decisions to be paid for in a concealed fashion of this kind, but what is certain is that it is regressive. I am therefore slightly less enthusiastic about the combination of Amendments 177 and 178 than the Minister was about Amendment 177.

[Lord Lennie (Lab)]

All I would like to say is that, in response to the comments by the noble Baroness, Lady Bennett, we are interested in keeping the lights on and we are interested in nuclear being part of the mix of fuels that will keep the electricity going, particularly now that coal will no longer be part of the electricity production in this country.