UK Electricity Prices

Lord Moynihan Excerpts

Thursday 4th June 2026 Grand Committee

[Lord Moynihan (Con)]

My Lords, I declare my interest as chairman of Amey, Acteon and Buckthorn Partners, three companies focused on delivering energy transition.

This has been an excellent debate. Since my noble friend Lord Lilley referred to Dieter Helm, and having just heard the speech from the noble Earl, I think it is important to quote in full what Dieter Helm, who is respected by both the Labour Governments of Blair and Starmer, said only last week:

“The industrial consequences have been dire. High electricity prices have contributed to the closure of Grangemouth refinery, the Exxon refinery in Scotland, one of the Hull refineries, the closure of most of the steel industry, the closure of the fertiliser and fibreglass industries, and severe problems for pottery and for glass-making. Car manufacturing is back to the 1950s’ levels”.


As we have heard:

“There is devastation amongst the SMEs, aggravated by the increase in employer national insurance contributions, enhanced workers’ rights, and increases in the minimum wage. The unfunded welfare spending has increased the cost of capital, with record gilt costs. Energy policy has reduced economic growth, not increased it”.

On these Benches, we believe in reducing household bills, strengthening energy security and increasing UK energy independence by prioritising cheap and reliable energy over net-zero constraints, expanding North Sea production significantly, repealing the energy profits levy and scrapping green subsidies, including carbon price support, which are no longer needed.

Ministers consistently refer to “clean energy”, which they define as homegrown. It is neither of these things. The con trick is to pretend that emissions should exclude the integrated lifecycle costs, as pointed out by my noble friend Lord Frost, while pretending naively that, because the wind blows and the sun shines, there is no impact on the environment. We are responsible for creating the demand for Chinese solar panels. Over 90% of the constituent parts of our solar panels come from China; they are not homegrown or clean. We create the demand for polycrystalline. We are accountable for the emissions belched into the atmosphere by Chinese coal-fired production of solar panels—a country, by the way, with which the Secretary of State has created a specific bond between DESNZ and the Chinese state through his secret MoU which encourages these Chinese imports. In this decade alone, China has pumped more CO₂ into the atmosphere than this country has in total since the industrial revolution.

Yet, we have our own gas reserves, which we are shutting down. This is not economic security. As the new AI technologies unfold, no data centre is going to find Britain’s high-cost economy for a highly intermittent-based electricity system an attractive competitive advantage. Why should it, when 60% of the operating costs of a data centre come from its electricity costs?

The central question for any electricity system in an economy is how good it is at delivering firm power at the lowest possible cost. It is not optional. A modern competitive economy is 100% dependent on firm, low-cost energy. We have a crisis. We have a crisis in British industry: as a result of the highest prices in the developed world, we are uncompetitive. We also have a crisis in affordability for households. Tragically, as this debate has shown, the Secretary of State is doubling down on both crises with the delusion of a zealot heading blindly for a go-for-broke strategy, which is the definition, as my noble friend Lord Redwood said, of economic self-harm.