Energy Prices

Lord Newby Excerpts

Wednesday 12th January 2022 Lords Chamber

[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.

[Lord Newby (LD)]

The Minister has just talked about mitigations that the Government have in place, but those mitigations were inadequate before the price rise that we have seen, and clearly will be completely inadequate in dealing with the huge increases with which vulnerable families will be faced in the next few months. On measures that the Government might take that will require expenditure, have they considered raising the money required by imposing a windfall tax on those oil and gas companies whose profits have soared as prices have soared?

[Lord Callanan (Con)]

There are a number of different policies under consideration but, of course, the situation is never as simple as the noble Lord would have us believe. Many of the North Sea producers over which we would have taxation control have long-term contracts in place at fixed prices to supply wholesalers in the United Kingdom. So it is not clear that there are excessive profits being made—but I am sure that this is something that the Chancellor will want to look at in his review, to see what else we can do in this area.