Energy Prices Debate
Full Debate: Read Full DebateLord Newby
Main Page: Lord Newby (Liberal Democrat - Life peer)Department Debates - View all Lord Newby's debates with the Department for Business, Energy and Industrial Strategy
(2 years, 7 months ago)
Lords ChamberI 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.
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?
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.