Energy Prices

Lord Offord of Garvel Excerpts

Wednesday 26th March 2025 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, that is an interesting comment, and the noble Baroness is of course absolutely right. Our problem is that we are tied to international gas prices, and noble Lords who are fixated on our using even more gas need to consider the implications of that. We are looking at how future gas market networks would work in a situation where gas is used much more infrequently. On marginal pricing, the more we use renewables, the less we are concerned about the international market. The contract for difference limits enable us to pay the renewable developers at a price that has already been agreed, rather than worrying about what the international price market will be.

[Lord Offord of Garvel (Con)]

My Lords, the Minister is always reminding us from the Dispatch Box that our electricity is the most expensive in the OECD. He blames international gas markets for that, but our European neighbours are subject to the same markets and seem to have cheaper electricity. Take France, for example. Our electricity is 80% more expensive than France’s. Why is that? It has a more balanced energy system, and it uses nuclear for its baseload. It is a simple fact that just shy of 50% of our electricity bills is comprised of green levies, subsidies and network realignment. I ask the Minister to slow down. Can we now just take some time to reflect, and reassess this mad dash to renewables by 2030? Please let us not put all our eggs in one expensive and fragile basket.

[Lord Hunt of Kings Heath (Lab)]

My Lords, I do not agree with the noble Lord at all. I remind him that our electricity market structure and its reliance on the international gas market is an inheritance from the last Government, and the highest prices we had were under the stewardship of the last Government. In getting ourselves off these international market prices, going to renewables and using nuclear as the essential baseload, we can grow the economy and give ourselves security. I totally disagree about the speed; we need to do this as quickly as we can.