Draft Electricity Supplier Payments (Amendment) Regulations 2026

Pippa Heylings Excerpts

Tuesday 3rd March 2026 General Committees

[Pippa Heylings (South Cambridgeshire) (LD)]

It is a pleasure to serve under your chairship, Sir Alec.

The regulations update the electricity supplier payments for the contracts for difference, electrical capacity and nuclear regulated asset base model schemes, and they will allow for funding that covers the operational costs of those schemes. It was the Liberal Democrats who originally created the contracts for difference scheme while in government, which provided support for low carbon sources with fixed prices for the power that they produce. We must continue to support these clean energy schemes, which will bolster the UK’s energy security and price stabilisation.

As we are seeing this week, geopolitical instability and the closure of the strait of Hormuz will have an extensive impact on the price of wholesale gas. Qatar’s decision to close the world’s largest gas terminal could have a direct impact on customers here in the UK. We are seeing some of the fastest spikes in wholesale gas prices, which are surging by more than 40%. Just this morning, we have seen prices spike by 30% for day ahead UK delivery. For month ahead contracts, the price was at 148p per therm this morning, which is a three year high.

That is why we need urgently to turn to renewable energy sources, continue to develop the infrastructure and technology that will actually support an energy secure future, and move away from over dependence on volatile fossil fuel imports. Given that, it is important that electricity suppliers can recover sufficient funds to cover their expected operational costs. I fully recognise the need to support clean energy schemes that will actively boost our energy security and resilience for decades to come.