3. Legislative Consent Motion on the Energy Prices Bill

Part of the debate – in the Senedd at 3:22 pm on 19 October 2022.

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Photo of Janet Finch-Saunders Janet Finch-Saunders Conservative 3:22, 19 October 2022

Now, this LCM relates to landmark legislation, and it's legislation that needs to be enacted quickly. The Russian invasion of Ukraine has, without doubt, led to the price of oil and gas surging around the world. Thanks to the UK Government, consumers now will be having help with their bills. These new emergency powers will ensure that consumers across the country, from Anglesey to Aberdeen, Conwy to Cornwall, receive help with their energy bills this winter. Without this legislation, businesses and consumers will be left facing increasing financial turmoil. Energy bills were estimated to increase around £6,500 before the UK Government stepped in, and now they're capped at a lower figure of £2,500. This, obviously, will help.

For businesses, this would be a catastrophe. In Aberconwy, I am seeing my hoteliers facing up to a 532 per cent increase in energy bills, and a local butcher—you'll all have had Edwards sausages of Conwy; I hope you have—were confronted with a devastating rise from £129,000 to the latest £782,000, and I understand it's gone significantly up since that, when looking at new tariffs. Thanks to the UK Government, prices for businesses will be capped at £211 per megawatt hour for electricity, and £75 per megawatt for gas. This has reduced the price per megawatt hour for non-domestic customers by nearly 65 per cent for electricity, and 147 per cent for gas. 

Our businesses have faced a turbulent last two years as a result of the pandemic, with many businesses now having to pay off pandemic-era loans and some of them had fallen behind with rent arrears. The UK Government's support will be fundamental in supporting our businesses to continue operating during the forthcoming winter months, and provide much-needed financial relief. And, as business and energy Secretary, the Right Honourable Jacob Rees-Mogg said:

'Businesses and consumers across the UK should pay a fair price for energy.... That is why we have stepped in today with exceptional powers that will not only ensure vital support reaches households and businesses this winter but will transform the United Kingdom into a nation that offers secure, affordable and fairly-priced home-grown energy for all.' 

By supporting clauses 13 and 14, yes, we will be giving power to the Secretary of State, the go-ahead to, for example, provide support for meeting costs related to the use of energy; provide support for meeting costs related to the supply of energy; and enable or encourage the efficient use of energy. So, I see no reason why there needs to be a fuss on this particular LCM. Even Alan Brown MP, SNP, stated on Monday, and I quote:

'I agree that those measures and principles are required for energy security and to be part of net zero transition.'

The Right Honourable Graham Stuart:

'Clause 19 ensures that the support schemes...reach their intended beneficiaries. The requirement to pass on energy price support will help to ensure that tenants and other end users receive the support they need.'

We are facing a global energy crisis that has been exacerbated by Russia's illegal invasion of Ukraine. By supporting this LCM, we will be helping people, businesses, charities and the public sector across the UK with their energy bills, with a secure legislative footing. The Minister for climate change, the Right Honourable Graham Stuart has rightly thanked His Majesty's opposition, and other parties, for their constructive engagement so far. So, like yourself, Minister—