3. Legislative Consent Motion on the Energy Prices Bill

Part of the debate – in the Senedd at 3:28 pm on 19 October 2022.

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Photo of Jenny Rathbone Jenny Rathbone Labour 3:28, 19 October 2022

I can't understand Janet Finch-Saunders's argument that this is emergency legislation; we've known about the spike in energy prices since the end of February, so this is not an emergency.

Now, nobody would argue against the proposal to give immediate relief for the massive spike in energy prices for both households and businesses, but the legislative framework proposed by the UK Government is not a sustainable solution. The idea that this is a landmark piece of legislation is really laughable. We really have to see this through the lens of the net-zero obligations that we have and the climate emergency that is going to descend on all of us. I don't see anything tangible in this proposal to encourage energy generators to invest in more renewable energy, to accelerate the transition away from gas. In fact, I see an attack on renewable energy generators, ensuring that they have to contribute more and don't benefit so much from the contracts that they have entered into. But, as the Minister has said in her explanatory memorandum, we do indeed need energy market reform, including on the way we fund renewables. So, I recognise that you have acknowledged that, but the problem here is that there's nothing to de-couple the cost to consumers of energy from the latest most expensive spot price of gas, which is how Ofgem sets these prices. And there's nothing to encourage people to invest their profits, including the oil and gas companies' profits, into the renewable transition that we all need to make.

So, I wondered if the Minister, in her reply, could tell us what discussions, if any, you've had with the UK Government—clearly, not about this specific piece of legislation, which just landed on your lap—which are aligned to both our and their net-zero obligations. And I thank the Member Rhys ab Owen for highlighting the concern of the House of Lords about section 22, which is the power to overrule Ofgem. The whole thing is really great cause for concern. I'm not planning to vote against it, because I know that households and businesses rely on this, but we've got to have something of a plan for the future, and we can't go on like this. This is a real pull-together just at the final minute—perhaps to distract from other things going on.