Offshore Wind

Claire Coutinho Excerpts

Wednesday 14th January 2026 Commons Chamber

[Claire Coutinho (East Surrey) (Con)]

I thank the Secretary of State for advance sight of his statement.

What the Secretary of State has done today has given a massive boost to the profits of multimillion-pound energy companies, but will be paid for by consumers through their bills. What do the prices show us? First, wind power is not getting cheaper as promised. These are the highest prices that we have seen in a decade. Today’s strike prices, in a like-for-like comparison, are much higher than last year’s prices. If we use the Secretary of State’s own figures on the worth of the contract extension—he extended it to 20 years—the prices are 24% more expensive than last year’s. That is an enormous year-on-year increase, which is much higher than inflation.

Can the Secretary of State explain why building a wind farm has suddenly got so much more expensive? Well, I can. It is because by setting himself completely unrealistic targets, he advertised to multimillion-pound wind developers that he would be buying whatever they were selling, no matter the cost. He flexed all the rules, he extended their contracts, and he gave the wind developers everything they wanted, and they repaid him with the most expensive prices for wind power that we have seen in a decade.

The Secretary of State wants us to celebrate the fact that he bought a bumper round—in his own words, the “biggest in history”. Let us take his key argument on levelised cost of electricity. If he had looked at or replied to any of the letters that I have sent him, he would know that I did not agree with using a LCOE to compare wind power and gas power. He will know that I started—[Interruption.] He might want to listen to this; he might learn something. He will know that I started a full systems cost, which he cancelled, even though I urged him to continue it. That is because the full cost of these contracts to the consumer is £95 in today’s money, plus inflation and the extra costs that come with wind, such as turning off the turbines when it is too windy, having a back-up gas plant when it is not windy enough, and connecting the turbines to the grid. He has underplayed the true cost of wind in people’s bills. By the way, it is not just me saying that this is how we should look at cost; wind developers say the same. Sir Dieter Helm and senior economists say that we should look at the full systems cost.

When the Secretary of State talks about the comparison with a new gas power plant, he is wilfully ignoring the fact that he needs to build new gas plants anyway. What does he think will power the country on wintry days when the sun does not shine and the wind does not blow? Even his own plans acknowledge that it is gas power. In his plans, he will build the same amount of gas plants anyway, but he will just run them 4% of the time. Would anyone here buy a house that they use 4% of the time? Well, I guess out of all of us, it is probably the Secretary of State who would.

Here is the problem: the Secretary of State is having to build more and more capacity, lots of which will sit idle most of the time, which means higher costs for a less productive energy system. These are all costs that the Secretary of State is choosing to ignore, but even if we use the figures that he is quoting today, which underplay the cost of wind, the truth is there. If we take out the carbon tax that he is choosing to impose, the cost of a gas power plant running fully is roughly a third cheaper than offshore wind. That is written in black and white on page 33 of the report, if hon. Members would like to check. He is hoping that Labour Members will not read what he has published today, but I hope that they do, because it should be facts, not ideology, that drive the decisions that we make for our energy system.

People out there are at breaking point. They get up every day, they go to work, and everything they earn is being eaten up by Labour’s taxes and their bills. Last time we spoke across the Dispatch Box, the Secretary of State tried to tell me that people’s energy bills are going down, not up. Nobody out there believes him. Energy bills have gone up five times under him because of his policies, and now he is celebrating this botched wind auction that has seen him sign up to the highest prices for wind power for a decade—prices close to 20% higher than the cost of electricity.

The question is: how on earth can the Secretary of State bring bills down with these higher prices? That is what people were promised. This will be the private finance initiative of the energy system, and it will be in place long after he has gone from this place. I warned him that if he set himself completely unrealistic targets, the wind developers would have him over a barrel, and that is what has happened. He talks about fossil fuel spikes, but he does not talk about the ongoing de-industrialisation of this country because of uncompetitive electricity prices—prices that he is locking us into for two decades.

I have three simple questions for the Secretary of State. Will he finally publish a full systems cost of clean power 2030? Will he confirm that he will still need to build gas power plants for dispatchable power? If that is not his policy, what will keep the lights on when the wind does not blow and the sun does not shine? Does he have a forecast for the constraint payments, and how much does he expect to pay wind developers to turn off when it is too windy?

--- Later in debate ---

[Claire Coutinho]

Gas is falling!

[Ed Miliband]

The right hon. Lady says from a sedentary position that gas is falling, but she is just making a gamble. At the time of the greatest geopolitical instability in a generation, she is gambling on stability. I am not going to make that gamble. We will have home-grown clean power, and we are going to take back control.