Draft Energy Prices Act 2022 (Extension of Time Limit) Regulations 2026

Gareth Snell Excerpts

Tuesday 14th April 2026 General Committees

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to serve under your chairmanship this morning, Ms Vaz.

I note at the outset that the Opposition will not divide the Committee on this statutory instrument. We do not oppose the principle of reducing the burden of policy costs on household energy bills. However, the fundamental question this statutory instrument raises is one of transparency. Are the public being given an honest account of what the Government’s policies do? Moving some of the renewables obligation funding to be paid from the Exchequer does not eliminate a cost: it relocates it. The £70-odd saving that Ministers claim to be making is still being paid by all our constituents: they are paying it through their tax bill, rather than their energy bills. As Martin Lewis noted, that is the mechanism behind the majority of the advertised £150 saving. That is not nothing, but it is not quite the windfall it is presented as either.

The huge subsidies that entitle some windfarm owners to three times the market price of the power they generate still flows to energy developers, all funded by the taxpayer. Crucially, the savings that the Labour Government have put forward do nothing to cut bills for businesses, which are seeing their network costs double thanks to the Government’s net zero policies and are getting no support from their big energy bill package.

The regulations extend the section 13 powers of the Energy Prices Act 2022 by a further six months to October 2026. The Government have been clear that primary legislation will follow, and the Minister repeated in his speech this morning, when parliamentary time allows. Well, a King’s Speech is in the diary for next month, so all eyes will be on it to see if that appears. I am sure that the Minister will not be tempted to confirm or deny items in the King’s Speech this morning, but if this is not in it, questions will be asked. That prompts a reasonable question about whether the Minister can offer assurances about the timetable. Does he expect it to be this year, next year or at some point before the next general election? Can he confirm that the extension in the regulations will not become a pattern of repeated deferral?

It is right to support measures that ease the cost of living. What is equally important is that the public are given a clear and honest account of how those measures work and who will ultimately foot the bill. As we all know, a very great lady once said that there is no such thing as public money, only taxpayers’ money.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

rose—

[The Chair]

To clarify, any Member can attend a Delegated Legislation Committee even if they are not a member of the Committee.

[Gareth Snell]

That is a nice introduction, Ms Vaz, and it is a pleasure to serve under your chairmanship.

I have no issue in principle with the regulations, which extend the powers of the Secretary of State. The issue I want to raise, given this opportunity, is the other aspects of the Energy Price Act 2022 on industrial energy, which are also extended by virtue of extending the timescale for the legislation. The Minister will know that I have been persistent in trying to seek a meeting with him, which I have not been able to secure. On the last attempt we were told that his diary was too busy for a meeting. I thought, therefore, that I would come along and detain the Committee for 20 minutes this morning for a meeting that we could have had privately in the Department. I apologise to other members of the Committee.

The Minister will know that section 9 of the Energy Prices Act allows for the reduction of energy charges for non-domestic customers in Great Britain. That is industrial energy which keeps the lights on in factories, and allows us to make things, build things and do things. It is the life source of British manufacturing. The Minister will also be acutely aware that too many businesses in this country, especially those in foundational sectors, are unable currently to meet the cost of their gas and electricity because of the price of industrial energy.

For reference, two weeks ago the price of gas was 140p per therm. It is currently trading at between 113p and 115p per therm. To put that into context, in 2020, before the various shocks and energy crises, it was 47p per therm. Gas-intensive manufacturers are today paying roughly—including other costs that are part of the measures the Minister mentioned—three times what they were paying. We cannot make glass, bricks, cement, paper, steel or—crucially for me—ceramics without a credible and affordable supply of industrial gas. There are also challenges with electricity pricing.

I am sure that the Minister will respond to what I am saying by talking about the supercharger scheme, and will note the excellent extension of the scheme from a 60% reduction to a 90% reduction, but that covers only 500 of the most energy-intensive industries in the country; 5,000 others could be included, but unfortunately are not, so while we are seeing an increase in support for some of the industry, it is very narrow and does not support most of the manufacturing in this country. I am sure the Minister will also reach into his big bag of tricks to talk about the British industrial competitiveness scheme, the consultation for which has only just gone out. That scheme was promised in last year’s Budget and will almost certainly not be in place until late 2027.

The Minister wants to extend the powers under the Energy Prices Act using today’s statutory instrument, and I think that is a good thing, but I would ask him to do three things. The first is to think about what other parts of the Act he will use when he has extended those powers. When he has extended the powers of the Secretary of State until the end of this year, will he use the powers under section 9(1) by regulation to reduce charges for non-domestic energy supply? Will he use the powers that are extended under this SI to reduce the amount that would be otherwise charged for the GB non-domestic gas supply by licensed gas suppliers?

The Minister could, if he wanted to, under section 13(3)(a), give financial assistance to non-domestic users of energy, whether it be gas or electricity, using powers that are in the Act that are being extended by today’s SI. Under section 13(2),

“The Secretary of State may take such other steps as the Secretary of State considers appropriate in response to the energy crisis.”

I think it is quite clear that we are in an energy crisis. We are facing enormously high energy costs, not just in our own homes but in the factories that employ thousands of people across this country in highly skilled, proud, working-class communities.

Following today’s extension to the powers under the Energy Prices Act, the Government will have the power to meet the demands being made of them by various sectors—not just ceramics but glass, steel, bricks, cement, lime, paper; all the things that we need—to make an intervention as soon as the SI is passed. The Minister could go back to his Department and say, “We have the power, the political will and an interest in doing so; therefore we are going to make regulations.” He could say to the 4,500 businesses that are not covered by the industry supercharger scheme, “Here is a mechanism by which we can simply put you in that scheme.”

[The Chair]

As long as it is within the scope of the draft regulations.

--- Later in debate ---

[Gareth Snell]

It is within the powers that are being extended by today’s SI. The Minister rightly talks about the SI’s impact on the power of the Secretary of State to vary domestic bills, but the Act is quite comprehensive. What is being extended today by the SI is a suite of powers that are available to the Secretary of State to undertake significant market intervention on a range of fronts in the next six months—it is covered by the SI that is before us—to make life easier for businesses, manufacturers and heavy industries in my constituency and, I would wager, in yours, Ms Vaz. I know you have brick manufacturers who face the same industrial energy crisis—[Interruption.] As does the shadow Minister in his constituency.

Given the powers that are being granted to the Secretary of State under this SI, companies around the country could be given help and support. I therefore ask the Minister, once he has granted the Secretary of State additional powers through the SI before us, will he go back to his Department and come up with a scheme, a plan and a package of support for those non-domestic users of gas and electricity that are not covered by the industry supercharger scheme that will come into place well before the British industrial competitiveness scheme is floated, and allow some breathing space for those manufacturers who, frankly, are the lifeblood of the economy in so many constituencies and who, in places like Stoke-on-Trent, employ thousands of people?