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

Greg Smith 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)]

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