Energy Markets

Toby Perkins Excerpts

Thursday 5th March 2026 Commons Chamber

[Ed Miliband]

I absolutely recognise the challenges that many businesses faced even before the crisis. It is important to say that even before the crisis began, fossil fuel prices were still 40% higher than before Russia invaded Ukraine, and businesses were facing the impacts of that.

We are taking action this April on the supercharger, but that is for only 500 or so of the most energy-intensive businesses. We are also taking action next April on the British industrial competitiveness scheme, which is for 7,000 businesses, but I recognise the point that the hon. Gentleman makes. Just as we are looking across Government at the situation that households face, and working on that, we are looking at the impact on businesses; indeed, I was talking to my colleague the Secretary of State for Business and Trade yesterday.

[Mr Toby Perkins (Chesterfield) (Lab)]

My right hon. Friend is absolutely right to expose the utter folly of responding to the situation that faces us by saying, “We need to stop with renewables and invest more in oil and gas.” It would be utter madness to learn that lesson. When we had the huge price spike as a result of Russia’s invasion of Ukraine, the fact that oil and gas was coming from the UK made no difference to the amount that our consumers paid, because it was all on the global market.

Does my right hon. Friend agree that the marginal pricing system, which was set up at a time when 80% or 90% of energy was being generated by fossil fuels, is far less robust at a time when the figure for gas is down to 40% and shrinking the entire time, and more than 50% of our energy comes from renewable sources? Because renewables are cheaper, should we not look to benefit from that, rather than having a system that allows gas to set the price, even if it accounts for only 1% of our energy?