Energy Markets

Wera Hobhouse Excerpts

Thursday 5th March 2026 Commons Chamber

[Ed Miliband]

I agree with the first part of my hon. Friend’s question, so I will take the last part on marginal pricing, as that is the challenge, and be as brief as I can. I completely understand the logic of his question. One of the benefits of a clean power system is that gas will set the price much less of the time. One of the benefits of moving from the renewables obligation to contracts for difference is that it gives us a fixed price that is not subject to the marginal price of gas. I am sympathetic to the principle that my hon. Friend espouses, but the truth is that there are significant obstacles to getting to what he wants to see in a timely way and a way that is better for bill payers. Among all the other things, my Department continues to look at that.

[Wera Hobhouse (Bath) (LD)]

The Energy Security and Net Zero Committee is running an inquiry into the costs of energy, as we have already heard from its Chair. With all due respect, I cannot understand how the Conservative Opposition can with a straight face deplore the cost of energy for bill payers while at the same time advocate prolonging our dependency on oil and gas. That is precisely what keeps our energy bills high.

Let me come back to our inquiry. We heard from one of the witnesses from E3G that there could be costs of up to £500 per household in hidden profits due to the untransparent network charges put on to energy bills. Will the Government ensure that bill payers are given a full picture of the breakdown of profits across the energy sector?

[Ed Miliband]

I thank the hon. Lady for the point that she makes. It is worth saying that Lord Browne of Madingley, formerly of BP, was on the radio yesterday making precisely the same point that she and I have made. This is a man who used to run one of the world’s largest oil and gas companies, and he said that the lesson of this crisis is that we have to get on to clean power.

On the hon. Lady’s point about networks, it is important to be transparent about that. It is also important to bear down on those costs, and I obviously discuss that a lot with the regulator.