Protecting public from instant hikes in energy bills is our top priority
ASWE enter the cooler months, the nights start drawing in and our thoughts turn to switching on the heating.
So I understand the anxiety that will have been caused amid reports of rising global gas prices and energy suppliers being forced out of business.
But I want to reassure Sunday Express readers of the safety net that we have in place to shield consumers from instant price hikes this Christmas, and ensure that everyone gets the supply they need.
Because that’s always my first and main concern – protecting consumers, and particularly those on lower incomes.
That’s why I want to stress that the energy price cap, which sets a cap on the level an energy company can charge a customer, is holding back a wave of instant bill increases for millions of customers.
Despite some pushing me to lift the cap, I am absolutely clear that it is here to stay and will remain at the same level throughout winter.
The price cap is working – at the moment, wholesale gas prices are around 250p a therm, while the price cap is holding down prices at 65p.
Keeping this protection in place is non-negotiable for me.
And it’s important to say this is a UK specific policy – energy customers in other countries like France and Germany don’t enjoy those same protections.
We also have well-rehearsed plans in place to protect consumers if their energy supplier leaves the market – something which is not an unusual occurrence during the winter months but has recently received more attention for understandable reasons.
As has been proven many times this year already, if a supplier fails, the energy regulator Ofgem is the first responder.
It moves customers to a new supplier to ensure there’s no disruption to their supply.
And reports that the UK’S domestic gas storage capacity is too low is a red herring.
Market data shows that storing gas on land has little bearing on the price of gas, as is being demonstrated across Europe.
While some countries in Europe have to store gas to protect their security of supply, the UK has the best gas storage system in the world – our reserves in the North Sea.
Suggestions that Nord Stream 2 – a gas pipeline running from Russia to Germany – would help to ease the volatility of global gas prices should also be subject to scrutiny.
The UK Government has deep concerns about Nord Stream 2 and its implications for European energy security.
It is vital to remember that the UK’S energy system does not rely on gas from Russia.
We are fortunate as a country that we have access to gas in British territorial waters, and from secure and reliable import partners such as Norway.
And while it’s right that we do everything to support customers in the here and now, global volatile gas prices have shown the need to double down on our efforts to protect consumers in the long term by ensuring Britain’s clean energy independence.
Put simply, the most effective way we can strengthen Britain’s energy security for the long term is by investing in zero carbon power, made in the UK, for the UK.
That is why last week, the Prime Minister and I committed to decarbonising our electricity system by 2035. So Britain’s homes and businesses will be powered entirely by cheap, clean and secure electricity generated in this country, rather than elsewhere.
This will mean investing and deploying a new generation of home-grown technologies, such as offshore wind, solar and hydrogen power.
These will bring down costs while ensuring we are less at the mercy of global price fluctuations outside of our control.
The potential of nuclear energy, in particular, as a reliable, clean energy source is something that we will absolutely capitalise on after decades of inaction.
And we won’t let this potential go untapped.
That is why we are aiming to approve at least one large scale nuclear project in the next few years, to strengthen our energy security and help create thousands of high-skilled, green jobs across the UK.
In the meantime, Sunday Express readers should be in no doubt that the Government will continue to prioritise protecting customers and securing our energy supplies now, and into
the future.