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UK energy support bill fast-tracked amid long-term concern

Tue, 18th Oct 2022 06:19

(Alliance News) - A bid to force UK ministers to speed up efforts to explain the energy support for households after April has been rejected in the Commons.

New Chancellor Jeremy Hunt announced on Monday he was scaling back the energy support package, with the two-year price freeze now only running for six months.

Hunt said the government will launch a review on how to target support to those most in need after April in a bid to save taxpayers' cash.

The SNP sought to amend the Energy Prices Bill, which puts in law the support package and was fast-tracked through the Commons, to require ministers to set out to Parliament the full details on the different scenarios from April within 28 days of it receiving royal assent.

SNP energy spokesman Alan Brown cited previous comments from Prime Minister Liz Truss as he warned Business Secretary Jacob Rees-Mogg the average household energy bill will rise from an average of GBP2,500 per year to GBP6,000 per year from April if no further support arrives.

He said: "That is unsustainable and that is why we moved new clause 18, as it's a real imperative that the government comes back with a support package with some clear analysis that shows they understand the gravity of the situation."

The SNP's amendment was rejected by 61 votes to 304, majority 243.

Rees-Mogg earlier told MPs during debate on the bill: "The legislation is crucial to providing immediate support to people and businesses.

"The domestic scheme, the energy price guarantee, which was announced, is already up and running.

"This bill prioritises the legislative underpinnings of that scheme. The energy price guarantee will provide support to the end of March 2023, which will be equivalent to an annual bill of GBP2,500 for the typical household.

"The average unit price for the dual fuel customers on standard variable tariffs subject to Ofgem price cap paying by direct debit will be limited to 34 pence per kWh for electricity and 10.3 pence per kWh for gas inclusive of VAT from the first of October."

Rees-Mogg told MPs the energy bills scheme will be extended to Northern Ireland, adding: "This is very much a unionist package."

For Labour, Shadow Climate Change Secretary Ed Miliband said: "What a shambles this government is. We are debating what they describe as their landmark Bill for a two-year price guarantee, which was only published last Wednesday, and it's already been shredded by the chancellor this morning.

"And last Wednesday, members were in the House at Prime Minister's Questions and the prime minister went on and on about her decisive action of a two-year guarantee.

"She even derided the opposition's approach of a six-month freeze, seeking to spread fear about what would happen in March. And now the government have adopted our proposal.

"Never mind a vision, never mind a plan for the years ahead. This government cannot even give us a plan for the coming week. Truly in office, but not in power."

Conservative former minister John Penrose warned that future Labour governments may use planned sweeping powers in the bill to renationalise "anything they like".

Penrose said several clauses in the bill would allow Rees-Mogg to "reach in past Ofgem on pretty much anything he likes for pretty much as long as he likes" as long as the "emergency is continuing".

In a warning to Rees-Mogg, who is known for his libertarian views, Penrose added: "That means two things: firstly it means that nobody is going to be willing to invest in our energy industry if there is a continuing risk that the rules of the game and the goalposts of this industry are likely to be moved on political whim.

"Secondly, it means I am struggling to think of a measure which will be more welcomed by socialists on the other side of this House because it gives them a carte blanche opportunity, without having to do anything in Parliament, to renationalise anything they like over the course of any future parliament, unless we trim these powers very substantially and put a very significant sunset clause on them."

The bill cleared all stages in the Commons on Monday and will undergo further scrutiny in the Lords at a later date.

source: PA

Copyright 2022 Alliance News Limited. All Rights Reserved.

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