Gas and Electricity Prices
Tuesday, 13 October 2026
Contributions
Liz Jarvis (Eastleigh) (LD)Liberal Democrat
1. What recent progress she has made in decoupling the price of gas and electricity.
The Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)Labour (Co-op)
We know that energy is simply unaffordable for too many people, and we are clear that we need to get bills down for good. One of the ways that we can do that is by decoupling the price of gas and electricity, and we are already making progress by bringing on more clean power than ever before, so that gas sets the price less of the time. Gas is currently setting the price 60% of the time, compared with 90% in 2020. We need to go further, but we are taking action to do that. We are also expanding contracts for difference that fix the price of renewables. We will take the action necessary over the coming months so that we can break the link between gas and electricity and so that consumers can benefit from cheaper renewables.
I raised the decoupling of gas and electricity prices with the former Energy Secretary in March, so I welcome the Government’s continued commitment. However, eight months into the illegal war in Iran, rising gas prices have pushed the price cap up by 4% this month, wiping out VAT savings on energy bills, while Trump’s lifting of sanctions on Russian diesel leaves fuel prices once again at the mercy of Putin. In my constituency of Eastleigh, more than a quarter of households are in fuel poverty, and I have spoken with many businesses that are struggling with spiralling bills. Will the Secretary of State therefore go further and faster on decoupling gas and electricity prices, including by investing more in home-grown renewable energy?
The answer to that is simple: yes, absolutely. Everyone can see with their eyes what is driving up energy bills: our acute exposure to global fossil fuel markets that we do not control. We on the Labour Benches are clear that our pathway out of this is by investing in renewables and clean power, so that we have home-grown energy that we control. Candidly, it is an absolute shame and a travesty that the Conservatives, who agreed with us for a very long time, are reneging on that cross-party consensus. They would renege on our ability to control our energy system and its impact on our consumers.
Mr SpeakerSpeaker
Can I just remind everybody that their contributions are meant to be through the Chair, not looking at Members, to try to take some confrontation out and to keep the Chamber calm? Thank you.
Mike Reader (Northampton South) (Lab)Labour
The Secretary of State is right that gas sets the price for power most of the time. Every wind farm and solar array built in our country weakens that link, but Reform and the Conservatives repeatedly object to developments in Northamptonshire. Does the Secretary of State agree that the route to cheaper bills is to build and invest, not to retreat from green power?
My hon. Friend is completely right. We are clear that the route to getting bills down is through clean power. We are proud that over the past two years we have unlocked £100 billion of investment in clean power. We will do what is required. It is just a shame that the Conservatives have lost the plot.
I call the Liberal Democrat spokesperson.
Pippa Heylings (South Cambridgeshire) (LD)Liberal Democrat
Households and businesses have been left at the mercy of a broken energy system, and they are paying the price. As we have heard, gas is still setting the price of electricity. Gas is now at a three-year high and is due to go up again in January, when energy use goes up. While other European countries are responding to the energy crisis by accelerating electrification, we in the UK do not have a plan. Does the Secretary of State therefore agree with us that we need a national electrification strategy to bring down bills, to decouple gas from electricity and to make the most of our increasing renewables?
The hon. Member is completely right that our route out of this is through clean power, and we need to ensure that consumers and businesses feel the benefit through electrification. I reassure her that we have a strategy, and we are getting on with it. Through our warm homes plan, we are ensuring that homes and businesses across the country have access to solar and to clean heat. That will ensure that they benefit. We are clear that electrification is the way forward. Countries across Europe are watching the UK and seeing our progress, and we will run with it.
Source: UK Parliament Hansard API. Debate ID: 5415296.