No question of lights going out this winter, says Kwarteng amid gas price crisis

20 September 2021, 17:04 | Updated: 21 September 2021, 10:33

Kwasi Kwarteng addressed MPs after holding talks with the industry on Monday.
Kwasi Kwarteng addressed MPs after holding talks with the industry on Monday. Picture: Alamy

By Patrick Grafton-Green

Business Secretary Kwasi Kwarteng has said there will be "no question of the lights going out this winter" amid rising gas prices, describing warnings as "alarmist".

He also insisted the Government will "not be bailing out failed companies" as a result of the crisis and added the energy price cap will remain in place.

Mr Kwarteng was addressing MPs after holding talks with the industry on Monday.

READ MORE: Gas price crisis: Taxpayers 'face multibillion pound bill' bailing out energy firms

READ MORE: Gas prices: What happens if my energy supplier goes bust?

Wholesale prices for gas have surged 250% since January, with a 70% rise since August alone – leading to calls for support from the industry and the collapse of some smaller energy firms.

Mr Kwarteng told MPs: "We have sufficient capacity, and more than sufficient capacity, to meet demand and we do not expect supply emergencies to occur this winter.

"There is absolutely no question of the lights going out or people being unable to heat their homes. There will be no three-day working weeks or a throwback to the 1970s. Such thinking is alarmist, unhelpful and completely misguided."

Energy crises can be dodged in future with renewable investment

He added: "The Government will not be bailing out failed companies. There will be no rewards for failure or mismanagement.

"The taxpayer should not be expected to prop up companies which have poor business models and are not resilient to fluctuations in price."

Mr Kwarteng told the Commons the Government also wanted to protect customers, including vulnerable people, from "price spikes".

He said: "We must not suddenly return to the 'cosy oligopoly' of years past where a few large supplies simply dictated to customers conditions and pricing."

He added: "The energy price cap, which saves 15 million households up to £100 a year, is staying. It's not going anywhere.

Caller's CO2 shortage meat warning

"Our priority in this situation has to be the consumer, the Great British public, and the cap has done that effectively. It protects and has protected millions of customers from sudden increases in global prices this winter.

"We're committed to that price cap and it'll remain in place."

It comes as Mr Kwarteng released a joint statement with Ofgem head Jonathan Brearley on Monday evening.

"We want to be clear that this is not an issue of supply - the United Kingdom benefits from having a diverse range of gas supply sources with capacity that can more than meet demand," it said.

"This morning we hosted a roundtable with leading energy suppliers and consumer groups to hear about the challenges they currently face.

"There was overarching consensus among meeting participants that the top priority must be ongoing support for energy customers, especially the elderly and vulnerable.

"In the event an energy supplier fails, we are committed that consumers face the least amount of disruption possible - and there are clear and well-established processes in place to ensuring this is the case.

"In the coming days, we will also meet with smaller and challenger energy suppliers and set out the next steps for protecting consumers, businesses and energy suppliers from these global prices rises.

"Central to any next steps is our clear and agreed position that the energy price cap will remain in place."

Is the energy crisis down to Brexit?

However, shadow business secretary Ed Miliband warned that UK families were going to be hit by a "triple whammy" of tax rises, fuel costs and the end of the Universal Credit uplift this winter.

He called on the Government to cancel its plans to end the £20-a-week uplift.

Mr Miliband told MPs: "The rise in the price cap of £139 means half-a-million more families will be plunged into fuel poverty. At a minimum he should be looking at making the operation of the £140 warm homes discount automatic and possibly extending it, but even that will not be enough.

"Families are facing a triple whammy: rising energy prices, national insurance rises and at the end of this month, the £1,000 cut in Universal Credit. These energy price rises turn the indefensible decision on Universal Credit into an unconscionable one."

More Latest News

See more More Latest News

Proud Boys claim they will go to voting places as Trump repeats election fraud lies.

Proud Boys making plans to mobilise as Trump repeats election fraud lies

File photo of a real NHS dentist

Desperate Brits fall for scam 'fake NHS dentists' amid years-long waits for appointments

The Kremlin is suspected of plotting the attack

'Parcel bombs' that blew up in warehouse were 'rehearsal' for Russian explosion attack on flight to US

Keir Starmer is not set to ban smoking in pub gardens, contrary to earlier reports

Cigarettes will not be banned in pub gardens under new Labour plan create 'smoke-free generation'

Former President Donald Trump speaks at a campaign rally in Reading, Pennsylvania

Trump threatens Mexico with 100% tariffs unless it cracks down on border crossings

Bridget Phillipson told Tonight with Andrew Marr that the fee hike was necessary to secure the future of universities.

‘Universities must reform’ says education secretary after first hike in tuition fees in 8 years

Two more cases of a new strain of mpox have been detected in the UK, officials say

Two more cases of new mpox strain detected in UK

Anya Taylor-Joy and her musician husband were the victims of a terrifying robbery

Anya Taylor-Joy and musician husband victims of burglary at London mansion

Exclusive
Nigel Farage speaking to LBC's Nick Ferrari about new Tory leader Kemi Badenoch

'The Remainers are back in town': Nigel Farage says Kemi Badenoch will bring 'no change whatsoever' to Tories

Amy Dowden

Strictly Come Dancing star Amy Dowden will not return to show this year following 'medical emergency'

Scott Paterson murdered his landlady Annette Smith

Tenant murdered and dismembered elderly landlady before posing as her by sending Christmas cards to family

Robert Jenrick, Priti Patel and Mel Stride will all serve in Kemi Badenoch's Shadow Cabinet

Kemi Badenoch names former leadership rivals Robert Jenrick and Priti Patel to Tory Shadow Cabinet team

Bridget Phillipson has confirmed the tuition fee rise

University tuition fees to rise for first time in eight years, as Tories accuse Labour of 'declaring war on students'

Sara Sharif had suffered dozens of injuries in the weeks leading up to her death, a court has heard

Video of Sara Sharif smiling and dancing 'days before murder' shown to court

Transport for London (TfL) has warned passengers that no Tube services are expected on Thursday 7 November

November Tube strikes to bring London to a halt this week despite RMT calling off action

Stuart Gogg during the Six Nations rugby match between France and Scotland in Saint-Denis, 26 February 2023

Former Scotland rugby captain pleads guilty to domestic abuse over five-year period against former partner