The House of Lords Economic Affairs Committee, chaired by Lord Bridges of Headley, today invites written submissions to its new inquiry on UK energy supply and investment.
The Committee wishes to assess whether the Government’s energy strategy is delivering investment in an energy supply that is resilient, affordable and in line with achieving net zero emissions. The focus of this inquiry is on long-term energy policy and trends in the energy market.
The Committee is seeking answers to the following questions:
- To what extent are the causes of recent rises in energy prices likely to be long-term features of global energy markets? Are the Government’s policies for reducing the impact of higher energy prices on consumers sustainable and in line with long-term energy objectives? If not, what alternatives are there?
- What are the main challenges as regards energy supply and storage which public policy must address over the next decade?
- What are the main international and geopolitical factors and risks affecting the security and affordability of the UK’s energy supply? How should the Government work with international partners on energy policy and respond to greater international competition for energy supply?
- What level of investment will be needed in the UK’s energy supply to secure an orderly transition, particularly over the next decade? Is sufficient private capital being invested in reliable and affordable energy sources that are in line with climate objectives, including the commitment to net zero (for example, hydrogen and nuclear)?
- What effect is financial services regulation, and the commitments made by financial services providers to achieve net zero in 2050, having on energy investment? Specifically, is regulation getting the right balance between encouraging investment in renewable energy and supporting the green transition, while also ensuring security of supply?
- What should the Government do to incentivise and enable investment in, and financing of, reliable and affordable energy that is in line with its climate objectives, including net zero by 2050?
- What role will oil and gas play in the UK’s energy mix as it transitions to net zero? How should we ensure that these sectors receive sufficient investment to guarantee supply, while not slowing the move to renewable energy sources? What level of investment will be needed?
- What incentives could the Government provide to households and businesses to reduce demand for energy or to improve energy efficiency?
- What lessons are there for the UK from comparable countries in terms of securing investment in reliable and affordable energy?
Lord Bridges of Headley, Chair of the Economic Affairs Committee, said:
“Our prosperity and growth depend in part on access to secure and affordable energy. Recent energy price rises show just how important this for every home and business. As we make the transition to net zero, it is therefore critical that the Government’s energy strategy secures sufficient investment in our energy supply, so that it is reliable, affordable and in line with achieving net zero ambitions. This inquiry will examine these long-term challenges and opportunities; the Government’s strategy; and the role that financial services and their regulators are playing in the transition.”
“To inform our work we want to hear from as broad a range of people as possible. If you have a view on any aspect of the UK’s energy strategy, look at our call for evidence and let us know what you think.”
The deadline for the submission of written evidence is 11 March 2022.
