Good morning from Paul & Roland!

Liz Truss - Energy Statement (House of Commons today)

Here are my notes of the main points -

New energy price guarantee, will curb inflation.

Temporary suspension of green levies on energy bills.

Households - rate will be capped so that average household spends £2.5k (as expected).

Additional £400 support will continue, as previously announced, plus additional support for poorer households already announced.

This supersedes OFGEM price cap.

This deal has been agreed with energy suppliers.

Long-term measures being taken to secure more affordable supplies.

Fund will be set up to give equivalent help to households that are off-grid, e.g. using oil, and park homes.

Business - will get equivalent support for 6 months. Longer support for hospitality sector.

Emergency legislation will be introduced to push this through.

Chancellor of Exchequer will set out costs later this month.

Not doing another windfall tax, because we need to encourage home-grown supply, not stifle investment.

Our approach is pro-growth, pro-business, pro-investment.

Can’t tax our way to growth (intervention from John Redwood)

This is the moment to be bold (she obviously listens to my podcasts LOL!)

We’ll defray the cost of this intervention by ramping up supply.

Maddie McT?????? Is already negotiating new supply contracts.

Accelerating all domestic production - new licensing round (for oil/gas?) expected to agree over 100 new licences.

Accelerating renewables & nuclear - prices will move to CFDs, not based on gas price.

UK is already a global leader in offshore wind.

Generators will receive a fair price, bringing down the cost, under new contracts.

Question re Rolls-Royce small, modular nuclear reactors. Yes, these are important.

Substantial boost to the economy.

These measures expected to curb inflation by up to 5% bps - this will reduce cost of servicing Govt debt.

£40bn fund will be set up (by BoE I think she said?) to provide liquidity to the energy suppliers, to stop more going bust, and hence reduce costs.

Net zero - remain completely committed to this by 2050.

Why are we in this situation? Policy has not previously focused on energy supply.

We didn’t build any new nuclear in the last 25 years.

Regulatory framework has failed. Left us vulnerable to global factors & bad actors (Putin).

Putin has weaponised energy supply.

Question - we have 150 years supply of shale gas, why are we not using it?

Answer - we’re…

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