Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

‘No question of the lights going out’ Kwarteng tells MPs as gas prices soar

© PAcambo
Business secretary Kwasi Kwarteng.

UK energy secretary Kwasi Kwarteng has told MPs there is “absolutely no question of the lights going out” as gas prices across Europe soar.

Mr Kwarteng told the House of Commons that the price rise is not an issue of security of supply, but rising wholesale prices are a concern.

He added that the UK Government will not be bailing out “failed companies” adding that the taxpayer “should not be expected to prop up companies who have poor business models and are not resilient to fluctuations in price”.

The energy price cap protects customers from sudden hikes in prices, however it means companies cannot pass on these higher costs to consumers, which means some are going out of business.

Bulb, the UK’s sixth largest energy company, announced over the weekend that it is seeking a bailout, marking the fourth firm to do so. Four more are expected to follow.

Since January, wholesale prices for gas have surged 250%, with a 70% rise since August alone, according to Oil and Gas UK.

The trade body has argued that the soaring prices across Europe reinforce the need to maintain supply from the UK North Sea.

Several factors are being blamed for the surge, including a decline in European gas stocks, tightening supplies from Russia and strong demand for liquefied natural gas (LNG) from Asia.

Low winds mean less renewable energy is being generated, while outages at nuclear stations have also played a role.

Mr Kwarteng said that while the UK is not complacent, “we do not expect supply emergencies this winter” and “this is not a question of security of supply”.

He added: “There is absolutely no question of the lights going out, or people being unable to heat their homes.

“There’ll be no three-day working weeks, or a throw-back to the 1970s. Such thinking is alarmist, unhelpful and completely misguided.”

Norwegian oil and gas giant Equinor has been drafted in to address the European deficit, and has been given the green light to increase exports from two fields on the Norwegian continental shelf.

Production permits for the Oseberg and Troll fields have each been increased by 1 billion cubic meters (bcm) for the gas year starting October 1.

Recommended for you

More from Energy Voice

Latest Posts