Lords examines Energy Prices Bill

The Energy Prices Bill seeks to reduce energy costs by putting in place the ‘energy price guarantee’, which would limit the cost of electricity and gas per unit for domestic consumers for two years from 1 October 2022.

Line by line examination

Committee stage is the first chance to check the bill in detail and make changes.

Proposed changes 

Members speaking at committee stage put forward amendments (changes) to the bill to be discussed.

The amendments covered a range of subjects, including:

• parliamentary scrutiny of ministers' powers created by the bill
• extending the non-domestic scheme to businesses on fixed tariffs signed between 1 December 2021 and 1 April 2022
• requiring a review of energy efficiency programmes
• requiring government to assess the profits of energy producers.

Lords divisions 

There were three divisions (votes) on proposed changes to the bill.

Energy efficiency programmes

The first vote was on amendment 8, which would insert a new clause requiring the Secretary of State to report on the impact of energy efficiency programmes in reducing energy costs within six months of the Act being passed.

Members voted 170 in favour and 174 against, so the change was not made.

Additional expenditure

The second vote was on amendment 14, which would insert a new clause requiring the Secretary of State to publish a report assessing the impact of removing the investment allowance for oil and gas companies as set out in the Energy (Oil and Gas) Profits Levy Act, and in particular to assess the impact on domestic and non-domestic bills.

Members voted 153 in favour and 174 against, so the change was not made.

Affirmative procedures

The final vote was on amendment 25, which would make the powers in Clause 22 subject to affirmative parliamentary procedure including a sunset Clause.

Members voted 154 in favour and 166 against, so the change was not made.

Report stage, a further opportunity to closely scrutinise elements of the bill and make changes, took place after the conclusion of committee stage on Monday.

Get involved

• Read the text of proposed changes (PDF)
• Catch up on Parliament TV  (committee stage and report stage)
• Read the Lords Hansard transcript (committee stage and report stage).

Explore further information 

Read background on the bill in the Energy Prices Bill briefing from the House of Lords Library.

Next steps

Third reading, a chance for members to make sure the eventual law is effective, workable and without loopholes, is scheduled for 25 October.

No amendment have yet been put forward for third reading. Members may discuss the progress of the bill through the House at the conclusion of Lords stages.

How to follow

• Watch live on Parliament TV from 3.10pm
• Read the Lord Hansard transcript (from three hours after the debate)

What's happened so far?

Second reading: Wednesday 19 October

Members discussed the main issues in the bill and and flagged up any concerns or specific areas where they believe amendments (changes) are needed during second reading. 

Topics covered during the debate included: 

• the breadth of ministers' powers created by the bill
• support for energy efficiency measures
• increasing renwable power generation
• how measures in the bill will be paid for, such as levies on energy company profits
• how long the pricing scheme will run for.

Members speaking

Lord Callanan (Conservative), Parliamentary Under-Secretary of State at the Department for Business, Energy and Industrial Strategy, opened the debate and responded on behalf of the government.

Members speaking in the debate included:

• Baroness Bennett of Manor Castle (Green), member of the Green European Foundation Universal Basic Income Expert Group
• Lord McNicol of West Kilbride (Labour), commissioner of the UK Hydrogen Policy Commission
• Lord Redesdale (Liberal Democrat), CEO of the Decentralised Energy Trading Association
• Baroness Worthington (Crossbench), former policy adviser to Scottish and Southern Electricity.

Watch and read the debate 

Find out more about the issues discussed: catch up on Parliament TV or read the Lords Hansard transcript.

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