At committee debates over the Energy Bill this week, Labour MPs were pushing for details of strike price contracts, as well as any changes to them, to be put before Parliament.
Shadow energy minister Tom Greatrex said Parliament should be allowed to fully scrutinise the details of strike price contracts. This would “increase transparency and public confidence in the investment contract process”, he said. As the Bill stands, contracts will be laid before Parliament but some elements may be redacted.
Fellow Labour MP Albert Owen said: “The consumer has a right to know, as much as Parliament does, why bills are going up.”
Barry Gardiner MP also warned that competitors would be “maximally disadvantaged” in their negotiations if they were not be aware of market conditions if some contract details were not published.
Gardiner tabled an amendment calling for any changes to the strike price contracts to be laid before parliament, again allowing MPs to scrutinise the details of any deal.
Under the current wording of the Bill, the energy secretary has the power to change an investment contract after it has come into force. Such changes must be laid before Parliament if they “will, in the opinion of the secretary of state, materially increase the likely cost to the consumers of electricity”. However, Greatrex pointed out the Bill does not define “materially”.
Energy minister John Hayes said publishing full details of any contract may compromise company interests, and could undermine the investment and negotiation process.
Hayes also rebuffed Gardiner’s amendment, saying it “could prove an undesirable obstacle”, was “not necessary or practical” and would make contracts “inoperable”.
Labour pushed the amendments to a vote and lost, which means they cannot be resubmitted in the Commons. However, the subject may be reopened when the Bill passes to the House of Lords.