The Energy Secretary, Claire Coutinho, has acknowledged that the government’s proposed mandate for oil and gas licensing in the North Sea may not necessarily lead to a reduction in household energy bills.
This statement has raised eyebrows, with the Labour party calling it a “stunning admission.”
The upcoming legislative plan, set to be unveiled in the King’s Speech, will require the North Sea Transition Authority (NSTA) to annually solicit applications for new production licences.
Government ministers argue that this move is essential to protect the country’s prosperity.
They claim it will provide job security for approximately 200,000 workers.
However, the Opposition has criticised the plan, arguing that it will effectively channel billions of taxpayer subsidies to oil and gas giants.
In an interview with the BBC, Ms Coutinho clarified the government’s position, stating, “It wouldn’t necessarily bring energy bills down, that’s not what we’re saying.
“But it would, as I say, raise a significant amount of money that would help us, for example, fund public services, also fund the transition into different forms of energy, such as offshore wind and solar energy. This broader transition could indirectly contribute to reducing energy bills.”
