The Energy Secretary was responding to criticism from Conservative MPs over the Government’s approach.
Ed Miliband has argued it is “completely logical” to suggest energy bills will reduce amid doubts over whether the Government’s net zero policies will benefit consumers.
The Energy Secretary told MPs that the drive towards “clean energy” is the only way to “get bills down sustainably” in the UK, adding the Conservatives used to believe this until they went on an “anti-net zero crusade”.
His remarks came as Tory MPs questioned whether the Government would be able to deliver on its pledge to reduce energy bills by £300 and how they could justify spending on net zero projects while pensioners “go cold this winter” following a benefit cut.
Speaking in the Commons, Conservative MP Charlie Dewhirst highlighted a report by the National Energy Systems Operator (Neso) which said Labour’s plan to decarbonise the grid by the end of the decade is a “huge challenge” but it is “achievable”.
The public body responsible for running the grid said overall costs to consumers will not necessarily rise as a result of the policy, and bills could even fall in the long run, as the power system becomes less exposed to international gas prices.
Mr Dewhirst, the MP for Bridlington and The Wolds, asked: “Can the Secretary of State answer this clearly: does the Neso report forecast higher or lower energy bills under his policy?”
Mr Miliband replied: “On page 77 of the Neso report it says very clearly what happens to overall costs in the system and it is to reduce electricity costs by £10 per megawatt hour.
“So as Neso says, it is for Government to make policy choices that determine the precise impact on bills, but the report is clear that the system will be cheaper and it is completely logical to say that that will lead to a reduction in bills.”
Gagan Mohindra, Conservative MP for South West Hertfordshire, also said: “My constituents were promised by the Labour Government £300 off their energy bills.
“Instead, they are having to fork out additional money for Great British Energy and to pursue net zero, while the Government takes the winter fuel payment away from millions of pensioners.
“How does the Secretary of State justify increasing spending on net zero projects as his department lets pensioners go cold this winter?”
Mr Miliband replied: “The truth is that there is only one way to get bills down sustainably in this country and that is driving to clean energy.
“The Conservative Party used to believe that. Then, in September 2023, the former prime minister (Rishi Sunak) took them on an anti-net zero crusade, and it is just getting worse.”
Shadow energy secretary Claire Coutinho claimed Labour’s policy on the North Sea will “cost the country £12 billion in tax receipts”, adding this would be enough to cover the winter fuel payment for “many, many years”.
Mr Miliband accused Ms Coutinho of producing “more fantasy numbers”, saying: “The truth is the North Sea has lost a third of its employment in the last decade.
“The only future for the North Sea is in what this Government is doing – investing in carbon capture and storage, investing in offshore wind and investing in hydrogen. That is the future.”
Ms Coutinho countered: “That’s not my figure, that’s the figure from industry – £12 billion in lost North Sea tax receipts.”
She added there is also “at least £200 billion for a 2030 target that we now know will not cut bills”, asking Mr Miliband: “Isn’t it true that pensioners will be sitting in the cold this winter to pick up the bill for this Secretary of State?”
Mr Miliband replied: “No. What is the case is that they left us dependent on fossil fuels, which led to the worst cost-of-living crisis in living memory.
“The tragedy is they’re doubling down on their failed policy. The only answer for lower bills is clean, home-grown energy we control.”