Energy suppliers “must be ready” to pass on cuts to wholesale energy prices to consumers, Grant Shapps is set to warn.
The Energy Secretary is expected to use a speech at Chatham House in London to put suppliers on notice as he sets out his aim of ensuring the UK has “amongst the cheapest wholesale electricity prices in Europe”.
It comes as Downing Street indicated measures that could see households face a 20% hike in energy bills from April are being kept under review, with the energy price guarantee cap set to rise from £2,500 a year for the typical property to £3,000 in April.
The creation of the new Department for Energy Security and Net Zero at the start of February came amid fresh commitments from the Government about a new drive towards greater energy independence amid the backdrop of the war in Ukraine.
He will stress the importance of “making the most of our position as a world leaders in renewables and nuclear technology”, pointing out that “homegrown sources” of energy will “shield households from the worst excesses of the volatile global fossil fuel markets”.
“Families have seen the impact on the pounds in their pockets of (Russian President Vladimir) Putin’s illegal march on Ukraine a year ago – and it has opened the world’s eyes to just how vulnerable we are to tyrants like him,” he will say.
“Working towards this overarching goal of cheaper wholesale electricity will mean we will be powering Britain from Britain, increasing our energy security and independence – the kind of independence that comes from having the four biggest wind farms off our shores.”
Mr Shapps, taking aim at Extinction Rebellion and other climate activists, will say: “Energy security and tackling climate change are ultimately two sides of the same coin.
“And it will be this – not the eco-extremists like Extinction Rebellion causing disruption and dismay – that will have people voting with their feet as they see the benefits of achieving net zero.”
The speech comes after Mr Shapps met with US energy secretary Jennifer Granholm for the first time this week.