Fracking will not lower energy prices, says Liz Truss

Liz Truss is poised to clash with the government’s official climate advisers after they sought to scupper her plans to revive fracking.

The Committee on Climate Change, which advises on emissions targets, said ambitions to lift the ban on fracking and expand gas extraction in the North Sea would not have a significant impact on consumer prices.

In a letter to the new prime minister, the committee said that gas stocks are also too low to lower prices. Instead, they urged her to focus on improving the energy efficiency of buildings and improving the market for renewable energy.

“90 percent of the recent increase in the energy price cap is due to changes in the price of gas. Addressing our dependence on fossil energy offers us the best way out of these crises,” Lord Deben and Sir John Armitt wrote in the letter.

Mrs. Truss said wants to support Britain’s long-term supply by issuing new permits to explore for oil and gas in the North Sea and repealing the ban on shale gas extraction.

She said she remained committed to the UK’s goal of net zero emissions by 2050, but needed to improve energy security at the same time.

Gas prices have risen since Russia invaded Ukraine, and the Office for Budget Responsibility expects prices to remain at three to four of pre-invasion averages through 2027.

The climate change panel presented Mrs Truss with five recommendations on how to “reduce the UK’s exposure to volatile fossil fuel prices”.

They include developing “credible” policies to increase the energy efficiency of buildings, removing barriers to delivering a decarbonised electricity system and ensuring a “workable” market mechanism for low-carbon heat.

Members said the introduction of “comprehensive energy advice services” to help the public understand how to deal with the crisis was vital. Only draft protection and lowering the boiler temperature could reduce gas consumption by 6-8%.

Mrs. Truss is a £170bn energy package to help struggling households and businesses is set to be unveiled within days.