PanamaTimes

Sunday, May 11, 2025

Sunak scraps Truss plan for state to buy energy from foreign producers

Sunak scraps Truss plan for state to buy energy from foreign producers

The Energy Supply Taskforce set up by Liz Truss during her brief premiership is being scrapped as ministers abandon a plan to intervene directly in global gas markets.
The Energy Supply Taskforce set up by Liz Truss during her brief premiership is being scrapped as ministers abandon a plan to intervene directly in global gas markets,

Rishi Sunak has abandoned his predecessor's plan to intervene in global energy markets by spending billions of pounds on foreign gas imports.

Sky News has learnt that Liz Truss's Energy Supply Taskforce (EST), which was launched in September, is being scrapped.

Headed by Madelaine McTernan, who was director-general of the government's COVID-19 Vaccine Taskforce, the energy supply initiative was set up to strike long-term deals aimed at bolstering Britain's domestic energy security.

It came after the turmoil in energy markets triggered by Vladimir Putin's invasion of Ukraine sparked record prices for British consumers, exacerbating the cost-of-living crisis.

Industry sources said this weekend that locking taxpayers into long-term contracts potentially lasting up to 20 years at current high prices had been rejected by Mr Sunak's team.

In a statement in early September, Ms Truss's administration said the EST had "begun negotiations with domestic and international suppliers to agree long-term contracts that reduce the price they charge for energy and increase the security of [UK] supply".

Ms Truss's aides described it at the time as a flagship reform which underlined her determination to get a grip on the UK's energy crisis.

In mid-October, Sky News revealed that Whitehall officials were in talks with US-based companies including Cheniere and Venture Global, both of which are big players in the liquefied natural gas sector.

One insider said the government had been in talks with "a broad range" of potential suppliers.

Ms Truss's ill-fated premiership ended just weeks later, however, prompting a review by her successor of her plan to intervene in energy markets.

Responding this weekend to an enquiry from Sky News, a government spokesman said: "While the government is continuing these efforts and remains completely committed to strengthening our energy resilience, we have concluded that direct purchases of gas are not the best intervention in the market."

Earlier this month, Mr Sunak and the US President Joe Biden unveiled the UK-US Energy Security and Affordability Partnership, an initiative that both governments said would focus on reducing dependence on Russian energy exports.

A Whitehall source said on Saturday: "Winding down the taskforce is the right decision - while it was sensible in September for the previous administration to explore these contracts, locking-in long term contracts while gas prices are this high just doesn't make sense.

"It was also only ever just one option on the table - there's a whole range of other actions we're taking now to boost the UK's energy resilience, including a new £1bn energy efficiency scheme, financial backing for Sizewell C and reintroducing the Energy Security Bill to parliament."

Nevertheless, the decision not to press ahead with Ms Truss's plan will raise renewed questions about the country's long-term energy security.

Earlier this month, ministers approved the Government Investment Decision to commit £700m to the development of the Sizewell C nuclear power station.

British imports of LNG accounted for 17% of the gas supplied to the UK through production and imports last year, according to data published by the Department for Business, Energy and Industrial Strategy.

The government has also acknowledged in recent months that it has been seeking long-term deals with foreign states understood to include Norway and Qatar - sparking concerns that Britain would pay a 'security premium' in exchange for guaranteed supplies.

The decision to disband the energy taskforce comes as Jeremy Hunt, the chancellor, is reported to be contemplating extending energy bill subsidies beyond the original March deadline.

Companies in numerous sectors including hospitality have complained that energy costs combined with broader inflationary pressures and souring consumer sentiment have left them on the brink of ruin.
Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
Historic Papal Conclave Set to Commence in Rome
Huge Copper, Gold, and Silver Discovery in Argentina and Chile — But the Profits Go Abroad
Trump Rules Out Third Term, Names JD Vance and Marco Rubio as Potential Successors
Mexico Says ‘No’ to U.S. Troops: President Sheinbaum Rejects Trump’s Offer to Fight Cartels
Trump Shares AI-Generated Image of Himself as… Pope, Prompting Outrage Reaction
Amazon Launches Satellite Internet Service Amidst Competition with SpaceX
Transformative Changes in Women's Wrestling: The Rise of WWE Superstars
Brazilian Woman Jailed for Fourteen Years for Writing “You Lost, Idiot” on Statue During Protest
U.S. Economy Shrink in Trump’s First Quarter as Tariff Policy Raises Questions
Carney Secures Liberal Mandate in Canada’s Federal Election
Liverpool Clinches Record-Equalling 20th English League Title Under Arne Slot
Driver Ploughs into Vancouver Festival Crowd, Killing Nine
Depression, Fear of Defamation, and a Tragic End: New Details on Virginia Giuffre’s Suicide
Specialized anti-drone weapons deployed among security personnel Ahead of Papal Funeral
How do you fix this culture?
Corrupted from Within: How Deep State Power and Unelected Judges Hijacked Democracy Against the Will of the People
World Leaders Gather in Rome for Pope Francis's Funeral
Milwaukee Judge Arrested on Allegations of Aiding Undocumented Immigrant’s Escape
Pope Francis: head of the Catholic church who pushed for social and economic justice
Cultural Battles in the Vatican: The Candidates in the Battle for the Holy See and Pope Francis's Testament
Global Leaders Pay Tribute to Pope Francis Following His Death
Wild Chimpanzees Observed Bonding Over Alcoholic Fruit
El Salvador Proposes Prisoner Exchange with Venezuela Amid Deportation Controversy
US Government Defends Deportation of Salvadoran National Kilmar Abrego Garcia
A casino in Mexico burns at the hands of cartels
Pope Francis Makes Brief Appearance at Easter Sunday Mass
"Some complain that we put thousands in prison. In reality, we set millions free."
US Judge Blocks Trump Administration's Rapid Deportation Policy
U.S. State Department Raises El Salvador’s Safety Ranking, Making It Safer Than France and Other European Nations
U.S. and Panama Finalize Defense Agreements Amid Canal Access and Chinese Influence Concerns
China Stands Firm Amidst Trade Disputes with the US: A Factual Analysis
Helicopter crashes from the sky in NYC with four people aboard.
Spain Encounters Nationwide Demonstrations Amid Rising Housing Crisis
Alisha Lehmann's Modeling Campaign and Public Controversy Stir Debate Ahead of UEFA Women's Euro
Global Markets Dive as U.S.-China Trade Disputes Intensify
Tom Cruise Honors Val Kilmer at CinemaCon
OpenAI Attains Unprecedented $40 Billion Investment
Argentina’s “Magician” or a PR Illusion? “Individuals Are Sifting Through Garbage and Resting on the Streets”
Ecuador Gears Up for Influx of US Military as Measures Intensify Against Violent Drug Cartels
The Trump Administration Withdraws Legal Status for More than 530,000 Immigrants from Four Nations.
Deportation of Alleged Venezuelan Gang Members to El Salvador Raises Legal and Human Rights Concerns
Leaders of the US and Ukraine Hold Constructive Discussion During Ongoing Crisis
US Federal Reserve Revises Down Economic Growth Projections Due to Tariff Ambiguities
EU Charges US Tech Giants with Violating Digital Regulations
Trump Administration's Deportation of Alleged Gang Members Sparks Legal Dispute
Intense Tornadoes and Dust Storms Result in 33 Deaths Throughout Central and Southern United States
CK Hutchison, led by Li Ka-shing, encounters backlash from China regarding the sale of Panama Canal ports to a consortium led by BlackRock.
Meta to Introduce Community Notes Feature in March as Part of New Content Moderation Approach
Trump's ambassador nominee confirmed Canada's sovereignty during trade disputes.
The ICC’s retaliation on behalf of drug traffickers against Philippine President Duterte, who took a stand against them and shielded 100 million Filipinos from the drugs-death trade—overlooking the reality that every triumph carries its own price.
×