Saudi Press

Saudi Arabia and the world
Sunday, Jun 01, 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

Saudi Press
0:00
0:00
Close
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
The Daily Debate: The Fall of the Dollar — Strategic Reset or Economic Self-Destruction?
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
Saudi-Spanish Business Forum Commences in Riyadh
Saudi Arabia and Spain Sign MoU to Boost SME Sectors
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
A Chinese company made solar tiles that look way nicer than regular panels!
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
Saudi Arabia Emerges as Global Tech Magnet with U.S. Backing and Trump’s Visit
This was President's departure from Saudi Arabia. The Crown Prince personally escorted him back to the airport.
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
Trump takes a blow torch to the neocons and interventionists while speaking to the Saudis
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
Michael Jordan to Serve as Analyst for NBA Games
×