The British energy giant has pledged to inject the money into the UK’s energy network by 2030 to boost “long-term security”. It comes as industry regulator Ofgem warned last week the energy price cap (maximum annual tariff) is expected to soar to £2,800, which could push 12 million people into fuel poverty. Louise Kingham, Senior Vice President for Europe at BP, told The Telegraph that the £18billion investment amounts to £640 invested for “every home in the land”.
She added that while this will not instantly bring down bills, it can help to alleviate the soaring energy costs further down the line.
Ms Kingham said: “What it doesn’t do is bring bills down tomorrow and of course, that’s the frustration.
“It will do in time, but it can’t solve that crunch that we’ve got with inflation and with energy pricing.”
This also comes as a windfall tax on energy companies that have seen sky-high profits while consumers have to had to fork out extra to pay the bills was announced by Chancellor Rishi Sunak last week.
But the £18billon will reportedly not be affected by the tax.
Ms Kingham: “This is our home, we’re committed to Britain, we’ve said that we’re backing Britain.
“And we’ve also been really clear and said that’s not somehow contingent on whether or not there’s a windfall tax.
“But in a stable environment, that’s a great place to put your money down. In a less stable one – you have to factor that in. And we have said we don’t think that’s helpful.”
Despite making its name as an oil giant, BP now appears to be investing the £18billion into a range of projects across the energy spectrum.
Ms Kingham said: “There’s a lot of new projects, new ways of working that are coming at us.”
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This includes investment in huge offshore wind projects, hydrogen, carbon capture and storage, and investment into electric vehicle infrastructure.
Bernard Looney, CEO of BP, said: “We’re backing Britain. It’s been our home for over 110 years, and we’ve been investing in North Sea oil and gas for more than 50 years.
“We’re fully committed to the UK’s energy transition – providing reliable home-grown energy and, at the same time, focusing on the drive to net zero.
“And we have ambitious plans to do more and to go faster.
“Our plans go beyond just infrastructure – they see us supporting the economy, skills development and job opportunities in the communities where we operate. We are all in.”