Today’s King’s Speech [detail in this pdf] confirmed the introduction of an Energy Independence Bill, covering three broad areas: tackling energy affordability, accelerating energy security, and managing the transition away from oil and gas.
On affordability, the Bill puts the Renewables Obligation funding switch onto a permanent statutory footing, creates a new Warm Homes Agency to oversee the £15 billion Warm Homes Plan and changes Ofgem’s powers of regulation. It also includes an enabling power to provide targeted support for low-income and vulnerable households.
On energy security, the Bill reforms planning and regulatory frameworks to accelerate offshore wind, hydrogen and smart grid deployment, and introduces measures to speed up grid infrastructure build-out. A separate Bill will deal with nuclear energy regulation and an Electricity Generator Levy Bill will reform the taxes on profits from electricity producers.
On transition, the Energy Independence Bill introduces will confirm the ban on new exploration licences and fracking as well as ending new coal licences.
The government’ figures suggest that Reformed National Pricing, the Bill’s flagship market reform policy, could deliver savings of £20-40 on a typical annual dual fuel bill by 2040.
The Bill appears not to include any reforms to fuel poverty targets, nor does it set out a statutory social tariff framework or a ban on forced prepayment meter installations.
Jonathan Bean from Fuel Poverty Action commented:
“Energy security will only be delivered when all households can afford the energy they need to stay warm and safe. Government must guarantee universal access to cheap renewable energy from solar and wind, complete with properly fitted heat pumps and insulation. They must also ban the cruel disconnection of millions of people forced onto prepayment meters.
Joanna Elson CBE, Independent Age chief executive, said:
“The King’s Speech did not go far enough in addressing pensioner poverty… Energy support measures are welcome and we urge the UK Government to go further by enhancing the Warm Home Discount and introducing a more comprehensive energy social tariff to provide long-term protection against rising energy costs. This is extremely important in an increasingly volatile world.
“The income of the older people we support is often dangerously low and does not even cover the basic necessities of life. People tell us they are washing less, having just one small meal a day and not socialising as they cannot afford a cup of coffee. With 1.7 million older people living in poverty, the time for action is now.”
Yesterday, over 40 charities wrote to the Prime Minister to set out idea ideas that will support households during the renewed energy crisis.
A spokesperson for the End Fuel Poverty Coalition commented:
“With so much now dependent on the forthcoming Energy Independence Bill, we urge the Government to treat it as the centrepiece of its domestic agenda after the King’s Speech.
“The Bill must deliver a social tariff framework to protect the lowest-income households, an end to the scandal of forced prepayment meter installations, expanded support for home upgrades including heat pumps, insulation and solar, and provide stronger rights for renters and consumers.
“It must also complete the break between gas prices and electricity bills, move levies off bills and onto general taxation and put financing of network upgrades on the table for discussion.
“The prize is an energy system that is cheaper, cleaner, fairer and more secure. But we will only reach this prize if the Government matches its ambition to the moment.”
More detail on what is in and out is in this LinkedIn post.
