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A look at energy policy in the 2017 General Election


A look at energy policy in the 2017 General Election

Newington's Claudia Hyde looks at the debate on energy policy in the 2017 General Election. 

Although the election has been dominated by Brexit and the NHS, a number of headline-grabbing policies by the Conservatives and Labour have contributed towards a lively debate on energy policy. It is clear that, whatever the outcome on 8 June, the tide will be changing in the UK energy market.  

Prime Minister Theresa May seems to have rowed back from her original plans to impose a blank cap on energy bills following fearful warnings from the industry that such a policy would stifle competition. The final pledge as it appears in the Conservatives’ manifesto is to introduce a “safeguard tariff cap to protect customers from unacceptable rises” on the poorest value tariffs. The document uses far softer and vaguer language than is to be anticipated from an outright cap, and notably, omits any mention of the £100 savings for 17 million customers that Mrs May promised earlier this month.

Perhaps more daring is what Labour proposes. The party wants to keep prices low by supporting the creation of publicly-owned energy co-operatives which would compete directly with the “Big Six”, hopefully driving down prices. They also express a long-term vision to see grid infrastructure being brought back into public ownership- a proposal which constitutes a radical shake-up of energy networks in the UK, but has been paid startlingly little attention so far.

What the Lib Dems say is remarkable only for its lack of ambition. They express support for smart grid technology and for community-led schemes to improve home insulation, and thereby “end the fuel poverty crisis once and for all”. Although not particularly eye-catching, their focus on improving insulation and energy efficiency will likely have a warm reception.

Fracking

Arguably the most controversial plank of the Conservatives’ energy policy, the party divides are clear on the issue of fracking. Labour and the Lib Dems unambiguously oppose fracking. The Conservatives’ manifesto practically extolls the virtues of fracking and the “unprecedented support” for the industry. Significantly, the party plans to facilitate fracking by amending planning laws such that non-fracking drilling will be treated as permitted development. They also hope to shed light on frackers’ responsibilities by consolidating current regulatory powers into one body- a newly-created Shale Environmental Regulator.

Onshore wind

After closing down any new subsidy for onshore wind projects across the UK in 2015, the Conservatives’ 2017 manifesto includes the line “we do not believe that more large-scale onshore wind power is right for England”. In addition, they voice clear support for offshore wind and express their intention to maintain the UK’s position “as a global leader in offshore wind”.

Labour’s manifesto states “we are committed to renewable energy projects”. Although onshore wind is not explicitly mentioned, the focus of the manifesto on reducing costs does suggest implicit support.

The Lib Dems are the only of the main parties to express explicit support for wind, although this is still measured. The party sets a target of generating 60% of electricity from renewable sources by 2030, including from onshore wind in “appropriate locations”. This reluctance to embrace onshore wind wholeheartedly is perhaps a reflection of the fact that a number of the party’s target areas, such as the southwest of England, are largely rural areas, and any bolder support may turn off voters in these contentious seats.

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