Lizzy Roberts suggests that the Government should be proud of its record on energy policy - and outlines how it can go further. 

The Government finds itself at a crossroads on the future of the energy system. This was apparent as Secretary of State for BEIS Greg Clark and Minister of State for Energy and Clean Growth Claire Perry gave evidence to the House of Lords Economic Affairs Committee on UK energy policy earlier this week. Media coverage of the session was dominated by the Secretary of State’s comments that a delay to the delivery of Hinkley Point C would not cause energy security issues, but it feels like the Government is missing a trick when it comes to claiming a win on the energy front. 

Energy policy is one of the few areas the Government should be shouting about as a success. Under its watch (albeit kicked off under the Lib Dem/Conservative coalition), we have seen the price of renewables fall drastically, to levels unimaginable at the time of the reforms initiated under the Energy Act 2013. Not only this, but the Government’s imminent retail energy price cap Bill is one of its most consumer-friendly and popular policies to be introduced under Theresa May’s Conservative leadership.

The Government is facing criticism for Brexit delivery, as well as health and education policy. The cost of Hinkley aside, it should be building on its energy policy successes by making progress on the development of renewables, energy storage and decentralisation. 

However, the Committee session demonstrated one of the key problems the Government faces in leading this energy transition. The Committee highlighted that a central finding from its energy market report was that frequent government interventions in the market have increased the cost of energy, and put unnecessary stress on capacity.  

Greg Clark has responded that he would like a simpler energy system, perhaps with a greater role for market mechanisms. However, in order for this to happen, large scale reform of the energy market would need to take place. The falling cost of renewables and increasing capability of energy storage means that a 100% renewable energy system is viable with the right market and policy environment that encourages this shift.

As Claire Perry outlined, the question that politicians are hearing on the doorstep is “why can’t we have 100% renewables”. Bright Blue, an independent think tank for conservative modernisers, recently conducted polling which found that tackling climate change was the second highest issue young people want politicians to discuss, pipped to the post by health policy. The Conservatives are well aware that activity in this area is key to winning over many young swing voters. The move to increase the profile of the environment has not gone unnoticed, and Claire Perry’s increased energy responsibilities and promotion to a minister for Energy and Clean Growth who attends cabinet strengthens this image. 

However, to have both a simpler energy system and one that leads the way in terms of renewable energy generation and decentralisation, then intelligent interventions and reforms are needed. Change on this scale is highly unlikely - and as Greg Clark pointed out in his response to the committee, given the complexity of the problem, all changes will be over the medium and longer term. 

The Government should be championing its progress in energy policy and building on its successes. It should not lose the opportunity to demonstrate leadership in transforming the energy system so it’s fit for a cleaner, cheaper, renewable energy-driven future.