What next for energy after the General Election? Cicero Group | December 2019
In this election of contrasts, you could be forgiven for thinking there is a clear dividing line between the two main parties when it comes to energy policy. Yet there is a remarkable amount of agreement amongst Labour and the Conservatives on the problems facing the sector and on some of the solutions too. While the date for meeting Net Zero emissions jumps around from Labour’s ambition of 2030 to the current Government target of 2050, there is broad agreement on the need for measures to improve the energy efficiency of homes, introduce a zero-carbon homes standard for all new homes and ban fracking. Both parties back nuclear and in varying degrees back an energy price cap. For both the Conservatives and Labour, their core message on energy is one of change. Although there is this consensus, nationalisation remains the key sticking point between the parties.
Energy priorities: Conservatives: Commitment to reaching Net Zero by 2050 but greater campaign focus on the NHS, police and infrastructure Labour: Position as a ‘climate election’, putting their ‘Green Industrial Revolution’ near the centre of their campaign Liberal Democrats: ‘Tackle the climate emergency’ is their second key policy after ‘Stop Brexit’ ciceroelections.com
Differing ambitions Across the political spectrum, energy policy ambitions differ considerably. Labour’s ‘warm homes for all’ policy to insulate almost all of the UK’s 27 million homes by 2030, will cost £250 billion over 10 years. Yet the Conservatives have pledged just a £9.2 billion investment in the energy efficiency of homes, schools and hospitals. Labour is also ahead on low carbon building regulations and they will introduce a new zero-carbon homes standard for all new builds from 2022. This is three years before the Government’s Future Homes standard is due to commence. What about the cost to the Consumer? Both the Conservatives and Labour, in principle, support an energy price cap. While the Conservatives have outsourced setting the cap to Ofgem, Labour have long argued for an energy price cap of £1,000 for annual bills (although not in their manifesto). Cicero Group | 1