Labour has pledged to take back central government control of the national grid and immediately cap average household energy bills below £1,000, according to its leaked manifesto.
The draft manifesto, which was distributed to news organisations last night, says that Labour would take back central government control over what it describes as the “natural monopolies of the transmission and distribution grids”.
An incoming Labour administration would also restore Whitehall control over Ofgem’s policy and information functions, says the document.
In addition, Labour in power would introduce an “immediate” emergency price cap to ensure that the average dual fuel household energy bill remains below £1,000 per year during the transition to a “fairer system”.
Stating that “privatisation has failed to deliver an energy system that delivers for people, businesses or our environment” the manifesto says many people “don’t have time to shop around, they just want reliable and affordable energy”.
On ownership, Labour has promised to create a network of regional, publicly owned energy supply companies that would be “locally run” and “democratically accountable”. These companies, of which at least one would be located in each region, would have a remit to tackle fuel poverty, offer cut price tariffs, support community energy projects and put pressure on the larger suppliers to slash their bills.
The manifesto, which is due to be officially signed off later today, proposes the establishment of a new local energy task force will provide help and advice for local people and businesses to start up community energy co-operatives.
On supply, ensuring that 60 per cent of the UK’s energy is generated from low carbon or renewable sources by 2030 will be top of the priority list for the party’s proposed National Investment Bank should it gain an unexpected victory in the general election. Meanwhile, tackling climate change is described as “non-negotiable”.
The manifesto pledges support for future nuclear projects, which it says will continue to be part of the UK energy supply mix under a Labour government. But it also says that Labour would ban fracking if it returns to power.
Regarding energy efficiency, Labour promises to insulate four million homes as an “infrastructure priority” and to ensure new build properties are built to a zero carbon standard, which was scrapped by the Conservative government in 2015.
To encourage greater energy efficiency, homeowners will be offered stamp duty incentives and 0 per cent loans to improve their properties. In the private rented sector, Labour will improve existing energy efficiency regulations.