Polling day ended to the sound of jaws being clamped shut following what was an unbelievable exit poll showing the Conservatives on course to be the largest party with more than 300 seats, and agonisingly close to a majority.
Within 24 hours, Cameron secured the first Tory majority since 1992, and the leaders of the Labour Party, Liberal Democrats, and Ukip (temporarily) had all tendered their resignations.
Once the shock and surprise of winning a, small, 12-seat majority has passed, the prime minister started to name his first all-Conservative cabinet. Cameron has leant towards continuity, rewarding the team that helped him secure that much sought after election victory.
At the Department of Energy and Climate Change (Decc), the hole left by the former Lib Dem energy secretary – and former MP – Ed Davey has been filled by Amber Rudd, the climate change minister under the coalition.
Rudd’s appointment has been widely welcomed. She is seen as a moderate and a known supporter of climate change science – not something that can be said of all members of the government’s backbench.
She has voiced her disquiet with large-scale solar farms – “they are not particularly welcome” – but supports wind, recognising it as “an important part of the energy mix”.
Her Conservative partner, when under the leadership of the now departed Davey, Matthew Hancock, was another who was said to be in the frame for the job. But he has left 3 Whitehall Place and gone to the Cabinet Office.
His replacement, and the seventh energy minister in as many years (see box, opposite) is Andrea Leadsom. The South Northamptonshire MP previously worked as the economic secretary to the treasury. This helps to further cement the links between Decc and the Treasury, as Rudd previously worked as parliamentary private secretary to chancellor George Osborne between 2012 and 2013.
Scott Flavell, head of energy and utilities at consultancy firm Sia Partners, tells Utility Week the close links will help to smooth what was a fractious relationship, at least when the coalition’s first energy secretary Chris Huhne was in post.
He adds that the outcome of the Competition and Markets Authority inquiry into the energy market, which is due to publish its initial findings by next month, could result in the Treasury taking the lead in introducing the changes and pursuing “more radical options to reform the market”.
One of the Tories’ manifesto pledges was to “halt the spread” of onshore wind by scrapping new subsidies for the technology. And Leadsom, apart from bringing Decc and Treasury closer together, is also an opponent of onshore wind.
The new energy minister wrote in 2011 for Conservative Home that “the benefits of onshore wind have been hugely exaggerated” and that the government “needs to look much more closely at other sources of renewable energy”.
Over at the Department for Environment, Food and Rural Affairs, incumbent secretary of state Liz Truss keeps the top job. She is another who has voiced her displeasure at large-scale solar (“a blight on the landscape”) and her support for the development of shale gas. She continues to be supported by the reappointed Defra minister George Eustice.
One significant change within government has been the removal of Eric Pickles as communities secretary. He has been replaced by one-time shadow energy secretary Greg Clark, who was overlooked for the top job in 2010 as the Lib Dems took ownership of Decc.
Pickles was very much seen as anti-onshore wind – blocking the planning applications of two-thirds of proposed onshore windfarms. Clark is seen as more open to the possibility of new onshore wind, provided that “communities who participate in renewable energy projects share in the rewards that comes from doing their bit”.
In their manifesto the Conservatives pledged to “cut carbon emissions as cheaply as possible” and to save consumers’ money on their energy bills. Their success in addressing these two prongs of the energy trilemma, as well securing supply, will be a large factor in whether the new, all-Conservative government is deemed a success or not.
Viewpoint: Scott Flavell
“Changes may occur at the margins in areas such as onshore wind”
Energy policy was always seen as a Liberal Democrat responsibility. Climate change and the low-carbon agenda was the centrepiece of the coalition’s energy policy. This is unlikely to change with the promotion of Amber Rudd to energy secretary. She is regarded as a moderate and a known supporter of climate change science.
Changes may occur at the margins in areas such as onshore wind, where the Conservatives are less enthusiastic. While symbolic, it’s unlikely to have a major impact on renewable energy targets, with most of the large developments occurring offshore. In this area we expect to see business as usual.
Unconventional oil and gas development could receive a boost. The Conservatives are supporters of shale. However, unconventional oil and gas will only ever play a small part in the UK’s energy mix. HM Treasury is likely to play a stronger role in energy policy.
Rudd will be close to the chancellor and so we should expect a closer working relationship between Decc and the Treasury on energy policy, rather than the strained relations seen under the coalition.
One area where the Treasury may have a stronger focus is competition in the wholesale and retail markets. To a large extent this will depend on the outcome of the Competition and Markets Authority (CMA) review. If the CMA concludes there are deficiencies in wholesale and retail competition, then the Treasury may be inclined to pursue more radical options to reform the market.
Scott Flavell is head of energy and utilities at Sia Partners