The government should use its review of the wholesale power market to incentivise a shift to electricity for heating, the heads of the government’s climate change and infrastructure watchdogs have urged Liz Truss.
In a joint letter to the new prime minister, Lord Deben and Sir John Armitt – chairs of the Climate Change Committee and the National Infrastructure Commission respectively – wrote that it is “imperative” that the government sustains its ambition to create a market for low-carbon heating systems.
But they warned that the “persistently higher” price of electricity relative to gas is a disincentive for customer to switch from gas boilers.
The letter stated that the government should use its review of electricity market arrangements, which was announced in July, to incentivise a shift to electricity for heating.
Sir John and Lord Deben also urged Truss to develop “credible” energy efficiency policies, claiming that the health service across England faces gas and electricity bills rising from £600 million in 2021 to over £2 billion this year.
They wrote that “slow progress” on improving the energy efficiency of the public sector estate means that it faces “extraordinary” bills this winter.
Steps the government should take include publication of new policies by the middle of next year to ensure all owner-occupied homes reach a minimum standard of Energy Performance Certificate Band C by 2035.
The two chairs said “decisive” government action in the near term can deliver “lasting benefits” to the UK’s climate and energy security.
In addition to new support for consumers this winter, they urged Truss to follow the principles laid out in her government’s British Energy Security Strategy and Net Zero Strategy, saying this will “deliver a long-term return on investment and set the UK on a path to prosperity.”
“The UK cannot address this crisis solely by increasing its production of natural gas,” they added. “Greater domestic production of fossil fuels may improve energy security, particularly this winter. But our gas reserves – offshore or from shale – are too small to impact meaningfully the prices faced by UK consumers.”
The letter also called on Truss to provide and promote a comprehensive energy advice service and ensure that full use is made of new Contract for Difference auctions for onshore wind and solar by removing regulatory barriers to the roll out of both technologies.
Truss repeatedly stated her opposition to farmland being used for solar farms during her campaign to become Conservative leader.