Unison has called for the retail arms of the “big six” energy firms to be nationalised to “significantly boost” the UK’s bid to become carbon neutral by 2050.
In the union’s Power to the People report published yesterday (17 June) it urges a future Labour government to bring into public ownership the customer-facing parts of British Gas, SSE, Eon, EDF Energy, Npower and Scottish Power.
It suggests such a move would “instantly create a green army” to help the UK hit its net zero target.
And it says the vision could be achieved for between £6 billion and £9 billion.
Unison’s call goes beyond Labour’s current plan to renationalise the energy networks. The party has also lined up the water industry.
Dave Prentis, general secretary at Unison said: “Currently the talk is about ownership of energy networks – the wires and pipes that heat our homes and give us light – and of production. However, the retail sector is where the real power lies and more importantly where we can win the hearts and minds of the public.
“If a future Labour government were to create a dominant national public energy purchaser and retailer, a real focus on decarbonisation could begin with immediate effect, and at a lower cost than many alternatives.”
Unison argues that bringing the retail arm of the energy sector into public ownership would enable the government to sign up millions of homes and businesses to the necessary “green conversion”.
Responding to Unison’s report, Lawrence Slade, chief executive of Energy UK, said: “The retail energy market has been undergoing an incredible transition where private investment has led to competition thriving and increased choice and services for customers – with record numbers of customers switching, new green tariffs and the number of energy suppliers doubling from 29 in 2015 to around 60 now.
“We are also seeing increasing investment and innovation in areas such as electric vehicles which is helping to drive the decarbonisation of our economy with now half our electricity coming from low carbon sources.”
The report compares the need for a rapid decarbonisation programme with the “successful conversion” of millions of homes from town gas to natural gas in the 1960s.
“This huge logistical operation, which was achieved by a public corporation with the national interest at heart, could happen again,” according to Power to the People.
Unison believes a “green army” of workers would be created, which would be dedicated to helping businesses and the public become more energy efficient, cut bills and “save the planet”.
Prentis added: “The climate crisis is a fundamental threat to the future of the planet, but the UK won’t get to net zero emissions on a hope and a prayer. Proper action is required and quickly.
“Public ownership of the retail energy sector is affordable – it could be done at a fraction of the cost of nationalising the energy networks.”
Rebecca Long Bailey MP, Labour’s shadow business secretary, said: “The energy supply market has led to broken trust and spiralling costs for households and businesses, and a failure to invest in the energy workers who will be needed to make our homes more energy efficient, and the electricity and heat we use lower carbon.
“Radical reform is needed, and I welcome this exciting publication as a contribution to the debate on public ownership.”
Long-Bailey spoke at Unison’s national energy conference in Liverpool, which coincided with the release of the report.
The energy conference passed a motion stating that Unison workers should have a “significant say” in how the energy industry achieves decarbonisation.