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With weeks to go until an election that could have major ramifications for the industry, Utility Week is sending a message to whoever forms the next government. Today we launch a series of pledges and policy areas which we will lobby the next government to implement.
While green issues have been a high-profile battleground in the first weeks of the election, it is frustrating that mention of utilities has largely featured elsewhere.
Labour’s plans for nationalising parts of the sector are an unwelcome and unnecessary distraction at a time when anyone serious about reaching net-zero should be looking to the huge strides towards that goal already made by utilities.
Labour seems unwilling to look beyond its distrust of private enterprise but the other main political parties apparently have little to say on fundamental challenges, such as the decarbonisation of heat, where utilities can play a defining role. The industry can be a part of the solution, if politicians can stop painting it as part of the problem.
This is why we have launched our manifesto – grouped together around four pillars:
- Empower utilities to deliver net-zero by 2050
- Help utilities to forge a new social contract with the public
- Protect investment in the delivery of lifeline services
- Foster innovation to stimulate a thriving green economy
Among our specific pledges are for the next government to commit to publishing the energy white paper within six months as well as setting out a clear pathway for energy and water efficiency. We are calling for a national conversation on the costs of reaching net-zero and how much of this burden utility bills will be expected to carry, as well as revisiting the balance of responsibility on utilities for caring for the most vulnerable in society. We believe smart meters should be mandatory in energy retail, regulators should be supported to act for the long-term rather than pursuing populist measures and provisions for open data must be made.
These topics, and others discussed below, will inform Utility Week’s coverage not just through the election but into 2020 and beyond. Political and economic uncertainty has for too long cast a pall over the utilities sector and above all else our message to the next government is that this situation must end on 13 December.
Utility Week’s Election Manifesto
The specific pledges we are calling on the next government to sign up to are as follows:
Empower utilities to deliver net-zero by 2050
Utilities have been at the forefront of paving the way towards decarbonisation, yet policy has not kept up.
The next government must set out clear energy and water efficiency strategies, including:
- A national campaign promoting more responsible use of water – the forgotten element of the climate change argument
- Unequivocal guidance for housebuilders on energy efficiency standards for new-build homes
- A strategy to retrospectively upgrade the nation’s housing stock to an agreed standard of efficiency
In energy, these must be supported by the publication of the energy white paper within the first six months of the next parliament.
Achieving net-zero by 2050 is simply impossible without solutions to the challenge of decarbonising heat. Immediate resources must be allocated to identifying the best way forward and a clear roadmap set out. This is not to say that this is a binary choice, and the role the gas networks can play in this vital piece of work is one area Utility Week would like to highlight in our campaign.
Frameworks for rolling out EV and energy flexibility markets must be set out .
The government must be honest with the public about the cost of net-zero – including who will pay and how – through a climate budget within the first year of the next parliament.
The net should be widened in terms of support for a variety of renewable sources. The UK is a world leader in offshore wind but the government should develop a strategy for supporting other low-carbon sources of energy. This needs to reflect the potentially game changing contribution of Carbon Capture & Storage to arguments for greening the gas grid.
All political parties must stop using the date for achieving net-zero emissions as a political football. Utility Week strongly supports a unified aim of reaching net-zero by 2050, to be reviewed regularly to assess if faster progress can be achieved. Right now, the experts are unanimous that 2050 is already an ambitious target. To pledge an earlier deadline with no idea how to get there will undermine public trust in the process.
Help utilities to forge a new social contract with the public
It is essential that public trust is attained in a sector which provides lifeline services. The industry wants to, and must be allowed to, play a leading role in creating a more sustainable economy and society.
A national conversation is needed about whether consumers would prefer to fund some of the long-term investment to reach a greener future through taxes rather than bills.
Regulators must be allowed to pursue a strong, principles-based approach as opposed to populist/interventionalist measures
The government has to take its share of responsibility for the failings in the smart meter rollout programme and stop allowing the false narrative that it is entirely down to energy suppliers. The half-hearted extension of the scheme to 2024 will do nothing to solve the fundamental problems that remain. The clear answer is to make smart meters mandatory and work together to promote their benefits and place within the net-zero journey.
Ensure the energy price cap is subject to rigorous, independent review within 12 months of a new government being announced.
We support the introduction of citizens’ assemblies, so that the public has buy-in on green policy which they will ultimately pay for through taxes or bills.
Protect investment in the delivery of lifeline services
The renationalisation debate has presented a skewed picture of investment in the sector. Long-term clarity is needed on the funding necessary to serve customers and prepare the sector for the future.
The merits or otherwise of Brexit aside, the uncertainty over the past three years has been damaging and needs to end.
The demonisation of the industry must stop as should the damaging and ill-conceived pursuit of nationalisation. There should be recognition of the benefits that private investment has brought to the sector.
The industry needs long-term clarity on carbon pricing. The price review process has to play a part in this – cost of capital needs to work for investors and customers alike.
Regulators should be supported in their development of uncertainty mechanisms over future price controls for monopoly utilities.
The balance of responsibility on utilities for caring for the most vulnerable in society should be revisited. In some areas of the industry the current arrangements are simply not serving the needs of sections of society in need of the most support. A forum for collaboration across government and industry is needed to find the bold ideas needed to tackle this most crucial of issues.
Foster innovation to stimulate a thriving green economy
The new government must create an environment where the public and private sector can work together to share ideas on how the net-zero journey can create opportunities and encourage growth
The path to decarbonisation, and the bold ideas needed to reach the UK’s targets, should be reflected in the regulatory structure and the approach to price controls.
Provisions for open data have to be made.
The government must ensure freedom of movement for skilled people who want to work in the utilities sector.
The national infrastructure strategy must be published in the first half of 2020.
The role of water minister should be a dedicated position within Defra, reflecting the huge challenges ahead on cutting water consumption and protecting the environment.
There should be recognition that each region of the UK has differing needs and that centralised approach to policy has become outdated.
- A manifesto for progress.
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