Energy sector manifesto calls for clarity on funding models and energy efficiency

Energy UK has told the political parties it is crucial to agree new funding models for large-scale, low-carbon infrastructure – such as nuclear plants – in its wide-ranging manifesto for the upcoming election.

The trade body has set out the policies that it says are needed to kickstart a drive to meet the 2050 net-zero emissions target adopted unanimously by parliament earlier this year.

It says it will be “crucial” to agree on funding models, such as the Regulated Asset Base model the government recently consulted on, which are designed to cut the cost of significant low-carbon projects.

The manifesto urges the government to invest in network connection costs for ultra-fast electric vehicle chargers at strategic locations while bringing forward the 2040 phase out date for internal combustion cars and vans to 2035 “at the latest”.

It says the government should fully fund a national energy efficiency programme as well as restrict the sale and new tenancy of properties below EPC (energy performance certificate) band C from 2030.

And Energy UK urges a tightening of building regulations to ensure all new properties are zero carbon, ready for future decarbonised heating options and have access to electric vehicle charging infrastructure.

It says the UK needs a “credible and achievable” plan for achieving the post-2020 smart meter, including a requirement that all new-build properties should be fitted with one of the devices.

Allocations of offshore wind capacity in future Contracts for Difference auctions should be increased to match the volume of renewables generation required to meet the targets set out in the Offshore Wind Sector Deal, the document says.

In order to maintain a strong carbon price, the manifesto “strongly” supports the proposed establishment of a UK emission trading scheme linked to the EU’s if it is not possible to fully remain within the wider European regime post Brexit.

And both the Warm Home Discount and Winter Fuel Payment schemes should be reformed to prioritise either financial or energy efficiency support to fuel poor customers.

Stressing the importance of a “clear policy framework” for achieving net zero emissions, it says: “We must start urgently. Coupled with the UK’s exit from the EU, there has never been such an important time for the government and businesses to work together.

“We need a consistent and concerted effort across the whole of Government which is why we have called for a ‘net-zero test’ for all new policies to ensure they support the net-zero target, not undermine it.”

Energy UK chief executive, Lawrence Slade said: “The energy industry has shown how it can deliver and will play a crucial role in transforming other sectors like transport and heating as well as our own. So we stand ready to work together with the next government – but time is not on our side and we need words and aspirations to be backed up with positive action and policies.”

Energy UK recently called for the government to introduce a ‘net-zero test’ to ensure all new government policies support the net zero target.