Labour promises ‘much tougher’ regulation of energy market

Labour has pledged to introduce “much tougher” regulation of the energy market, including automatic customer compensation for service failures if it wins next month’s general election.

The party’s election manifesto, launched this morning (13 June), says Labour will “ensure a much tougher system of regulation that puts consumers first and attracts the investment needed to cut bills”.

And it says that, if elected, Labour will strengthen Ofgem to ensure it can “hold companies to account for wrongdoing, require higher standards of performance, and ensure there is automatic customer compensation for failure”.

An incoming Labour government would also work with the regulator to reduce standing charges, which are “too much [of a] burden” for billpayers.

Elsewhere, the manifesto largely reiterates the party’s previously announced policy plans for utilities and how it would go about achieving Labour’s mission of a decarbonised grid by 2030.

It says Labour would extend the lifetime of the UK’s existing fleet of nuclear plants, most of which are due to shut down during the next Parliament, in order to ensure the sector’s “long-term security”.

The manifesto says nuclear power stations, such as Sizewell C and small modular reactors, will play an important role in helping the UK to achieve energy security.

In a further bid to provide reassurance about concerns that the 2030 push for a zero-carbon grid will imperil the UK’s energy security of supply, the manifesto says a Labour government would maintain a strategic reserve of gas power stations.

Labour also reiterates its £8.3 billionn Green Prosperity Plan investment pledge, which will be supported by its new National Wealth Fund.

Other pledges include:

• To double onshore wind, triple solar power, and quadruple offshore wind by 2030.
• To invest in carbon capture and storage, hydrogen and marine energy
• To ensure the long-term energy storage that the country needs
• To partner with energy companies, councils, and co-operatives on installing ‘thousands’ of local, clean power projects, such as onshore wind, solar, and hydropower
• To extend the Energy Profits Levy on windfall gas and oil extraction profits until the end of the next Parliament and increase the rate by three per cent
• To work with the private sector to upgrade national transmission infrastructure
• To double investment in domestic energy efficiency with an extra £6.6bn
• To introduce ‘minimum’ energy efficiency standards for private rented homes
• To put ‘failing’ water companies under special measures and give regulators new powers to block the payment of bonuses to executives who ‘pollute our waterways’ and bring criminal charges against ‘persistent’ law breakers

Responding to this morning’s publication of the Labour manifesto, Nuclear Industry Association chief executive Tom Greatrex, said: “The Labour Party’s focus on taking the right decisions on nuclear and at the needed pace is very welcome. We also welcome the commitment to extending the lifetime of existing plants, which have been the most productive low-carbon assets in British history and the bedrock of their communities for decades.”

Greenpeace UK’s head of politics, Rebecca Newsom, said that Labour’s plans don’t go far enough. She added: “Following the Tories’ divisive manifesto, Labour’s climate plans are like a breath of fresh air. Despite some major gaps on nature, the party clearly recognises the huge opportunity for green jobs, warmer homes and cleaner air that the green economy presents. And, unlike the Tories, Labour will bring an end to climate-wrecking oil and gas and turbo-charge renewable power – delivering genuine energy security and lower bills.

“But you can’t deliver real change with spare change. So, after the bold green pledges and fair tax reforms set out by the Lib Dems and Greens, it’s clear that Labour’s plans don’t go far enough. 

But Ed Matthew, campaigns director at climate and energy think tank E3G said Labour’s manifesto will “kickstart a mission for energy independence and economic renewal, with net zero investment at its heart.

“Labour has recognised that upgrading our homes will be key; and we welcome the £13.2bn investment boost, and reinstatement of higher efficiency standards in the private rented sector. This manifesto gives hope that the UK’s leadership in tackling the climate crisis will finally be restored.”