Utilities await the outcome of today’s general election

People across Britain will today cast their vote in the UK's closest election in decades, the result of which could bring major change to the UK utilities industry.

Although energy policy has not been central to an election campaign dominated by economic policy, the result of the vote could decide the future direction for utilities depending on key energy and water policies put forward by the various parties which could make up the next government.

Over the previous ten weeks Utility Week Lobby has looked at the impact the new government, and the plans set out in their manifestos, will have on: resilience and sustainability; investment, ownership and tax; infrastructure and planning; social policies and affordability; and regulation and competition.

With all of this at stake, here is what the main parties are offering the electorate:

Conservatives

• The Conservatives have promised to “halt the spread” on onshore wind by removing all new subsidies for the technology, as well as changing the law to give local communities the final say on whether the developments receive planning permission. Despite this, they say they will support “good value” green energy, and that there will be a “significant expansion” of new nuclear and gas generation.
• David Cameron’s party has also stated it will implement the recommendations of the Competition and Markets Authority (CMA) investigation into the energy sector.
• The Tory’s reaffirmed the prime minister’s 2014 commitment to “go all out for shale gas” by promising to continue the support for the safe development of shale gas.
• The party outlined its plans to support “low cost energy efficiency measures”, and aims to insulated more than 1 million homes over the next five years.

Labour

• Labour leader Ed Miliband shocked the energy sector in 2013 when he promised to freeze energy bills for 20 months should his party win the general election. The freeze, which would prevent bills from rising but allow them to fall, would coincide with Labour giving Ofgem new powers forcing suppliers to pass on falling wholesale prices. The regulator would also be scrapped when the price freeze ends.
• Shadow energy secretary Caroline Flint said the party would overrule the CMA’s findings and press ahead with plans to reform the energy market by separating the generation and retail arms of the major energy companies, and the reintroduction of an energy pool.
• Labour has also pledged to make improve the energy efficiency of 5 million homes over the next ten years, and to overhaul the Green Deal and provide 1 million interest free loans available to fund home improvements.
• Shadow environment secretary Maria Eagle is looking to introduce a national affordability scheme, to which the water companies would have to sign up to, offering a unilateral social tariff to those struggling to pay their bills.

Liberal Democrats

• The junior coalition partner unveiled five green laws in September and these adorn the front of the party’s manifesto and make up one of their non-negotiable policies come coalition talks. Among them are plans to remove all unabated coal generation by 2025.
• Deputy prime minister Nick Clegg’s party will also look to set a 2030 decarbonisation target of 50-100g of CO2 per KWh, claiming a 60 per cent renewable generation target will ensure the UK hits that goal.
• The Lib Dems have promised to “supercharge competition” by introducing 24 hour switching, and for smart pre-payment meters to be introduced by 2017, as it aims to help independent suppliers get a 30 per cent market share.
• In their manifesto, the Lib Dems also stated they were advocated of a national social tariff in the water sector.

Scottish National Party

• The SNP has backed Labour’s plans to give the regulator new powers to force the energy suppliers to cut bills when wholesale prices fall.
• Nicola Sturgeon’s party has also called for a change to the transmission charging system to one which supports Scotland’s energy industry “rather than undermining it as the current regime does”.

Ukip

• Ukip is pushing for a “level playing field” for coal-fired generation with a pledge to remove all government subsidies for wind and solar power.
• Nigel Farage’s party also has plans to scrap the Department of Energy and Climate Change (Decc), to scrap compliance with the EU’s large combustion plant directive, scrap the Climate Change Act, encourage fracking, and stop supporting “hopelessly inefficient” onshore windfarms.

Green

• The Green Party is looking to add to its sole representative in the House of Commons at this general election, and is looking to appeal to its core support by opposing new nuclear, fracking, and unabated coal-fired generation.
• Natalie Bennett’s stated it would look to introduce a substantial energy efficiency scheme which would offer measures to 9 million homes, breaking up the vertical integration of the big six energy companies, and to give the Green Investment Bank more borrowing powers.
• The Green Party manifesto also outlined their support for community energy, targeting a total of 42GW by 2020, and stated that National Grid should give priority access to community energy projects.