The UK Government has a plan to save energy in homes by overhauling the electricity market. But they are warned that this overhaul will not ensure the UK has a secure, clean and affordable power sector. If they overhaul energy provision, they will probably want to reform the market. This will bring in long-term contracts that pay a steady rate of return for energy from new low-carbon generators. But this is needed to deliver the billions of pounds of investment needed for energy infrastructure to keep the lights on.
The upfront costs of energy efficiency measures for homes can be covered by a ‘green deal’ that has been brought in. This also includes companies providing energy-saving measures for poor households.
But some consumer, industry and environmental organizations like the University of Exeter, energy giant SSE, Consumer Focus and environmental charity WWF issued a warning that the measures were inadequate. They said that government policies will not deliver the large energy savings that are needed to cut greenhouse emissions and secure that UK’s suppliers are secure.
They said that developing low carbon power and energy efficiency measures would hit consumers, and in particular the people on a low income. The renewable energy sector in the UK would not have the certainty it needs to deliver investments and jobs in the UK with the plans that the government has now. They said one of the main efforts of the government should be to try and make energy more affordable for everyone.
Energy efficient measures should be funded by the revenues raised through carbon floor prices. So energy companies have to pay a minimum price for the credits they have purchased to cover their pollution.
So it was needed for the long-term contract for low-carbon electricity to be reviewed. They have to make sure that the contracts are suitable for renewable energy, as the scheme has been primarily designed to support new nuclear reactors.
Nick Molho, of WWF-UK, said that everyone is coming at this from different perspectives, but everyone wants the UK to succeed in developing a clean, secure and affordable power sector. They are deeply concerned that Government proposals now are just not up to the job.