Energy Secretary Ed Miliband will reaffirm Labour's commitment to net zero this week, arguing that the conflict in the Middle East underscores the need for clean energy security. In a speech on Tuesday, he is expected to announce new policies including speeding up the warm homes plan, expanding solar panel and electric vehicle uptake, and delinking gas and electricity prices to lower consumer bills.
Miliband will push back against calls from the Conservatives and Reform UK to ramp up North Sea oil and gas drilling in response to soaring fossil fuel prices. He will say: “The era of fossil fuel security is over, and the era of clean energy security must come of age.” He will also reject the idea that drilling more will reduce bills or provide energy security, stating: “You can’t solve a fossil fuel crisis by doubling down on fossil fuels.”
Despite this, the government is still considering tie-back arrangements to allow additional extraction near existing North Sea fields. Chancellor Rachel Reeves has described tie-backs as “the quickest way to bring on stream more oil and gas.” However, Miliband will stress that the broader thrust of policy remains accelerating the shift away from fossil fuels.
Miliband will cite rising demand for clean energy technologies since the war began, including a 50% increase in solar panel and heat pump sales at Octopus Energy, and record EV sales in March. He will argue that clean energy from domestic wind, sun, and nuclear sources cannot be disrupted by foreign wars and offers stable prices.
The government is exploring options to delink electricity prices from gas generation costs, such as striking better-value contracts for legacy green energy projects. Currently, wholesale electricity prices are set by the most costly generation, often gas-fired power stations. The chancellor is also considering raising the electricity generator levy to capture windfall profits.
