Sir Keir Starmer yielded to Ed Miliband's demands to accelerate Net Zero targets as he unveiled a flagship energy bill in the King's Speech. The Prime Minister endorsed the Energy Secretary's plans to ensure the country goes 'further and faster to deliver clean energy'.
No Mention of North Sea Oil Fields
However, there was no mention of whether the Rosebank and Jackdaw oil and gas fields in the North Sea would be approved. Instead, the bill reaffirms the commitment to not issuing new licences for exploration and maintaining the ban on fracking.
This move will infuriate those who argue that Britain should utilise homegrown oil and gas rather than relying on expensive imports. The UK's exposure to global energy prices has resulted in higher bills and inflation compared to other countries.
Despite this, Mr Miliband has refused to exploit North Sea supplies and has instead focused on renewables.
Energy Independence Bill Details
The Energy Independence Bill also commits to 'accelerate' the UK's drive for energy security through wind, solar power, and hydrogen. It restates commitments to reform planning rules to make installing renewable energy infrastructure easier.
Elsewhere, the bill restates Budget commitments to shift the cost of some green taxes from bills to general taxation. This allows Labour to claim they are reducing prices, though in reality they are merely moving costs so bills appear smaller.
Despite this move, and Labour's pre-election pledge to reduce bills by £300, energy bills remain £190 higher than when the party came to power last year. They are expected to rise further when the next price cap takes effect in July, factoring in the costs of the Iran war.
There was no announcement of help for homeowners to cope with the costs of the Middle East conflict, which will increase bills. The King's Speech states it will 'expand the Government's toolkit' to enable ministers to target help at 'low-income and vulnerable' households, but no commitment to do so.
Private Sector Landlord Rules
Draconian rules forcing private sector landlords to invest up to £10,000 in home upgrades to cut bills for their tenants will also be implemented. The bill also contains plans to change the powers and remit of the energy regulator Ofgem to allow it to regulate energy brokers and stop unfair practices.
Labour has set a target of at least 95 per cent of Britain's power generation to be produced from 'clean' energy by 2030, including renewables, nuclear, hydrogen, and gas offset by carbon capture and storage.
This approach has faced criticism, including from the Tony Blair Institute, which has called for the focus to be on lowering prices instead. The UK has some of the highest energy prices in the world, spiked by both the Ukraine and Iran wars due to exposure to global energy prices.
