notes from JK

Where’s the sense in the energy bill outrage?

Recent weeks have seen incredible inflation in not only energy bills but in the soundbites that both Labour and Tories are hurling around. On energy costs, the big six energy suppliers and the supposed costs of the ‘green’ elements of household energy bills we’re getting a lot of hot air, but not much sense.

It’s all been rather disheartening as none of the key issues behind the ongoing painful price rises have been addressed. With a likely cold winter ahead meaning more and more will have to choose between heating or eating, we deserve better than the rather poor attempts at electoral positioning that the current policy debate is turning out to be.

This woeful debate follows a trend by successive governments, including the current one, of singularly failing to tackle energy as the huge national challenge and opportunity it genuinely presents. The Tories are in a complete morass over what future energy sources should be: Fracking and nuclear power seem to be their top priorities. Putting aside the environmental madness of these two choices, in the UK they are decades away from producing new energy on a commercial scale for British consumers.

Meanwhile Labour have opted for the electioneering gimmick of an energy bill ‘freeze’ post-election. Labour must think they’ve got a nice bit of candy to offer voters but on the slightest bit of consideration, it doesn’t really make much sense. Firstly pre-announcing a bill freeze means the suppliers are far more likely to edge price increases higher now to give them more bankable income should a freeze really come in play. How much of a ‘Miliband factor’ is in this month’s ~10% price rises I wonder? I also am curious to know what happens during the price freeze if wholesale gas prices skyrocket, especially through a very cold snap when demand greatly increases? Will the government have to use taxpayers’ money to pay the higher costs? I can’t imagine a government forcing shareholders (including our own pension funds) to bear gargantuan losses in the face of genuine raw material cost inflation would last very long in court.

Practicalities aside the bill freeze doesn’t really achieve a whole lot. Yes above inflation energy cost increases hurt the poorest hardest, no doubt. But with the freeze pre-announced I expect price changes before and after the freeze will cover expected losses for the energy firms. And frankly a two year breather after years of increases is hardly a lifeline if you are already choosing between heating and eating.

No, what is needed is massive investment in our energy systems to provide resilient, local, renewable energy that is truly affordable. It’s notable that this month green energy supplier Ecotricity announced that they now have built enough of their own renewable sources to start undercutting the big six suppliers’ prices.

Secondly, and just as important, we must take action to proactively deliver serious energy efficiency for all citizens. This has to be in a way that is cheap and works for everyone, including those in the private rented sector. In Brighton & Hove our work on council blocks has resulted in the first energy bill decrease ever for tenants living in those blocks. Those in fuel poverty need this kind of action to permanently reduce their energy bills far more than they need a short-term freeze which holds no longer term solutions. Of course creating more energy efficient homes not only cuts bills permanently, but also makes the warmer better places to live, which all the health and wellbeing benefits that entails.

Cutting demand through energy efficiency will reduce the strain on supplies, reduce our overseas dependence on unreliable sources of fossil fuels whilst creating lots of jobs for those doing the work. I’d much rather be ensuring that homes are permanently warmer rather than faffing about with billing tweaks. If given the proper funding, councils have a huge role to play in delivering energy efficiency programmes, but only central government can tackle the big six suppliers.

Energy is vital to our health, happiness, economy and national security. A few overheated sound bites and electioneering gimmicks are doing great disservice to the huge importance and potential genuine policy action could make for our citizens. I hope voters, media and the third sector will demand better from the national debate; I promise to do my bit as a Green voice for Brighton & Hove.

3 replies on “Where’s the sense in the energy bill outrage?”

Hi Jason. When you say “In Brighton & Hove our work on council blocks has resulted in the first energy bill decrease ever for tenants living in those blocks” are you talking about the installation of solar PV, using the feed-in tariff legislation brought in by the last Labour government?

tracey it is a good point above but you have made it in a childish way. as however good the scheme labour brought in at government level is it is up to local intiative to take advantage of it. i would suggest that your time better spent working with anyone in any party .to defend that scheme from the consertive governement. and also encouraging insituitions public and private to take advantage of it. yours in peace james?

Great article; it’s disappointingly rare to hear the idea of energy efficiency being put forward. In response to Tracey Hill and james?, does it really matter who brought in the feed-in tariff? It’s the investment in solar panels to take advantage of the tariff that actually counts. Political squabbling merely detracts further from what people like JK are trying to achieve.

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