The UK Government’s Energy Secretary Ed Miliband has set out further measures to ensure clean, homegrown power as Whitehall also plans to “break the link” between volatile gas prices and electricity.
It added that it wants to make “EV chargers, solar panels and heat pumps easier to install for renters, flat-dwellers and households without a driveway”.
It will introduce permitted development rights for EV charging, including cross-pavement solutions, alongside wider measures to improve access for renters and those without driveways.
The move will support clean technologies with an increase in the grant for boiler upgrades for those using oil to £9,000; 57,000 solar installations for social housing this financial year; upgrading support for rooftop solar at schools to another 100 education facilities; and expanding renewable generation across the public estate.
In addition, it aims through planning reform for renewables to find ways of “exploring new routes for developers to build and connect their projects faster”.
It said that it was “exploring ways to ensure that low-income households” can benefit from plug-in solar through its Warm Homes Plan – and has set aside up to £25 million to piloting support for plug-in panels in partnership with local authorities and mayors.
The UK Government added that a “significant share of renewable generation”, around 30% of Britain’s power supply, is still exposed to wholesale prices set by gas, leaving the UK vulnerable to price shocks.
In order to break the link, the UK Government said it would introduce voluntary long term fixed contracts, which will be offered to existing low-carbon generators not on fixed‑price contracts, covering around a third of Britain’s power supply.
This will help protect from higher bills when gas prices spike, with contracts offered only “where they deliver clear value for money for consumers”, the UK Government said.
In addition, an updated Electricity Generators Levy aims to tax excess profits through the Electricity Generator Levy by raising the rate from 45% to 55% to support businesses and households with the impacts of the conflict in the Middle East on the cost of living.
It also said that the government was monitoring the impact of the current crisis on energy bills and will be ready to step in to provide targeted support where necessary.
Prime Minister Keir Starmer said:
“We need to get off the fossil fuel rollercoaster – this will make energy bills more stable and take the pressure off family budgets. When global gas prices spike, people here shouldn’t be picking up the tab.
“Our focus is simple: easing pressure on household budgets now, while building a homegrown energy system that protects families from global instability in the years ahead.”
Energy Secretary Ed Miliband said:
“As we face the second fossil fuel shock in less than 5 years, the lesson for our country is clear: The era of fossil fuel security is over, and the era of clean energy security must come of age. That’s why we’re doubling down on clean power, to give our country energy security and bring down bills for good.”
Chancellor Rachel Reeves said:
“Alongside moving generators onto the competitive pricing assured through wholesale Contracts for Difference, increasing the EGL to 55% will help to break the link between high gas prices and high electricity prices – offering households and businesses stronger protection against future energy shocks.”
Vicky Edmonds, Chief Executive Officer of EVA England, says:
“Today’s announcements are a clear step forward and reflect what drivers have been calling for, breaking down the practical barriers to switching to electric.
“In particular, plans to introduce permitted development rights for EV charging and cross-pavement solutions are a major breakthrough for the millions without driveways who currently face a two-tier system of higher costs and fewer options. This is an area EVA England has consistently highlighted for reform, so it’s encouraging to see progress. Around half of drivers without off-street parking say they are paying more to run an EV than their previous petrol or diesel car. Addressing this imbalance is critical to making the transition fair.
“Alongside new rights for renters and leaseholders, this is a welcome package, and now the focus must be on delivering it in a way that genuinely works for drivers.”
Jess Ralston, Head of Energy at the Energy & Climate Intelligence Unit (ECIU) said:
“Doubling down on net zero technologies like wind, solar and electric heat pumps while oil and gas remains volatile is clearly the sensible thing to do for our energy security. Once we have installed a wind turbine or solar panel, we don’t need to pay another country for the fuel, which will increasingly be the case with oil and gas as the North Sea continues its inevitable decline.
Large wind farms already lowered the wholesale electricity price by around a third last year. With around 90% of oil and gas from the North Sea already extracted, and more drilling making no significant difference to our bills or prices at the pump, clean power and electrification is clearly emerging as a way out of another fossil fuel crisis in future.”
Colin Walker, Head of Transport at the Energy and Climate Intelligence Unit (ECIU), said:
“With the price of petrol and diesel rising rapidly as a result of the war in Iran, interest in EVs is surging as more drivers are looking for ways to avoid these rising costs. Improving access to cross-pavement charging solutions will enable even more households to join the majority that can already charge an EV at home, allowing them to be run for as little as 2p per mile, rather than 17-18p per mile for a petrol car.
“As well as enabling more households to save hundreds, even thousands, of pounds a year in the midst of an energy crisis, accelerating the UK’s shift to EVs will also enhance the country’s energy security, as we move away from petrol cars that rely on oil imported from abroad, to vehicles that are increasingly powered by electricity generated in British wind and solar farms.”
Simone Rossi, CEO of EDF in the UK, said:
“With the Government expected to set out further measures to accelerate the rollout of clean power, electrification and planning reform, this comment responds directly to the focus on energy security, affordability and access to low-carbon technologies.
“Using electricity from wind, solar and nuclear to power our homes, transport and businesses is key to Britain’s energy security and household finances. But we can’t have a two-tier system where only homeowners with a driveway and large roof can access the savings electricity can offer. There is a huge need to stimulate greater demand for electricity and ensure everyone in society can access its benefits, and we welcome Government’s focus on this. In addition, we welcome streamlining of planning and connection processes to bring down the cost of building the infrastructure Britain needs.”
Gurjeet Grewal, CEO of Octopus Electric Vehicles, said:
“Fuel price shocks have turbocharged interest in EVs – but millions of renters and flat-dwellers still don’t benefit from cheap charging at home. Make charging simple and affordable, and you unlock a huge new wave of drivers ready to switch. This is another clear sign from the government on the direction of travel for UK drivers. Switch to electric, charge at home and protect yourself from price rises at the petrol pumps.”
Image courtesy of Shutterstock
