Motion #03
This motion proposes that the party campaigns to remove the absurd coupling of low-carbon electricity prices and gas prices. If these savings are passed on to the consumer, this could reduce typical household electricity bills by up to £300 over the next 6 months. It can be implemented almost immediately.
The exceptional circumstances for this Emergency Motion is the 23rd September Government Growth Plan in which the Government will take on £60bn debt to subsidise the gas and electricity industry. The motion proposes how this debt can be reduced in half.
Conference Notes:
Policy EN095 states “Energy regulation will be aimed at helping to achieve environmental and social objectives, and a fair and accountable energy sector.”
The UK energy crisis causing extreme fuel poverty. Today’s very high gas prices have made this the critical issue of the day.
Electricity is sold in a market in which the costliest generator sets the price paid to all: if gas costs £400/unit, then all generators in the market get £400/unit.
The Government’s Growth Plan (23-Sep) provisions £60bn of Government debt to subsidise the energy industry. As a subsidy, it doesn’t reduce net energy costs.
Decoupling low-carbon electricity prices from of gas fuelled electricity prices could: Reduce electricity bills for all (rich/poor, householder/business).
Reduce net electricity costs by £30bn over 6 months.
Be delivered immediately using proven instruments like Contracts for Difference, which also stimulate investment in renewables.
During her election campaign, the Prime Minister proposed removing the Green Levy and VAT on electricity. Decoupling is three times more effective at reducing the cost of supplying to households. Conference therefore requests:
GPEx/Leadership to campaign for emergency legislation to decouple the price of low carbon electricity from gas. This legislation would take effect for 6 months whilst a permanent solution is found.
GPEx/Leadership to continue campaigning for renewables and improved energy-efficiency to achieve gas-free electricity.
Climate Emergency Policy Working Group to return to Spring 2023 conference with permanent measures for price stabilisation.