Motion #01
SOC note: This motion is a composite of the Interim Policy Position statements proposed by the Political Committee and recognised by Policy Development Committee (PDC) and Green Party Regional Council (GPRC). SOC proposes that this motion be taken with all four parts together.
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.
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.
Amendment passed
In Part 1 Delete Synopsis and Motion for Motion Part 1: Decoupling Electricity Costs From Gas and replace with: “Synopsis This motion proposes that the party campaigns to remove the absurd coupling of low-carbon electricity prices and gas prices. Analysis in the Green Party finds decoupling would have reduced net electricity costs by £3.7bn in Q4 2022. Decoupling can be implemented almost immediately by Ofgem. Motion 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 wholesale market get £400/unit. ● The Autumn 2022 Financial Statement (November 2022) predicted that the Electricity Generator Levy would raise £1.035 bn in Q1 2023. Decoupling low-carbon electricity prices from gas fuelled electricity prices could: ● Reduce electricity bills for all (rich/poor, householder/business). ● Be delivered immediately using proven instruments like Contracts for Difference, which also stimulate investment in renewables. To address the issue, Government has introduced the Electricity Generator Levy which seeks to recoup excess profits from generators. Analysis in the Green Party finds our alternative decoupling proposal could have reduced net electricity costs by £3.7bn in Q1 2023. Unlike the Government proposal, decoupling directly reduces the cost of electricity. Conference therefore requests: ● GPEx/Leadership to campaign for emergency legislation to decouple the price of low carbon electricity from gas through market reform. ● GPEx/Leadership to continue campaigning for renewables and improved energy-efficiency to achieve gas-free electricity. ● Climate Emergency Policy Working Group to continue working for ways to ensure the benefits of low carbon energy are equitable, including responsible market regulations.”
Conference ratifies the following text as an Interim Policy Statement
“As an emergency measure to address both the acute fuel poverty crisis and the climate emergency, and to reflect the massive increase in profits of the North Sea oil and gas producers resulting from fuel price rises, to raise the Supplementary Tax on the profits of these producers from its current level of 10% to 35%, and to distribute this money through an immediate uplift in payments to people qualifying for income support schemes (Universal Credit, Pension Credit, Income Support, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance, Support for Mortgage Interest). While reflecting the ‘Polluter Pays’ principle, this emergency measure is not intended to replace the Green Party’s wider policy on a comprehensive carbon tax.”.
Conference instructs PDC to ensure a motion to update PSS accordingly is brought to a future Conference.
This motion responds to the energy price cap rises, drawing on proposals from Molly Scott Cato and Martin Farley. It omits references to government fossil fuel subsidies through an energy price cap. Instead a Basic Energy Allowance and Universal Basic Income are proposed to make basic energy needs more affordable.
Insert into Record of Policy Statements:
“The Green Party notes:
Unprecedented increases in energy prices have increased anxiety and are putting lives at risk this winter.
The UK’s pseudo-market for energy was already failing to respond to the climate emergency. It has been broken by massive volatility in global energy markets caused by the Covid bounce-back and since the start of the war in Ukraine.
The recent failure of some smaller retail energy companies collapse and the energy price cap have failed to protect consumers and shown that only governments can operate as energy supplier of last resort and prioritise energy affordability and climate action over profit-making.
That whilst high energy prices discourage excessive energy use and reward home retrofit, the current system of energy prices is regressive so higher energy prices increase inequality and fuel poverty.
The Green Party recalls that:
Green Party policy IN604 calls for public ownership of industries that are crucial to well being, including electricity transmission and distribution.
Green Party policy EN013 supports demand-side management of energy use, which includes paying less for electricity when there is a surplus.
Green Party policy EC202 states our objective, ‘To achieve an equitable distribution of resources, wealth, opportunity and power which ensures access for all to the means of sustenance and of personal and social development.’
The Green New Deal proposed in the Green Party’s General Election 2019 manifesto includes a massive programme of publicly funded home insulation.
The Green Party’s policy, EC730, to introduce a Universal Basic Income, would help counter the impacts of knock-on costs of higher energy prices on essential goods including food and travel.
Recent Green Party press statements calling for a “Dirty Profits” windfall tax on North Sea oil & gas and a ‘Five Point Plan for the Energy Crisis’ included a £40 uplift to Universal Credit. This motion complements this.
The Green Party calls on the Government to urgently:
Introduce progressive domestic energy pricing using the rising block tariff system under which customers would receive a basic provision of gas and electricity at a threshold price and more for subsequent blocks of energy used (EN071). This allowance would be based on the number of occupants in a household. Extra units would be available for disabled people and those with chronic health conditions.
Introduce Universal Basic Income payments to support everyone with the rising cost of living. This would be taxable but not counted when calculating benefits to ensure impact is proportionate to need.
Nationalise the Big Five energy supply companies (as called for the TUC). This would ensure that energy companies would be run in the public interest and regulated to facilitate the transition to a fully renewable domestic energy system. This regulation will support rather than undermine smaller energy companies and energy cooperatives.
Introduce a massive programme of publicly funded programme to insulate all homes, matched with other measures to reduce energy demand.
Introduce a windfall tax on North Sea fossil fuel production to capture un-earned excess profits and stop them funding development of further reserves that must be kept in the ground if we are to limit the extent of the climate change.
Fund the above through a combination of windfall taxes on fossil fuel profits – backdated to January 2022 – as well as additional taxes on those in higher-income brackets and private landlords.
These measures are considered to be instead of, not in addition to, measures to support incomes proposed or implemented by the Government.”
[End of statement to be inserted into RoPs]
Insert the following into Energy chapter of Policies for a Sustainable Society at the end of section title “Social Well Being and Health”:
EN071 Domestic energy pricing will be restructured to use a progressive energy tariff, such as by introducing a rising block tariff system.
Conference notes that Interim Policy Positions on Dirty Profits tax and Revised 5 Point Plan for Energy Crisis should be revised to:
Remove Point [2] of the Five Point Plan on £320 winter fuel payments
Remove “to 35%” from the Dirty Profits Tax, to leave the rate of supplementary tax unspecified
Conference instructs GPEx to ensure Green Party Comms and Press Statements are consistent with the policy approach to affordability of energy crisis outlined in this motion and existing Green Party policy (as set out in Policies for a Sustainable Society)
Amendment passed
Delete: “ from “Introduce progressive ….” to “chronic health conditions.” Delete from “Insert the following into” to “block tariff system”.
[1] Restore the £20 uplift to Universal Credit and double it to £40 at a cost of £9bn. Abolish the lower rate of NI on higher earnings.
[2] Extend winter fuel payments to all by providing each household with an additional £320 to help them pay for spiralling energy costs and avoid fuel poverty at a cost of £9bn (call from October 2021)
[3] Make the polluters pay by introducing an emergency Dirty Profits Tax on North Sea oil and gas company profits and a longer-term policy of a carbon tax
[4] Provide an emergency grant to homeowners, landlords and councils to fund immediate insulation improvements to those at risk of fuel poverty
[5] Invest in domestic energy security by massively ramping up onshore and offshore wind and solar and move the green levies from electricity to gas bills
Additional Spend £18bn: · £9bn Universal Credit (£40 /week increase),
· £9bn Universal Winter fuel payment (£320 per household)
Additional revenue £18bn: · £14bn Removing National Insurance Lower Rate on higher earnings
· £4bn Dirty Profits tax (See Tom Scott’s Campaign Proposal)
Conference instructs PDC to ensure a motion to update PSS accordingly is brought to a future Conference.