- The costs of the freeze on energy bills will be eye-watering, as CPS analysis this week made clear. But it is clear that, as with the pandemic, ministers felt they had little alternative – and they are to be commended on resisting the pressure for a windfall tax that would have damaged the very investment we need to secure energy independence in the long term.
- The decision to introduce Contracts for Difference for existing renewables projects should help to substantially bring down the costs of the package.
- Beyond immediate measures to get through the winter energy price crisis, the policies announced today by the government represent a welcome pro-growth agenda aiming at energy abundance. The goal of making Britain a net energy exporter by 2040 is appropriately ambitious, and sets the country on the right path to greater control of our domestic energy supply through renewables, natural gas and nuclear energy.
- Natural gas still has a role to play during the energy transition and ending the moratorium on fracking will be an important step toward reducing our dependence on volatile global markets influenced by malign geopolitical actors. Increasing our domestic supply of gas will help to avert the possibility of future winter energy crises.
- While we would have welcomed further ambition on onshore wind and solar, we are glad to see the review of the net zero strategy being led by Chris Skidmore MP, who has been a consistent champion of the UK’s climate ambitions.
- The CPS also noted in its briefing this week that the UK was an outlier in Europe for not having policies to support businesses through the immediate winter energy crisis. The Government’s new support package corrects that by helping small businesses who are facing astronomical energy costs through no fault of their own.
Notes to Editors
- ‘The Bleak Midwinter’, by Karl Williams, is available to read here.
- For further information and media requests, please contact Josh Coupland on 07912485655 or by email at [email protected]
- The Centre for Policy Studies is one of the oldest and most influential think tanks in Westminster. With a focus on taxation, economic growth, business, welfare, housing and green growth, its goal is to develop policies that widen enterprise, ownership and opportunity.
Date Added: Thursday 8th September 2022