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tony blairThe think tank has increased its challenge Labour governmentThe energy policy comes after a new report warned that bills need to be slashed by £300.
Tony Blair Institute (TBI) Ed Miliband’s push for net-zero policies has been criticized after concerns were raised in a report by the Energy Crisis Commission.
The Commission, which brings together representatives from Energy UK Confederation of British Industry (CBI)Citizens Advice and National Energy Action warned that the government must tackle high electricity prices and boost insulation upcoming budget,
The group said the switch to electrification will stall without meaningful action on reducing bills for both households and businesses.
Electricity prices in Britain remain the highest in Europe after Russia’s invasion of Ukraine in 2022 led to an energy crisis.
But concerns have previously been raised that Mr Miliband’s tough stance against fossil fuel use during the transition is keeping energy bills high.
In the foreword to an earlier TBI report, Sir Tony warned that climate policy had become disconnected from “political, public and economic reality”.
Responding to the commission’s findings, Tone Langgen, senior energy policy adviser at the TBI, said: “The Energy Crisis Commission is right to say that costs need to be driven down; the government promised to cut electricity bills by £300, but on the current path the opposite will happen. We are in a cost-of-living crisis – households cannot afford a clean-energy scheme that drives up prices.
“But we can’t just shift costs around – we need to reform the system. That’s why at TBI we’re calling on the government to overhaul the electricity market to attract investment and cut bills, including through regional pricing, which would save the public up to £55 billion by 2050.
“The National Energy System Operator should be given a new mandate to monitor net zero delivery for cost-effectiveness, and their control rooms should be AI-ready; unlocking billions and making the system more efficient.
“While we are committed to clean energy and the UK’s net zero target, we must have affordable, reliable energy to power growth and protect homes.”
Energy Crisis Commission asked for budget, which will be delivered next WednesdayTo include details of how the government will reduce the gap between electricity and gas prices to drive the transition forward.
It said the government should consider reviewing the policy costs that help pay for renewable energy projects and social schemes as part of efforts to save households money.
Currently the policy costs are paid on household bills, but the group said ministers should consider removing some of these charges from bills, moving them into general taxation or spreading them more evenly between gas and electricity bills.
Lewis Helm, chief economist at the CBI, said: “The UK energy crisis remains a threat to the cost of doing business, with highly volatile energy prices placing continued pressure on business investment.
“Accelerating the energy transition is critical to both national energy security and mitigating the impacts of climate change.
“This is a decisive strategic economic opportunity for the UK and must be the backbone of a competitive, resilient economy in an uncertain world.
“That won’t happen unless high electricity prices are addressed.”
Gillian Cooper, energy director at Citizens Advice, said: “With energy bills still much higher than before the crisis and millions in energy debt, Citizens Advice is bracing for another tough winter, helping people heat their homes and keep the lights on.”
Chris Vyas, chief executive of Energy UK, said: “Right now, the government also needs to take action and help people who have been facing persistently high bills for many years.
“Reducing the cost of electricity will reduce that burden and remove a serious barrier to the adoption of clean heating technologies.”
Adam Scorer, chief executive of National Energy Action, said: “For millions of people, the energy crisis was not a single market event. It was the worsening of a terrible norm and confirmation that a warm home will remain a vain hope.”
A Treasury spokesperson said: “We do not comment on budget speculation. We recognize that energy costs are a significant concern for households, and this Government is taking decisive action to tackle it, including the Warm Home Discount and funding to help thousands of low-income homes upgrade to be warmer and more energy efficient.”