General Election - Policy Pathways

General Election - Policy Pathways

The outcome of yesterday’s election looks likely to result in a Conservative majority, with a Scottish National Party (SNP) landslide in Scotland.

Ecuity analysis of the election results has outlined the likely implications for energy policy.

A further update will be provided once the final results are known. @Ecuity_UK

Ecuity Consulting LLP Radcliffe House ǀ Blenheim Court ǀ Lode Lane ǀ Solihull ǀ B91 2AA Tel: +44 (0) 121 709 5587 E: info@ecuity.com ǀ W: www.ecuity.com

Conservative climb- the context of policy affecting energy in buildings in the United Kingdom

Key Messages: Pre-election Commitments On Climate Change: we will continue to support the UK Climate Change Act. In February 2015, David Cameron also signed the Green Alliance pledge on Climate Change. He stated at the time “Climate change poses a threat not just to the environment, but also to poverty eradication abroad and to economic prosperity at home. I strongly support a global deal at Paris this year to tackle that threat head-on.”

On Energy Efficiency and buildings: “we will support low-cost measures on energy efficiency, with the goal of insulating a million more homes over the next five years, supporting our commitment to tackle fuel poverty.”

On Smart Meters: ”we will ensure that every home and business in the country has a Smart Meter by 2020, delivered as cost-effectively as possible, so consumers have instant, accurate bills and can switch to an alternative provider within one day.” The Conservatives have emphasised competition between suppliers as a key route to keep household bills low.

The Conservative political discourse throughout the general election campaign focused on their ‘long term economic plan’ – a key phrase repeated frequently by their key spokespeople.

“The Conservatives will continue to build on their economic agendaseeking to reduce waste and improve economic efficiency. They explicitly state in their manifesto their intention to reduce energy waste and fuel poverty and as such the call for a strategic energy policy focused on energy in buildings is entirely compatible with the Conservative agenda.”

Now, the opportunity exists to press this message to Conservative policy makers.

As the legislative engine starts to roll forward with this new government, it is essential to ensure that the energy policy carriage is attached to the Conservative Party train.

Conservative Party electoral performance: The Conservatives scored far better than projected in the polls. Their vote share only increased by around 1 percent, but falls in support for Labour and the Liberal Democrats secured significant gains for the Tories.

The Conservative Party Fracking: The Conservatives support fracking in certain circumstances.

Energy Efficiency: Will support low-cost measures on energy efficiency- aim to insulate a million homes over the next five years- supporting efforts to tackle fuel poverty.

Low carbon technologies: The Tories have stated they will oppose the development of new onshore wind farms.

The Scottish National Party

Distribution of Powers:

Grid connections: The SNP are also seeking a grid-charging regime which is more cost-efficient for Scottish users.

As of now, the relation between UK energy policy and Scottish policy is complex. Renewable energy, the consenting of electricity generation and transmission development, and delivery of energy efficiency and some building level energy measures are devolved.

For example, Scottish policy levers can augment the RHI, but not direct it. Following the September referendum David Cameron announced the Smith Commission which looked at the distribution of powers between the Edinburgh and London parliaments.

Community Energy: The SNP have a significant emphasis placed on promoting communityfocused energy schemes.

Con: Conservatives have little support in Scotland. Their engagement with the country will be at arms’ length, and they have little leverage to prevent further policies without further alienating the Scottish electorate.

SNP: Are likely to seek that the Smith Commission results in devolution of at least the further powers mentioned. The Conservative Party was a supporter of the Commission. With regard to energy efficiency and energy in buildings, this means that Scotland could have separate policies on how to spend energy efficiency funding- though it may not be able to change the amount, or means by which this capital is raised.

Future Policy Movements Energy policy in the UK is now likely to be directed by the Conservative agenda in England and Wales.

The Conservatives have made some commitments to energy efficiency measures in their manifesto.

In Scotland, the Scottish Government will be eager to have further control over energy policy- and will argue that the Conservative Government does not have the mandate to control such policy there. The Scottish SNP government has made some positive steps forward with regard to supporting renewable energy generation. The Scottish Government is likely to seek to be more interventionist in promoting energy efficiency.

Low carbon technologies:

Climate Change Issues: This is one area where the two party manifestos are in accord to a degree.

Con: Will push for a global climate deal in 2015 –based on limiting global warming to two-degrees. Will continue to support the UK Climate Change Act and aim to cut emissions as cost-effectively as possible. Will not support “additional distorting and expensive power sector targets.”

SNP: Will seek to ensure the UK matches Scotland’s carbon reduction targets and establish a climate justice fund. Will encourage UK to adopt a proactive role at this year’s UN climate change conference.

Will press for onshore wind to continue to receive support through the lifetime of the next Parliament.

Fracking: The SNP oppose fracking.

Energy Efficiency: Will seek to fund ECO equivalent through general taxation.