By Juliet Davenport, CEO and founder, Good Energy
For the last few years, calls to decarbonise the UK Energy market have felt like cries in the wilderness. All talk with no action. Yesterday the landscape changed when Chris Huhne, the Energy secretary, announced the UK’s first coordinated Energy Plan for 2050.
Accompanying this announcement is a couple of thousand pages, and a raft of proposals and consultations. However, the key document for me is the structural reform plan. In this, the Government lays out its workload for the next 12 months with deliverables, milestones and joined-up thinking.
It’s also put out for trial a carbon calculator on how we can reach our 2050 target, encouraging people to test its assumptions -- we will be doing so soon. This is open government and it means business. Rather than a vague plan which tinkers around the edges, Chris Huhne has delivered a firm commitment to reform how the energy market works and how it is regulated.
The UK must decarbonise our electricity market, and this means that the market must be designed to favour renewables, rather than throwing up obstacles in their way. This requires reforming both transmission and distribution networks; establishing a long-term carbon price; and ensuring energy trading arrangements can accommodate significant penetration by renewable energy. On the consumer side, reform is needed to incentivise customers to switch to Green tariffs - rather than rating all electricity as having the same carbon content, ‘Grid Average,’ regardless of how it was generated.
After years of dithering, the government is at last pushing forward with plans for smart metering. However, work still needs to be done on reforming the settlement system for gas and electricity so it delivers effective ‘time of use’ tariffs – so everyone benefits from higher rates at peak times.
Effective demand management will also play an important role in the energy landscape of the future, and the Government has shown it’s serious about energy efficiency. As the UK decarbonises, then electricity use will grow at the expense of fossil fuels – for example the transition to electric cars will have a big impact. Either we double our generation capacity, or we use our energy in a smarter and more efficient way.
Heating is another area which needs to be looked at. The UK uses more energy heating our homes than Sweden does. Yesterday’s announcement was short on ideas for that, although the plan tells us it will deliver some proposals soon.
Here at Good Energy, we are pleased with this approach, and will work hard with this Government to do what we have always done – move from an aspiration to make a difference to climate change to actually delivering a result.

