100 day plan for the UK energy sector
A new government and a new parliament presents a fresh opportunity for the energy sector. It is clear after the turbulence of recent years, that policymakers and companies like E.ON must come together to find a better way forward.
As we set out prior to the General Election in our manifesto, we believe there are several steps the new government can take to make our energy system fairer, more sustainable and more resolute.
There is no time like the present to seize the initiative to pave the way for a better future. We're ready to work and partner with everyone invested in this mission to make it happen.
In the first 100 days of the new government, we believe that it is time to set a clear direction of travel towards an energy ecosystem in Great Britain which works for everyone.
Ahead of the King’s Speech on July 17th, there are five things the new administration can do to make that happen:
1. Tackle the affordability crisis: People are still dealing with high energy bills and many are unable to pay. During winter 2023/24, E.ON delivered over £150m of support to help customers with their bills. Ahead of this winter, we would strongly urge the government to institute a social tariff. A social tariff alone will, however, not bring an end to high energy bills. Government must begin to improve liquidity in the wholesale market so that energy suppliers can buy electricity for customers at competitive prices.
2. A new approach for the retail energy market: The government must start the process to deliver a new settlement for the energy retail market in Great Britain. This must involve industry and consumer groups as it will be vital to delivering the transformation required to support the green transition. We would urge the Secretary of State to convene discussions on this as soon as possible.
3. Reinvigorate the green transition through energy efficiency: A poll of over 10,000 people commissioned by E.ON found that over half felt progress towards the green transition had stalled. We want to work with government to help deliver an overarching nationwide energy efficiency strategy so people can enjoy the benefits of the green transition. E.ON is already striving to deliver this change, whether it is installing 5 million smart meters, joining forces with Coventry City Council to revolutionise energy use in the city, and launching an innovative Energy as a Service trial in the North-West of England, making it more affordable for 300 households to make their homes sustainable through a monthly subscription fee.
4. Unblock the project pipeline: Reform is needed to ensure the planning system becomes aligned with our net zero goals. Currently, planning restrictions can present a serious barrier to a whole range of initiatives, from home improvements to huge infrastructure projects. The direction of travel set out by the new Chancellor in her first speech is a welcome one and necessary to deliver critical infrastructure required to turbocharge the green transition.
5. Train the workforce of the future: The last Green Skills Strategy was published in 2021. We need a new strategy to ensure that the workforce of the future is appropriately skilled and people believe they can have a rewarding career in the green transition. E.ON has already trained over a thousand workers since the opening of our Net Zero Academy at Kingswinford in 2017, so that we can help make sure the energy in our homes can be cleaner, greener and more affordable for customers.
We stand ready to work with Government and all interested parties over the life of this Parliament to make new energy work.
For more information, read our energy manifesto here.