Who runs Britain’s energy policy?

A smaller cut in wind power funding comes at the cost of a commitment to decades more of dirty and expensive gas.

Who runs Britain’s energy policy? We have a Department of Energy and Climate Change – you might think from their name that they do. Or perhaps it’s Chancellor George Osborne’s Treasury that calls the shots? Now you’re getting warmer.

This week's announcement by the Energy Secretary, Ed Davey, that he had secured only a 10 per cent cut in wind power funding, was heavily spun as a victory for the Lib Dem-run department. Given that the Treasury had been demanding 25 per cent cuts, this seemed a victory indeed – but one with a huge hidden cost. Because, as payment for this victory, Davey has been forced to quietly concede to another of the Treasury’s demands: a commitment to decades more of dirty and expensive gas.

We know this to be the Chancellor’s wishes, because on Monday someone leaked a letter – effectively a ransom note – that he had sent to Davey outlining his position. In it, Osborne demanded that the Energy Secretary issue “a statement which gives a clear, strong signal that we regard unabated gas as able to play a core part of our electricity generation to at least 2030 – not just providing back-up for wind plant”.

Acceding to this outrageous demand would mean seriously jeopardising the UK’s fight against climate change. As the Government’s independent advisors, the Committee on Climate Change, stated in response: "This would all lead to a second dash for gas. This would be incompatible with the government's climate change goals."

But on Wednesday, DECC dutifully trotted out a press release stating that “the Government… is today confirming that it sees gas continuing to play an important part in the energy mix well into and beyond 2030”. Some victory.

The exchange has also highlighted the hypocrisy of the Treasury in its assessment of what merits public subsidy, and what must go without.

Osborne stated in his letter to Davey: “While your proposals [on renewables funding] achieve some savings we will still be paying more than £500m more to support renewable generation in 2013-14 than we collectively agreed was affordable”. No-one disputes that as technology costs come down, public funding for renewables should decline; the renewables industry itself was offering up 10 per cent cuts.

But wait; what’s this? On Wednesday, as DECC announced its cuts to renewables funding, the Treasury simultaneously unveiled £500m of tax breaks for offshore gas drilling. What’s unaffordable to spend on clean energy suddenly becomes eminently affordable to spend on drilling up the dirty stuff.

Enough is enough. The Chancellor must be prevented from undermining the UK’s green economy – as the CBI recently stated, it’s one of the few parts of the economy still growing. A high-carbon energy system will lock the UK in to a high-cost as well as high-polluting future. So in whose interests is the Chancellor acting?

It’s now up to David Cameron and Nick Clegg to back their Energy Minister over the Chancellor. They should insist that the Energy Bill includes a target to decarbonise the UK’s electricity system by 2030 and unlocks support for clean British energy. The alternative energy strategy that George Osborne would have us follow is a dirty and dangerous dead end.

Guy Shrubsole is an Energy Campaigner at Friends of the Earth. For more information on Friends of the Earth’s Clean British Energy campaign: www.cleanbritishenergy.co.uk

 

Photograph: Getty Images

Guy Shrubsole is energy campaigner at Friends of the Earth.

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Work with us: Wellcome Scholarship at the New Statesman

Be one of our 2016 science interns.

Britain needs more great science writers – particularly from backgrounds which have been traditionally under-represented in the media.

To address this, the New Statesman and Wellcome Trust, in partnership with Creative Access, have come together to offer annual placements to student or graduates from an ethnic minority background*.

The final 2016 placement will take place this Autumn/Winter (the exact date is flexible) and will last for four weeks.

Over the course of the placement, the successful applicants will:

  • Work alongside the New Statesman web and magazine team, learning about the editorial and production process, and how articles are conceived, written, edited and laid out;
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Over the course of the placement, you will be paid London living wage.

To apply for the placement, follow the steps below and apply direct to the New Statesman. 

Please write an 800-word blogpost on a recent or upcoming scientific development which you feel has the potential to change lives significantly, explaining clearly and concisely what stage the research is at, and how it is likely to proceed. It should be written as if for the NS audience - interested, intelligent laypeople.

Please also write up to 200 words on why you are right for this placement and what you would hope to get out of it. You don't need to send a CV.

Please only use Word files, or paste your text into the body of an email. 

Send your application by email to Helen Lewis (Helen @ newstatesman co uk) with the subject line “Wellcome Scholarship 2016”. 

Applications close on 30 September 2016. Interviews will take place soon after.

This is a positive action scheme under the Race Relations Act.