Stop-go saving the plant

The government needs to follow London's example and make going green affordable

If you have ever fancied the idea of getting a government grant to help you put a wind turbine, solar panel or wood-burning stove in your house, then by the time you read this it will probably be too late – for this month at least.

The Low Carbon Buildings Programme was set up by the DTI last year to boost the take-up of renewable energy technologies on houses and community buildings, by giving away grants of up to 50 percent towards the cost of installation. £80 million was committed to the programme in total, but initially just £6.5 million to the household part of the scheme, and this was tapered over three years to stop in 2009.

Even without being properly promoted, the LCBP grants have already proved much more popular than funds allowed. When the £3.5m originally set aside for 2006/7 ran out after just six months at the end of October, the then Energy minister, Malcolm Wicks, responded by shifting another £6.2 million into the household pot from elsewhere in the programme.

Despite howls from the renewable energy industry, who had already suffered a hiatus of several months at the start of the year while thrifty householders bided their time between the end of the previous ‘Clear Skies’ scheme and the start of the LCBP, the DTI decided to divide the new money into monthly rations. They said the move was to make sure the grants lasted to the end of the scheme, but it has proved a disastrous strategy.

With just half a million pounds to go around each month, the money ran out on 20 December, 12 January and then, last month, applicants logging onto the LCBP website were told to ‘try again next time’ before noon on the first day of February.

So, we’re predicting even worse this month, and the Greens have issued a plea to the government to boost the fund for March and then do something to sort out some real incentives for renewable power in the budget in three weeks’ time. My previous blog about the benefits of feed-in tariffs shows how the pay-back period for renewables can be dramatically cut, but making it possible for ordinary households to afford the up-front costs is just as important - if it isn’t going to be only the rich few taking advantage of the benefits.

The German government has got the right mix of policies – as well as setting feed-in tariffs, low cost loans are being handed out at the rate of more than a billion pounds a year. If we can create a scheme to force unwilling students to take out index-linked loans to pay for their education, we can certainly organise something similar to help the millions of willing people out there save the planet.

All this thrashing around by central government is in sharp contrast to our regional government here in London. Greens are so impressed with Mayor Ken Livingstone’s new Climate Change Action Plan that I took part in the press launch this Tuesday and even wrote a foreword for the 232-page document.

The plan aims to cut London’s emissions by 20 million tonnes of carbon a year by 2025. Many smaller measures, such as switching off lights or powering the tube with renewable energy, will contribute to these reductions.

But my two favourite ideas will also bring some of the biggest reductions. The first is decentralising our energy supply, so that a quarter of our electricity is moved off the national grid in 20 years’ time. The second is a crash programme of home insulation, lining lofts and filling the millions of cavity walls still losing heat throughout the capital.

This will be provided cut-price to everyone and completely free to pensioners and people on benefits. The average household will not only be much greener, but will also save £300 per year on its bills.

Of course, the Green Party would be keen on the plan, seeing as most of the measures in it have been prompted by our London Assembly members’ work with the Mayor.

Since 2004, they have used their voting clout over the Mayor’s annual budget to add more and more green measures to his plans, so that this year more than £150 million will be spent on things to help Londoners live more lightly on the planet, and most of these things are key parts of the action plan.

It’s very appropriate that London should be the city taking the lead on this. We are one of the most vulnerable cities to climate change worldwide, with nearly a million of us already living below high tide level, and the Thames Barrier is being raised more often than ever before.

A year before hurricane Katrina, Sir David King, the government’s chief scientist warned that, ‘cities like London, New York and New Orleans would be the first to go’ as the world warms up.

However, there is a big hole running right through the London action plan – and it’s labeled ‘central government action’. There’s only so much Londoners can do on our own and, to achieve the 60 percent cuts science tells us we need by 2025, a further 13 million tonnes a year needs to be saved with measures we don’t control.

Aviation already causes 34 percent of London’s total emissions (and that’s just counting the planes that take off from City and Heathrow airports, not the flights home or any that go from Gatwick or Stansted) so without a national change of heart on airport expansion, we will never make the targets.

Similarly, measures to encourage behaviour change, get us into cleaner cars and bring us cleaner electricity can only go so far without the same kind of vision from national government. Over to you, Gordon – we’re waiting!

Sian Berry lives in Kentish Town and was previously a principal speaker and campaigns co-ordinator for the Green Party. She was also their London mayoral candidate in 2008. She works as a writer and is a founder of the Alliance Against Urban 4x4s
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Debunking Boris Johnson's claim that energy bills will be lower if we leave the EU

Why the Brexiteers' energy policy is less power to the people and more electric shock.

Boris Johnson and Michael Gove have promised that they will end VAT on domestic energy bills if the country votes to leave in the EU referendum. This would save Britain £2bn, or "over £60" per household, they claimed in The Sun this morning.

They are right that this is not something that could be done without leaving the Union. But is such a promise responsible? Might Brexit in fact cost us much more in increased energy bills than an end to VAT could ever hope to save? Quite probably.

Let’s do the maths...

In 2014, the latest year for which figures are available, the UK imported 46 per cent of our total energy supply. Over 20 other countries helped us keep our lights on, from Russian coal to Norwegian gas. And according to Energy Secretary Amber Rudd, this trend is only set to continue (regardless of the potential for domestic fracking), thanks to our declining reserves of North Sea gas and oil.


Click to enlarge.

The reliance on imports makes the UK highly vulnerable to fluctuations in the value of the pound: the lower its value, the more we have to pay for anything we import. This is a situation that could spell disaster in the case of a Brexit, with the Treasury estimating that a vote to leave could cause the pound to fall by 12 per cent.

So what does this mean for our energy bills? According to December’s figures from the Office of National Statistics, the average UK household spends £25.80 a week on gas, electricity and other fuels, which adds up to £35.7bn a year across the UK. And if roughly 45 per cent (£16.4bn) of that amount is based on imports, then a devaluation of the pound could cause their cost to rise 12 per cent – to £18.4bn.

This would represent a 5.6 per cent increase in our total spending on domestic energy, bringing the annual cost up to £37.7bn, and resulting in a £75 a year rise per average household. That’s £11 more than the Brexiteers have promised removing VAT would reduce bills by. 

This is a rough estimate – and adjustments would have to be made to account for the varying exchange rates of the countries we trade with, as well as the proportion of the energy imports that are allocated to domestic use – but it makes a start at holding Johnson and Gove’s latest figures to account.

Here are five other ways in which leaving the EU could risk soaring energy prices:

We would have less control over EU energy policy

A new report from Chatham House argues that the deeply integrated nature of the UK’s energy system means that we couldn’t simply switch-off the  relationship with the EU. “It would be neither possible nor desirable to ‘unplug’ the UK from Europe’s energy networks,” they argue. “A degree of continued adherence to EU market, environmental and governance rules would be inevitable.”

Exclusion from Europe’s Internal Energy Market could have a long-term negative impact

Secretary of State for Energy and Climate Change Amber Rudd said that a Brexit was likely to produce an “electric shock” for UK energy customers – with costs spiralling upwards “by at least half a billion pounds a year”. This claim was based on Vivid Economic’s report for the National Grid, which warned that if Britain was excluded from the IEM, the potential impact “could be up to £500m per year by the early 2020s”.

Brexit could make our energy supply less secure

Rudd has also stressed  the risks to energy security that a vote to Leave could entail. In a speech made last Thursday, she pointed her finger particularly in the direction of Vladamir Putin and his ability to bloc gas supplies to the UK: “As a bloc of 500 million people we have the power to force Putin’s hand. We can coordinate our response to a crisis.”

It could also choke investment into British energy infrastructure

£45bn was invested in Britain’s energy system from elsewhere in the EU in 2014. But the German industrial conglomerate Siemens, who makes hundreds of the turbines used the UK’s offshore windfarms, has warned that Brexit “could make the UK a less attractive place to do business”.

Petrol costs would also rise

The AA has warned that leaving the EU could cause petrol prices to rise by as much 19p a litre. That’s an extra £10 every time you fill up the family car. More cautious estimates, such as that from the RAC, still see pump prices rising by £2 per tank.

The EU is an invaluable ally in the fight against Climate Change

At a speech at a solar farm in Lincolnshire last Friday, Jeremy Corbyn argued that the need for co-orinated energy policy is now greater than ever “Climate change is one of the greatest fights of our generation and, at a time when the Government has scrapped funding for green projects, it is vital that we remain in the EU so we can keep accessing valuable funding streams to protect our environment.”

Corbyn’s statement builds upon those made by Green Party MEP, Keith Taylor, whose consultations with research groups have stressed the importance of maintaining the EU’s energy efficiency directive: “Outside the EU, the government’s zeal for deregulation will put a kibosh on the progress made on energy efficiency in Britain.”

India Bourke is the New Statesman's editorial assistant.