Miliband's new energy policy could be a vote winner

A greener and cheaper approach would have significant appeal.

A Hackgate-galvanised Ed Miliband has picked a new Goliath to aim his slingshot at. In a little-noticed newspaper interview, the Labour leader pledged to demolish the Big Six energy suppliers' control of the domestic electricity and gas market: "Six energy companies control 99.9 per cent of the consumer market. This cannot be right and we must take action to open up the market over the coming months," he said. Household bills will fall as result, he claimed.

The phone-hacking scandal has provided Team Miliband with some traction. His story of the powerful-versus-the-powerless is gaining momentum. Attacking what he sees as the unfettered interests of the over-powerful started with banks, and flourished with newspaper proprietors. The energy companies are now firmly in his sights.

It was a carefully-chosen political target. A recent poll by Populus found that 63 per cent of 2,000 respondents were "very concerned" about rising gas and electricity prices. The issue is nearly twice as important to the British public as the state of the NHS, unemployment rates and public sector cuts, which have all received far greater media attention. Miliband, reacting quickly to recent energy price rises, has grabbed a topic that wouldn't normally attract attention until the autumn, when the weather turns colder.

In his zeal to keep bills down, Labour's leader must not ignore the cost of green policies in higher energy prices. Currently climate policies add around 14 per cent on to household electricity prices (and 4 per cent on gas prices), according to government figures. By 2020, policies will increase electricity prices by more than 30 per cent. For businesses, the percentage rise is around 40 per cent.

This is tricky political territory for Miliband, who ran the Department for Energy and Climate Change before last year's election. However, his new focus on protecting people's pockets should lead to a fresh look at wasteful policies.

Top of the list should be the EU's 2020 Renewable Energy Directive, which needlessly commits the UK to meeting 15 per cent of its total energy needs from renewable sources by 2020. This move was driven by a desire for a catchy European green slogan rather than hard-headed economics. By forcing the UK to decarbonise by installing expensive offshore wind rather than cheaper alternatives like improving energy efficiency and more nuclear power, this sloganeering will cost UK bill-payers at least £12.5 billion. In addition, the Coalition's proposed overhaul of the electricity market will unpick a major public policy success of the last 30 years, and risks further unnecessary price rises. The confusing jumble of carbon prices that the current policy mish-mash has created should also be overhauled (Policy Exchange has called for the CRC Energy Efficiency Scheme to be scrapped as part of a much-needed tidy up and replaced with mandatory carbon reporting).

A clearer carbon price, backed by contracts, will ensure the cheapest possible emissions cuts are made first. At the same time, finding long-term, low carbon technologies that are cheaper than coal and gas requires a smarter focus on research and development.

Reaching carbon targets will increase household and business energy prices. Politicians must be up front about that. However, the government -- and Miliband -- should maintain an unrelenting focus on ensuring that any move to becoming greener is as done as cheaply as possible.

Guy Newey is a senior research fellow for environment and energy at Policy Exchange.

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Why isn't Labour putting forward Corbynite candidates?

Despite his successes as a candidate, the organisational victories have gone the way of Corbyn's opponents. 

The contest changes, but the result remains the same: Jeremy Corbyn’s preferred candidate defeated in a parliamentary selection. Afzhal Khan is Labour’s candidate in the Manchester Gorton by-election and the overwhelming favourite to be the seat’s next MP.

Although Khan, an MEP, was one of  the minority of Labour’s European MPs to dissent from a letter from the European parliamentary Labour party calling for Jeremy Corbyn to go in the summer of 2016, he backed Andy Burnham and Tom Watson in 2015, and it is widely believed, fairly or unfairly, that Khan had, as one local activist put it, “the brains to know which way the wind was blowing” rather than being a pukka Corbynite.

For the leader’s office, it was a double defeat;  their preferred candidate, Sam Wheeler, was kept off the longlist, when the party’s Corbynsceptics allied with the party’s BAME leadership to draw up an all ethnic minority shortlist, and Yasmine Dar, their back-up option, was narrowly defeated by Khan among members in Manchester Gorton.

But even when the leadership has got its preferred candidate to the contest, they have been defeated. That even happened in Copeland, where the shortlist was drawn up by Corbynites and designed to advantage Rachel Holliday, the leader’s office preferred candidate.

Why does the Labour left keep losing? Supporters combination of bad luck and bad decisions for the defeat.

In Oldham West, where Michael Meacher, a committed supporter of Jeremy Corbyn’s, was succeeded by Jim McMahon, who voted for Liz Kendall, McMahon was seen to be so far ahead that they had no credible chance of stopping him. Rosena Allin-Khan was a near-perfect candidate to hold the seat of Tooting: a doctor at the local hospital, the seat’s largest employer, with links to both the Polish and Pakistani communities that make up the seat’s biggest minority blocs.  Gillian Troughton, who won the Copeland selection, is a respected local councillor.

But the leadership has also made bad decisions, some claim.  The failure to get a candidate in Manchester Gorton was particularly egregious, as one trade unionist puts it: “We all knew that Gerald was not going to make it [until 2020], they had a local boy with good connections to the trade unions, that contest should have been theirs for the taking”. Instead, they lost control of the selection panel because Jeremy Corbyn missed an NEC meeting – the NEC is hung at present as the Corbynsceptics sacrificed their majority of one to retain the chair – and with it their best chance of taking the seat.

Others close to the leadership point out that for the first year of Corbyn’s leadership, the leader’s office was more preoccupied with the struggle for survival than it was with getting more of its people in. Decisions in by-elections were taken on the hop and often in a way that led to problems later down the line. It made sense to keep Mo Azam, from the party’s left, off the shortlist in Oldham West when Labour MPs were worried for their own seats and about the Ukip effect if Labour selected a minority candidate. But that enraged the party’s minority politicians and led directly to the all-ethnic-minority shortlist in Manchester Gorton.

They also point out that the party's councillor base, from where many candidates are drawn, is still largely Corbynsceptic, though they hope that this will change in the next round of local government selections. (Councillors must go through a reselection process at every election.)

But the biggest shift has very little to do with the Labour leadership. The big victories for the Labour left in internal battles under Ed Miliband were the result of Unite and the GMB working together. Now they are, for various reasons, at odds and the GMB has proven significantly better at working shortlists and campaigning for its members to become MPs.  That helps Corbynsceptics. “The reason why so many of the unions supported Jeremy the first time,” one senior Corbynite argues, “Is they wanted to move the Labour party a little bit to the left. They didn’t want a socialist transformation of the Labour party. And actually if you look at the people getting selected they are not Corbynites, but they are not Blairites either, and that’s what the unions wanted.”

Regardless of why, it means that, two years into Corbyn’s leadership, the Labour left finds itself smaller in parliament than it was at the beginning.  

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.