Bill payers are being fracked over by misleading claims from Cameron

Even if shale gas does bring down bills, we may need to wait 15 years for it to do so. The government's narrow focus is selling the public short.

Fracking made the headlines yesterday as Caroline Lucas was among protestors apparently outnumbered by police in Balcombe. As Lucas was being dragged off to sit in the back of a police van and reflect on her part in the "mass civil disobedience", protestors elsewhere were superglueing themselves to the London offices of PR agency Bell Pottinger, representatives of energy company Cuadrilla.

The protestors have focused largely on the environmental consequences of fracking but many others will be interested in the potential for fracking to bring down their bills, as David Cameron has claimed it will. But this claim is misleading: even if shale does bring down bills, which is highly uncertain, we may need to wait 15 years for it to do so. With the right conditions in place, fracking has a place in the UK but it offers no protection to bill payers from the high and rising cost of energy.

It makes no sense to import gas we can produce at home, especially if the process creates thousands of jobs and billions of pounds in tax revenues. For this reason we should back fracking as a way to develop the UK’s vast shale gas reserves. According to a recent study, there are shale beds containing 40 trillion cubic metres of natural gas in the north of England.

Support for fracking should not, however, be accompanied by a weakening of the UK’s commitment to reduce its carbon emissions. Gas has a vital role to play for years ahead as a bridging fuel on our way to a near-zero carbon energy system and as a back-up to renewable forms of generation. As long as our legislated decarbonisation targets stay in place and are adhered to, fracking can have a part to play.

While fracking could bring benefits, it will not help households who are feeling the pinch from high energy bills, at least not any time soon. There are two main reasons for this. First, it is not clear how much it will cost to develop shale gas in the UK. The peculiarity of UK shale reserves is a key factor here. Also important is how communities respond to the prospect of fracking in their area: if developers face protests nationwide as they have in Balcombe then clearly costs could be high. Second, and crucially, the price of gas in the UK is set by the price of imports through international markets. One analysis suggests we may need to drill 10,000 wells to offset the need for imports, which, if achievable, could take 15 years.

So, what about householders, who have their seen their energy bills rise by £360 or 60% from 2004 to 2011 and face yet another round of bill increases before the year is out? The government’s preoccupation with all things shale is selling them short.

To be protected from bill increases, householders need to improve the energy efficiency of their properties. The main policy that should support households in doing so, the Green Deal, is not delivering: 130,000 households were expected to sign up to the scheme this year but so far only 306 have. The government should be doing everything it can to get this scheme moving, which means introducing more incentives to simulate demand, looking at ways to reduce the cost of loans that are available and supporting area-based schemes as much as possible.

Some households, the 'fuel poor', struggle with high energy bills more than most. Locating these households is hard and to do so the government should adopt an area-based strategy, centred on local authorities. Local health bodies could also play a key role in these schemes.

Debate on the role for shale gas will not die down any time soon but the government’s argument that it will help bill payers won’t ring true for many years to come.

Protesters form a blocade outside a drill site operated by Cuadrilla on August 19, 2013 in Balcombe, West Sussex. Photograph: Getty Images.

Reg Platt is a Research Fellow at IPPR. He tweets as @regplatt.

Show Hide image

Can Nicola Sturgeon keep Scotland in the EU?

For Sturgeon, Scotland's rightful place is in the EU. If that means independence, so be it.

In the aftermath of the EU referendum, when Remain voters were still nursing their hangovers, a meme began to circulate on Scottish Facebook pages. It was an image of Nicola Sturgeon, the First Minister, her arms outspread, with a simple message: “F***in’ calm doon. Am oan it.”

At a time when British politicians are mired in the kind of chaos seen once in a generation, Sturgeon has emerged as a figure of calm. While her fellow Remain campaigners were speaking tearfully to news cameras, she addressed EU citizens, telling them: “You remain welcome here. Scotland is your home and your contribution is valued.”

When Boris Johnson declared, “Project Fear is over,” she retorted on Twitter, “Project Farce has now begun.” Her message has been retweeted more than 6,000 times. Faisal Islam, the political editor of Sky News, remarked on air that she seemed to be “the person with the most thought-through plan”.

Sturgeon now presents herself as Scotland’s anchor to Europe. Yet critics view her actions as those of a veteran independence campaigner seizing a chance denied to her by the Scottish referendum two years ago. In reality, she is working for both objectives.

It is hard to imagine now but the Scottish National Party was once suspicious of the idea of an independent Scotland in Europe. The idea took hold thanks to Jim Sillars, the Labour MP who led the 1976 breakaway that formed the Scottish Labour Party. He defected to the SNP in the early 1980s and became one of its strongest pro-EU advocates. The promise of an independent state within a larger framework was soon a mainstay of the party’s campaigns. The 1997 manifesto promised voters “the restoration of self-confidence and the creation of a modern democracy in the mainstream of European life”.

In the early years of the Scottish Parliament, Sturgeon’s approach to the EU was one of a negotiator, not an idealist. In 2003, she put forward a motion that the Scottish Executive should oppose the reduction of Scottish seats in the European Parliament from eight to seven. “Scotland, with no seat on the Council of Europe, no commissioners and fewer MEPs than comparably sized independent member states, has little enough influence in the EU,” she argued.

Her interest in representation emerged again in 2005 when she described an EU proposal on software patents as “a serious threat” to developers. She noted that: “There was apparently no Scottish minister at the Council to represent Scottish interests, the UK instead being represented by an unelected member of the House of Lords.”

Sturgeon’s commitment to work with the EU has not always been reciprocated. In the Scottish referendum, as deputy first minister, she promised the continuity of EU membership. Yet José Manuel Barroso, the then president of the European Commission, said it would be “extremely difficult, if not impossible”, for an independent Scotland to join. Some consider his statement to have been crucial to the success of the No campaign.

When the EU referendum arrived, Sillars, the architect of the SNP’s Europhile agenda, criticised the “love affair” that he believed his party was indulging in and joined the campaign for Brexit. Sturgeon made a different calculation. She threw herself into the Remain campaign, though she was careful not to stand alongside David Cameron. She played down the Scottish independence line – when asked, in the run-up to the vote, if she was a unionist, she described herself as “an enthusiastic European”.

She turned her reputation as a “nippie sweetie” to her advantage. Once viewed as a dour machine politician, now Sturgeon was warm to voters while cutting Boris Johnson down to size. There was no need to scaremonger over Europe, she said. A positive campaign was enough. There is no doubt that she tapped in to the popular feeling: 62 per cent of voters in Scotland opted to remain in the EU, compared to 48 per cent in the UK as a whole. Every local authority area north of the border voted Remain.

As the referendum results rolled in, she prepared to go it alone. “There are no rules,” Sturgeon told Andrew Marr. “The status quo we voted for doesn’t exist.” To her, Scotland’s rightful place is in the EU and if that requires independence, so be it.

She offered to meet Brussels diplomats. She contacted EU institutions. She put forward a motion in the Scottish Parliament demanding “the Scottish government to have discussions” in pursuit of “protecting Scotland’s relationship with the EU”.

Yet Barroso’s warnings may come back to haunt Sturgeon. She has always painted a picture of an independent Scotland in Europe as one that is nevertheless tied to the British Isles. Its currency is the pound; Scots and the English move freely between Glasgow and Carlisle. EU member states may seize on her proposal, or use it as a way of repeating the rebuff of 2014. Sturgeon the nippie sweetie negotiator has her plan for a European Scotland. Now she must wait for Europe to answer. 

This article first appeared in the 30 June 2016 issue of the New Statesman, The Brexit lies