Catherine for PM...

In the UK, energy has been very prominent in the news recently due to the ‘Big Six’ energy companies proposing fuel bill increases. Over the last couple of days, the causes for the increases have been linked to renewables, and the ‘green taxes’ which are added on to fuel bill to fund policies such as the ‘Renewable Obligation Certificates’ which all contribute on average 9% to fuel bills. 

The PM in all his omniscience is now reviewing the green taxes to help reduce fuel bills. I completely agree that the issue of fuel poverty is an ever present problem which is only set to affect more and more people. However to remove green taxes and therefore necessary funding for all renewable projects is an incredibly unsustainable way of easing fuel bills. One issue is that if they are removed across the board, the consumers who could easily already afford those fuel bills will not feel the benefit, but they will feel the negatives when generation from renewables slows and over the years, prices increase far more than the cost subsidising renewables currently! 

I agree that fuel prices are too high, but I feel that this should be cause for more regulation of energy companies, more stringent requirements for investing in renewables but also subsidies to encourage more energy efficient homes for the poorest households, in order to reduce fuel bills for those who are struggling to pay, while maintaining and further encouraging renewable investment. I feel this will encourage more responsible and sustainable investing by the energy companies, leading them along a line of planning long term, which will benefit them through security and reliability for investors. 

Along a similar line, I welcomed the news that the Chinese are investing in a nuclear plant in the UK, not because of the plant specifically, but because of the message this should give to international investors. I hope that this shows that the UK is very open to investment in the renewables sector from elsewhere, which over time should reduce the industry’s dependence on subsidies, therefore both easing fuel bills through direct reduction of green taxes and increased security of supply.