The Energy Bill, published today, could determine for decades to come how the UK generates and regulates electricity. After months of battles within the Coalition over energy policy, and investors in renewables going cold, the government appear to have reached a deal. Energy companies will be able to charge households an extra £7.6bn to fund low-carbon energy infrastructure. This is estimated to add £100-£170 to consumers' bills per year.
The bill should help ensure the UK reaches its EU 2020 renewables target. Yet the government have backed out of an essential policy for guaranteeing the long-term direction of our power sector: a decarbonisation target. Such a target is needed to ensure that the UK cuts its carbon emissions, invests in green jobs and reduces consumer bills by making our power sector more efficient. But the government say that a decision on a decarbonisation target will be delayed until 2016. This is the first time the government has rejected the formal advice of the independent Committee on Climate Change.
The outcome of the Energy Bill shows the dangers of leaving energy policy to the realms of government and business. When it comes to greening the UK economy, business and finance matter - it was essential that the government listened to concerns from businesses and investors and ensured revenue for renewables in the short term. But to deliver a sustainable, fair energy economy, we need much more than this.
Energy policy is also a moral issue. It's not just business that has a stake in it. Energy policy matters to people around the world who are now on the frontlines of climate change, facing food shortages and dangerous weather conditions. It matters to those of us in the UK who want green, affordable energy and green jobs.It also matters to those of us who have a strong commitment to reduce the environmental impact of our lives.
Last year Quakers in Britain committed to become a low-carbon, sustainable community. Reducing the environmental impacts of our energy use, food and consumption has become central to our faith. But we also recognise the need for political change if our society is to become sustainable. With political will, energy policy could financially support the delivery of affordable green energy and help end our dependency on fossil fuels. WWF-UK's Positive Energy report shows how the UK could achieve 60% renewable energy by 2030, with the proportion reaching even higher with ambitious energy demand reduction and interconnection of our power system with Europe.
There has been an eerie silence about climate change among politicians, business and the media in recent conversation over energy policy. The debate has boiled down to whether or not the Energy Bill will provide certainty for existing business and investors in renewables. Little has been said about whether the bill could address environmental injustices, and help build a sustainable economy.
If these issues were back on the agenda, we could have a bill that commits outright to cut carbon. It could provide long term financial certainty to new and developing renewables companies, creating new jobs. Consumer electricity bills would not need to increase to fund clean energy. If the energy policy committed to make our power system more efficient, consumers could buy less energy, making consumers' bills fall. With a developed renewables-based system, households would be protected from regular price hikes in electricity.
In 2008, grassroots groups came together to demand from government a strong, legally-binding commitment to cut the UK's carbon emissions. It worked. The government committed in the Climate Change Act to cut 80% of UK emissions from 1990 levels by 2050.
The UK's Climate Change Act could help our leaders have influence in negotiations to reach a legally-binding climate deal at Doha this week. But the Act won't deliver change, or hold weight with international leaders, unless the UK demonstrates itself to be committed with a robust plan to cut carbon. That's another reason why over the next few months, all of us affected by energy policy must demand commitment from government to cut power sector emissions by 2030 and transform our energy system.