• Saturday, March 01, 2025

Business

UK energy reform call gets major boost

Representational Image (Photo by Christopher Furlong/Getty Images)

By: Shubham Ghosh

British parliamentarians from all major parties on Tuesday (9) called on the government to enable local selling of clean energy at the Energy Bill’s Second Reading. More than 120 MPs from the Conservative Party have backed the change.

Two clauses added by the House of Lords to the government’s Energy Bill mean that households and businesses can become customers of community-led local renewable energy companies.

According to studies, this would lead to a 20-fold growth in renewable energy generation from such schemes in a decade’s time.

Three-hundred and twenty MPs from all parties, including 127 Tories besides several councils, the National Trust, the Church of England and more than 80 other national organisations are in favour of the proposals, said a press release.

The reform would improve energy market competition, create tens of thousands of skilled jobs and help reduce customers’ energy bills, whilst accelerating the construction of new clean energy infrastructure.

Money from energy bills would be kept local and would improve local economies across the country, while increasing local provisions for support of vulnerable customers.

Currently, outdated market regulations are blocking the potential for growth in smaller-scale energy schemes.

At a debate on the government’s Energy Bill recently, many MPs from all parties stood up and called on the government to stop dragging its feet.

Greg Smith, Conservative MP for Buckingham, said, “It is an absurdity that the community energy sector has seen minimal growth in recent years because of energy market and licensing rules.

“These [clauses] seem to be straightforward, pro-competition, pro-consumer reforms. If the minister is minded not to support them, what will he propose to open up the huge community energy sector opportunity?”

According to Selaine Saxby, Conservative MP for North Devon, “It is still bewildering to me, as someone who lives somewhere sunny, windy and with a huge tide, why this has not progressed sooner.”

David Johnston, Conservative MP for Wantage, remarked, “The Government have consistently said that they support the development of community energy. I urge the minister to work with us.”

Power for People is the group organising the campaign for this change.

Its director Steve Shaw said, “Because of the barriers and unreasonably regulatory burdens, not one community energy scheme in the UK sells their clean power directly to local customers. The wasted potential has gone on for far too long.

“Community energy groups should be enabled to sell their power to local customers. This has remarkable public and Parliamentary support and so it should be enacted. I call on the Government to work with the hundreds of supportive MPs to enable this vital reform.”

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