Empowering our nation

Empowering our nation: Energy matters for politicians

Addressing the cost-of-living crisis while boosting growth, energy security and wider prosperity are some of the biggest challenges facing the next Government. Decisive action to enable an accelerated transition to Net Zero is the solution.

The need for urgency is not just driven by the immediate impacts we see on our planet, headlines of wildfires, record-breaking temperatures or citizens forced to move to more hospitable climates. Acting quickly serves another purpose: the faster we transition, the more taxpayers will save; the more customers’ lives and livelihoods will be improved by better products and services, more affordable bills and less wasted energy; and the more people will benefit from wider socio-economic impacts like jobs and businesses that can innovate and thrive here. An accelerated transition could boost the UK’s economy by £240 billion more in 2050 than the current trajectory.[1]

In an era of constrained finances, maximising the private sector’s ability to invest is crucial.

Energy UK is the UK’s largest and most diverse energy trade association, and our members are ready to lead the journey to Net Zero by working in partnership with all politicians to deliver a lasting legacy of positive change.

We represent companies with plans to invest billions of pounds in the UK and build the infrastructure that is critical to our energy security. Our members target millions of pounds every year in financial support for customers, and commit to going above and beyond regulation to support those that need it most. Our membership spans the whole energy system, and includes small UK-based startups as well as FTSE 100 organisations; we are the voice of the energy industry.

Global price shocks have shown just how much our economy relies on energy. It’s the unseen force that powers our homes, our schools and hospitals, the jobs we rely on, and the businesses that keep our communities thriving. It’s how we stay warm in the winter and how we move around the country. A robust, competitive and innovative energy market is vital to protect people and businesses from volatile energy prices and at the same time ensure our future energy security. As a sector that deals with millions of people and businesses every day, we are best placed to deliver some of the changes needed. But we can’t do it alone.

Success is driven by long-term policies, that bring stability to markets and encourage investment.

Energy Matters: People, Power, Prosperity is Energy UK’s proposal for a new partnership between industry and Government to deliver the actions needed to transform our economy. It sets out the frameworks needed to unlock private sector investment that is expected to provide 70% of the £1.4 trillion estimated to be required to meet Net Zero.[2]

Our key messages for politicians are:

The energy transition must be fair – everyone in society should benefit
Clear the regulatory blockers in the system – critical infrastructure needs to be built
Maximising private sector investment is crucial – to reduce spend on the public purse
Urgency is key – the quicker we move, the more taxpayers and energy customers will save
A strong partnership will deliver success – as it has in the past

This is a crucial point in time, and the decisions we make now will shape how we’re remembered in the future. We have the opportunity to lead the world, reap the benefits of a Net Zero economy and leave a positive legacy for years to come. Grasp these opportunities and let our actions today kick-start an economic and environmental transformation that future generations will admire, and look back upon as a revolution to rival the Victorians.

People

The challenge

Polling shows that 71% of voters would support our Net Zero targets.[3] But right now, it’s often too difficult for people to understand how to make the changes needed.

*If the next Government….*	*The private sector can…*
Delivers reform of the energy retail market to make it a profitable and competitive market.	Ensure there is greater targeted support for the most vulnerable households and at the same time make it easier and more modern than ever to manage energy use.
Sticks to existing targets giving certainty to businessand invests in energy efficiency.	Deliver more energy efficiency measures, permanently reducing energy bills, and install more smart technologies.

Power

The challenge

By 2035, the UK will see a 50% increase in electricity demand.[4] The next Government has an exciting opportunity to generate clean electricity and deliver greater energy security.

*If the next Government….*	*The private sector can…*
Tackles issues with grid connections and network investment.	Reduce the UK’s reliance on imported gas by accelerating the rollout of renewables.
Simplifies the planning and consenting process.	Build more low-carbon energy powered by British resources and increase energy security.
Works with industry to provide the best investment framework in the world.	Invest the hundreds of billions needed over the coming decades to power our transition to a clean economy.

Prosperity

The challenge

The UK is forecast to have the slowest growth in low-carbon electricity generation between now and 2030 out of the eight largest major economies.[5] With the right policies in place, providing capital goods and services to the global Net Zero transition could be worth £1 trillion in revenue to UK businesses between 2020 and 2030.[6]

*If the next Government….*	*The private sector can…*
Prioritises energy as a fundamental part of its economic strategy.	Help increase GDP by £240 billion by 2050 with a more ambitious transition than the current trajectory.[7]
Works closely with international partners to increase cooperation across energy matters.	Create up to 750,000 jobs and opportunities in the Net Zero economy.[8]