Utility Week

8 | 6TH - 12TH DECEMBER 2019 | UTILITY WEEK Election 2019 Analysis Campaign on new technology, personal freedom and market mechanisms. "We can harness those ideas and do something about carbon." At the heart of this approach should be properly biting the bullet on pricing car- bon. The report rejects the idea that carbon should be taxed, because this would open up investors in renewable technologies to the risks of political meddling with rate levels. It proposes li•ing the freeze on the UK's carbon price floor, which has been stuck at £14 per tonne of CO2 since 2014 when it should have been more than twice that level. And the existing contracts for difference subsidy regime, which the study acknowl- edges has provided developers of low-carbon projects with stable revenues, should be scrapped because of the impact it is having on consumer bills. The report suggests instead a new regime of carbon contracts, which would compen- sate generators if the future carbon price fell below the level agreed when the project was being developed. This approach even extends to flipping on its head the way electricity and gas are treated for VAT purposes. By raising VAT on gas to 20 per cent, while cutting it to zero for electricity, it would level the playing field for lower carbon domestic heating solutions such as heat pumps. The result would be "really quite small" differences between the costs of installing and operating gas boilers and heat pumps, he says: "Changing the incentive structure makes it slightly more palatable to install renewable heating." Even more radical is Onward's recom- mendation that the Winter Fuel Payment, which all pensioners receive and costs the taxpayer £2 billion a year, be turned into an Energy Efficiency Capital Grant scheme tar- geted at upgrading the energy efficiency of fuel poor households. It's easy to see why ideas like these haven't made it into the Conservative manifesto, given the party's reliance on the "grey vote". However the report provides the kind of detail that may help to fill in the energy policy blank cheque the Tories have offered instead. David Blackman, policy correspondent, Utility Week continued from previous page "Solar has been operating in a policy vacuum for the past year and this manifesto does nothing to fill that." Chris Hewett, chief executive, Solar Trade Association Making energy efficiency a priority It's o•en been described as the Cinderella of the industry, but energy efficiency offers enormous benefits in terms of emissions, affordability and comfort. That's why it's at the top of Utility Week's election manifesto. There is a conspicuous gap in policy when it comes to getting energy efficiency measures installed in new and existing homes. The government has previously stated its ambition to upgrade all homes to Energy Performance Certificate band C by 2035, where "cost-effective, affordable and practical", and all rented homes by 2030. There is also a statutory target to raise the homes of fuel poor households "as far as reasonably practicable" to EPC band C by the end of the next decade. However, in a report published in July, the Business, Energy and Industrial Strategy Committee said the UK is "off-track" to meet these targets, particularly in England where there is far less funding on offer than in Scotland or Wales. The report welcomed the introduction of rules preventing landlords from starting new tenancies for properties below band E but said many have been able to secure exemptions on the basis of cost. It said the government's flagship policy – the Energy Company Obligation – has been used to "mask" a lack of commitment from policymakers. Appearing before the inquiry to give evidence in April, the energy and clean growth minister at the time, Claire Perry, was unable to explain how the govern- ment planned to unlock the between £35 billion and £65 billion of investment which she confirmed would be necessary to meet the targets. Utility Week's Election 2019 Manifesto • Empower utilities to deliver net zero by 2050 • Help utilities to forge a new social contract with the public • Protect investment in the delivery of lifeline services • Foster innovation to stimulate a thriving green economy Find out more at utilityweek.co.uk/uw-election-manifesto Water 'needs an Attenborough' For the water sector, Utility Week is calling for a national campaign promoting more responsible use of water. Water efficiency manager at Southern Water, Ben Earl, says the issue must been seen as societal, not just for water companies to fix and changing habits will take a significant change of mindset. "We need the David Attenborough of the water world – someone with huge public following to get across the message of how important water is to us in our daily lives." Water companies have made significant individual and joined-up efforts such as the Love Water campaign to encourage customers to reduce consumption but per capita consumption is not falling fast enough. Earl believes a nationwide campaign with government backing is required. "What we are calling for is a shi• in the public conversation around this from something that you just use to beat up water companies on to something that's a shared responsibility. It's a societal issue not just a company one." Compulsory water labelling is one swi• change the government could intro- duce that would benefit consumers and the environment. The Energy Savings Trust released a report that showed labelling could reduce consumption by 31 litres per person per day. That view is echoed by Tom Kelly, wholesale director at SES Water, who tells Utility Week the sector's plans to reduce customer consumption will only deliver part of the journey to sustainable use of this vital commodity. "Through the introduction of compulsory water labelling on white goods and water fittings, building regulations that require water re-use on new properties and mandating water retailers provide water efficiency services to all their cus- tomers, the government has multiple roles to play," Kelly says. Utility Week Manifesto

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