Utility Week

14 | APRIL 2021 | UTILITY WEEK Policy & Regulation Talking Points… There is a tension between fi ghting climate change and levelling up the country. Comment David Blackman Policy correspondent T eesside will have felt well and truly love-bombed by Rishi Sunak as the chancellor unveiled his spring Budget. The repeated mentions of the area, where the Conservative metro mayor faces the voters this May for the • rst time since winning the erstwhile Labour stronghold by a knife-edge majority four years ago, o• ered a powerful reminder of how keen the Tories are to entrench their 2019 general election gains across the north of England. However, the government's subsequent volte face over controversial plans for a coal mine in Cumbria have exposed tensions between two of the gov- ernment's key stated objectives: tackling climate change and "levelling up" depressed parts of the country. Environmental critics said the plan would undermine e• orts by the UK government to persuade its counterparts from across the world to cut emis- sions when they turn up at the COP26 summit later this year. Backbench Tory MPs, though, have been up in arms about the government's move. Many of those who signed a recent letter urging Cumbria County Council not to recon- sider its approval for the coal mine represent seats in the north that were only won by the Conservatives in 2019. Boris Johnson's own parliamentary private secretary is Whitehaven MP Trudy Harrison, who is a passionate supporter of the project. Similar concerns around levelling up prompted the government's announcement that it is looking to axe air pas- senger duty on domestic " ights. Combined with the continuing freeze on fuel duty announced in the Budget, this has fuelled an impression that the govern- ment's stated commitment to curbing emissions is skin deep. Some see the problem as a lack of grip at the heart of government, stemming from Johnson's famous lack of inter- est in detailed policy-making. There is clearly a good story about how investment in energy and other green industries can help to deliver levelling up objectives. However, a 30-year programme like the transition to net zero could very easily be capsized by short-term trimming to mollify interest groups. There will be much bigger and electorally riskier decisions to be made, which will dwarf the fate of 500 Cumbrian mine jobs. Some of these will have to be made soon, like the timeta- ble for phasing out gas boilers, which is due to be considered in the government's heat and building strategy. The concern is that when COP is over and the global spotlight is o• the UK, more grassroots political pressures will tempt the government to fudge the climate change issue. "Government has set itself a huge test in committing the UK to a net zero economy by 2050 – but there is little sign that it understands how to get there and almost two years later it still has no plan." Meg Hillier, chair of the House of Commons Public Accounts Committee "The assertion that networks have made 'excess profi ts' is one we fi rmly refute. In actual fact, network costs have fallen 17 per cent since the mid-90s and customer ser vice scores for the networks are at 9/10." Ross Easton, director of external a airs at Energy Networks Association, responding to Ofgem's proposed cost of capital for RIIO- ED2 (see Review, p6) "Our defi nition of a water company's role in society is quite diff erent to others and it defi nes our approach to social value. We don't need lectures from anybody on how that should be articulated." Richard Emmott, director of corporate a airs, Yorkshire Water, discussing the company's plans for regulatory reform to accommodate the changing needs and challenges of the water sector Quote, unquote The news in numbers: 1 Number of times the Cabinet's Climate Action Strategy Committee met in the … rst nine months since it was announced by Boris Johnson. Sir Bernard Jenkin, chair of the House of Commons Liaison Committee, said he was "disturbed" by the lack of activity. 2042 Date by which the UK should be aiming to hit net zero emissions, according to Nigel Topping, high level champion for climate action for the COP26 conference. £100m New funds earmarked in the Budget for testbed energy projects 70% Of those polled by the Zero Carbon Campaign supported a carbon tax that protects lower-income households from energy price increases.

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