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Utility Week 24th April 2015

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"We delivered on huge amounts of our manifesto. But people are getting used now to coalition politics. Coalition poli- tics does require a compromise." Ed Davey, energy secretary (Lib Dems) 14 | 24TH - 30TH APRIL 2015 | UTILITY WEEK LIBERAL DEMOCRATS MANIFESTO The 2015 general election has got the Liberal Democrats facing a perfect storm: tainted aer five years in government with the Conservatives; under siege in Scotland from a buoyant SNP, and overtaken by both Ukip and the Green Party in popularity. Deputy prime minister and party leader Nick Clegg faces a washout on polling day. But rather than break under pressure, Clegg and his party are showing an unsinkable belief that they can still be significant play- ers as future coalition partners. The Lib Dems have played that to their advantage, with Clegg saying it is a choice between him, Nigel Farage, or Alex Salmond when it comes to who can temper the cuts or spending of the next government. The five green laws, unveiled in September last year, make up the backbone of the Lib Dems' energy policy. They adorn the front page of the manifesto and, according to Clegg, are non- negotiable. The Lib Dems want to set a decarbonisation target range of 50-100g of CO2 per kilowatt-hour by 2030, and claim a 60 per cent renewable energy mix will see the UK hit that target. The green credentials are also boosted by the pledge to remove all unabated coal by 2025, and for new gas plant to be fitted with carbon capture and storage technology from 2030. The manifesto tries to regain ownership of the policies they have introduced over the past parliament, such as the promotion of competi- tion in the energy retail sector. Building on what energy secretary Ed Davey views as his success, the manifesto targets a 30 per cent market share for the smaller suppliers, and 24 hour switching, to "supercharge competition". On the investment front, the Lib Dems have shadowed Labour, setting out plans to give the Green Investment Bank more powers to borrow money, expanding its remit, and allowing it to issue green bonds. Should the two pair up, this will be an easy area of agreement for Miliband and Clegg. Another, somewhat surprising, area of agree- ment between red and yellow is water. When water minister Dan Rogerson was inter- viewed by Utility Week in October last year, he said social tariffs should only be offered "where they're right and customers are supportive of that" and that the issue of cost is "Ofwat's baby". However, the manifesto reveals the Lib Dems are advocates of a national social tariff, which echoes Labour's proposed national affordability scheme. For shale gas, the Lib Dems are backing the the industry – as are both of its potential senior coalition partners. In a nod to the green element of the party, the manifesto outlines plans to use 50 per cent of the tax raised from fracking for a low-carbon transition fund. This will support energy efficiency, community energy, low-carbon innovation and renewable heat. The party also plans to make sure the used fracking wells are offered at no cost to geother- mal heat developers. Clegg and his party have set out their stall. They are not going for the win. What they want is to climb aboard with the Tories or Labour, and that can be seen in their manifesto. Given the opportunity to decide who will be the next prime minister, Clegg hopes to chart a course anchored in the centre ground. People know that the Lib Dems' manifesto can't be trusted. They broke the key promises in their last manifesto and are repeating them once again." Harriet Harman, shadow deputy prime minister (Labour) "The Liberal Democrats will add a heart to a Conservative government and a brain to a Labour one." Nick Clegg, deputy prime minister (Lib Dems) For the Greens, developing into a major political player is the aim of the game. With only one MP in the last parliament, they are seeking to grow and gain a real say in the UK political landscape. Leader Natalie Bennett aims to achieve this by giving power back to the people. She wants to grow community energy to 42GW by 2020. The Greens hope to give a political home to disillusioned Lib Dems by staunchly remaining opposed to fracking and nuclear power. Renewable energy takes the focus instead, with the Greens suggesting £35 billion should be invested over the next parliament to fund a rapid expan- sion of renewables. Tory peer Lord Deben welcomed the ambition shown by the Greens, but not their approach to achieving a greener economy. "This has to be an evolutionary process, building stage upon stage," he said. "I admire their tenacity, share their concerns, but doubt their tactics and question their solutions." The Greens "Tackling the environmental crisis we face isn't a luxury only for the good economic times - something that can be discarded when times are tough, like that extra cappuccino on the way to work." Lib Dems: 57 seats Caroline Lucas MP (Green)

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