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UTILITY WEEK | 16TH - 22ND JUNE 2017 | 11 Policy & Regulation Policy & Regulation Greg Clark remains in post at the top of the Department for Business, Energy and Industrial Strategy, where plans are under- stood to be well advanced on energy and industrial strategy policy. However, Timothy's departure robs the industrial strategy, which was being con- sulted on just before May called the election, of an important advocate at the top level of government. And Sajid Javid, who undid a lot of work by his predecessor Vince Cable to shape an industrial policy during the coali- tion government, retains his role as commu- nities and local government secretary. The survival of the ardent Thatcherite Javid, who had been widely tipped for the chop in the post-election reshuffle, illustrates the shi- ing power dynamics within May's cabinet. The election result can also be interpreted as a rejection of the hard Brexit vision of May under which the UK looked set to withdraw from the internal energy market, the Emis- sions Trading System and Euratom. With the balance of the Commons tipping in favour of MPs who either oppose Brexit or are keen on a soer exit from the EU, the prospects of a so Brexit have increased, which could have implications for the UK's ongoing energy relationships with its European neighbours. The absence of a clear result from the election will stymie decision-making. Even with the help of the DUP, the government will have a tiny majority in the Commons. Those with long memories recall the shenan- igans the 1974 Labour government, the last to possess such a wafer-thin majority, had to go through in order to get its business through parliament, which even involved pushing sick MPs on hospital trolleys through the voting aisles. The sheer difficulty of winning votes will give rebellious Tories the whip hand, a particularly problematic scenario given the huge amount of legislation needed to unpick the UK's 40-year relationship with the EU. The Queen's Speech, which was due to be published next week but could be delayed as negotiations with the DUP drag on, is expected to be much thinner than usual. The difficulty of decision-making is likely to be bad news for efforts to upgrade the UK's energy infrastructure. May took last autumn's controversial decision to push ahead with the Hinkley Point C nuclear plant on the back of confi- dence generated by a runaway lead in the opinion polls. However, with such a thin majority she is in an even weaker position to make the kind of tough calls needed about the UK's long-term infrastructure needs. W ith the Conservatives falling short of a majority, but lead- ing a minority government backed by a confidence deal with the DUP, they will have to be seen to act on their manifesto pledges. Labour, with their ranks swelled compared with the 2015 election, will be keen to oppose the Tories, and may try to push through some of their election promises from the opposition benches. Below is a recap of their energy pledges. Prices Conservatives: Extend price cap to those on "poorest value tariffs" and micro-businesses. Launch review of energy costs. Labour: Immediate energy price cap to keep average dual fuel household energy bills below £1,000 en route to the establishment of a "fairer system". Ownership Conservatives: No mention. Labour: Bring energy grids back into public ownership "over time" with legislation to allow publicly owned local companies to purchase regional infrastructure. Regain control of energy supply networks by altering the national and regional network operator licence conditions. Renewables Conservatives: Maintain existing opposition to onshore wind in England but relax stance on projects in remote islands of Scotland and explore ways of harnessing Welsh natural power generation resources. Labour: Sixty per cent of the UK's energy should be generated from low-carbon or renewable sources by 2030 and support development of tidal lagoons. Renewable energy projects would be a priority for a proposed £250 million National Investment Bank. Energy efficiency Conservatives: Establish an industrial energy efficiency scheme to help large companies install measures to cut their energy use and bills. Labour: Insulate four million homes, with homeowners offered interest-free loans to install insulation; energy efficiency standards for rented homes upgraded; and the Landlord Energy Savings Allowance re-established. Nuclear Conservatives: No specific mention. Labour: Support new nuclear projects, ensuring that the technology will remain part of the UK's energy supply. Manifesto recap The battle lines are drawn The two main parties prepare to lock horns on a much more level playing field than either expected. Breakdown of Commons seats 318 Conservative 262 Labour 35 SNP 12 Lib Dem 10 DUP 13 Other The DUP The Northern Ireland party, with its 10 MPs, has become kingmaker. In return for propping up the Conservatives, the DUP will look to press its own agenda and "achieve the best deal for Northern Ireland". This could include making good on utilities-related manifesto pledges including affordable energy. The DUP wants to see energy firms place further downward pressure on bills. It will support efforts to better control energy bills and will seek to ensure any such measure operates in Northern Ireland. The DUP also believes security of supply issues can be addressed by continued progress on interconnection with the Republic of Ireland and the UK mainland, market integration and the development of new generation capacity. The party says a comprehensive new energy strategy is needed to deal with security of sup- ply as well as the future of renewable energy policy in Northern Ireland.