Energy Secretary says Britain’s power system is failing bill payers
Key Points
- Miatta Fahnbulleh said Britain’s energy framework is failing bill payers
- She blamed privatisation for fragmenting responsibility across the system
- Supplier collapses left customers carrying £2.7 billion in costs
- Sizewell C will deliver up to £18 billion in net consumer benefits
- Great British Energy will back over 1,000 community energy projects by 2030
Energy Secretary Miatta Fahnbulleh said Britain’s energy system is not working for the families and businesses paying the bills.
Fahnbulleh delivered the verdict in a speech at Energy UK’s annual conference in London on Wednesday (14 October).
“But we know the public doesn’t measure the success of our energy system in gigawatts. They measure it in bills and whether they can live comfortably,” said Fahnbulleh.
“And by these measures, the framework within which you are being asked to deliver is not working,” she added.
Fahnbulleh blamed privatisation for splitting generation, transmission, distribution and retail into separate parts of the system.
She said this fragmented responsibility across companies, regulators, network operators and public bodies, which weakened accountability.
“The state cannot – it cannot – relinquish responsibility for keeping the lights on,” said Fahnbulleh.
Fahnbulleh said supplier collapses during the last energy crisis hit 4 million households and left customers carrying £2.7 billion in costs.
She also said that conflicts in Ukraine and the Middle East push up household bills because Britain relies heavily on global fossil fuel markets.
Fahnbulleh said Great British Energy would give the state the ability to invest directly in projects and take a longer view.
She pointed to Sizewell C, where her department is the primary public shareholder alongside private consortium partners.
Fahnbulleh said the nuclear power station would deliver up to £18 billion in net consumer benefits.
She added that it would cut overall electricity system costs by roughly £2 billion per year compared with other routes to net zero.
Fahnbulleh said the government cut VAT on energy bills and took £150 off bills in last year’s Budget.
The government has also expanded the £150 Warm Home Discount to over 6 million families.
“But this cannot be a substitute for the big changes we need to deliver in the energy system to drive down energy costs for good,” said Fahnbulleh.
Great British Energy plans to support over 1,000 community and local energy projects by 2030, according to Fahnbulleh.
She said the government would make it easier for communities to own renewable projects built in their area.
“Places shouldn’t host the transition. They should have a stake in it,” said Fahnbulleh.
The government will also devolve Warm Homes Plan funding so regional and local government can coordinate insulation, solar and clean heat upgrades.
