The Budget recently announced by the Chancellor includes measures aimed at supporting households with their energy bills and strengthening the UK’s energy security.
The Energy Security Secretary, Grant Shapps, has stressed the importance of these measures given the ongoing conflict in Ukraine and the anticipated fall in global gas prices.
The Chancellor has outlined a range of commitments that prioritize both immediate and longer-term needs.
These include extending energy bill support for households, investing in carbon capture, low carbon hydrogen, and nuclear power, and implementing a ‘clean energy reset’ to ensure the UK’s energy security in the long term.
The Energy Security Secretary has set a target for Britain to have among the lowest wholesale electricity prices in Europe by 2035.
Achieving this goal will drive economic growth while strengthening the country’s energy security and independence.
One significant step towards easing cost-of-living pressures on households is the extension of energy bill support.
The Energy Price Guarantee (EPG) will remain at £2,500 for an additional three months from April to June.
The EPG protects customers from increases in energy costs by limiting the amount suppliers can charge per unit of energy used.
The government has also taken action to end the ‘prepayment penalty’ that imposes a premium on households using prepayment meters, bringing their costs into line with those paid by customers on direct debits.
To ensure long-term energy security, the government has announced a ‘reset’ to clean up the UK’s domestic energy supply, supported by a £20 billion investment in carbon capture.
This funding will help accelerate the development of carbon capture, usage, and storage (CCUS) technology, enabling the UK to become a global leader in this field.
CCUS technology will help cut emissions and ensure a diverse energy supply, making it a crucial aspect of the country’s transition to a greener future.
Another area of focus is nuclear power, and the government has launched Great British Nuclear (GBN) to support new nuclear builds as part of its commitment to achieving net zero.
GBN aims to make the UK one of the best places in the world to invest in new nuclear technology, and the initial focus will be on Small Modular Reactors (SMRs).
The government also plans to incentivize private investment in nuclear power by classifying it as environmentally sustainable as part of the tax framework.
In summary, the Budget includes a range of measures aimed at supporting households with their energy bills while strengthening the UK’s energy security and independence.
The commitments to carbon capture, low carbon hydrogen, and nuclear power will help ensure a clean energy future while driving economic growth and creating new jobs.