E3G, an independent climate change think tank, published a briefing on 5 September 2022 setting out recommendations for the UK government's emergency energy response1. The briefing was written by Colm Britchfield, Ed Matthew and Heather McKay1.
The briefing states that the cost of energy has trebled in a year and that, without intervention, the energy price cap will increase to £3,549 in October and rise again in 20231. It says millions of UK households would be plunged into fuel poverty, and that the new Prime Minister has indicated a substantial support package will be introduced to avert the immediate crisis1.
E3G makes four recommendations1:
| Recommendation | Detail given |
|---|---|
| Emergency financial support | To mitigate the impact of surging energy bills |
| Energy efficiency investment | £5bn total this Parliament, starting with £2bn to ramp up existing schemes and a further £3bn over the next three years for a new long-term programme |
| Energy market reform | To ensure the benefits of low-cost renewables flow to consumers, accelerate the transition away from gas, and remove legacy renewable policy costs from consumer bills |
| Green finance regulatory reform | To leverage private investment and reduce the economy's energy cost base by transitioning to net zero |
The briefing argues that by reducing "our chronic dependency on gas", the government can address many of the economic and health challenges threatening the UK's return to growth and wellbeing1.
"This briefing sets out how to lower energy bills for good, strengthen the economy, and increase our energy security."
The briefing does not set out a timetable for the measures beyond the three-year period attached to the £3bn element of the energy efficiency programme, and no delivery body or funding mechanism for the £5bn is named in the published summary1.
Why it matters for households
The briefing was published against a stated October price cap of £3,549, a figure that sets the scale of the bill pressure households were facing at the time1. Its energy efficiency element is aimed at lowering household exposure to high gas prices permanently rather than offsetting bills for a single period, which is the part of the package that bears most directly on a home's energy independence1. The market reform element concerns how the costs of renewables and legacy policy costs are recovered from consumer bills, which affects the standing and unit charges a household pays regardless of how much energy it uses1. The briefing does not quantify the bill reduction expected per household from any of the four measures1.
What happens next
The briefing states that the new Prime Minister has indicated a substantial support package will be introduced, but no date for that package is given1. E3G's recommendations are proposals to government rather than commitments, and no response from ministers to the briefing has been reported1.