The Energy and Climate Intelligence Unit (ECIU) published an analysis on 5 April 2024 finding that two years after the Government published its British Energy Security Strategy, it has met only three of the ten major commitments it made to boost UK energy security1. The strategy was published in the wake of the Russian invasion of Ukraine1.
The ECIU states the Government is not on track to insulate the 450,000 homes it committed to, which the analysis says would reduce energy waste and the need to import foreign gas1. On offshore wind, the strategy committed to holding auctions annually, but the ECIU says only two new offshore wind farms have been secured since the report and none at the last auction in 20231. The analysis credits the Government with increasing and extending the heat pump grant under the Boiler Upgrade Scheme, but says it has delayed the Clean Heat Market Mechanism, which sets boiler manufacturers heat pump sales targets1.
The ECIU sets out the wider energy position as follows1:
| Measure | Figure |
|---|---|
| UK energy imported in 2022 | Over 40%, mainly from Norway and the US |
| Spent importing electricity from Europe via interconnectors | £3.5bn |
| Fall in energy production since 2000 | Two-thirds |
| Fall in demand over the same period | One-third |
The analysis also states that oil production fell to the lowest level since records began and gas output reached its second lowest level1. On North Sea policy, it says the Government is putting a Bill through Parliament to force the North Sea Transition Authority to hold auctions for new oil and gas drilling annually, but that the regulator itself has described the move as "unnecessary"1.
"The UK has had two energy security strategies within two years and we're still going backwards, becoming more dependent on foreign imports. As a country we've spent more than £100bn on gas over the crisis with the bill payer and taxpayer bearing the brunt."
The ECIU adds that Government policy failures on offshore wind mean the UK could miss out on 22 times more homegrown electricity than could be generated by gas from new North Sea licences1. It says the strategy acknowledged at the time that the UK uses gas both to generate electricity and to heat the majority of its 28 million homes, and that the price paid for gas is set internationally1.
Why it matters for households
The analysis links the strategy's commitments directly to how homes are heated and powered. It states that heat pumps running on electricity instead of gas boilers mean the UK is less dependent on foreign gas imports and prices1. It also states that more North Sea gas is likely to have very little impact on the cost of gas, because the price is largely set internationally1. On insulation, the ECIU says the 450,000 homes committed to would have reduced energy waste and the need to import foreign gas1. The Government department responsible for these policies is DESNZ, and the wider policy framework sits under the regulation-policy hub. Quality assurance for retrofit work is handled through TrustMark, while some buildings and energy policy is devolved, as set out in Energy and Buildings Policy in Wales.
What happens next
The analysis states the Government is currently putting a Bill through Parliament to force the North Sea Transition Authority to hold auctions for new oil and gas drilling annually1. No further dated steps are given in the analysis.