At a panel event yesterday evening billed for “policy nerds” the Resolution Foundation discussed Labour’s “New Economic Plan” to get growth up and emissions down. Energy Minister Miatta Fahnbulleh was asked whether the government would institute taxpayer-funded energy bill support in Labour’s net zero transition:
“So the long-term solution for us is clean power, but we know that as we transition the question of bill support is a genuine thing… It’s interesting, you know, all the charity sector and actually most of the energy suppliers are now very aligned around a social tariff – so there was a very strong message coming into government… it is quite a coalition.”
Miatta suggested that the Labour would cave to pressure from leading social tariff campaigners like Citizens Advice, whose Chief Executive Clare Moriarty was also at the event. The organisation proposes a “cash payment to fuel poor households” from £381 to £1,500. The minister made clear plans were in the works:
“We will look at the range of options available to us… but I think we’re quite clear that we’re not going to do what the last government did which is just kick it around.”
Fahnbulleh suggested splitting the cost of the new energy benefit between the taxpayer and energy companies and hinted that the government could withdraw companies’ ability to operate if they don’t comply with new support strictures. Rely on Labour to crush the market into shape…
“I don’t think this is just a proposition for government, I think suppliers have a big role to play and when you think about other models where there is bill support there is always co-funding… so I think about the example in Holland, the example in France. I think there’s a big role for energy suppliers to be part of the solution here – they have a regulatory obligation to look after vulnerable customers. We need need to make sure that we are maximizing that – you know for me it’s a question of the licence to operate and I think showing that you are looking after all your customers and your vulnerable customers in particular.”
During her tenure as head of the Corbynite New Economics Foundation Miatta campaigned for nationalisation of the banks, “flooding the market” with nationalised energy companies, and “free basic energy” for everyone. Spending billions on bill support is a drop in the ocean compared to her stated intentions…