Yahoo Finance Labour energy policy: what could it mean for your bills?
Cheaper, cleaner energy that will create jobs and lower energy bills across the UK is the Labour Party’s latest pledge in an overhaul of the energy landscape in the country. But can it deliver in cutting the energy bills?
GB Energy
The pilar of the Labour’s energy strategy is GB Energy, a publicly-owned clean energy company that the party would create.
Headquartered in Scotland, GB Energy could end up providing up to £600m per year to local councils to invest in green infrastructure and a further £400m annually in low interest loans for community projects.
These community loans would be designed to ensure small projects could benefit from the expertise of GB Energy while also generating money for local areas.
How does that help with my energy bills?
The idea behind the Labour pledge is that people across the UK would receive cost of living discounts – such as reductions on their council tax – if their cities, towns and villages sign up to new “clean energy” projects.
GB Energy would oversee the return of profits from successful projects to local councils. These profits could then be locally to reduce council tax, pay for improved public services or simply provide rebates on energy bills.
The party is pledging to take up to £1,400 off household bills and £53bn off energy bills for businesses by 2030 with its plans.
Keir Starmer announced his party’s pledge this Monday in Edinburgh.
He said: "Labour will deliver lower bills, good jobs, and energy security for Scotland and the whole UK, as Britain leads the world in the fight against climate change.
"We're going to throw everything at this: planning reform, procurement, long-term finance, R&D, a strategic plan for skills and supply chains,” he will add.
If Labour wins the next general elections, they are also pledging to create a clean power system by 2030, saving Scottish households £8.4bn in that time.
The party would also overturn the ban on new onshore wind farms which Labour claims has added £5.1bn to energy bills, or £182 per household, because the UK has been forced to turn to more expensive power.
Will it create jobs?
Labour is promising to double the number of jobs in low carbon sectors, which means 50,000 clean power jobs for Scotland. But it will also put at risk thousands of jobs in the North Sea oil industry as Labour wants to move away from fossil fuels if they reach Downing Street.
Scottish Labour leader Anas Sarwar will say: "What we are announcing today is the boldest energy plan Scotland and the whole UK has seen in generations – delivering a clean energy revolution by 2030.
"It will deliver 50,000 clean power jobs for Scotland and lower bills for working people."
Labour has confirmed it would "not grant licences to explore new fields" in the North Sea, a sector which supports 200,000 UK jobs, including 90,000 in Scotland.
However, the party will honour any existing licenses at the time of the next election, expected by January 2025, which may include the Rosebank development off the coast of Shetland.
The party will hope the latest announcement builds confidence in its commitment to green energy initiatives after recently drawing criticism from environmental campaigners for retreating from its £28bn-a-year green prosperity plan spending pledge.
Watch: Publicly owned clean energy company will create thousands of jobs in Scotland
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