The government have recently announced a new department dedicated to energy security and net zero. This will be led by Grant Shapps and replaces the Department of Business, Energy, and Industrial Strategies (BEIS).
This is one of 4 new departments that have been announced by the PM and has the task of delivering various outputs that will ensure the UK’s security of energy supply. As well as this the team must keep markets functioning and find energy efficiency and net zero opportunities to lead the world in new green industries.
Their main priorities for 2023 include:
- Ensuring energy security for this winter and in the long term to bring down energy bills and reduce inflation
- Make sure the country is on track to meet Net Zero goals.
- Improve energy efficiency in homes, businesses, and public buildings to reduce demand by up to 15%
- Deliver current schemes to support energy consumers and develop long-term reforms to improve how the electricity market works.
- Improve the benefits of Net Zero including jobs and growth created through investment in new green industries.
- Pass the energy bill to support emerging CCUS and hydrogen sectors to update energy systems and reduce the time to consent for renewable projects.
The government has said that they have recognised the significant impact rising prices have had on households and businesses, mainly due to Putin’s war on Ukraine. As well as the countries need to secure more domestic clean energy. This comes after the recent review of the UK’s delivery on Net Zero that was conducted by BEIS. It is evident that the UK needs to scale up when it comes to net zero ambitions. A new Net Zero strategy is due at the end of March based on the recent review and will be in line with recent economic changes.
Inflation is currently key in the government’s plans. Since the rise in the cost of energy, we have seen supply chain risks that have worsened current costs and created a cost of living crisis. Which has led to rising domestic and business energy bills.
What does this mean for your business?
With this new department hopefully, we should see more energy security in the UK. If the government manages to do this, then we could see the energy market begin to settle over the next few years and the level of inflation in the UK come down. Both results would make a massive difference to many UK businesses.
However, your business shouldn’t get excited about cheaper energy deals just yet as this requires the government to source long-term contracts as well as push through new renewable contracts, both of which they have been unsuccessful in doing in 2022. This means it could take quite a while for the results of the government’s decisions to translate into better deals for businesses
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