15 May 2017
In the face of catastrophic climate change, we need to encourage energy efficiency and cleaner, renewable energy production, more than ever before. Unfortunately, our current government seems to be indifferent, if not intentionally hostile, to promoting this constructive, job-creating transition to a cleaner, income-generating and robust energy bill saving economy. This government is promoting funding of the destructive fossil fuel and nuclear industries. Our MPs own pension scheme invests in the fossil fuel industry for starters. While a significant minority recently backed divestment from fossil fuels, sadly the majority of MPs in government did not1.
Then there’s the promotion of the hugely unpopular hydraulic fracturing industry against the democratic will of the people2 and the attacks on onshore wind3 and solar energy4, both very popular renewable energy technologies5. These renewables, given the chance to flourish, as it did before the government started taxing and wrapping the renewable industry in red tape, can transform the UK’s energy security fears, reduce fuel poverty and meet our vital climate targets. We could have an economy that works for local, small to medium-sized businesses and domestic consumers alike, rather than an economy that benefits only the large energy corporations which still dominate over 80% of the UK’s energy market. The constant drain on the public’s finances by the UK’s large, enormously profit taking energy companies, duping the customer with over-priced energy tariffs, have serious consequences for people’s livelihoods and wellbeing.
One significant step to reducing energy bills for both domestic customers and businesses is to improve energy efficiency. According to the Office of National Statistics’ 2011 census, Brighton & Hove had the highest proportion of residents privately renting out of any town or city in England and Wales; more than 30% of households. Around 26,000 people are on the council housing waiting list and 1 in 69 people in Brighton & Hove are homeless6.
However, the incentive for private landlords to increase the energy efficiency of their properties just isn’t there. The government’s weak legislation requiring landlords to improve their properties’ energy efficiency, by achieving a minimum energy performance rating of E on an Energy Performance Certificate (EPC) by April 2018, isn’t helping at all. Yes, there are other regulations, which came into effect from 1st April, where a tenant can apply for consent to carry out energy efficiency improvements in privately rented properties7 under the provisions of the Energy Efficiency (Private Rented Property) Regulations 2015. However, in the current climate of retaliatory evictions for tenants who merely ask for simple repairs, let alone applying for consent to carry out improvements, it makes this legislation appear a greenwash exercise, with no meaningful support for those threatened with homelessness8 or suffering in fuel poverty.
To make UK households truly energy efficient the government needs the EPC rating of landlords’ properties to be at least a D. This is overdue for the huge numbers of residents living in sub-standard, enormously expensive, energy inefficient properties across the country. The government could help landlords achieve warmer, more comfortable homes with incentives. With the new round of Energy Company Obligation 2 Transition (ECO2t) funding for efficient heating and insulation grants, there should be more focus on offering all those landlords’ properties with EPC band ratings below a D, more fully funded grant access9.
BHESCo is an award winning not-for-profit community energy co-operative offering an innovative PAYS (pay-as-you-save scheme) for those domestic and business customers who can’t afford to pay for the energy efficiency improvement measures up-front. The savings from their energy bills are used to pay for the installations over a period of time and the occupants or tenants feel more comfortable in a warmer home, helping to reduce their energy bills. However, to encourage uptake there needs to be more of an incentive and active promotion in all sections of our community.
Another reason for requiring a D rating, is those landlords who wish to invest in solar energy generation can do so, thus helping to stimulate the UK’s wounded solar PV industry10 and make it economically viable for landlords. To obtain the maximum Feed-In Tariff (FIT) for solar PV installations, a household must attain a minimum EPC band D rating11. However, the government also needs to realise that renewable energy is going to be the cheapest form of energy production in the near future. Onshore wind is already our cheapest source of electricity. Not to mention the benefits of secure, locally-produced energy and the dire consequences from global climate change if we don’t act now. The government’s own Department for Business, Energy and Industrial Strategy (BEIS) published a report saying a solar project commissioned next year was predicted to cost between £62 and £84 per megawatt hour (MWh) with onshore wind coming in at £49 to £79/MWh. Compare this to the cheapest form of gas costing between £60 and £62 and £154 to £166 for a more expensive gas system12.
We need active, forward-thinking local councillors and MPs to lobby Westminster and help promote energy efficiency and renewable technology in their constituencies, especially coming up to this general election in June. The technology and capability is already here, but we need the political will to make it happen now and not when it is too late.
- Holder, May 2017: 50 MPs back fight to divest parliament pension fund of fossil fuels, Guardian, 08/05/2017, https://www.theguardian.com/environment/2017/may/08/5o-mps-back-fight-divest-parliament-pension-fund-fossil-fuels?CMP=share_btn_link.
- Simple Switch, October 2016: Government Overrules Council to Allow Fracking in Lancashire, https://www.simplyswitch.com/government-overrules-council-to-allow-fracking-in-lancashire/
- 10:10, April 2017: Stop the government wrapping wind turbines in red tape, https://1010uk.org/articles/blownaway-planning
- Johnston, March 2017: Budget 2017: Solar industry facing devastating 800% tax increase, Independent, 08/03/2017, http://www.independent.co.uk/environment/solar-industry-budget-2017-800-per-cent-tax-increase-green-renewable-energy-a7618191.html
- BEIS, May 2017: Energy & Climate Change Public Attitude Tracker – Wave 21, https://www.gov.uk/government/statistics/energy-and-climate-change-public-attitude-tracking-survey-wave-21
- MAIS, May 2017: Housing Crisis: Community Solutions 2017, 11/05/2017, https://maisnetwork.net/2017/05/11/housing-crisis-community-solutions-2017/
- Residential Landlord’s Association, 2017: MINIMUM ENERGY EFFICIENCY STANDARDS, https://www.rla.org.uk/landlord/guides/minimum-energy-efficiency-standards.shtml
- Whitworth, February 2017: Revenge eviction law ‘not working’, 09/02/2017, http://www.bbc.co.uk/newsbeat/article/38795177/revenge-eviction-law-not-working
- NEA, Feb 2017: IN FROM THE COLD: The funding gap for non-gas fuel poor homes under ECO and a proposal to fill it.
- Solar Trade Association, August 2016: 2017 Business Rates Revaluation: Rooftop Solar PV.
- Ofgem, 2017: Feed-In Tariff (FIT) rates, https://www.ofgem.gov.uk/environmental-programmes/fit/fit-tariff-rates
- Johnston, February 2017: Government accused of trying to kill off UK solar industry before it can become cheapest form of electricity, Independent, 08/02/2017, http://www.independent.co.uk/environment/solar-energy-uk-government-accused-trying-to-kill-off-climate-change-theresa-may-a7570161.html.
23 Mar 2017
“I wouldn’t want to be the MP in Parliament who voted to oppose Hinkley C”.
With a very concerned look mixed with fear, this quote comes from an insider in the Halls of Power of the Energy Industry. Yet he works for a company that has chosen to put at the heart of its strategy the preparation and facilitation of the transition to a distributed network. This, in essence, is a bet on the proliferation of local renewable energy generation, and a move away from the inefficiency of centralised power stations. A distributed network is needed when there are lots of energy generators installed on rooftops, in the hills, in the sea and under the streets of our cities, towns and villages.
BHESCo estimates that there is almost 50GW worth of applications for battery storage facilities wanting to connect with the 8 Distribution Network Operators and the National Grid. This is about 10 times the power generation capacity of Hinkley C and Moorside combined, at a fraction of the price to the taxpayer and to future taxpayers. Granted, this is an emerging technology, as yet without a track record, however in the 10 years it will take for these nuclear power plants to be operational, battery storage will have become mainstream. As Steven Holliday, former CEO of the National Grid, announced in 2015, “base load power is obsolete.” Base load nuclear power is wasteful, where at present 60% of the electricity produced is lost in conversion, transmission and distribution.
Despite pleas from over 160 organisations, this year’s national budget includes a ‘Solar Tax’ collected in the form of business rates. If you own a solar array less than 50kW, the value of your property for business rates will be increased by the nominal value of the solar array on your roof. This will have enormous implications on small businesses that have become solar generators because the tax is most likely to approximate or exceed any benefit that they receive for the free electricity from the sun. Because any investment in energy generation requires a certain return in order for investors to commit their hard earned cash, a business rates tax on solar arrays eliminates any incentive to accelerate our transition from fossil fuels by investing in generating your own electricity. The ‘solar tax’ is an intentional assault on free power from the sun as, for example, gas combined heat and power systems have been exempt from business rates since 2001.
Now consider the subsidies for investors in shale gas exploration, or ‘fracking’. This subsidy comes in the form of tax breaks called Enhanced Capital Allowances that permit firms that are investing in shale gas exploration to deduct the cost of the equipment directly against their taxable income, in many cases virtually eliminating any tax due. For companies like Centrica, who are a large investor in Cuadrilla, these tax breaks run into the millions  . Other similar tax breaks will be enjoyed by Ineos, who intend to invest £168 million in shale gas exploration (which at 40% tax relief, amount to £68 million) or IGas who invested £16 million in equipment in 2015. Nuclear power on the other hand costs the taxpayer billions each year for transport, storage and decommissioning of existing power plants alone, before we even being to count the cost of constructing new ones such as Hinkley C and Moorside, as each of these proposed plants are being constructed using unproven technologies. Simply put, the “solar tax” is an assault on the little guy, just another addition to the unfair tax policies that protect the 10% and burden the 90%, in this case, small businesses.
For anyone who believes that we must take responsibility for our energy supply now for the sake of our climate and our energy security, we wonder: what is the difference in tax receipts for the Treasury if the money comes from the clean energy industry or from dirty fossil fuels or nuclear? Or do we really want to spend our money as taxpayers supporting a government that is afraid to make the decisions that we need to ensure that we have clean, affordable energy in the future? Wouldn’t we rather ensure that our schools have sufficient funds to properly educate our children, or that the NHS continues to thrive as an accessible customer service focused health care system?
Join the fight today by writing to your MP, signing an anti-fracking or anti-nuclear petition, or becoming an investor in Community Energy. Make sure that important decisions about our future are made from a position of courage, not fear. Mostly make sure that you are informed, as such short sighted changes to tax legislation will have long term impacts on our quality of life.
 www.greentechmedia.com energydesk.greenpeace.org
22 Nov 2016
A giant £100 billion black hole is predicted to dominate the coming year’s economic outlook for the taxpayer, judging by recent comments made by our new Chancellor, Philip Hammond. This eye-watering annual deficit represents a doubling of the national debt since the economic crisis of 2008.
Naturally, the government will continue its slash and burn tactics to supposedly lower the national debt by making more cuts to the valuable social services that distinguish us as human beings. The impending Autumn Statement is expected to announce the continued pursuit of policies (disguised as an economic strategy) that do not yield improvements to our collective quality of life, lead to economic recovery, strengthen our currency or even deliver the promise of balancing our national budget.
Failure to deliver on this last point in particular makes it abundantly clear from Mr Hammond’s Autumn Statement that the relentless pursuit of austerity is ideological, magically aspirational and zealously misguided. Even Conservative Ian Duncan Smith accused the Government of balancing the books on the backs of the most vulnerable in society.
The way out of this black hole is not by cutting social services. It is by investing in important infrastructural projects like renewable energy and public transport networks, and increasing lending to creative, responsible entrepreneurs. The old excuse that this government inherited the deficit from the previous one is tired, worn, and devoid of any responsibility or complicity. The massive deficit inherited in 2010 was £76.6 billion, but the Tories have managed to increase this deficit to over £100 billion while destroying the quality of life for many of our most vulnerable citizens.
The latest BBC Panorama programme about Care Homes showed the appalling conditions that residents were subjected to at centres managed by the Morleigh Group. The directors of this private care home operator lived in a large stately home, a stark contrast to the residents and attendants alike. In one example uncovered by the programme, care home attendants had to separate a bedpan from a neglected 90 year old patient’s buttocks because she had been sitting on it for so long, her buttocks had slipped into the pan. The poignant and burning questions are:
– Why do we neglect our elderly when they took care to raise us from small infants?
– Why has taking care of our elderly, become something to be outsourced? With the exception of hospice, surely our own families can look after each other?
Social services do not and should not deliver commercially attractive returns for taking care of our family members, providing medical assistance, public transport or other support services that may have once been provided by the community.
Clearly the government has money for the projects that they want to undertake. For example –
- Hinkley C Nuclear Power station, which will be funded to a great extent through the ‘Capacity Mechanism’, which basically means it will be financed by the taxpayer.
- The extraction of shale gas from our land, a process that is not proven safe, can turn our water into a toxic cocktail of hydrocarbon chemicals and is not expected to be economically attractive due to the poor quality of the extracted gas
- the expansion of Heathrow, where the government should be challenged on the robustness of their traffic projections into the next 20 years, considering the availability of fossil fuels for our transportation and energy services, the certain increase in the cost of flying and with proper value for money analysis undertaken to consider alternatives, like travel by train and other public services.
- the renewal of the Trident Nuclear Missile deterrant, at a cost of over £205 billion of tax payer money. The nature of a deterrent is that we must be attacked first. In this age of information technology, can this government demonstrate the value for money to the taxpayer of this enormous investment that only works after the damage has been done?
This is one more reason why the transition from fossil fuels is so important. As we take more services like the provision of energy away from fossil fuels by building more renewable energy generation, we have more gas and oil to run other industries, like transportation, where energy prices are certain to rise due to scarcity. Oil prices have already doubled since last February. Conventional sources of cheap oil have disappeared and the growing cost of generating energy under the government’s current energy strategy can be solved with current, proven technologies.
We believe that the government needs to apply austerity to its own practices; to eliminate departmental waste, to be accountable for responsible spending of taxpayers’ money, and to invest our money in projects that are well run. Our government seems to have sufficient funds for the military industrial complex and for short-sighted investments like Trident and Heathrow, so the money is there for a fully functioning welfare state should we choose to use it this to this end. Therefore we believe it is vanity projects like HS2 and Trident that must be sacrificed by Mr Hammond first, before cuts are made to our invaluable social welfare system.
Evidence from a variety of sources suggest that the world is heading for a serious energy shortage in the years ahead. Rapid economic development in China and India, coupled with consistent energy use in already industrialized nations, will put a huge strain the world’s ability to meet a projected rise in energy demand.
To everyone at BHESCo it seems abundantly clear that a consequence of this global rise in demand will be a huge corresponding rise in cost, unless action is taken now to increase energy efficiency and reduce energy waste.
“One thing is certain,” said Nobuo Tanaka, the IEA’s executive director, “the era of cheap oil is over.”
‘Business Green’ reported that the Government may have to extend financial support to UK industry, as the latest projections from the independent Committee on Climate Change (CCC) confirmed that business energy costs may rise by around a third by 2030.
According to one forecast published by The National Grid, the price of electricity could double over the next two decades. Indeed, this year already oil prices have nearly doubled from their February lows.
And of course, a tremendous increase in energy consumption by industrialising nations like China, India, and Brazil, will lead to an increase in global greenhouse gas emissions.
The IEA believe that this anticipated emissions increase would result in a 6oC rise in the average global temperature by 2100, which would likely devastate many species and coastal communities worldwide.
It is essential that visionary leadership on a national scale is matched by a proactive grassroots movement at the local level to promote a rollout of energy saving measures and habits. Much like communities came together to ‘Dig For Victory’ during the war, we feel that the same ethos is needed now in the battle against climate change.
There are dozens of small changes that households and businesses can make in order to lower their energy use and carbon emissions, ranging from to replacing lights that are frequently on with LEDs, replacing old inefficient appliances and topping up your insulation.
Through our Energy Saving Service, BHESCo is helping our local community to make these essential changes to the way we use energy. The beauty of it is that by initiating energy saving measures in the home and reducing carbon emissions, people are also able to make huge savings on their annual energy bills. Its almost like getting paid to save the planet!
For help reducing your energy use, please view our Energy Saving Tips page or contact BHESCo to book a visit from our Energy Saving Team.
Our government claims that we need fracking in order to provide long-term energy security. They are using fear to convince us that we need to drill beneath our homes and areas of outstanding natural beauty in order to ‘keep the lights on’. This is special interest politics in its most malicious and dangerous form.
Fracking makes zero economic sense for the taxpayer. Climate activist and author of The Winning of the Carbon War, Jeremy Leggett said that it costs $3 to buy $1 worth of gas produced by fracking companies in America.
Lessons from America
You don’t have to be George Osborne to understand that this is not a winning economic model for Britain. Fracking is creating uninhabitable ghost towns all along the Marcellus shale, ground-zero for fracking in Ohio. The water is not fit to drink, you can’t grow anything healthy in the soil, animals can no longer graze without ingesting toxins from the grass, and the air is not fit to breathe. There are reports of increasing numbers of people in the US and Australia who live around fracking sites who are becoming gravely ill.
Fracking also uses a lot of water. The State of California decided that there is no reasonable way of dumping the waste water from offshore drilling, so they decided to dump the 8 billion gallons of contaminated fracking water into the Pacific Ocean. This water becomes poisoned by harmful chemicals such as benzene and chlorine. Fracking companies are not required to disclose the chemical composition of the fluids they use.
Hope Not Lost
We are living in an amazing time with incredible technological capabilities. Today in the UK, there are new business models being developed through partnerships between community energy groups, progressively thinking energy suppliers, renewable energy project developers, and local councils. These business models strive to create local energy generation to serve the communities where they are based, as was the case in the UK in the early 1900s.
For a small island nation the UK is lucky to have such an abundance of alternative energy sources available to us; we have Wind, Solar, Ground Source Heat Pumps, Tidal, Wave, and Anaerobic Digestion, to name a few. Additionally, we have new technologies that can improve the ways that we consume energy, like demand response systems, smart grids and energy efficiency measures.
Community Energy = Real Energy Security
BHESCo is part of a network of 20 Community Energy groups across Sussex and Kent that are devoted to creating local energy generation to provide REAL ENERGY SECURITY. We need to end the idea of short term thinking in our energy network and consider that energy generation projects can provide reliable energy sources for 25 to 30 years and longer.
We need to invest in our electricity grid to create the new distributed energy system that is needed to offer the taxpayer REAL ENERGY SECURITY. Fracking most certainly is not going to provide this in the long term, nor will it reduce prices for the 15,000 people in Brighton & Hove who cannot afford to heat their homes.
The current Government’s energy strategy makes no economic or environmental sense, and we say loud and clear No to Fracking! We want to leave behind a long-term legacy of clean, locally owned renewable energy that serves the community and preserves the environment.