By Clare Dobson, Senior Policy Consultant
As autumn weather set in, Parliament returned on the same day the Met Office confirmed 2025 as the hottest summer on record – now an almost annual reminder of the climate crisis.
The Prime Minister resumed work focused on the economy and delivery of the Labour Missions, reshaping his No 10 team and appointing Darren Jones MP to a new post as Chief Secretary. Meanwhile, fresh reports confirm that Deputy Prime Minister Angela Rayner has left her post, with a broader ministerial reshuffle anticipated next week.
But Energy Secretary Ed Miliband is expected to remain in post given his department’s progress on the Clean Power by 2030 Mission. Before recess, key milestones were reached at DESNZ through publication of the Solar and Clean Flexibility roadmaps, an Onshore Wind Strategy, reforms to the Contracts for Difference (CFD) scheme, and the long-awaited decision on the Review of Electricity Market Arrangements (REMA).
So, what is now at the top of Mr Miliband’s energy policy priorities and action list for this autumn?
Renewable energy auction is the ultimate test for Clean Power targets
By now DESNZ will have applications into the seventh auction round (AR7) of the Contracts for Difference (CFD) scheme. With the Clean Power Action Plan identifying that AR7 will need to bring forward more renewable deployment than any of the previous rounds (e.g. on offshore wind, around 12 GW will needed across AR7 and AR8), Ministers and officials will be looking at the applications hoping that the planning, connections and CFD reforms together with the enabling roadmaps have attracted the right level of investment. If not, the Clean Power Mission may falter.
Budget pressure rises with the cost of energy
The Ofgem energy price cap (aka the average cost of a dual fuel energy bill) will rise by £35 to £1,755 for October to December. Around 9 million pensioners will benefit from the relaxation of Winter Fuel Payment rules, and the Warm Home Discount will be extended to 2.7 million additional households . However, this help remains small compared to overall bill sizes. Industrial users also face some of the highest energy costs in Europe. With November’s budget approaching, it’s unlikely that Rachel Reeves will offer a systemic solution, given the current state of UK finances. But perhaps she will find money for a time-limited discount or support scheme for those who need it.
REMA reforms need delivering…with answers on energy bill reductions
After three years of deliberation and consultation, the government decided to retain the national wholesale electricity pricing system rather than move to zonal pricing. While this offered short-term reassurance to energy investors (particularly for AR7 bids), it also committed the government to reforming balancing and settlement, constraint management and transmission charging arrangements.
A cost-benefit analysis and reform delivery plan are due by the end of 2025, with implementation spread over several years. The extent to which these changes will reduce energy bills remains unclear. Electricity prices are still largely set by gas plants under the current ‘pay-as-clear’ system and is the main cause of the high prices.
In the absence of a clear policy solutions, others are stepping in. Yesterday Stonehaven and Greenpeace published a joint report showing that removing gas plants from the wholesale electricity market and placing them into a strategic reserve could save the average household £65 on energy bills. Many will want to hear Mr Miliband’s views on this.
Citizen engagement in the clean energy transition now a top priority
With Reform UK currently topping the polls and promoting net zero scepticism, government engagement with the public on climate is of primary importance. Notably, YouGov’s September polling still shows that 62% of the population think that climate change is a very real threat. However, just 14% agree that government is getting the balance right on action, and 37% want government to do more.
At Wednesday’s DESNZ Select Committee on the subject, there was a strong feeling that public support for the clean energy transition must not be taken for granted. Experts advised that people are looking to government for stronger leadership on climate. More voice should be given to climate impacts and interests across wider society to counter the noise made by those with fossil fuel interests. Government communications could play a key role in hitting climate milestones - not only on the grounds of protecting the planet's future, but also by highlighting benefits such as job creation, economic growth, and improved public health.
This national communications challenge is something that government will need to master if the clean energy transition is to increase pace over the coming months, and years.
If your organisation is navigating the evolving political landscape around the government’s clean energy policy, we can help. Why not reach out to our Public Affairs team at: publicaffairs@cardewgroup.com.