Choose cheap energy supply over net zero at Budget, Blair tells Healey

Become an Independent member to bookmark this article Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Membership today. Join today Already a member? Log in Sir Tony Blair ’s think tank has urged Chancellor John Healey to pivot Britain’s energy strategy away from net zero targets and focus instead on delivering cheaper supplies to consumers in the upcoming Budget . The Tony Blair Institute for Global Change (TBI) recommended that the Government should also use its prospective 10-year plan to set out structural reforms aimed at lowering energy costs across the UK.

Energy bills in Britain remain among the highest across Europe and the G7 group of countries, largely driven by a significant reliance on natural gas, which frequently dictates overall electricity pricing. Conflicts in both Iran and Ukraine have further inflated gas prices, creating a knock-on surge in wider energy expenses. Publishing its latest report on the eve of the Budget, the TBI argued the Government should replace its grid-decarbonising Clean Power 2030 strategy with a new "cheaper power mission" aimed centrally at price reduction.

This shift could begin in the Budget, the think tank stated, through a scheme rewarding businesses that use power at off-peak times and in areas without heavy grid demand. open image in gallery Sir Tony Blair ( PA ) Prime Minister Andy Burnham should use his 10-year plan, which is expected later this year, to speed up the connection of the most valuable energy projects to the grid, the think tank added. Mr Burnham should also reopen the case for zonal pricing, the TBI said, an idea which was slapped down by former prime minister Sir Keir Starmer amid fears it could increase the price of electricity in the south east of England, even though it would reduce bills in areas like Scotland, where a lot of energy is generated.

Tone Langengen, director of climate and energy policy at the TBI said: “Britain is paying wind farms to reduce their output at the same time as businesses are struggling to get the electricity they need. That is a clear sign that our energy strategy needs to change. “Clean energy remains Britain’s future, but the test should be whether we can turn it into cheaper, reliable power that households and businesses can access. open image in gallery Chancellor John Healey ( PA ) “The Government should replace Clean Power 2030 with a cheaper power mission – keeping net zero as the destination, while putting affordability, security and electrification at the heart of how we get there.

“The Budget can start now by rewarding businesses that use wind power the grid would otherwise be unable to use. “The ten-year plan must then tackle the deeper problems in our grids, markets and energy system so Britain can turn its energy resources into a competitive advantage.” The TBI’s latest research reflects the sentiments of its founder, former prime minister Sir Tony, who earlier this year made a similar criticism in an essay critical of Sir Keir Starmer’s government.

In that 5,600-word article, Sir Tony urged the then-government to “remove those parts of the net-zero agenda which prioritise clean energy over cheaper energy”. Mr Burnham appears to have somewhat answered the call by his Labour predecessor Sir Tony by approving drilling at the Jackdaw gas field in the North Sea.