Labour's Energy Policies

The leader of the Labour Party, Ed Miliband, announced in his autumn party conference speech a series of proposals for electricity prices and electricity market reform. These include:

  • A price freeze for 20 months from the date of the General Election in May 2015.
  • A Pool for the wholesale electricity market.
  • The break up of the Big Six energy companies.
  • The abolition of OFGEM and its replacement by a new regulatory body.
  • An Energy Security Board.
  • The decarbonisation of the electricity system by 2030.

This paper looks at each of the components in turn, and at how they link together. Having examined each of the components in turn, the paper turns to some of the wider considerations raised by Labour, and the extent to which the consequences of these proposals are likely to be much more radical than so far appreciated. It asks whether the scope and nature of state intervention is likely to intensify, whichever parties form the next government.

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