Choose cheap energy supply over net zero at Budget, Blair tells Healey
The Tony Blair Institute for Global Change is urging the Government to make cheaper energy the main focus of its strategy, rather than prioritising net zero targets in the upcoming Budget. It says the shift matters because UK energy bills remain among the highest in Europe and the G7, and high gas prices have driven costs up.
The institute proposes replacing the Clean Power 2030 strategy with a “cheaper power mission”, while keeping net zero as the long-term destination. Its suggestions include rewarding businesses that use electricity at off-peak times or where grid demand is low, speeding up connections for valuable energy projects, and reconsidering regional, or zonal, electricity pricing. Zonal pricing could lower bills in energy-producing areas such as Scotland but risk raising them in south-east England.
In short
- Blair’s institute wants cheaper energy to lead the Government’s strategy.
- It proposes incentives for businesses to use surplus electricity.
- Zonal pricing could lower costs in some regions and raise them in others.
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The case for
Making cheaper energy the immediate priority could ease pressure on households and businesses, improve the UK’s competitiveness and address the fact that high gas prices still drive up bills. A focus on affordability could also encourage more flexible electricity use and faster connections for projects that deliver useful power, while retaining net zero as the long-term goal.
The case against
Keeping the Clean Power 2030 strategy at the centre could provide clearer direction for investment and help build a cleaner electricity system, reducing exposure to volatile gas prices over time. Replacing it with a cheaper power mission might weaken confidence in the pace of the transition, and measures such as zonal pricing could shift costs between regions rather than lower bills for everyone.
Explained simply
The UK’s energy system relies on gas as well as electricity from sources such as wind and nuclear power. When gas prices rise, they can push up energy costs, and household and business bills in the UK have been high compared with those in other wealthy countries.
Net zero means reducing greenhouse gas emissions to very low levels, with remaining emissions balanced by removals. The Government’s Clean Power 2030 strategy aims to make electricity largely clean by that year, as one step towards its longer-term net zero goal.
The Tony Blair Institute for Global Change is a policy organisation founded by former prime minister Tony Blair. Its proposals include changing how electricity prices vary by region and rewarding businesses that use power when demand is lower; such changes could affect areas differently.
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