News

The Liberal Democrat party has backed plans to cut energy bills for households and change how new renewables projects are costed. As outlined in this blog, Liberal Democrat leader and former energy secretary Ed Davey outlined his vision for a thriving economy, which included UKERC’s research on ‘pot zero’.

The plans backed by Davey were the subject of a UKERC Discussion Paper published in 2022. The paper explores the potential of using the low cost of renewables and nuclear to help keep energy prices down. Crucially, it uses existing support schemes and does not require any change to market rules.

The idea is unorthodox and could be controversial, but unlike any other market reform idea, would not require changes to existing market arrangements or policies. Unlike a windfall tax, ‘pot zero’ offers eligible generators an upside – secure revenues into the future. Thus, there could be long-term advantages for low-carbon, domestic generation, as well as significant benefits to consumers as soon as next winter.

Read more about the Discussion Paper.

Read the full story in the BBC.