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ECA responds to government Inquiry into fossil fuels and energy security

ECA and Actuate UK have joined other industry bodies in submitting evidence to the Fossil Fuel Inquiry.  The Inquiry was launched by the Environmental Audit Committee (EAC) following the invasion of Ukraine.

The Committee is looking at measures to reduce the UK’s dependence on fossil fuels.  Its concern is to protect households from high energy prices and fuel poverty.  The Inquiry complements a parallel one carried out by the Business Energy and Industrial Strategy committee.  The latter will examine the future electricity mix through the lens of 2035 legally binding net zero targets and the Government’s Energy Security Strategy.

Over 50 organisations from the world of academia, business and charity submitted written evidence.  They include household names such as National Grid, Friends of the Earth and Chatham House.

Responding to the Inquiry, ECA called for a National Retrofit Strategy and more investment in wind and solar.  It also stressed the urgent need for an integrated electric vehicle infrastructure to meet growing demand.

On the topical issue of energy taxation, ECA pointed out that electricity is currently around four times more expensive than gas.  This is due to an outdated levy system.  The carbon intensity of electricity is reducing rapidly.  Therefore, the levies disproportionately tax clean energy.  Rebalancing the unequal taxes placed on gas and electricity will give customers an incentive to switch to low carbon electricity. 

The EAC holds its first oral session today.  It explores how the UK will manage the transition away from fossil fuels as well as securing energy supplies.  The Committee is quizzing the Chief Executive of E. ON UK, a Director from EDF Energy, oil and gas industry body Offshore Energies UK as well as think tanks and universities.

Last updated 07 June 22