Ed Miliband has vowed to ‘double down’ on his green energy drive despite fears it could push up prices.
He is set to use the Iran war to justify revving up his Net Zero agenda after conflict in the Middle East sent prices spiralling.
The Energy Secretary is expected to announce plans alongside Chancellor Rachel Reeves to cut the link between electricity and gas prices.
But the Tories warned that these plans could, in fact, push up prices and said the cost of fuel only makes up a small amount of bills.
Gas-fired power stations often set the wholesale price of electricity, even when it’s generated by cheaper renewables.
Following the Ukraine and Iran wars, this system meant consumers faced far higher bills and generated windfalls for nuclear and older renewables.
Mr Miliband’s plans would see older clean power generators – which supply a third of Britain’s power – asked to move on to fixed-price contracts.
The Government plan to offer tax breaks as an incentive to make the switch. It is hoped this would make a difference to bills within the next year.
Fuel prices have jumped since US President Donald Trump announced strikes on the Middle East and home energy prices in Britain are expected to rise sharply when the next price cap is announced at the end of May.
‘As we face the second fossil fuel shock in less than five years, the lesson for our country is clear… the era of fossil fuel security is over,’ Mr Miliband is expected to say at the Good Growth Foundation event today.
‘In response to recent events, our action must now be faster, deeper and more wide-ranging.
‘That is why we will double down not back down on our mission for clean energy.’
Speaking at the ‘national growth debate’, Mr Miliband will also announce plans to expand renewables on public land, including placing solar panels alongside railway lines.
He will also pledge to make it easier for households to install green technology such as electric vehicle chargers when they do not have driveways and to switch to heat pumps.
Mr Miliband has come under pressure to allow more drilling in the North Sea for oil and gas but is not expected to announce any changes on this matter today.
Shadow energy secretary Claire Coutinho said: ‘Ed Miliband talks about breaking the link, but energy experts have said his plans will just mean generators game the system, which could raise the price.
‘It’s also a red herring because the cost of fuel is only 25 per cent of an electricity bill… 75 per cent is made up of non-commodity costs,
taxes and levies the Government is choosing to whack on households.’
