Nonprofit advocacy organisation Power for People says that 127 Conservative MPs, around a third of the parliamentary party, back its calls for community energy reforms as part of the Energy Bill.
At Second Reading of the Energy Bill earlier this week, the government failed to back amendments to the Bill introduced in the House of Lords which would see Ofgem’s remit amended to include reference to net zero goals, and also to improve market competition by allowing households and businesses to become customers of community-led local energy companies.
According to Power for People, “studies suggest this would lead to a twentyfold growth in renewable energy generation from such schemes within a decade.”
Power for People’s proposals on community energy reforms are supported by “320 MPs from all parties, including 127 Conservatives, along with hundreds of councils, the National Trust, the Church of England and over 80 other national organisations”.
The nonprofit says that the reforms would create tens of thousands of skilled jobs and reduce customers’ energy bills. “Money from energy bills would be kept local and would improve local economies across the country, while increasing local provisions for support of vulnerable customers,” People for Power argues.
Greg Smith, Conservative MP for Buckingham, said: “It is an absurdity that the community energy sector has seen minimal growth in recent years because of energy market and licensing rules. These [clauses] seem to be straightforward, pro-competition, pro-consumer reforms. If the Minister is minded not to support them, what will he propose to open up the huge community energy sector opportunity?”
David Johnston, Conservative MP for Wantage, said: “The Government have consistently said that they support the development of community energy. I urge the Minister to work with us.”
Power for People’s director, Steve Shaw, said: “All those MPs were being very reasonable and we are trying to be reasonable. We would be happy If the government came forward with their own proposals that are workable.”
“Because of the barriers and unreasonably regulatory burdens, not one community energy scheme in the UK sells their clean power directly to local customers. The wasted potential has gone on for far too long. Community energy groups should be enabled to sell their power to local customers. This has remarkable public and Parliamentary support and so it should be enacted. I call on the Government to work with the hundreds of supportive MPs to enable this vital reform.”
Shaw reiterated that government ministers had repeatedly stated that they supported community energy bill reforms, and that it would be inconsistent to reject the amendments without proposing their own workable solution.
With so many Tory MPs supportive of the reforms, rejecting the amendments outright without proposing a replacement could see the government defeated in the Commons in votes on the amendments after the Bill returns from Committee stage in six weeks.
Power for People argues that studies show the potential for a 20-fold increase in the community energy sector over 10 years if the reforms are allowed to go ahead.
“This would professionalise the sector,” Shaw says “These community groups are volunteer led, but they would get more revenue, staff themselves and become more serious outlets.”
