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Ofgem boss Jonathan Brearley and Antony Ainsworth, COO of npower Business Solutions, delve into Labour’s significant energy policies.
Labor is progressing swiftly, but is it heading in the right direction? I engaged in a conversation with Jonathan Brearley, CEO of Ofgem, and Anthony Ainsworth, Chief Operating Officer of npower Business Solutions, to gather their reactions to the newly announced policies and the anticipated response from the business sector.
Jonathan initiated the discussion by expressing that very little came as a surprise: “I can’t say I’m surprised. The party has been hinting at major shifts for some time. Great British Energy? Not surprising. The 2030 target to decarbonise the grid? Not surprising either.
“But what I would like to point out is that Ed Miliband has generated what I believe is an extremely positive atmosphere around his agenda.
“There is certainly, amidst all of this, a mindset that if we are to achieve something like the 2030 target, we will need to identify problems and resolve them much more swiftly.
“And all of us are entering the room with the mindset that whatever it takes, we will get it done.”
He emphasises the significance of appointing Chris Stark from the Committee on Climate Change as a pivotal move: “They have labelled it as ‘Mission Control,’ providing us with a central focus to drive progress at a rapid pace.”
Jonathan adds that there is a cautious optimism prevailing across the sector, from network operators to generators: “Excitement is building, and that is what we need to harness.”
He also mentioned that lessons have been learned from the energy price crisis triggered by Russia’s conflict with Ukraine, which are now influencing government actions.
Net zero in focus
“The Russian invasion of Ukraine exposed the vulnerability of the global energy market. Europe had to spend €1 trillion in managing the gas crisis, which only managed to keep bills at double their pre-crisis levels. We cannot afford to go through that again.”
“So, to me, the economic case for this net zero transition is now significantly stronger. Hence, I believe there is a focus on achieving this goal.”
From a business perspective, Antony Ainsworth also expressed his positivity towards Labour’s plans but acknowledged that red tape obstacles would need to be overcome for rapid progress.
He stated: “I must say, they deserve an ‘A’ for effort in the first hundred days, considering all that they have accomplished and the speed at which they have done it. While individually there might not be any surprises, collectively, I believe it’s a considerable and substantial effort to accomplish all those tasks.”
“The challenge lies in coordinating those policies and addressing matters outside the energy sector, such as changes needed in planning regulations.”
Businesses seek clarity
Mr. Ainsworth’s connection to UK businesses provides him with a keen understanding of their priorities: “The businesses we support contribute to approximately 16% of the UK’s GDP. Their objectives are clear. CFOs seek lower energy costs, CEOs require a reliable supply chain that can withstand shocks, and everyone is under pressure to decarbonize as swiftly as possible.”
He continued: “Our surveys indicate that businesses are fully aligned with the government’s objectives. However, they require a consistent and transparent policy framework to make confident investments.”
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