Truss Energy Plan Falls Short on Resolving UK Crises
‘Don’t Pay’ energy bills protest in the UK. Picture: Vuk Valcic/ZUMA
After a record-scorching summer and no shortage of political turmoil on the British Isles, newly appointed Prime Minister Liz Truss seeks to prevent a chilling winter for United Kingdom residents during a crushing cost of living crisis. An expected 80% rise in energy costs—largely due to restrictions on Russian natural gas amid its ongoing invasion of Ukraine—could leave millions unable to afford heat.
The Truss administration recently unveiled a £100 billion policy that caps annual household energy costs, but this does little to address the UK’s overreliance on fossil fuels, or to adequately prepare for a new geopolitical and climatic reality in Europe.
With over 40% of all its electricity generated from natural gas, the UK is particularly susceptible to market shocks in gas pricing. Already suffering from once-in-a-generation inflation rates driven by a combination of energy supply restrictions, goods shortages from the COVID-19 pandemic, and the continuing fallout of Brexit, UK households could see average annual energy bills increase from £1,971 to £3,549.
The Truss proposal places a £2,500 limit on energy bills for 24 million affected households. Notably, Truss has ruled out funding the aid package through a windfall tax on oil and gas companies, despite British energy firms projecting £170 billion in profits over the next two years. Furthermore, the plan lifts the moratorium on hydraulic fracking in the UK and allows for new permits for oil and gas drilling in the North Sea, with potentially over 100 new licenses granted.
Although UK offshore wind prices are nine times cheaper than current gas prices, Truss’ plan omits financial support for new renewable energy projects. By effectively doubling down on fossil fuels, the Truss administration, led by climate skeptic Jacob Rees-Mogg, secretary of state for business, energy, and industrial strategy, is jeopardizing the health and safety of a nation ill-equipped to confront climate change-related challenges.
Producing more electricity through fossil fuels could worsen the risk of heat-related mortality in the UK, where heat deaths are already expected to triple by 2050, causing further alarm after record-high temperatures in summer 2022. Additionally, expansion of hydraulic fracturing could increase drinking water contamination, as well as exposure to toxic byproducts and components of fracking fluid.
Across Europe, many countries are increasing investments in renewable energy projects to counter reliance on Russian fuel exports. Conversely, the proposal set forward by Truss provides a band-aid for UK consumers, promotes fossil fuel drilling, and absolves the oil and gas industry of responsibility for its callous pursuit of profit. Increasing domestic renewable energy supply in the UK can provide long-term, inexpensive energy supply for Britons, and protect the populace from the environmental, health, and economic consequences of climate change and geopolitical conflict.