No, we’re not a political party and we’re certainly not trying to influence your vote. But we do have a clear set of ideas as to how the next government can improve energy policy. Here are five things we’d love to see in every party’s policy toolkit.
Tariff transparency
The current government knows that the current system of branding energy tariffs “renewable” or “green” is not fit for purpose. That’s why it launched a Call for Evidence as far back as 2021 to ask how consumers can get clearer labelling on their energy products. This was a great start, but nothing has yet come of it. We want to see genuine transparency about the true carbon footprint of energy products. Many energy consumers are concerned about the climate but don’t have the information they need to make informed choices like they now do with food labelling. Real transparency would allow them to send market signals in line with their green values.
ENTRNCE would ask that only tariffs sourced from 100% 24/7 renewable energy is labelled as ‘green’ or ‘renewable’.
Improve annual reconciliation to half hourly
The current system allows suppliers to buy Renewable Energy Guarantees of Origin (REGOs) separately from the actual energy they buy. They can sell their energy as “100% renewable” as long as by year-end they have bought enough REGOs to match the energy sold with this label. This means that their actual sourcing is completely opaque to consumers.
The facts:
- The wholesale energy markets have long been trading energy in half-hourly chunks.
- The government’s forthcoming REMA reforms are proposing to use half-hourly data to incentivise different patterns of energy consumption.
- Increasing numbers of homes and businesses have smart meters serving up half-hourly information on our own consumption.
Yet energy retailers operate in a world where they wait a whole year before doing the sums. This is highly anachronistic and well overdue for reform.
ENTRNCE would ask that REGOs are matched to generation for each half hour period of consumption
Don’t delay MHHS
Regulatory change is already on its way that recognises the importance of more granular energy data. The Market-wide Half-Hourly Settlement (MHHS) programme will require all energy suppliers to bill customers on their usage as measured in half-hourly chunks. This is not only more accurate but also makes it easier for customers to make informed decisions – for example, participating in schemes where they avoid using energy at peak times. It will take strain off the grid and almost certainly save public money as well as cutting domestic and business energy bills.
The programme is scheduled to start in April 2025. ENTRNCE’s ask for any future government would be not to delay this important change, even though it presents a logistical challenge for suppliers.
ENTRNCE would ask that the MHHS scheme is implemented from April 2025.
Certainty on carbon reporting
There are currently a plethora of energy and carbon reporting schemes for UK businesses. However, some businesses may have been underreporting their Scope 2 emissions because the guidelines for such schemes aren’t stringent enough. As requirements get tougher, businesses that have been doing the minimum may find themselves scrambling to catch up. This is why we advise all businesses to find their true Clean Energy Score using our Matcher tool. But our advice to government would be to futureproof standards by raising the bar now so that businesses have clarity on what is required.
We know the current government has been reviewing the Streamlined Energy and Carbon Reporting (SECR) scheme and we would like to see some decisions on that soon. We would also like clarity on other schemes such as the UK’s adoption of the guidelines from the International Sustainability Standards Board (ISSB).
ENTRNCE would ask that Location based and Market based carbon reporting is replaced by half hourly matched consumption in line with half hourly market settlement frequency
Quicker grid connections
The British love a queue. But the current system of assigning grid connections, where everybody waits their turn even if the project in front isn’t ready yet, is one of the biggest barriers to decarbonising our energy supply. The current government has created a Connections Action Plan to tackle the problem and we wait to see how effective this is. The next government must have a strategy for clearing “zombie projects” out of the queue and prioritising generation projects that can actually deliver clean power quickly.
ENTRNCE would ask that the Connection Action Plan recognises the additionality of the generation asset requesting connection and prioritises the connections based on the ‘green value’ it brings in supporting consumers achieve 24/7 half hourly matched renewable energy supply.
It is not yet clear what results 4 July will bring. But we are very clear on exactly what the next government needs to do for a greener energy system. Hopefully work will start immediately.
