In the midst of the energy-driven cost of living issue, Energy Secretary Ed Miliband said that the extra £500 million for the upcoming renewable energy auction indicated a commitment towards Labour’s goal of providing people and companies with clean, affordable, low-carbon electricity.
Following Russia’s invasion of Ukraine, wholesale gas and electricity prices skyrocketed. The previous government decided to fill part of the resulting supply gap by issuing new licenses for the extraction of oil and gas.
The renewables auction procedure from the previous year, an annual occasion where energy companies bid for contracts for difference.
Energy developers claimed that this was because the previous administration had neglected to account for the enormous cost hikes they had been facing ever since the wholesale price spike.
In response to the criticism, the Conservatives increased the budget for the September auction to £1 billion; nevertheless, the new administration indicated that significantly more funding was required to bring new green power generating up to speed.
