Reform UK has issued a stark warning to Britain's largest wind and solar developers, threatening to scrap their access to a crucial clean energy subsidy scheme if the party wins power. The move targets firms including Octopus Energy and SSE Renewables who rely on government-backed contracts to protect against market volatility.
Deputy leader Richard Tice has written directly to renewable energy companies giving them "formal notice" that Reform would axe the Contracts for Difference (CfD) scheme. The programme guarantees developers a fixed electricity price regardless of wholesale market fluctuations, designed to encourage investment in sustainable projects.
Warning over net zero agenda
In Wednesday's letter, Tice claimed "there is no public mandate for the real-world consequences" of the clean power agenda, describing the contracts as a "key part" of policies his party opposes. He specifically threatened to "strike down all contracts signed under AR7" - the latest allocation round for the subsidy scheme.
"Let me be clear: if you enter bids in AR7, you do so at your own risk," Tice warned. "The political consensus that has sheltered your industry for nearly two decades is fracturing." He added that participation in the upcoming CfD auction "carries significant political, financial and regulatory risk" for company shareholders.
Investment fears raised
Climate analysts warned the threat would drive away investment and endanger British jobs. The Energy and Climate Intelligence Unit (ECIU) said polling shows the public sees clean energy as the UK's top growth sector.
"Arguing against British renewables is arguing for more foreign gas, which will increasingly come from abroad as the North Sea continues its inevitable decline," the ECIU stated. The organisation warned that scrapping long-term policies would "destroy the UK's credibility as a solid place to invest".
Labour hits back
Labour accused Reform of "actively trying to discourage businesses from investing in clean energy in the UK". A party spokesman said the move would leave "bills higher for families, threatening hundreds of thousands of good jobs across the country and putting our energy security at risk".
"They are disgracefully trying to undermine the UK's national interest," the spokesman added. The criticism came as the Government announced changes to speed up offshore wind development by allowing applications before full planning consent.
Liberal Democrats defend scheme
Liberal Democrat leader Sir Ed Davey recently argued that greater use of CfDs would cut household bills by breaking the link between electricity costs and gas prices. "We're all paying that higher gas price in our bills, even though most of the energy we're using comes from much cheaper, renewable sources," he said.
Davey also accused Reform leader Nigel Farage of peddling "myths" about net zero, vowing to challenge "snake oil sales" with "thought through" policy. Officials have confirmed the scheme will extend contract lengths from 15 to 20 years for offshore wind, onshore wind and solar projects.
(PA) Note: This article has been edited with the help of Artificial Intelligence.
