Starmer Touts Great British Energy as Bill-Reducing ‘Game Changer’ Amid Crown Estate Wind Farm Push

Starmer claims energy costs will decrease through Great British Energy, celebrating the transformative Crown Estate collaboration. Labour anticipates that the initial agreement with Great British Energy could attract up to £60 billion in private investment and reduce energy prices.

Political correspondent @NifS

Thursday, July 25, 2024, 1:

Sir Keir Starmer has expressed his assurance that household expenses will decrease under the government's initiative to establish the state-owned energy company GB Energy.

Addressing an audience in Runcorn, Cheshire, the Prime Minister praised the government's "groundbreaking" collaboration with the Crown Estate on launching new offshore wind projects, calling it a "revolutionary move."

In its manifesto, Labour claimed that its net zero energy policies would reduce annual household energy costs by £300, a figure that Sir Keir affirmed he supported.

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When questioned by Tom Clarke, the science and technology editor at Sky News, about his assurance on reducing people's bills soon, considering the lengthy development period for offshore wind farms, the prime minister responded affirmatively, "Yes."

He stated that the funds directed towards GB Energy were meant to serve as a stimulant for private sector investments. Additionally, the collaboration with the Crown Estate was designed to instill investor confidence regarding their resolve and the quickness with which they make decisions.

The prime minister did not specify when people could expect to see a reduction in their energy bills and admitted that establishing GB Energy would require some time to fully implement.

"He emphasized that while it may take a while to see the advantages of renewable energy, that is precisely why we are accelerating our efforts."

The prime minister stated that the switch to renewable energy would not only reduce costs but also secure job opportunities for the future generation.

In his communication with current oil and gas employees, who are worried about potential job losses due to the shift towards sustainable energy, Sir Keir acknowledged that these resources will continue to be included in the energy landscape for the foreseeable future. However, he emphasized that the move towards renewable energy sources is inevitable.

"He emphasized that the most detrimental action would be inaction or to proceed with delay," he stated.

"We moved away from using coal, and the previous administration failed to plan ahead. I'm committed to ensuring that oversight doesn't occur again."

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The agreement with the Crown Estate was publicized concurrently with the government's unveiling of a bill to establish Great British Energy, which will be supported by an allocation of £8.3 billion in the upcoming parliamentary session.

The Crown Estate acts as the real estate arm of the British monarchy, managing assets valued at £16 billion, which notably comprises the majority of the UK's seabed extending up to 12 nautical miles offshore. While it is held by the reigning monarch, they do not have the authority to sell any of its assets.

Last year, it generated a profit of £1.1 billion, primarily through renting land to offshore wind operators. Most of these earnings are returned to the government, with only a small fraction allocated to the monarchy.

A new legislative proposal set to be introduced on Thursday will grant the Crown Estate enhanced borrowing capabilities, enabling it to increase its investments in wind energy initiatives.

CEO Dan Labbad stated: "The Crown Estate's purpose is to benefit the national interest by managing our natural resources to help achieve a future that is decarbonized, energy-secure, and sustainable."

"By harnessing new capabilities and collaborating with the government, we can boost investments in our nation's future, which will aid in both the restoration of nature and the creation of employment opportunities."

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Further specifics about Great British Energy were disclosed on Thursday, with the government announcing plans to accelerate energy projects by spearheading their development phases, before handing them over to private companies. The government will retain a share in these projects to ensure a financial return for taxpayers.

Nonetheless, officials have not ruled out the possibility that Great British Energy could manage its own projects down the line.

Greenpeace UK described the announcement as an excellent initial move towards the Labour Party fulfilling its robust electoral commitment to expand renewable energy nationwide.

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However, Claire Coutinho, the shadow secretary for energy security, labeled Great British Energy as merely a "gimmick that will ultimately burden households rather than reduce their bills."

The ex-Conservative minister commented, "Labour has conceded that their main energy firm will not produce any energy, and it has become evident that it is a financial drain, channeling taxpayers' funds into mitigating risks for large-scale energy corporations."

"The Labour Party's energy strategy prioritizes political beliefs over the country's needs… the Conservative Party will scrutinize their actions and ensure that reducing costs and securing energy supply are the main priorities."

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