The UK’s Renewable Energy Association (REA) has rejected remarks reportedly made by Conservative MP Robert Jenrick calling for the dismantling of the government’s Contracts for Difference (CfD) regime, a key mechanism supporting renewable energy projects.
A recording surfaced this week of Jenrick speaking at a Eurosceptic think-tank event in London, where he appeared to advocate scrapping the CfD scheme to prioritise fossil fuels in response to high energy prices.
In response, Frank Gordon, REA policy director and head of power, said: “Far from being a drag on consumer bills, the CfD scheme has been one of the only mechanisms protecting households from soaring fossil gas prices in recent years, while delivering urgently needed new investment into clean power.”
He added: “This is because the mechanism includes built-in value for money safeguards, so generators pay back money which comes off all our energy bills if the wholesale price of electricity rises above a set amount. Over the last few years, where we’ve had an energy bill crisis, this has saved consumers billions in avoided costs. While bills went up, they would have risen higher if it were not for the CfD mechanism.
Gordon emphasised that transitioning to renewables remains essential. “In the longer term, moving to cheaper, cleaner, more secure homegrown renewables is the only way to end our dependence on volatile, polluting, imported fossil fuels. Renewables are better for our security, natural environment, and economy, and we should all be on board with that.
In the recording, Jenrick, a former senior minister and shadow justice secretary, said the Conservative Party should consider dismantling the CfD support scheme. “Yes, I think we should do,” he said, adding that net zero policies had been “a complete disaster” and called for expanding North Sea oil and gas, new gas-fired power stations, and nuclear energy.
Jenrick also criticised UK energy costs, saying: “It cannot be that we have energy prices that are four times that of the United States and 30% higher than Germany. It just doesn’t work.
His office and the Conservative Party have been contacted to verify the comments.
