Press release

Government must say no to more gas plants that will drive up energy bills

14 March 2012

Energy firms including the Big Six are planning to build nearly double the number of gas-fired power stations the Government says the UK may need, in a move that energy experts predict will drive up household energy costs due to ever-increasing gas prices, new Friends of the Earth analysis reveals today.

The environment charity is calling for a ban on any more dirty gas plants - unless the Government introduces tougher limits on carbon pollution from power stations - warning the new gas proposals make a mockery of Government commitments to decarbonise the UK's energy system in the next decade.

Friends of the Earth's analysis shows that up to nine gigawatts (GW) of new gas-fired electricity generation - enough to power almost nine million homes - could come on line by 2016, nearly twice the additional 4.9GW the Government projects may be needed by 2020. An estimate by Bloomberg New Energy Finance last month was even higher, at up to 11 gigawatts (GW) by 2016.

Meanwhile, Friends of the Earth has today released a report on the global factors affecting UK gas prices now and in the future. Gas prices have soared over the last decade, pushing up our bills - and the report shows why ever-increasing international demand means it's likely the price of gas will keep rising.

Friends of the Earth's Energy Campaigner Paul Steedman said:

"Once again we're seeing how the Big Six and other energy companies are planning to keep us hooked on dirty and expensive gas we don't need.

"Gas dependency is a costly, polluting dead-end - to guarantee affordable energy in the long run we must switch to clean British power and slash energy waste.

"People in the UK are fed up of the energy rip-off - an overwhelming majority want the Government to force the big energy firms to invest in power from our wind, waves and sun.

"To ensure we have energy we can all afford, Ministers must support clean homegrown power and get tough on dirty energy - that means introducing a ban on new gas plants, unless there is a strong Emissions Performance Standard to limit carbon pollution from power stations."

Key points from the analysis

• Friends of the Earth's analysis shows that the Big Six energy firms are responsible for almost 60 per cent of the new gas plants that have already received Government permission, and have further proposals already in the planning system or expected within the next year.
• This additional gas risks locking the UK into a future of high-carbon electricity generation, making it virtually impossible to reduce per-unit carbon dioxide emissions from electricity generation by 90 per cent by 2030, as recommended by advisers to Government the Committee for Climate Change.
• Friends of the Earth is also calling on the Government to amend the planning rules in the National Policy Statements to limit new gas consents unless they are fitted with Carbon Capture and Storage, as is already the case with coal.

Public support for renewables

• 86% of people support an independent public inquiry into the big six energy companies, according to a YouGov survey carried out for Friends of the Earth and Compass on 16-18 February 2012.
• The poll also showed strong support for clean British energy - 70% of people want the Government to force the big energy companies to invest in power from the UK's wind, sun, waves and tides.

ENDS

Notes to editors

1. Friends of the Earth says the Government should not consent to any further gas power plants unless it has already introduced a tough Emissions Performance Standard (EPS), which limits the amount of carbon emissions from power plants. The Government is currently proposing to introduce a weak EPS that will have no impact on new gas power stations, as part of its upcoming Electricity Market Reform. Friends of the Earth believes the EPS should be tougher and the level should drop over time, so that emissions from the power sector are no more than 50g CO2/kWh in 2030, consistent with the advice of the independent Committee on Climate Change.
2. Almost 40,000 people have joined Friends of the Earth's Final Demand campaign, launched in October last year, which calls for energy we can all afford and a public inquiry into the power and influence of the Big Six energy companies.

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Published by Friends of the Earth Trust