Overview
- Reform UK’s official policy remains to strike down subsidy-backed AR7 Contracts for Difference but has been verbally narrowed to blocking any variations to existing agreements, deputy leader Richard Tice told the BBC.
- Industry bodies and legal experts warn that AR7 agreements are enforceable private-law contracts held by the Low Carbon Contracts Company, and contesting them could breach the rule of law.
- Energy analysts say undermining contract certainty risks deterring global investment in offshore wind, onshore wind and solar projects essential to meeting the UK’s 95% clean power target by 2030.
- Labour ministers argue the move could jeopardise nearly one million green jobs supported by the net zero sector and push up energy bills for households and businesses.
- The dispute intensifies the election debate over Britain’s renewable energy strategy as the government prepares to launch Allocation Round 7 in the coming weeks.