From crisis to confidence in the future of clean heat
By Jenn Humphries, Director, Clean Tech and Climate
The Iran war has once again put the UK’s vulnerability to fossil fuel price shocks at front of mind. 80% of UK households remain reliant on oil and gas heating and while they have been shielded by the price cap or government support in the short-term, this isn’t guaranteed for the months ahead.
The risk also goes far beyond this crisis. According to the Fuel Poverty Coalition, even if the Rosebank and Jackdaw oil fields were approved, the UK will no longer be able to meet heating demand using only domestic gas by 2027. We need a concerted effort to embrace a new era of electric heating technologies from heat pumps to storage systems, to prevent yet another Winter with millions of households left footing the bill or, worse, out in the cold completely.
What’s happening?
Labour politics remains clear – clean energy is secure energy.
Policy is happening – efforts to delink electricity and gas prices, accelerate domestic solar rollout and set new, stricter obligations on new and existing buildings including private and rented homes – these are all essential to incentivising electric heating.
Households are responding - Octopus Energy says heat pump orders have more than doubled in March than February, solar panel sales are up 80% and new leases of EVs rose by more than 85%.
What’s needed?
The King’s Speech is an opportunity to cement this transition. The Energy Independence Bill will be a landmark Bill covering a huge range of policies aimed at protecting consumers and reshaping the energy system, we are working with sector colleagues to ensure clean heat delivery is at the heart of this plan.
It must provide the robust legislative framework to support Warm Homes Plan policies like establishing the Warm Homes Agency and introducing new minimum energy efficiency requirements for social and rented homes.
Yesterday, the Government made a first move on the political hot potato of reducing electricity prices. The carrot of encouraging renewables generators onto Contracts for Difference and stick of increasing the Electricity Generators Levy show a long-term bet on electrification.
But we need to deliver change for consumers in the short-term. This includes calling for the Bill to look at ambitious reform of the social and environmental levies that still make up ~15% of the electricity bill. DESNZ and HMT made positive progress in the 2025 Autumn Budget, but fossil fuel volatility quickly reminded us of the need to go further and faster.
Other key drivers like increasing the grant to 9k for oil heated homes and including heat batteries in the Boiler Upgrade Scheme Scheme, mandating that certain electric heating technologies provide demand-side response and changing permitted development rights to help heat pumps installations will all likely need secondary legislation outside of the Bill.
What should organisations be doing?
Reshaping the way we think about energy and heat requires tough political choices during tough economic times and it’s crucial that organisations continue to evidence the benefits of making them. Seahorse hosted a roundtable last month on the Warm Homes Plan with parliamentarians Luke Murphy (Lab), Hannah Spencer (Green) and Graham Leadbitter (SNP). We all agreed on the need for cross-sector consensus on the benefits of clean heat with real-life case studies and evidence as well as consistent messaging on what the Warm Homes agenda means for households, the energy system and the economy.
The King’s Speech, subsequent debates and the progression of the Bill through Parliament is an opportune time to do this. In the weeks ahead, organisations should plan for what good looks like, the arguments they need to make, how to evidence them, and crucially who they can work with to amplify that message.
Seahorse has a deep expertise in energy and clean tech and proven record of working with organisations and coalitions looking to influence legislation to achieve serious change.
Contact us at info@seahorseenvironmental.co.uk if we can help with your approach.