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Reform Tells Energy Firms It Would Scrap Their Clean Power Subsidies

UNITED KINGDOM, JUL 15 – UK extends renewable energy contract terms to 20 years under Contracts for Difference scheme to boost investor confidence and support clean power goals by 2030, government says.

  • Reform UK deputy leader Richard Tice cautioned energy companies that participating in the upcoming AR7 clean energy auction could expose them to considerable political and financial uncertainties.
  • This warning followed the UK government’s July 15, 2025, decision to extend Contracts for Difference contract terms from 15 to 20 years starting in Allocation Round 7 from August 2025.
  • The contract extension aims to lower developers’ financing costs and provide longer-term revenue certainty, alongside reforms such as longer solar commissioning windows and relaxed offshore wind planning requirements.
  • The leader of the Liberal Democrats, Ed Davey, argued that expanding the use of Contracts for Difference could lower household energy bills by disconnecting electricity prices from the cost of gas, though some critics warn that longer contract terms might result in consumers paying more if wholesale prices decline.
  • Tice’s announcement signals Reform UK’s intent to reassess net zero commitments and cancel AR7 contracts if elected, prompting concerns that such moves could deter clean energy investment and threaten UK energy security and jobs.
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theenergyst.com broke the news in on Tuesday, July 15, 2025.
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