UK Opposition Party Threatens to Scrap Renewable Energy Contracts and Halt Subsidies

The UK’s Reform Party has sparked industry backlash after Deputy Leader Richard Tice announced plans to reassess all Net Zero-related commitments, including existing contracts and subsidies for renewable energy projects.

In a public post on X , Tice criticized the UK's climate agenda, calling it “Net Stupid Zero,” and vowed that Reform would “stop it,” claiming it is “ruining our countryside and economy.”

Tice has written directly to executives at major clean energy companies, including RWE, Orsted, Scottish Power, and Equinor, all of which have current or planned projects in East Anglia.

In his letter, he warned these companies against participating in the UK government’s upcoming Contracts for Difference (CfD) Allocation Round 7 (AR7). The letter stated that any bids submitted would be at the company’s own risk due to expected policy reversals under a potential Reform-led government.

“Participation in AR7—or any future auctions based on the Clean Power 2030 framework—carries significant political, financial and regulatory risk for your shareholders,” he wrote. “We will look to strike down all contracts signed under AR7. Should you choose to participate, you should treat any long-term revenue streams as politically and commercially unsafe.”

The UK government recently announced that AR7 will open for applications in August 2025, with results expected by the end of the year or early 2026.

Industry Response: Warning Over Investor Confidence

Kevin Keable, Chairman of the East of England Energy Group (EEEGR), pushed back against Reform’s announcement, calling it a politically charged move with serious consequences.

“Behind the theatre of this headline-grabbing move, the reality is much more serious,” Keable said. “CfDs are not subsidies—they are private law contracts. They provide developers with stable pricing and protect consumers from volatile market conditions.”

He emphasized that these contracts were specifically designed to provide legal certainty, attract global capital, and help the UK scale up offshore wind while reducing consumer electricity prices.

Keable added, “Reform UK may talk tough, but CfDs already signed under AR7 will be legally binding. Yes, future policy could change, but tearing up existing agreements? That kind of move has backfired elsewhere.”

He also pointed out that global investors funding offshore wind are also backing critical UK infrastructure projects, such as Sizewell C nuclear power station. Any disruption in confidence could raise the cost of borrowing across the energy sector.

“Spook them in one area, and the ripple effects could impact everything,” Keable warned. “Uncertainty doesn’t just stall renewables—it slows the entire system.”