Reform’s threat to tear up government support for wind and solar developers would fall foul of contract law, it has been claimed.

Richard Tice, the party’s energy spokesman has written to the CEOs of SSE Renewables, Octopus Energy, Centrica, Equinor, and others, putting them “on notice” that if Reform moves into Downing Street it would scrap deals struck with the Labour government.

His intervention comes ahead of the next round of bids for support to build new wind and solar farms – known as Allocation Round 7 (AR7). It will offer developers “contracts for difference” (CfDs) giving them a guaranteed minimum price for their power for up to 20 years.

However, Tara Singh of global brand reputation agency Burson, says CfDs are not subsidies, but private law contracts, signed with the Low Carbon Contracts Company (LCCC), a government-owned entity created to provide legal certainty.

“That distinction matters,” says Ms Singh. “Unlike public subsidies, private law contracts can be enforced in court. If a future government tried to renege, developers could sue.

“The structure was a deliberate response to the chaos of the 2000s, when countries like Spain pulled renewables support overnight and shattered investor confidence. The UK chose a different path — and it worked.

“That credibility has brought billions in investment. It lowered the cost of capital. It made the UK a global leader in offshore wind. Reform can of course change the rules for future auctions — but AR7 contracts signed today will be ironclad.”

CfDs give companies certainty against fluctuations in prices, but critics say they totalled £1.8bn last year, adding about £30 per household and making UK energy bills among the highest in the world.

In his letter, Mr Tice said the current plan was imposing “intolerable costs on households and manufacturers” and that AR7 will add billions more.

“There is no public mandate for the real-world consequences of this agenda: soaring energy bills, industrial decline, the imposition of intrusive infrastructure and the erosion of energy security,” he said.

“Reform UK is leading in national opinion polls and a government led by Nigel Farage is more likely than not.

“We will seek to strike down all contracts signed under AR7. You should treat any revenue streams as politically and commercially unsafe.”

Andrew Kirwan, managing director of Copper Beech Advisory, has written to Mr Tice stating that he is putting Reform UK on notice. He says Mr Tice’s letter to the CEOs “contains a number of mischaracterisations that, if taken seriously, would undermine investor confidence, contract law, and national energy security.”

He adds: “The Contracts for Difference (CfD) mechanism is not a political indulgence. It is a legally binding, statutorily governed market framework that has delivered cleaner energy, lower wholesale prices, and greater investor certainty across more than a decade of deployment.

“Your letter presents a populist framing that disregards both system-level energy economics and international legal precedent.

“If Reform UK intends to govern by threat, investors will respond by withdrawing capital, pausing projects, and reassessing the UK’s sovereign reliability.

“The UK will not compete with nations that repudiate contracts on the whims of campaign letters. Nor will the UK ignore misinformation when it risks billions in lost growth, jobs, and grid resilience.

Ms Singh says that if Reform does want leverage over the renewables sector, it would be more realistic to target planning and supply chain policy.

“But even that has consequences,” she says. “The same investors backing offshore wind are also funding the rest of the energy system – including offshore oil and gas, nuclear, gas CCGTs etc. Spook them in one area and they will probably hike the cost of borrowing everywhere else.

The CfD debate is maybe more complex than Reform realises, but the vibes are what matters for Reform, not the policies. The politics of Net Zero are changing — and Reform is tapping into that.

‘For too long, politicians have overpromised that green investment would cut bills. That hasn’t always matched people’s lived experience — especially through the gas price crisis.

“Voters are frustrated. Even if Reform can’t easily change existing CfD, they are tapping into real voter concern. Political risk is increasing, and the sector needs to take it seriously.”