Reforms aimed at moving the UK to the front of the global race for electricity investment, driving the growth of clean energy industries in the UK, and ensuring the best possible deal for consumers were proposed by coalition Ministers today.
DECC and HM Treasury have together launched consultations on fundamental reforms to the electricity market to ensure the UK can meet its climate goals and have a secure, affordable supply of electricity in the long term. The key proposals include:
- Four reforms to provide long-term certainty for electricity investors
- A new market to have built-in level playing field for low carbon
- Rules for existing investments protected
- Long term impact on household electricity bills lower than under the current market
Commenting on the proposals, Montgomeryshire AM Mick Bates said:
“Within the next decade Britain could be facing a major shortfall in energy supply. In fact, leading energy research indicates that by 2015 the UK could be facing a generating capacity shortfall equivalent to 20% of current capacity. This does not even take into account analysis that global energy demand is set to increase by 53% by 2030.
“Set alongside £110billion of investment needed in power stations and grid infrastructure over the next decade and the escalating price of oil, it is clear that there is a huge amount to be done to ensure that the energy market is fit for purpose and we can keep the lights on for the generations ahead.
“The Westminster Government must make the right decisions to set a strong, sustainable foundation for our energy market without passing on the buck to the consumer. I hope these reforms will encourage investment in skills and business in the renewable energy sector in the UK, to bring certainty to this industry and open the door for the vast numbers of jobs it will create.”
