Centrica boss Sam Laidlaw said the proposed carbon price floor in today’s EMR “reflects the ‘polluter pays’ principle”.
He said: “We’re pleased that it will start quickly and build over time towards a defined target.”
Mr Laidlaw said today’s consultation unveiled by Energy Secretary Chris Huhne “marks an important step forward in helping to deliver the significant investment Britain needs to ensure secure and decarbonised power generation into the future”.
He added: “We also welcome proposals for feed-in tariffs to incentivise renewable and nuclear investments and capacity payments that will deliver the flexible gas-fired generation needed when the wind isn’t blowing. To ensure we don’t lose the growing momentum in delivering renewable energy over the next few years, there needs to be a smooth transition to the new market.”