The UK’s largest independent energy consultancy has said today’s Electricity Market Reform is “welcome news for an industry that has failed to invest in badly needed infrastructure for over a decade”.
David Hunter, energy analyst at M&C Energy Group, said: “The reality is that consumers will have to foot the bill for replacing Britain’s energy infrastructure, including replacing a quarter of our power stations over the next 10 years.”
And he cautioned that “the balance the government must strike is to provide a healthy incentive for private organisations to invest without writing a blank cheque that business and hard-pressed householders can ill afford”.
Mr Hunter was also heartened that “the government hasn’t discounted nuclear, which we believe is an essential part of the UK’s energy mix”.
He added: “In an environment where energy costs are going to rise for the long term, the government must deliver a dynamic market where barriers to competition in generation and supply are broken down. There isn’t any room for excess profits on the back of a major investment which will be funded, in the main, by UK homes and businesses.”