Energy market reforms could leave the UK with the highest carbon price in the world says the CBI. Deputy Director of the CBI Neil Bentley was speaking at EDF’s Talkpower event in London where he told delegates the carbon floor price had to be competitive.
He told delegates: “With the carbon price support, which could end up on the high price scenario, we could end up with the highest carbon price in the world. Many of our members would favour the low price scenario at this stage.We must get the balance right between setting the right long-term signal for investment, and cost-effectiveness.”
The EMR proposals include a ‘carbon floor price’ that sets a bottom cost for carbon, with different pricing scenarios under discussion. EDF favours a medium price and many green campaigners want a high price to really hamper fossil fuels.
Dr Bentley said his members also questioned the whole cost of the EMR”The first question they ask is are the proposals really cost-effective? The changes that are being proposed will have an impact on electricity bills for businesses right across the economy. We need to have a much better understanding of the cost, and how the pass-through cost could impact on our industrial competitiveness.”