The reforms set out by the UK government are fair and in the interest of consumers but time is of the essence. These were the words of Vincent de Rivaz, Chief Executive of EDF energy.
Mr de Rivaz said: “2011 has to be the year of delivery for secure, affordable, low carbon energy. We must deliver not delay on the legislation to meet the UK’s pressing energy challenges.”
The Treasury’s consultation for a carbon price mechanism closed on Friday last week, with many in agreement that swift action is needed to secure the best investment in the UK’s energy market.
The EDF boss named three key elements to market reform: “First, a Carbon Price Floor. That will remedy the failings of today’s trading scheme. We believe the Government is right to target a carbon price of £30 in 2020.
Second, Capacity Payments, which will reward investment in firm, available generation. They will provide the security of supply we need as more intermittent generation is placed on our grid.
Finally, Contracts for Differences, which will address risk and volatility in the market, providing greater certainty for customers and investors, delivering the lowest possible costs.”
EDF Energy plans to build four new nuclear power plants in the UK with its partner Centrica.
Mr de Rivaz spoke of the importance of government policy in affecting companies like EDF’s plans for nuclear: “The consultation ending today is vital. Further, to continue to target 2018 for commercial operation of our first new plant at Hinkley Point, we also need a Government white paper on market reform before the summer, with legislation following quickly.”