The Government must ensure it rolls out energy market reform on schedule if it is to give businesses the certainty to invest in new low carbon technology. These were the words of National Grid’s Chief Executive Steve Holiday speaking today to the BBC.
Questions have been asked of the UK’s energy security after German firms E.ON and RWE npower pulled out of plans to build new nuclear plants in Britain. Another Big Six member, SSE, has also questioned why firms would want to build nuclear in the UK when new cheap gas sources were becoming available.
The Energy Bill, announced during the Queen’s Speech last week, aims to address these issues. Mr Holiday said UK PLC would hold back their cash until Government set things straight in the bill.
He said: “They are waiting for the outcome of this bill, they need to understand the incentives they have to invest. There is a pause inevitably, the Government are clearly going to get that in to legislation by 2013. They need to make sure they stick to that timetable.”