The Department of Energy and Climate Change (DECC) and the Treasury should work hand-in-hand when setting out energy policies.
That’s according to Lord Gus O’Donnell, Chairman of Frontier Economics who believes that is “crucially important in making sure there is a clear energy policy”.
However, he added it is “difficult” due to the change of the government every five years.
He told ELN: “We moved from a coalition to a single Conservative Party government and they have slightly different preferences, slightly different policies and that is something that no one is ever going to be able to change in a democracy. We don’t know if in five years’ time there’s going to be a new government that has a slightly different slamt and that’s one of the uncertainties that businesses will have to live with.”
When asked about whether there is a need for a separate energy department in the country, Mr O’Donnell added: “Personally, I’m in favor of very rarely changing departmental structures because there is so much loss.
“In the long term, my solution would be a relatively small number of rather large departments so all of these things could come together because when you cross the departmental boundary you get difficulties so let’s have as few boundaries as possible.”
Watch the full interview here.