The Association of Electricity Producers has said that if the government gets right its Budget plans for energy it will create “huge opportunities”, but if it fails “there could be serious consequences”.
The association’s chief executive David Porter said: “The government recognises that the industry will have to spend £200bn in the next decade to provide secure, low carbon energy and that we need action to attract this unprecedented level of private investment.
“The association will engage constructively in the discussions which are needed to bring about changes to the energy market, to attract massive investment to the UK. If we get this right, not only will we have plenty of electricity and low carbon emissions, but, there will be huge employment opportunities in new energy infrastructure and technology.
“But”, he added, “if we fail, there could be serious consequences.”
Mr Porter said that the industry needs “a robust and durable carbon pricing regime, which will steer investment towards low carbon solutions”.
He added: “The government is proposing changes to the Climate Change Levy, in order to provide more certainty and support to the carbon price. We shall be keen to see that any such proposals are both workable, cost-effective and that they work effectively alongside the EU Emissions Trading Scheme, which applies emissions reductions Europe-wide.”