EMR: government must not write blank cheque

The UK’s largest independent energy consultancy has said today’s Electricity Market Reform is “welcome news for an industry that has failed to invest in badly needed infrastructure for over a […]

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By Kelvin Ross

The UK’s largest independent energy consultancy has said today’s Electricity Market Reform is “welcome news for an industry that has failed to invest in badly needed infrastructure for over a decade”.

David Hunter, energy analyst at M&C Energy Group, said: “The reality is that consumers will have to foot the bill for replacing Britain’s energy infrastructure, including replacing a quarter of our power stations over the next 10 years.”

And he cautioned that “the balance the government must strike is to provide a healthy incentive for private organisations to invest without writing a blank cheque that business and hard-pressed householders can ill afford”.

Mr Hunter was also heartened that “the government hasn’t discounted nuclear, which we believe is an essential part of the UK’s energy mix”.

He added: “In an environment where energy costs are going to rise for the long term, the government must deliver a dynamic market where barriers to competition in generation and supply are broken down. There isn’t any room for excess profits on the back of a major investment which will be funded, in the main, by UK homes and businesses.”