£200billion worth of investment in Energy Market Reform proposals is essential to guarantee low energy prices, according to Energy Minister Charles Hendry.
Speaking to a business audience at EDF’s talkpower conference, Mr Hendry warned that failure to invest in the EMR could bring even higher costs.
He said: “There is a massive building challenge here. We estimate £110billion has to be invested by 2020, and potentially £200billion by 2025.
“If we continue with business as usual, the consequences for businesses such as yours, is that prices would go through the roof. There is a price to be paid for energy security, but it’s nothing like as high as the price of insecurity.”
He added that the plans for EMR had the best interests of the economy in mind.
“These steps are not just the whim of the Government, but absolutely essential building blocks of the economy. This is one of the most significant economic drivers for the British economy.”
Mr Hendry invited businesses to help shape the outcome of the current EMR plans:
“The current consultation runs until 10 March. Get involved. Make sure we hear the perspective of your companies, your businesses. That’s when we draw the line, that’s when we’ve got to stop talking, and get investing.”