The Chancellor’s £250m compensation package for energy intensive industries reveals “serious tension” in energy policy, according to David Porter, chief executive of the Association of Electricity Producers (AEP).
On Tuesday George Osborne announced the funding in the Treasury’s Autumn Statement. The AEP welcomed the news but warned wider problems with energy policy still existed.
Mr Porter said: “Intensive energy users will welcome the compensation package made available to them. But the problem that faced the government – driving down carbon emissions but pushing up costs – represents a serious tension in energy policy.
“The government and the electricity industry have no option but to be open about this and to reach conclusions which are clear and deliverable. With £200 billion of new investment being contemplated, confidence in policy is vital.”
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