The Government’s proposed plans for the new Energy Bill will not work in favour of consumers and could increase the risk for investors, UK MPs warned.
The Energy and Climate Change Committee made the comment after examining the draft Bill put forward by the UK Government last week, which is expected to reform the electricity market.
The Committee said the Bill could impose “unnecessary” costs on consumers and affect investment in nuclear and offshore wind projects.
Tim Yeo MP, Chair of the Committee said: “Electricity market reform is essential, but the new contracts proposed by the Government will not work for the benefit of consumers in their present form.
“Nobody wants to see a blank cheque written out for green energy, but the Government must provide investors with more certainty about exactly how much money will be available.
The Committee is worried that decisions about support for new nuclear power stations are being made “behind closed doors” and calls for an independent expert to inspect any agreements to ensure that they are delivering value for money.”
The Committee was also concerned about the Government’s Contracts for Difference (CfD) proposals, which is a long term plan to provide stable and predictable incentives for businesses to invest in low carbon electricity generation.
Mr Yeo added: “Community owned energy projects and small independent generators are in danger under the current plans of being squeezed out.”
The Committee said the Government’s lack of specific outcomes showed uncertainty about exactly what it is hoping to achieve through the reforms.
In response, Ed Davey Energy and Climate Change Secretary said: “We are determined to use the pre-legislative scrutiny period to develop a robust and effective Bill with the interests of both consumers and investors at the heart. The Committee’s input will be extremely valuable as we do this.”