New inquiry into UK energy sector launched

An inquiry to find out if increased uncertainty around energy policy is undermining investor confidence has been launched. The Energy and Climate Change Committee will be investigating the factors that […]

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By Priyanka Shrestha

An inquiry to find out if increased uncertainty around energy policy is undermining investor confidence has been launched.

The Energy and Climate Change Committee will be investigating the factors that contribute to investor confidence in the industry.

It aims to understand how DECC’s policy-making process could impact the decisions of investors.

The committee is inviting views across a number of areas including where future investment is going to come from, how the UK compares with other countries in terms of policy risk and how well DECC considers the needs of investors in its policy making process.

The news comes as many in the industry have said UK policy changes, including onshore wind subsidies being scrapped and proposals to cut solar and biomass support, will hinder investment in energy projects.

Analysts at EY also revealed the UK missed its spot among the top 10 most attractive countries for renewable energy investment for the first time as a result of policy changes.

Chair Angus MacNeil MP said: “Energy projects like offshore wind farms and nuclear power stations can take years from planning to completion so maintaining investor confidence is crucial if we want to upgrade our energy system.

“Energy experts have told us that the government has spooked investors with a series of sudden energy policy changes announced over the summer without proper parliamentary scrutiny.

“We will be looking at what steps Government must take to restore confidence in the UK’s energy sector and improve DECC’s policy making processes.”

Views must be submitted by 26th October.