Energy UK's statement on the Budget
Following the announcement of the budget on the 8 July that included several proposals relating to energy, Energy UK has issued a comment. Lawrence Slade, chief executive of Energy UK said:
"The UK needs to invest billions to ensure energy security and both renew and rebuild its energy infrastructure. Changes to the Climate Change Levy will just make that harder and badly dent investor confidence, threatening existing renewables projects which were counting on the money. While cutting subsidies to overseas generators may make sense the proposals also put jobs and growth at risk.
"The government’s commitment to a competitive energy market and faster switching is good news for consumers. It is now easier than ever to switch energy suppliers, which explains why over 1.5 million people have already changed their provider this year. There are, however, a number of challenges in achieving 24 hour switching which the industry will be working to address with Government and the regulator."
Notes to editors
The Summer Budget includes the following proposals relating to energy:
1.257 The government will continue to promote the low carbon investment and innovation needed to support global action on climate change, focussing on the best value for money policies to keep costs down for consumers. The government will push for a global climate deal later this year that keeps the goal of limiting global warming to 2 degrees firmly within reach.
1.258 The government also aims to develop a simple, fair and more efficient energy environment for business that minimises administrative burdens and improves incentives for business to invest and grow. The government will review the business energy efficiency tax landscape and consider approaches to simplify and improve the effectiveness of the regime. A consultation will be launched in autumn 2015.
1.259 To help reduce costs for energy consumers, the government will publish proposals on extending competitive tendering to onshore electricity transmission assets. This could save consumers around £390 million over the next 10 years.
1.260 The government welcomes the provisional findings of the Competition and Markets Authority’s energy market investigation. It is important that as many consumers as possible are on the best available deal, in order to save money on their energy bill. To help enable this, the government aims to introduce 24 hour switching by the end of 2018 and will also act to improve trust in the switching process.
1.261 The government believes in making the most of the UK’s oil and gas resources, including the safe extraction of shale gas. Building on action set out in the March Budget 2015, the government will expand the North Sea investment and cluster area allowances to include additional activities which will maximise economic recovery. The government will also bring forward proposals for a sovereign wealth fund for communities that host shale gas development.
1.262 This Budget also announces the removal of the Climate Change Levy exemption for renewable electricity. This change will correct an imbalance in the tax system by preventing taxpayers’ money benefitting renewable electricity generated overseas, and by helping ensure support for low carbon generation provides better value for money for UK taxpayers.