Responding to today’s Government announcement on gas and electricity pricing – and measures to increase uptake of EVs, heat pumps and solar – Dhara Vyas, Chief Executive of Energy UK, said:
“Today’s announcement promises a step change in the UK’s approach to electrification, and in fulfilling the promise of warmer homes and cheaper bills. The Government has made significant progress in accelerating the supply of clean power, and it’s absolutely right that this is matched with equal ambition on demand by electrifying our homes, transport, and businesses. Electrification has the potential to transform our economy and bring the benefits of clean power to every customer in the country.
“The rapid increase in low-carbon generation is already decoupling gas from electricity prices. But the introduction of wholesale voluntary Contracts for Difference for older low-carbon generation could play a positive role in further reducing the impact of gas on retail electricity prices.
“It is frustrating that a positive announcement has been overshadowed by poor communications. UK and European energy stocks lost billions in value last week as a direct result of a Government announcement that was unclear and lacked detail.
“The UK wins when there is the stability and certainty for companies to invest and we’ve seen the results in the roll-out of clean power, through CfDs for example, which continues to increase our energy security and reduce our reliance on gas. Sudden and ambiguous briefing of potential tax and policy changes outside a fiscal event, like the Budget, damage the UK’s investability and result in uncertainty for businesses and customers. The Government’s pro-growth agenda and desire to remain a top global investment destination is dependent on providing certainty and stability to investors where possible.”
