Energy UK writes to the Chancellor ahead of Autumn Statement
Energy UK has written to the Chancellor of the Exchequer ahead of the Autumn Statement calling for a clear commitment to its long term vision for the UK’s energy system. Energy UK has issues the following statement.
Lawrence Slade, chief executive of Energy UK said:
"Long term infrastructure investment requires stability. In spite of the volatility generated by the prospect of Brexit, the single most important provision to ensure reliable, low carbon, affordable energy lies squarely within Government’s own control. A stable and consistent policy framework within the UK will help to encourage the investment that the energy industry and our country needs.
“Currently, industry believes the right framework is in place for energy companies to plan for major infrastructure investments in the UK energy system. Electricity Market Reform is providing the necessary mechanisms required to progress towards a secure, low carbon future.
“Key parts of that framework, such as the capacity market auctions, are proceeding to plan. However, if energy companies are to deliver the £ 215 billion of infrastructure investment required by 2030, they need clarity on the whole policy framework including the next Contracts for Difference Round and the continuation, at least to 2021, of the Carbon Price Floor which has compensated for the weak carbon price signals from the EU Emissions Trading System.
“The Autumn statement is an ideal opportunity for Government to provide investors with confidence to make major long term, infrastructure investment. While the continuation of the Carbon Price Floor needs to account for impact on power traded through interconnectors and those adversely affected by CPF, clarity on this key element of domestic UK energy policy would be a strong signal for investors and a strong commitment to our low carbon future.”