Hard work is still needed
Hard work is still needed to secure investment in energy infrastructure according to the CBI following the publication of the Government’s Electricity Market Reform White Paper. John Cridland, CBI Director-General, said: “This White Paper is an important step in the right direction, but the hardest work is still to come. There is much to do if we are to secure the £200 billion of essential investment needed in our energy infrastructure, including a mix of nuclear, clean coal, gas and renewables.
The big decisions remain to be taken.
“We have long called for our electricity markets to be reformed. The Government’s package contains some good measures, including its decision on feed-in tariffs. But these need to be made to work.
“More detail is needed on tariffs, and the case must be made for a capacity mechanism. We need a clear decision on both by the end of the year to avoid damaging investor confidence.
“Everyone wants to make our energy infrastructure more secure and sustainable for the future, but businesses cannot be expected to write a blank cheque. The Government still needs to spell out what it thinks the final bill for all of its electricity market reforms will be.
“Some energy intensive industries are already on a knife edge, and without help to shield them from new measures like the carbon floor price, they could struggle to stay in the UK.”