24/03/2010
Government Energy Market Assessment – Comments by electricity producers
Commenting on the publication (24 March 2010) of the government’s ‘Energy Market Assessment’, David Porter, Chief Executive of the Association of Electricity Producers said:
‘Electricity companies have to invest vast sums to replace ageing power stations and continue the transition to a low carbon electricity industry. But, this is a risky business and money for investment can be hard to come by. If companies could make a clear judgement about the likely cost of emitting carbon well into the future, they would be able more confidently to choose technologies and plan their investments. But, it is not that simple and many companies are now saying that they need additional measures to reduce the political risks that they face.
‘The government is considering options, some of which are similar to those put forward by Ofgem in February. I was pleased to read, however, that those now put forward will be tested not only for the clarity and stability that investors need, but also for their cost-effectiveness. For some time, it seemed that policy-makers were losing sight of the importance of cost-effectiveness, ironically, whilst continuing to express concern about the impact of rising costs on customers’ bills.
‘I hope that we can find some evolutionary steps, rather than a big bang - which would be expensive, time-consuming and unsettling for investors. Whatever the outcome, it is vital that the UK is seen as an attractive place to make massive investments in energy infrastructure. So, we look forward to engaging in the further dialogue, which has been promised.’
Contact:
David Porter, Chief Executive
020 7930 9390 (Office)
07799 134255 (Mobile)
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