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AEP's policy work spans a range of issues that are of interest to electricity producers in the UK. This section provides an overview of the Association's position in regards to relevant policy areas.
A stable and reliable energy policy framework is essential for ensuring investments in new electricity generation. Over the next decade or so, as old power stations are decommissioned and the change to low carbon electricity is pursued, massive sums will have to be invested in new generation capacity. It is therefore essential that electricity companies should be allowed to be profitable otherwise investments will not be made.
Free, open, transparent and competitive electricity markets provide the best framework to ensure a safe, secure, affordable and sustainable electricity supply.
The Association shares the view of EURELECTRIC that electricity generation is “part of the solution” to sustainable development and climate change – it expects to see a growth in the use of, for example, electric vehicles and electric heating using heat pumps. Electricity companies are currently investing in low-carbon generation technologies such as new nuclear plant, renewable, gas and clean coal technologies.
The role of renewables in the future electricity mix is important to reducing carbon emissions and import dependency. The industry will work towards achieving the UK’s 2020 renewables targets (15% of energy, 30% of electricity).
The Association considers that a support mechanism for renewable energy should expose renewables to some competitive pressure. It welcomed the Renewables Obligation (RO) as the best way to support renewables within an overall market framework. It regrets, however that the RO has become rather more complex than it envisaged.
A ‘feed-in tariff’ is acceptable as a complementary measure if it provides a less demanding, low cost entry to the market for very small schemes.
Diversity is key for maintaining security of supply. Different fuels have different characteristics. For example, in a high-renewables world flexible back-up capacity will be needed. In a high gas world, the nature of gas imports and the importance of storage facilities must be considered.
The electricity industry needs an integrated framework of environmental regulation that is simple, stable, transparent, and consistent with the non-environmental aspects of energy policy. AEP supports the EU Emission Trading Scheme as the key mechanism to reduce carbon emissions from industry. A reliable and long-term framework for carbon emission reductions is essential for energy companies to make investment decisions in a carbon-constrained world.
The Association lobbies at a European level, mainly through EURELECTRIC, an organisation essential to AEP’s European work. In addition, AEP maintains close relations with MEPs and other senior figures in the EU.
The Association seeks a level playing field in the European electricity market by supporting its liberalisation.
Reform of the planning system is necessary to reduce delays in planning decisions and increase certainty about timescales. The Association supports the Planning Act, which has established an independent Infrastructure Planning Commission which will make planning decisions for larger projects and sets a timeframe for the decision-making process.
Network operators provide a necessary enabling service to allow electricity producers to bring their product to the customer. Primary access to electricity networks should operate in a transparent non-discriminatory manner and be cost based for all connections regardless of generation technology, voltage, location or network asset ownership.
The industry is committed to finding ways to get renewable energy onto the existing electricity network. In the long run, only building new network infrastructure will achieve this.
The Association recognises the importance of maintaining high standards of health and safety in the workplace across the generation industry. The Association promotes health and safety best practice by sharing information and benchmarking as well as maintaining good relations with regulatory bodies, trade unions and other associations in the electricity industry.