M&C comment on Chris Huhne's Energy Proposals
M&C Energy Group, the UK’s largest independent energy consultancy, welcomed the incentives for energy firms announced today.
David Hunter, M&C’s energy analyst said:
“This range of incentives presents welcome news for an industry that has failed to invest in badly needed infrastructure for over a decade, leaving us with a looming energy gap.
“The reality is that consumers will have to foot the bill for replacing Britain’s energy infrastructure, including replacing a quarter of our power stations over the next ten years.
“The balance the government must strike is to provide a healthy incentive for private organisations to invest without writing a blank cheque that business and hard-pressed householders can ill afford, so we look forward to seeing the detail behind the announcement.
“M&C has been calling for many of these measures for some time and we are heartened that the government hasn’t discounted nuclear which we believe is an essential part of the UK’s energy mix.
“In an environment where energy costs are going to rise for the long term, the government must deliver a dynamic market where barriers to competition in generation and supply are broken down. There isn’t any room for excess profits on the back of a major investment which will be funded, in the main, by UK homes and businesses.”
Source: M&C Energy Group