Posted on: 08/11/2016
Trade body EnergyUK has called on Chancellor of the Exchequer Philip Hammond to use his maiden Autumn Statement to lay out a clear vision for the UK Government’s energy policy.
In a letter to the Chancellor, chief executive Lawrence Slade said his industry needed stability.
Slade said: “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.”
£215bn of investment
Slade praised Electricity Market Reform and said energy companies believe the right framework is in place.
He added: “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 (CPF), 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 CPF 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.”
Oil and gas calls for help
Meanwhile, trade body Oil & Gas UK has called on Hammond to support the North Sea.
Chief executive Deirdre Michie said: “Sentiment and stability are important, and the Chancellor has a real opportunity to use the Autumn Statement to send a clear message to investors that the UK continental shelf is a great place to do business.
“I have asked Mr Hammond to get behind the UK’s oil and gas industry by providing certainty in our fiscal regime, recommitting to the Treasury’s ‘Driving Investment’ strategy for the sector and, as part of the UK’s new industrial strategy, recognising our supply chain as a key strength in the economy, with world leading capability – equally valuable as aerospace or the automotive sectors, for example.”
> Read EnergyUK's full statement