Industry reaction to the introduction of the energy bill

Essential legislation to power low-carbon economic growth, to protect consumers, and to keep the lights on was  introduced to Parliament by Edward Davey.
The STA welcomes the publication of the Government’s Energy Bill.  Solar power has achieved such exceptional cost reductions (70%) over the past two years that the industry is confident of being competitive with all forms of energy generation within the next decade. IPCC research shows solar power could be the biggest source of electricity in the world by 2050.
STA PV specialist Ray Noble said:
“Solar could readily deliver a third of the UK’s power supply, using south-facing roofs and facades alone. This technology will be massive. Furthermore solar puts the power to generate directly in the hands of millions, not the few. DECC and its Electricity Market Reform agenda now need to fully recognise the major role that solar power will play in transforming our electricity markets.
“The approach so far has been top down. Solar power means a bottom-up energy revolution and any Government serious about breaking open the electricity market to much greater consumer choice and competition should be right behind us.”
The REA welcomes the publication of Energy Bill today, which answers several of REA’s top 10 asks, set out in October.
REA Chief Executive Gaynor Hartnell said:
“The devil will be in the detail, which we have yet to fully examine. However, if the new regime is implemented sensitively, consumers and green generators should both win.
“Electricity customers will only pay what is necessary to move the UK towards a more sustainable and secure energy future. That’s because, with these new contracts, if the price of electricity increases, the amount of subsidy required can fall. Generators should get a stable price, provided they achieve the fair market price for their electricity. That’s why it’s essential we have a route to market which guarantees this.
“We can’t afford to be complacent, however. It is vital that confidence in the policy framework is established quickly given the investment hiatus we face. There is still much work to do, to translate the legislation into clear and effective policy. We look forward to working closely with DECC to ensure our members can have full confidence in the new framework as quickly as possible.”
John Cridland, CBI Director-General, said:
“Energy-intensive manufacturing is finally getting its place in the sun today, by the exemption from necessary new energy costs. This is vital for such companies to play a key part in our low-carbon economy and it is good news that the Government has listened to our calls to build in support at this early stage, which will ensure we reap the full economic benefits at the earliest opportunity.
“Equally important is the welcome boost the Bill gives to investor certainty. It will be crucial for investors to see the momentum kept up in Parliament so that the Bill can get onto the statute books as quickly as possible.
“The next vital debate is to decide how to improve energy efficiency and deliver real benefits to the economy. The current policy landscape is too complex, so we will look forward to seeing how today’s electricity demand reduction proposals can move us towards a simpler, more strategic approach.”
Mark Kenber, CEO of The Climate Group, comments on the Energy Bill:
“An energy policy fit for purpose in the 21st century needs to address energy security, affordability and decarbonization.
To address these it must ensure a radically increased clean energy supply and increased energy efficiency.
The Energy Bill does a fair amount of the first but very little on the latter.
While it shields firms from higher energy costs it does very little to shield households from higher energy bills and reduce fuel poverty.
It is important to bear in mind that it is not the increase in cost of energy per unit, but the total bill that households actually pay, which is the critical thing.
Scaling up energy efficiency measures – things like better insulation, low energy lighting and smarter appliances can have a massive difference to families’ energy bills. Done right, these kinds of measures can lead to lower bills at the same time that energy prices are rising.”

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