Commenting on the Energy and Climate Change Select Committee report into the Draft Energy Bill, ICE Director General Nick Baveystock said:
“The draft Energy Bill marks a critical step towards meeting the UK’s three-fold energy challenge of sustainability, security and affordability. So the Select Committee is right to question whether the plans are fit for purpose. Its report correctly identifies the critical areas and suggests ways forward, focusing on minimising costs to consumers, and maximising certainty for investors. It rightly hones in on the workability of Contracts for Difference, the central provision of the Bill aimed to provide predictable incentives for companies to invest in low-carbon generation. ICE agrees that there must be more certainty and transparency around this provision – especially the “counterparty” arrangements which are necessary to make Contracts for Difference effective and enforceable.
“We would urge Government to consider these report findings promptly to ensure plans are robust enough to drive the right investment in the right mix of energy generation, and that the introduction of the actual Bill in the autumn is not delayed.”
The select committee report is available to view online.