Broad Support for U.K. Energy Bill

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- The U.K. government's new Energy Bill has received widespread support from the country's largest energy companies and renewable energy industry groups.

The response from the green energy industry and nuclear sector have been particularly supportive compared to a more cautious series of welcomes from some of the leading energy players. The new Bill, which the government admits is a radical overhaul, sets out to transform the country's energy mix with a much greater amount of renewable energy and new nuclear power, while also hoping to combat a looming energy crisis as older power plants are shut down over the coming decade. For additional information, see Dec 3, 2012, article - U.K. Introduces 'Radical' Energy Bill.

"We welcome the Government's commitment to the EMR programme to deliver investment in low carbon generation needed over the next decades and in sticking to the agreed timetable," said Keith Anderson, Chief Corporate Officer ScottishPower. "Legislation to bring forward a new incentive mechanism for investment in much needed large scale low carbon investment, together with a capacity mechanism to guarantee secure supplies, is now vital. We now need to consider the material provided today."

Tony Cocker, Chief Executive of E.ON UK, commented: "We welcome the publication of the Energy Bill which paves the way for a transformation of the electricity market between now and 2030. This is a real opportunity to shape the future path of energy in the UK and it must be grasped with both hands".

More cautious statements came from Scottish and Southern Energy (SSE) and German energy giant, RWE.

"The Government has just published over a thousand pages of information, which shows just how complicated the proposed electricity market reforms have become," stated SSE. "We are hopeful that the Bill will provide the clarity that we require to make major low-carbon and gas investments, but we now need to consider the detail in order to be able to evaluate the impacts that these reforms will have."

RWE npower Group CEO, Volker Beckers, RWE, said: "It's now that the real work begins. It's vital for our customers and British business alike that these reforms are implemented swiftly and effectively, and do not add unnecessary cost to future energy bills. RWE broadly welcomes the progress made by Government in delivering this new policy framework for the sector, but registers a number of concerns."

The U.K.'s renewable energy industry was more forthcoming in its support for the Energy Bill.

According to RenewableUK's Director of Policy, Dr Gordon Edge: "Now that we've been able to read through the long-awaited details of the Bill, it's clear that they provide a strong framework for investment. RenewableUK is looking forward to refining those details with the Department of Energy and Climate Change during the Bill's passage through parliament. So far this bill is on track and on schedule, but we can't afford any slippage if we are to avoid a hiatus in investment around 2017, when the financial support mechanism switches from the Renewables Obligation to Contracts for Difference."

Jeff Chapman, Chief Executive of the Carbon Capture and Storage Associations (CCSA) added: "The publication of this Bill will give a good deal more confidence to those businesses that are developing the U.K.'s first CCS projects and laying the foundation of a world leading industry."

The reaction from the country's nuclear sector was equally upbeat:

"The Bill provides much needed investment certainty," said Keith Parker, Chief Executive of the Nuclear Industry Association. "A major nuclear new build programme will lead to substantial industrial and employment benefits -- including considerable opportunities for the U.K. nuclear supply chain and a boost for U.K. manufacturing and construction."

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.