Tuesday, 22 May 2012

Energy revamp ‘will cost billions’

Energy Secretary Ed Davey will lay the Draft Energy Bill before Parliament on Tuesday, hailing it as a blueprint to keep “lights on, bills down and air clean”.

He is expected to claim the reforms offer the “TLC” – transparency, longevity and certainty – needed to secure £110bn investment to replace old power stations and meet green targets.

Yet industry experts warn that crucial details remain unresolved, and that some of the fundamental proposals could deter investment and increase costs for consumers.

Volker Beckers, chief executive of RWE npower, told The Sunday Telegraph that the billions of pounds of investment Britain needs “may not come at all unless energy policy is given the proper priority and resource across government”.

He questioned the Government’s approach to energy sector reform, which includes separate overhauls of retail markets and networks as well as the various elements of the Energy Bill. “Pulling so many levers at once in such a complex area risks losing sight of your original objectives,” he said.

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