UK Electricity Market Reforms – Cash is King
After much discussion and debate, the Government has come to an agreement on the contents of the Energy Bill to be introduced next week. This comment, by Malcolm Keay, looks at the implications of the new agreement. It provides clarity in some areas, for instance on the arrangements for the counter-party for the contracts which will drive the push for low carbon investment. However, it also suggests continuing tension within the Coalition – no decarbonisation target for 2030 has been set for electricity, and the Government seems keener to restrain the costs of the low carbon transition (and downplay the impact on consumers) than to provide a clear commitment to a long term strategy.