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Electricity reforms move closer

  • in News
  • — 24 Jun, 2014

Secondary legislation for the government’s overhaul of the electricity market has been laid in parliament, bringing the plans a step closer to passing into law.

The government says its electricity market reform (EMR) programme will bring certainty to industry, encouraging private sector investment in low-carbon electricity generation and helping to “keep the lights on” at the least cost to consumers.

It also estimates household electricity bills will be six per cent (£41) lower on average every year up to 2030 under EMR, compared to reducing emissions through existing policies.

Two mechanisms are being introduced as an incentive for investment in the UK’s energy infrastructure: Contracts for Difference, which provide long-term price certainty to low-carbon projects, reducing risk for investors, and the Capacity Market, which provides regular payment to reliable forms of energy generation in return for generating capacity being made available when the system is tight.

 

 

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