Energy review

Ministers have launched a consultation on the UK's future energy needs, with a call to environmentalists not to rule out nuclear power.

The government is seeking to restart the public debate on future power supplies as it begins the latest stage of its energy review.

Respondents will be asked to consider all forms of power as part of the review, along with issues such as fuel poverty, ahead of recommendations to be made to Tony Blair in the summer.   

Stakeholder Response: British Retail Consortium

 

 

Kevin Hawkins, BRC Director General said: "It is clearly anomalous for the government to exempt plants that emit carbon from valuation but to continue to rate entirely carbon-free renewable plants.

 

"The exemption should be extended to also cover renewable energy systems. 

 

"The retail sector wants to play its part and could even take the lead in adopting renewable energy systems, but leading UK retailers, who look to reduce their carbon emissions by investing in these systems, are getting taxed - this is hardly an incentive.

 

"Retail investment in renewables must be encouraged by consistent policy support from government.

 

"We have written to the government to urge them to reconsider - this is a common sense approach and one that could go some way to helping government achieve its target."

 

 

Stakeholder Response: Institute of Directors

 

 

Geraint Day, head of energy and environmental policy at the Institute of Directors, said: "The interlinked problems of energy supply and climate change will dominate global politics for the foreseeable future.

 

"Developing new sources of energy and reducing carbon emissions will require bold policies.

 

"Extensive road pricing and the expansion of nuclear power are but two possibilities the IoD favours.

 

"But whatever happens, those policies are needed now and we welcome this consultation."

 

 

Stakeholder Response: FSB

 

 

The FSB's national policy chairman, John Walker, said: "Business needs an affordable, reliable and secure energy supply. 

 

"This review is a vital step towards this goal and keeping British business competitive for the long term.

 

"We are encouraged to see that the government is keeping an open mind on all energy options. 

 

"We expect that decisions will be taken in the best interests of the economic future of the country.

 

"A balance of energy sources is the key to achieving long-term security of supply as over dependence on one source of energy would increase the risk of blackouts if that source were to be disrupted in future."

 

 

Stakeholder Response: Energy Networks Association

 

A spokesman said: "Successful deployment of generation by whatever technology is tied inextricably to parallel developments in networks. 

 

"We are concerned that energy policy and how this is reflected in the regulatory regime for networks does not adequately deal with the need to synchronise developments in generation and infrastructure.

 

"Although our interest clearly lies in the electricity and gas transmission and distribution infrastructure, we believe that at the heart of the review should be a very careful exploration of mechanisms that ensure that the T&D networks are both maintained and are incentivised to adapt in line with both changes in the fuel mix and in customer demand.

 

"The government-regulator-industry relationship should be closely examined to ensure that the regulatory framework meets policy objectives.

 

"The review of regulation should be wide-ranging in its scope.

 

"'Real-world' inter-dependency between the pillars of generation, T&D and retail should be considered in the light of long-term objectives. 

 

"For example, the potential impacts of 'smart-metering' are great and would cut across each of these notionally discrete sub-sectors.

 

"Finally, the review should have the objective of enabling the longest possible term policy framework. The longer the term, the greater the advantage to all.

 

"ENA will be making detailed contributions to the consultation and playing a full part in the programme of seminars and other review-related activities."