10 Mar 2011 10:03:13
Businesses express concerns over Electricity Market Reform
Businesses have expressed concerns that the government's proposed Electricity Market Reform (EMR) will be both "complex and unwieldy".
Research conducted by npower found more than half of businesses believe the plans will lead to a rise in energy costs, with the carbon floor price being named as a major concern.
Some 57 percent of those who took part in the study said they were worried about the impact imposing a minimum price on carbon would have on their bills.
There were also concerns raised that the EMR could damage the competitiveness of UK companies as it is too 'nationally' focussed.
David Cockshott, director of industrial and commercial markets at npower, said companies have "very real concerns regarding the proposals in the EMR, particularly while the UK economy is still so fragile".
He added: "At the moment, many of our customers see the proposals as a 'stick, not a carrot'."
A consultation into the EMR, which the government claims will enable a secure supply of low carbon power, was launched in December and closes today (March 10th). A White Paper on the reforms is due to be published in late spring.