16 May 2011 12:05:10
Electricity market reforms 'too complex to drive investment'
The Energy and Climate Change Select Committee has warned the government's Electricity Market Reforms could be too complex to attract the investment needed.
Announced late last year, the reforms are intended to help drive investment in low carbon power generation and ensure security of supply.
However, a report from the committee claimed that under their current guise the reforms may not attract the £110 billion of investment needed for the UK's energy supply by 2020.
It claims the "starting point" for these proposals should be a target to reduce the carbon intensity of power generation in the UK to 50g of CO2
per KWh by 2030.
Committee chair Tim Yeo said: "The government must go back to the drawing board and come up with a more straightforward and coherent set of plans to reform the electricity market."
Concerns were also expressed about the implicit subsidies provided for nuclear power through the reforms, despite government claims they would receive no public subsidy.
Mr Yeo said it is important the coalition is honest about the advantages reforms will give to nuclear, but added it would be "deeply irresponsible to skew the whole process of electricity market reform simply to save face".