KPMG’s Simon Virley CB, Partner and Head of Power and Utilities, responds to the Government’s announcement on the Clean Growth Strategy and draft legislation for the Energy Price Cap.
KPMG’s Simon Virley CB, Partner and Head of Power and Utilities, responds to the Government’s announcement on the Clean Growth Strategy and draft legislation for the Energy Price Cap. Simon says:
On the Clean Growth Strategy:
“The Government has been successful in driving down the costs of renewables through clear long-term policy frameworks, like the Contracts-for-Difference auctions and the clarity on the future budgets allocated for these auctions will be welcomed by investors. Increasing use of electric vehicles will also help reduce emissions in the transport sector. The biggest gaps remain on energy efficiency and heat. Even with the 50 policy measures announced today, the Government’s own figures show them missing the 4th and 5th Carbon Budgets. So further policy action on heat and energy efficiency will be required beyond the measures announced today.”
On the draft Price Cap Legislation:
“'Regulating retail prices would be the biggest change to the retail energy market since privatisation. With the publication of the draft legislation on a market-wide price cap, the focus now shifts to the response of the larger energy suppliers. If the four larger suppliers that haven’t already announced an end to Standard Variable Tariffs now do so, and put those customers on better value tariffs, then there is the possibility that the Government doesn’t need to go through with the legislation and can still avoid re-regulating the retail market.”
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