U.K. Energy Rules to Include Measures Spurring Nuclear

U.K. Energy Secretary Ed Davey promised to give industry more clarity about power market reforms due next month, seeking to allay the concerns of renewable and nuclear power developers that ministers are bogged down in analysis of the problem.

Davey also suggested he’ll set a target for cutting carbon emissions in the power industry. That measure has been sought by companies from wind turbine maker Vestas Wind Systems A/S (VWS) and nuclear reactor manufacturer Areva SA (AREVA), as well as his department’s adviser, the Committee on Climate Change.
“We have listened to investors and today have set out further measures to provide the certainty they need,” Davey said in a speech to business leaders today in London. “A strong case has been made by many investors in energy infrastructure for a decarbonisation target range for the power sector. Such a range would make clear our continued commitment to our climate goals.”
The law, published in draft form on May 22, aims to restructure the power market and spur 110 billion pounds ($177 billion) of investment needed for aging power stations and upgrading the grid by 2020. Davey said lawmakers will see his final proposals next month and vote on them by Christmas.

Cameron’s Plan

Prime Minister David Cameron said yesterday the government will put into the legislation a measure forcing energy suppliers to charge each customer at the lowest available rate. The surprise proposal was not included in the May 22 draft, which focused on energy supply rather than demand.
Cameron’s statement caused “chaos in the energy industry,” Caroline Flint, the shadow energy minister for the opposition Labour Party, said in Parliament today. Neil Bentley, deputy director general of the Confederation of British Industry, said the pace of reform is “frustrating” and risks falling victim to “paralysis by analysis.”
“Let’s stop arguing over the energy mix and focus on attracting investment to create jobs and growth as quickly as possible,” Bentley said. “There is no business case for putting billions of pounds into these long-lived assets if investors cannot see a long-term, stable policy framework. Right now, the policy future looks too much like a blank canvas.”