UK electricity market reforms too complex, warn researchers

The Coalition Government’s proposed reform of the country’s electricity market is ‘unnecessarily complex’, according to the UK Energy Research Centre (UKERC).

The warning comes as part of the UKERC’s response to the Government’s consultation on its plans, which closed yesterday.

The UKERC says that while the reform of the electricity market is welcome, the Government’s proposals could lead to a hiatus in investment.

Instead, the UKERC recommends that feed-in tariffs, which it views as central to the reforms, be tailored to specific technologies and coupled with a capacity mechanism.

“The full range of low-carbon technologies, including onshore wind, offshore wind, nuclear and carbon capture and storage, vary widely in terms of their technological maturity, cost structure and risk profiles and a range of tariff designs should be applied to reflect this,” says Jim Skea, director of the UKERC.

“Although UKERC welcomes the reform, the package proposed by the government is unnecessarily complex and this may in itself constitute a barrier to entry,” cautions Skea.

For further information:
www.ukerc.ac.uk/support/inputs+to+policy
www.decc.gov.uk/en/content/cms/consultations/emr/emr.aspx

11 March 2011

Back