UK businesses call for clarity on Electricity Market Reform

UK businesses are "confused by the complex nature" of the Electricity Market Reform (EMR) and are concerned about the impact on competitiveness, according to a new report.

The findings from the report, ‘UK Business speaks: A call for clarity’, follows the Government’s latest announcement on two key elements of EMR – The Capacity Market and Contracts for Difference.

Created by npower, the report summarises the views of senior energy consultants and major energy users from across retail, telecommunications, utilities and industrial businesses, who recently took part in a roundtable discussion on EMR.

As a result of the roundtable, businesses are calling for more information on how the EMR will impact financial and administrative costs.

Businesses have also called for reassurance from Government that it is protecting the competitiveness of the UK in the international marketplace.

Other suggestions include greater transparency on how EMR schemes will operate, with further details on how costs will be set and markets regulated and a system that will have longevity so businesses are not affected by governments working within relatively short-term parliamentary cycles.

The calls are a response to yesterday’s announcements, where the Government unveiled its strike price support levels for renewable technologies under the new support mechanism, the Contracts-for-Difference (CfDs) model, which will aim to help renewables contribute more than 30% of total power by 2020.

It also announced that the first auctions under a capacity market will be run in 2014, subject to European state aid approval.

Leigh Stringer

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