The boss of the Energy & Utilities Alliance (EUA) has welcomed the UK Government’s industrial strategy but said it “contradicts” current policies.
Mike Foster said it encouraged the government’s recognition of the need for an updated energy framework.
Ministesr published the Building Our Industrial Strategy green paper on Monday, launching a 12-week consultation on the proposals.
The document sets out a vision to close the productivity and wealth gap between different regions and make Britain one of the most competitive places in the work, to start work, or grow a business.
The pillars cover a broad range of themes including the development of skills, upgrading infrastructure, delivering affordable energy and supporting businesses to start and grow.
In his response to the plans, Foster said:”Whilst we are encouraged that the government recognise the need for an updated ‘energy framework’ it is clear that there is work to be done to line up this strategy with current policies.
“Policies such as the Climate Change Levy and the proposed SAP 2016 will actually increase energy costs for households and businesses, yet the affordability of energy is a top priority according to the green paper. It will be interesting to see how the government plan to harmonise these policies.
“The paper also sets out three major challenges for energy policy that the strategy will address. Top of that list is ‘to ensure that the shift to a low carbon economy is done in a way that minimises the cost to UK businesses, taxpayers, and consumers.’ Seems sensible, but there is no mention of the UK’s most valuable energy asset- the gas grid.
“Currently delivering gas into the homes and businesses of over 85% of the population via a first class distribution network, developed over many years, the gas grid is key to delivering a low carbon economy.
“Decarbonising the gas going into the grid, using so called green gases such as Biomethane and bio-SNG in addition to hydrogen, will deliver affordable and sustainable solutions to the challenges the UK faces and we will continue to work with the government to this end, after all ‘It is the private sector that will ultimately be the driving force behind our low carbon economy.”
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