The government published proposals in December to transform the electricity market, billed as the biggest shake-up of the market since privatisation.
The proposals included a new carbon tax to place a floor under the carbon price, a minimum Emissions Performance Standard to exclude new unabated coal-fired power stations, a mechanism to guarantee future electricity prices to low carbon generation and a capacity mechanism to guarantee back-up generation capacity.
Some have welcomed the proposals arguing they are needed to give certainty on delivery of the government’s carbon emissions and renewable energy targets, and security of supply. Others have said that the proposed reforms would sweep away the competitive electricity market as we know it, one of the most notable public policy successes of the last 20 years, creating unnecessary costs for customers.
E3G’s Senior Associate Simon Skillings spoke at a recent debate on electricity market reform at Policy Exchange in London.
This event discussed questions including:
- Is the package likely to achieve greater reductions in carbon emissions?
- What are the implications for competition in the electricity market?
- What are the implications for customers and the economy?
- What are the merits of the various elements of the proposed package of reforms?
Simon’s presentation is available to download and the debate available on YouTube.