WIREDGOV

The CBI responded to the Competition and Markets Authority’s (CMA) initial findings of its investigation into the energy market, as it published a new report calling on the Government to set out a clear long-term energy plan.

Katja Hall, CBI Deputy Director-General, said:

“Consumers must lie at the heart of competitive markets. This thorough investigation is a good opportunity to restore public confidence in the energy market.

“These early findings demonstrate that every effort must be made to ensure people have the information they need and can more easily shop around for the best deal.

“Ahead of the final report, we all need to carefully assess the remedies, making sure they are proportionate, and reflect both the evidence and consumers’ needs.

“As the Competition and Markets Authority’s report recognises, some of the costs we pay for energy are the result of cutting emissions and making the transition to a low-carbon economy.”

The CBI is also calling on the Government to set the bar high for the UK’s energy and climate change future, with a clear, consistent, long-term policy framework.

In its new report, Setting the bar, the CBI lays out businesses’ energy and climate change priorities for the Government. Building on the progress made with the 2013 Energy Act and the agreement of an EU emissions reduction target for 2030, the UK’s leading business group is calling for the Government to:

• Stick with plans to boost investment in a secure and diverse energy mix by extending the Levy Control Framework (the budget for low-carbon energy incentives) beyond its current timeframe of 2020/21 and setting it for a further seven-year period, to be extended on a rolling basis thereafter
• Play a strong role to shape EU policy and secure a bold and durable deal at the UN Climate Change Conference in Paris
• Put consumers in control of their energy future by implementing the Competition & Markets Authority’s final recommendation, and ramp up the energy efficiency drive with a successor to the Energy Company Obligation
• Continue support for energy-intensive industries to thrive in a low-carbon economy, and have a clear roadmap to simplify the energy efficiency policy landscape for business.

Katja Hall, CBI Deputy Director-General, said:

“Energy is - and must be - seen as one of the foundations on which we can build economic prosperity. Business needs stability in energy policy, and that means continuity, not chop and change.

“We want to see the new Government articulate a clear, consistent, long-term energy plan which stands the test of time. Energy and climate change issues need a bold approach, combining a continuation of policies which are working at home with ambition in negotiations abroad.

“The most critical challenge all Governments face is getting a strong climate deal in Paris at the end of the year. Momentum for an ambitious deal is there, but we’ve got to keep up the pace.”

Read the CBI’s new report, Setting the bar: Energy and climate change priorities for the Government here.