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CBI yesterday responded to plans to boost clean energy and decouple gas and electricity prices.

Rain Newton-Smith, CBI Chief Executive, yesterday said:

“At a time of ongoing global energy instability, securing the UK’s energy supply and driving down costs for businesses and consumers must be critical national priorities.  

“The government is right to focus on energy security by pressing ahead with the expansion of renewable energy as a core part of the UK’s energy mix – alongside oil and gas. If implemented correctly, voluntary contracts for difference could reduce the impact of gas on retail electricity prices and ensure the benefits of clean power can be realised across the economy.    

“But at a time of extreme volatility, clarity and confidence are paramount. Government messaging on next steps on the Electricity Generators Levy must be backed by clear timelines to avoid compounding uncertainty and further undermining investor confidence – something already evident in recent weeks. 

“Electrifying our economy is key to delivering both energy security and bringing down bills. However, the reality is that UK businesses remain exposed to some of the highest energy prices in the developed world, just as they face rising costs elsewhere.  

“If we are to drive competitiveness and growth, the government must continue on this trajectory by removing ‘non energy’ policy costs from electricity bills, targeting industrial energy efficiency support and accelerating the delivery of renewable energy through upcoming auction rounds. A stable, affordable energy system is a prerequisite for a thriving economy enabling UK industry to invest, compete, and grow.”