Energy analyst at Energy and Climate Intelligence Unit (ECIU), Dr Jonathan Marshall, has said the following in response to today’s autumn statement:
“Despite claiming to provide certainty to businesses, Mr Hammond has failed to offer any clarity for the energy industry beyond the short term. Freezing the carbon price support to 2020 was already announced in the March Budget, while deciding on the future of the levy control framework has been delayed until next year.
“Considering the long-term nature of energy investments, clarity more than three years into the future is vital for the industry. Vast swathes of the UK’s generating capacity are reaching retirement age, and long-term clarity on carbon pricing would provide investors with the platform to back much needed new low-carbon equipment.
“The sector was looking to see the fate of the carbon tax beyond the end of this decade, as promised in the March budget, while knowledge of the degree of support available for new capacity via the levy control framework is essential for businesses. This statement is likely to see investment in new capacity continue at glacial pace.”