Green plans are at risk according to a senior MP, putting the the government’s energy policy – as contained in the upcoming Energy Bill – in jeopardy.
MPs have accused the Treasury of making changes to the Energy Bill, putting the governments green energy policy in danger and potentially leading to higher household bills.
The chairman of the energy and climate change select committee, Tim Yeo, said: “The Treasury has clearly intervened in the draft bill in a way that will put up bills to consumers, and put off investors by increasing their risks.”
The criticism is aimed at the Treasury’s refusal to allow the government to act as a guarantor to low-carbon energy investors undertaking long-term contracts. The Treasury has also expressed concern over consumer subsidies to renewable and nuclear power generators.
Mr Yeo said the Treasury’s stance was ‘counter-productive’:
“This is another thing that’s putting up the risk for investors and increasing the cost of energy projects.
“How can investors be confident in planning long-term projects which will rely on price support if the government might turn round and say ‘sorry, the cash has run out’.
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