Industrial Strategy is a step in the right direction but….

24th Jan 2017

 

‘It’s a step in the right direction, but it contradicts current government policies’ says Mike Foster, Chief executive of the Energy and Utilities Alliance, EUA in response to the government’s Industrial Strategy Green paper unveiled yesterday, (23rd January)

Mr Foster continued; ‘Whilst we are encouraged that the government recognise the need for an updated ‘energy framework’ it is clear that there is work to be done to line up this strategy with current policies.

 Policies such as the Climate Change Levy and the proposed SAP 2016 will actually increase energy costs for households and businesses, yet the affordability of energy is a top priority according to the green paper. It will be interesting to see how the government plan to harmonise these policies.

 The paper also sets out three major challenges for energy policy that the strategy will address. Top of that list is ‘to ensure that the shift to a low carbon economy is done in a way that minimises the cost to UK businesses, taxpayers, and consumers.’ Seems sensible, but there is no mention of the UK’s most valuable energy asset- the gas grid.

 Currently delivering gas into the homes and businesses of over 85% of the population via a first class distribution network, developed over many years, the gas grid is key to delivering a low carbon economy.

Decarbonising the gas going into the grid, using so called green gases such as Biomethane and bio-SNG in addition to hydrogen, will deliver affordable and sustainable solutions to the challenges the UK faces and we will continue to work with the government to this end, after all ‘It is the private sector that will ultimately be the driving force behind our low carbon economy’.