Helm Review Calls For Energy Reforms
Called upon to propose changes to reduce energy costs and meet climate change commitments, Professor Helm published his independent report last week after a months’ long assessment of the energy market all along the supply chain. In his findings, Professor Helm has stated that energy costs are higher than necessary for domestic and industrial consumers; neither of whom have seen any marked effect on costs through the reduced price of renewables or the drop in the price of gas and coal.
Professor Helm has posited that this is largely owing to unnecessary complexity within the market – a situation that has been exacerbated by numerous interventions over the years. Legacy costs, ever-changing policies and regulations are other factors which are contributing to the rising costs of energy.
In his report, Professor Helm has made it clear that a change in policy, regulation, and market design will be unavoidable and Government’s move from market-driven investment to technology-based contracts will need to be assessed. His recommendations are far-reaching and address legacy costs, various tariffs, carbon management and reduction, as well as a redistribution of duties currently undertaken by Ofgem. According to Helm, failure to implement his proposed changes will adversely affect the security of supply and undermine the transition to greener technologies and reduced carbon emissions.
If you are interested in reading the full report, it is available here.
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