High start-up costs for electricity reform measures are worth it for long-term savings, Charles Hendry said today.
As The Electricity Market Reform consultation draws to a close, the Energy Minister tried to combat rising fears that change would be expensive for business.
Mr Hendry said in a written statement to Parliament: “Due to the high upfront costs and low running costs nature of most low carbon generating plant, the preferred package may increase business electricity prices and bills in the near term, but from the mid 2020s onwards prices are expected to be lower than they otherwise would be.”
The EMR consultation’s findings are due to be published in a White Paper this summer.
Half of businesses fear costly EMR