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United Kingdom: UK energy minister 'won't be dictated to' by renewables firms

2012/10/19

UK energy minister 'won't be dictated to' by renewables firms

New UK energy minister John Hayes has warned he is “not going to be dictated to by businesses” using the government’s Electricity Market Reform (EMR) as a reason to delay Round 3 offshore wind projects or turbine factory plans.

Hayes says that the government will soon lay down a clear strategy for how it sees the energy market developing. “We need investment in our energy infrastructure, and to do that we have to create policy certainty,” he says.

He says the upcoming energy bill will ensure the right framework for investment: “It is about making sure businesses understand they can get a long-term commercial return, but in a way that is in the public interest, maintains low bills and guarantees energy security.”

Recharge revealed last week that Siemens has postponed a agreement on building a £210m ($336m) nacelle factory in northeast England until 2013.

Sources indicate that the delay is at least half due to industry uncertainty over the timing of projects and a lack of clarity about EMR.

“I am not going to be dictated to by those businesses, and they wouldn’t expect to be dictated to by me,” says Hayes. “This has to be a relationship based on a degree of integrity, and that is framed around mutual respect.”

He adds that the bill will be passed into law within weeks, and will mean the renewables industry has “never had extra certainty”.

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