EDF Energy responds to Energy and Climate Change Committee report
EDF Energy was pleased to give evidence to the ECC Committee inquiry. We welcome thorough review of this complex and important topic.
We welcome many of the conclusions and recommendations including the need and urgency for change, the importance of the decarbonisation trajectory, and the Committee’s focus on immediate next step with a White Paper before summer recess.
We agree with the Committee on the need for a coherent and workable package that works for all technologies. The carbon price floor and Feed in Tariffs based on Contract for difference are fair choices which work for customers, policy makers and investors.
The carbon price floor provides a clear, tangible signal to the UK power sector and is an integral part of a holistic package. It addresses the fact the ETS has not delivered the price that is required to achieve its objective of encouraging decarbonisation.
Contracts for Difference protect customers from volatile prices and, by reducing risks to projects, can help provide customers with electricity more affordably.
None of this represents a subsidy for nuclear. Indeed no subsidy is required to fund EDF Energy’s new nuclear plans, nor have we asked for any.
New nuclear power represents the most affordable way of decarbonising UK electricity generation as part of a balanced mix and gives the best long term deal for UK consumers.
We look forward to seeing the DECC White Paper and response to Committee recommendations.