19 Mar 14

EDF Energy response to the Budget

In today's Budget, the Chancellor of the Exchequer confirmed the importance of investment in new energy sources which include new nuclear, renewable power and shale gas. He also announced a range of measures to cut energy costs with a focus on energy intensive industries.

EDF Energy has stressed the need to bear down on rising costs for all energy users and remains committed to working with policy makers to deliver the UK’s energy and environmental targets in the most cost effective way. We also support the targeted and specific action designed to help energy intensive industries with energy costs.

EDF Energy is encouraged to hear of the measures announced to stimulate investment in infrastructure and skills in the UK.

The Chancellor’s announcement included a commitment to the Carbon Price Floor as a means to stimulate investment in low carbon energy. He confirmed that the policy will remain part of the UK’s long term energy policies during the 2020s.

The Carbon Price Floor is a minimum price set for carbon emissions. It is an effective part of a wider range of policies which inspire investor confidence at a time when billions of pounds of new investment is needed in low carbon electricity generation. It encourages a shift from carbon intensive generation to gas, nuclear, wind and biomass.

Even after today’s temporary adjustments are made to this measure, the Government has shown that it remains committed to its long term energy policies. EDF Energy welcomes the continuing support for this stable and long term approach.

The Carbon Price Floor is a "top-up" tax to support low carbon prices traded in Europe under the ETS (European Trading Scheme). The Chancellor's action means it is more important than ever that robust and relevant targets on carbon prices are effective in Europe. With other businesses and the CBI, EDF Energy welcomes and supports the European Union's target to reduce greenhouse gas emissions by 40 per cent by 2030. This emphasis on carbon reduction and planned reforms to the ETS will allow Europe to come in step with the UK’s leading position on climate change and energy investment.