- Energy Minister commits to "change the rules of the game" to bring new competition into energy sector

- Government ambition to "smash the glass ceiling for decentralised energy"

- Foundations laid for new growth in the energy services market

Energy and Climate Change Minister Greg Barker, yesterday made a commitment to "smash the glass ceiling" for growth of decentralised energy at the Conservative Party Conference. The pledge was in turn strongly welcomed by the Combined Heat and Power Association (CHPA), which represents the UK's leading CHP and energy services businesses1.

Speaking at the Climate Clinic 'In Conversation' event2 at the Conservative Party Conference in Birmingham last night the Minister explained: "We want to see decentralised energy competing alongside other sources, as a significant part of the energy mix. We have to smash the glass ceiling for decentralised energy that was put in place by the previous government."

He continued by highlighting the importance of the Government's forthcoming programme of Electricity Market Reform (EMR)3 as a catalyst for change, and specifically as a key driver in the foundation of a substantial and competitive energy services market: "The Government will be looking at a range of measures to make it possible for community groups, companies and householders to participate in the energy market. We want to change the rules of the game. We want to bring in new entrants, we want to see energy efficiency compete alongside new power generation in forward capacity markets, and we want encourage consumers to generate their own electricity. We have the chance to change the terms of trade."

Graham Meeks, Director of the CHPA, welcomed the Minister's pledge: "The potential of the energy services sector to become a major competitive force in the energy market is huge. It's not just about bringing new competition into the energy sector, but also delivering tangible CO2 and cost savings for consumers and communities across the UK. It is clear that Greg Barker understands the value it can deliver, and we welcome his commitment to unlocking its potential. Consumers are important participants in the energy market, but they can become very much more than simply the funders of major new power generation projects.

With a thriving energy services market, customers will see their contribution to decarbonisation rewarded in the form of lower energy bills. This is a clear and important indication of the government's direction of travel. It offers encouragement to the growing number of businesses entering the energy services market, and to those supplying CHP equipment, renewable generation and energy efficiency products into it. The forthcoming Energy Market Review will be critical in turning the Minister’s ambition for energy services into reality, and this industry looks forward to working with Government to build this exciting new element of the green economy."

 

Source: www.chpa.co.uk