Complex energy policies deterring investment

Experts in the energy industry have warned that the continuing changes to the Government’s energy policies, and general complexities are causing a delay in required private investment.

An example given is that planning consent has been given for a 15 gigawatt gas power electricity generation infrastructure. However private investors are reluctant to invest due to undesirable market prices for gas and electricity. Investors also feel there is a lack of certainty on the Government’s planned energy market reforms.

They explained that the shift to renewables is itself contributing towards the cost of energy bills for consumers. There is inadequacy of supply which is in turn made more difficult by current market interventions.

Experts have therefore recommended that the Government take prompt action in addressing the complexities of the current system. When making changes to current policies, they have urged the Government to fully consider the impacts on investors of the infrastructure. If action is not taken they anticipate that consumers energy bills will continue to increase.