Member Article

Autumn Statement 2016: Any impact on energy?

The UK Government’s Autumn Statement provided a great opportunity to answer a number of key energy policy questions, yet failed to do so, according to Michael Dent, Managing Director of Inprova Energy.

Apart from confirming that the carbon price will be capped at £18 t/CO2 until 2020 and that oil/gas tax breaks will be maintained, there was very little mention of energy.

Granted this carbon price cap is likely to be welcomed as it provides the certainty and stability that investors and businesses have been calling for to inform energy procurement strategies. However, it is surprising that there was little mention of plans for UK energy policy or the security of supply throughout the entire Statement.

Unfortunately, this Autumn Statement not only a missed an opportunity to address the environmental challenges set by the Paris Agreement, but also failed to confirm the longer-term government position on energy and carbon policy, as well as security.

Energy Statement 2016 Key Points

Carbon price floor capped at £18 t/CO2 through to 2020 £390m funding from the NPIF for low-carbon transport Additional £2bn in science and R&D Fuel duty frozen for 7th consecutive year New Industrial Strategy Challenge Fund to support business-science collaboration

Given the current volatility of Sterling, the impact of this Autumn Statement on the energy markets is fairly muted in the current landscape. Inprova Energy will continue to monitor the reactions and impact of this Autumn Statement and will advise of any further developments.

Further information: www.inprovaenergy.com

This was posted in Bdaily's Members' News section by Inprova Energy .