SSE slams government policy for holding up investment

 
Suzie Neuwirth
BIG SIX energy supplier SSE yesterday criticised government reforms for being delayed and vague, warning they would slow down investment decisions.

Although the coalition outlined its energy market reform programme last month to address a shortage in capacity, the plans will not be implemented until 2018-19.

SSE said the changes would “not address the risk of imminent shortages” over the next few years and would not provide sufficient incentives to enable infrastructure investment decisions.

Regarding the proposed contract for difference tariffs, which are designed to reduce price volatility in the green energy sector, SSE said the plans were not detailed enough “to determine whether the balance between risk and reward for investing in low carbon electricity generation in the future will be the right one”.

SSE forecasts total capital and investment expenditure of £1.5bn for 2013-14, with a focus on its networks and wholesale business.