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MPs accuse Treasury of wrecking plans for green energy supply

 

Sunday 22 July 2012 23:56 BST
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The Treasury has been accused of sabotaging plans to increase Britain's supply of green energy – putting off investment in the sector and potentially increasing electricity bills.

In a critical report published today, a cross-party committee of MPs has warned that the Government's draft Energy Bill could impose unnecessary costs on consumers, lead to less competition and deter infrastructure spending. The MPs criticise the Treasury for placing an "unacceptable" level of risk on companies looking to build new wind-, solar-, wave- or tidal-power plants.

The Bill would see companies who invest in renewable or nuclear power given long-term contracts at a guaranteed price for the low-carbon electricity they produce.

But the Energy and Climate Change Committee warns firms may be deterred as the Treasury will not underwrite the new investment – pushing up borrowing costs, which would be passed on to consumers in higher electricity bills.

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