Hendry sacking raises stakes

by Brendan Coyne

Charles Hendry’s departure from the Department of Energy and Climate Change has increased the level of uncertainty facing the energy industry and its investors.

While some industry groups have cautiously welcomed Hendry’s replacement as energy minister, John Hayes, others, including Labour MP Alan Whitehead, raised some concerns about the potential consequences.

Whitehead, a member of the Energy and Climate Change Committee, told Utility Week the timing of the changeover could not have been worse.

“To sack someone with [Hendry’s] level of detailed knowledge at such a pivotal time is irresponsible at best,” he said. “It could make it much less likely that we get the detailed and effective Electricity Market Reforms we need to deliver over the next 12 months.”

Hayes must rapidly get to grips with a complex brief. Last week, he said his priorities are security of supply, affordability, decarbonisation and renewables. He told a Westminster debate that 2020 renewables and 2050 decarbonisation targets were “most ambitious”.

The reshuffle also prompted energy secretary Ed Davey to publicly promise to champion renewables. That support was welcomed by green groups but raised questions over the dynamic within his department.

Hendry’s departure could also reopen the debate on the smart metering programme, with consumer groups likely to press harder for a regional rollout.

This article first appeared in Utility Week’s print edition of 14th September 2012.

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