Industry backs Labour’s energy security board idea

Labour’s proposal to introduce an independent energy security board to help direct long term energy policy is gaining support within the industry.

Shadow energy minister Tom Greatrex said setting up the organisation would “ensure there is an authoritative source on long term thinking” for the energy sector.

Speaking at Sustainability Live in Birmingham, Greatrex added this would give investors “a sense of direction from government” and confidence energy policy would remain stable.

Unlike the opposition’s pledge to freeze energy prices if elected, which caused widespread alarm among investors, the idea of an energy security board met broad industry approval.

Keith MacLean, policy and research director at SSE, said such an organisation “would be helpful”, but it must be “genuinely independent”.

If the government was “brave enough” to establish it, MacLean said the Energy Security Board could help attract investment in the sector.

The government estimates some £110 billion of investment is needed in energy infrastructure by the end of the decade to keep the lights on. However, industry figures have warned the prospect of a price freeze combined with recent government policy changes puts that in jeopardy.

Lawrence Slade, chief operating officer at Energy UK, said: “We are a long term industry, we can’t magic up capacity in the future… From an investment point of view you need to know what’s happening to your investment not just in five years, but in 10 or even 15 years’ time.”