Speaking at the Energy Bill Public Bill Committee, ScottishPower Chief Corporate Officer, Keith Anderson, said:
"We welcome the Government’s commitment to the EMR programme to deliver the investment in low carbon generation and security of supply needed over the next decades. It is vital that timely progress is made with the legislation to maintain momentum for the required investment.
"However, it is crucial to ensure that progress is made on the Government’s current delivery timetable with CfDs and a capacity mechanism being introduced in 2014. Ofgem’s evidence on security of supply and accelerated closure of coal-fired power stations means that there is a need to progress with a first capacity auction in 2014.
"The Energy Bill must bring clarity and where there is a clear long term commercial and regulatory framework, Iberdrola and ScottishPower will invest. Iberdrola have committed to centre investment efforts in the UK with £3.5billion of investment allocated between 2012 and 2014. The next tranche of investment will depend on a workable EMR framework being delivered on time.
Mr Anderson continued;
"It is also important that low carbon investments under the CfD will depend on an effective process for setting strike prices under the CfD. There needs to be a thorough, open and transparent evidence-based process, building on the detailed work done as part of the Banding Review. This is crucial to ensuring that strike prices are set on a cost-effective basis to deliver the needed investment. The proposed timing overlap between CfD introduction and the existing ROC programme is important to maintain investor confidence and prevent an investment hiatus."
Media information: Simon McMillan 0141 614 4582 / 07753 622 257