Ed Davey muses Energy Bill changes amid concerns from green generators

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Ed Davey could be considering changes to the Energy Bill according to a new report.

According to the Financial Times, the energy secretary may be looking at changes due to claims the current reforms may in fact increase the dominance of the 'Big Six' energy suppliers - forcing out a number of independent generators.

Those backing the bill have long claimed it will actually help newcomers to the energy market, but some independent companies are not so sure, pointing to concerns the bill may in fact make it harder for them to sell electricity - in essence forcing them out of the UK market.

Mainstream Renewable Power is one of those independent green power generators, the Irish firm is a wind and solar developer operating within seven countries. It also plans to build offshore windfarms in the UK.

Mainstream Renewable Power head of regulatory affairs, Robert Longden, said: "Without a route to market we can't finance our projects.

"It wouldn't be Mainstream's decision to withdraw from the UK but the fact is we would be excluded from the market."

The main concerns from groups including Mainstream Renewable Power revolve around changes the Energy Bill will make to renewable energy subsidies. At present, the bill will in effect be phasing these out in favour of more long-term agreements.

These long-term agreements mean a guaranteed price on low-carbon generators, potentially meaning power suppliers such as the 'Big Six' may no longer seek long-term power purchasing agreements with the smaller independent energy plants.

Discussing the concerns raised by some of independent energy suppliers, an energy department spokesman said: "We're in listening mode on this and are looking closely at the proposals being made by industry.

"We've got to make sure we strike a balance between the certainty they need and getting a cost-effective deal for consumers. It's important we get the bill right while it's going through the house."

As part of the Government's push for lower carbon emissions, it also launched the Green Deal back in January.

Customers can contact their energy supplier over the possibility of fitting or replacing a boiler, installing wall insulation and other such measures to improve energy efficiency in the home at a subsidised rate.

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