SSE statement on UK electricity market reform


SSE (Scottish and Southern Energy plc) broadly welcomes the UK government’s consultation on Electricity Market Reform (EMR) as the next step towards establishing a robust and enduring market framework for the electricity sector in the transition to a low carbon economy.

Ian Marchant, Chief Executive of SSE, said in a statement:

“The first test of EMR is that the value of existing investments is protected as the market is reformed and it is therefore very welcome – and critically important – that the government is proposing robust provisions here.

“In the next two decades, substantial investment is needed to decarbonise the power sector and maintain security of supply whilst ensuring electricity remains affordable. Fundamentally, therefore, the EMR process needs to deliver a framework which encourages delivery of all of the key generation technologies needed over the next two decades – renewables, thermally-efficient gas-fired power stations, nuclear and carbon capture and storage (CCS) – and ensure an appropriate risk/reward balance for investment in these technologies.

“This requires an evolved market structure, which the EMR process is appropriately timed to deliver with a White Paper expected next summer and reforms set to be implemented by around 2013.

“Reforms should also reflect Scotland’s leading role in deployment of low carbon generation, with already half of renewables generation located in Scotland and attractive sites for development of CCS.

“SSE is well-placed to respond to changes resulting from EMR, with attractive options to invest in all the major generation technologies and in efficient use of electricity that is produced. In assessing such options, financial discipline will remain paramount.”

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