Reforms will guard against energy price hikes: Huhne
14th July 2011
Gas and electricity prices will be kept more stable under proposed industry reforms set out by energy secretary Chris Huhne.
Under the proposals, companies will sign long-term contracts guaranteeing they won't be subject to sharp price rises for electricity from low-carbon sources such as nuclear and renewables.
It is hoped that the reforms would put a halt to the kind of steep price hikes seen over the last few days.
Mr Huhne also said the reforms would would contribute towards the £110 billion investment required to replace the quarter of UK power stations scheduled to be shut down over the coming 10 years.
The Department of Energy and Climate Change (Decc) claimed that gas and electricity bills would be around £160 more expensive by 2030 as a result of the reforms, but this would be cheaper than keeping the current system in place, which would see bills rise by an extra £200 a year.
Copyright © Press Association 2011
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