The committee confirmed reports by Utility Week that it will assess whether the increased uncertainty around energy policy is undermining investor confidence and what steps can be taken by government to build and maintain it.
ECCC chair Angus MacNeil said: “Energy projects like offshore wind farms and nuclear power stations can take years from planning to completion, so maintaining investor confidence is crucial if we want to upgrade our energy system.
“Energy experts have told us that the government has spooked investors with a series of sudden energy policy changes announced over the summer without proper parliamentary scrutiny.
“We will be looking at what steps Government must take to restore confidence in the UK’s energy sector and improve Decc’s policy making processes.”
The inquiry launch comes the attractiveness of the UK’s renewables market as an investment destination plummeted as a result of a spate of recent government cuts to renewables subsidies, according to EY.
Reacting to that news, MacNeil stated: “Just today we have learnt that the UK has lost its place in the top ten markets for clean energy, as investors look to more attractive markets overseas.”
On Tuesday, speaking a House of Commons networking reception organised by Utility Week in association with the Energy Networks Association, MacNeil slammed the government for damaging investor certainty.
He said: “Investors still wonder what the next step is. It’s a real surprise that the Tory government is risking private investment like this.”
The ECCC also announced it will conduct inquiries into home energy efficiency and demand reduction, and low carbon network infrastructure.
The committee will also look into concerns about capacity margins for gas and electricity this winter through a one-off session on UK security of supply, and question the energy secretary on the outcomes of climate change negotiations in Paris in December.