Energy market heading towards ‘ever more centralisation’

Unless the energy market framework is reformed, the UK’s carbon reduction goals will require a “massively expanded” role for government with knock on inefficiencies, a new report co-authored by a former top energy official has warned. The study from the Tony Blair Institute for Global Change said generators' growing reliance on the Contracts for Difference mechanism will mean they become “less and less responsive” to demand because of its in-built incentive to produce as much power as possible.