The Energy and Climate Change Select Committee has written to economic secretary, Chloe Smith MP, with a number of questions about the impact that Treasury decisions have on energy investment in the UK.
The committee has been holding oral sessions as it considers the draft Bill. The Treasury declined to give evidence.
Committee chair Tim Yeo MP said: “The Treasury is being disingenuous in arguing that it would not be right to comment on the Department of Energy and Climate Change’s new legislation.
“The success of electricity market reform could well rest on Treasury decisions – such as how high to set the levy-cap on support for low-carbon technology or whether the Government directly underwrites new long-term energy contracts or not.
“The minister must not duck these vital questions on the Energy Bill – this legislation is far too important.”
“That is why we have written to the Treasury demanding answers to a series of questions that our inquiry has raised about the impact that its decisions could have on energy investment in the UK.”
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