Investing in energy: price, security, and the transition to net zero Contents

Chapter 6: An energy strategy for the future

237.Given all the issues raised in this report, we conclude that a detailed and comprehensive plan is needed from Government which so far is missing. The gaps between the Government’s ambitions and practical policy are significant. The Government has set targets for low carbon power generation, without explaining what the transition will cost, what combination of public and private investment it expects, and what choices will be required. The Government should set this out in broad terms and provide an assessment of relevant costs and savings.

238.The Russian invasion of Ukraine has created global energy supply issues and has highlighted the vulnerabilities of the UK energy supply. To help avoid a disorderly transition, the Government should set out a net zero delivery plan which takes account of energy security and foreign policy considerations. It should make clear what decisions will need to be made and by when. Any such plan will need to incorporate the flexibility required in a three-decade, economy-wide transition. Nevertheless, such a plan would help to provide additional confidence to the public, businesses, and investors. The present uncertainty and lack of direction in policy and strategy is hampering consumers, businesses, and investors from responding on the scale and with the urgency required.

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