Financial Times: Energy industry welcomes natural gas backing

The chancellor’s strong backing for natural gas was cheered by an energy industry that has often cited uncertainty over government policy as an obstacle to investment in new gas-fired power plants.

But there were warnings that the government’s proposals are not enough to spur the new wave of power stations Britain needs to keep the lights on.

“I don’t think anyone’s going to be rushing out to build on the basis of today’s statement,” said an executive at one of the Big Six energy suppliers.

Industry analysts say new gas-fired power stations are being held up mainly because the economics do not stack up, not because the policy framework is not right.  MORE