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The Director of UKERC, Professor Rob Gross, has welcomed today’s announcements from Prime Minister Andy Burnham on the removal of VAT from electricity bills, while highlighting further opportunities to reduce costs for consumers and the challenges facing electricity network development.

Responding to announcements made at the Labour Party Conference, Professor Gross said:

“The removal of VAT from electricity bills is welcome and will provide some immediate relief for households facing high energy costs. However, there is more that can be done to bring bills down, including considering how policy costs are paid for, and reforms to reduce subsidies to older renewables and nuclear plants.

“The creation of Great British Grid also has the potential to bring benefits, with a new, state-backed entrant helping to increase competition for electricity network infrastructure. However, new institutional arrangements alone will not resolve the challenges facing network development. Planning constraints, supply chain capacity and skills shortages will remain significant barriers to delivery.”