In the fifth of a series of prediction pieces running on Current± in preparation of the year ahead, Energy UK chief Lawrence Slade predicts what the energy market has in store in 2019.
A swift resolution for the Capacity Market
We are hoping that the hiatus around the capacity market will be swiftly resolved and that we can move forward by reviewing the power market. This will enable us to see a continuation of both records being broken for low carbon power generation and for progress towards a zero carbon future in a stable manner.
Electric vehicle market growth
More needs to be done across our economy if the country is to achieve its climate targets, and I hope to see sales of electric vehicles grow, along with the delivery of the associated infrastructure. The country should take the lead in starting the process of decarbonising heat and helping improve the energy efficiency of our housing stock.
Price cap and competition will bite the supply market
With the price cap coming in on 1 January, there can be no doubt that suppliers will be under intense financial and competitive pressures. It will be vital that the true costs of operation are understood and that the sector remains financeable and able to support innovation that can benefit all customers. We will work with all to ensure that the market works for all consumers – especially the vulnerable – so that they can be assured that they are on the best deal and are able to compare deals in an efficient and swift manner.
Hopes for Brexit and the IEM
And whilst we have these hopes for 2019, these will all be set against the backdrop of Brexit. I very much hope that a hard Brexit is avoided and that we can continue delivering the benefits of an integrated energy market to consumers across the United Kingdom and Republic of Ireland.
