Davey: Government has ‘defused energy security time bomb’

The UK’s energy secretary claims to have solved the problem of the country’s looming energy capacity crunch, but warned that growing support for right-leaning political parties could scupper further investment.

Davey told delegates at a London conference that the coalition government’s efforts to bring forward much-needed energy investment has paid off, leaving the UK as the fourth most ‘energy secure’ country in the world.

“We have now defused the energy security time bomb,” he told delegates, “I can tell you Britain is energy secure.”

Davey said that under the coalition government the UK has secured £45 billion in generation and network investment between 2010 to 2013, more than the previous 13 years combined.

Last year alone saw £8 billion, Davey said, adding that a further £50 billion is expected by 2020.

But Davey said the achievements of the energy sector so far come with a warning that progress could be reversed.

He told delegates investment could “melt away” if long-term policy certainty in undermined by the rise of “Ukip and other euro-fearing parties” who are “in denial of global truths”, including the need to act on addressing climate change.

Davey also echoed the warning of CBI deputy director-general Katja Hall who told the same conference that short-term, populist policy-making poses a threat to the long-term certainty needed to secure investment in UK energy.

“The coalition was formed to bring order, to make unpopular decisions,” Davey said, but added that the course set has resulted in “booming” progress with further opportunity ahead.