Ed Davey takes over as Energy Secretary – what will this mean for Business energy rates?

Feb 23
08:23

2012

Josh Parker

Josh Parker

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Chris Huhne, the former post holder stepped down recently to fight criminal charges and this week Deputy Prime Minister Nick Clegg confirmed that Ed Davey would be taking this post on. Liberal Democrat MP Ed Davey, previously a business minister for employment relations, consumer and postal affairs has been described by Clegg as the “Right man for the job”.

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The question in many people’s mind is; “Will Davey use his experience in the business sector to identify problems with the current energy system? “.

During his first week in post,Ed Davey takes over as Energy Secretary – what will this mean for Business energy rates? Articles after working closely with his predecessor Huhne for several weeks, Davey announced plans to allow homeowners to group together to buy energy at highly reduced prices. The specifics of this plan is not yet know but it is expected that it will run along the same lines as the websites where members can purchase vouchers at a discounted rate to enable them to afford more expensive items.

With gas and electricity having risen so sharply over the past five years, they could start to feel like a luxury item. If this new scheme goes ahead it could see significant reduction for those able to take part but yet again this is not a scheme that will benefit commercial energy consumers.

Davey has shown his commitment to green policies in the past and is very much a supporter of tackling climate change. He has previously voted in favour of legislation to add shipping and aviation into the Climate Change Act as well as backing laws that would cap the emissions from power stations. In his first address since taking over as the secretary of state for energy and climate change Davey hinted that he would continue to back plans, previously discussed under Huhne’s rein, for increasing the number of working wind farms in UK.

In the current economic climate UK businesses no longer merely desire better business energy rates and reforms but they need them. The majority strongly support changes which will reduce our carbon footprint and protect our environment but need assurances that business energy is a priority too. Our countries difficulties cannot be handled as individual problems but as a whole picture. Many are hoping that Davey with his background in business will recognise this and will build in business priorities into his green legislation to ensure that the way forward benefits everyone.

The MP for Kingston and Surbiton is expected to closely follow Huhne’s policies. UK business owners will hopefully see the new Secretary’s rein as one which will see business energy concerns address in such as way that will promote future business and not save the environment in spite of it. Many will be keeping a close eye of Davey and his addresses over the next few months.