UK to Legalise Long-Term Power Contracts to Lower Costs

9 March 2011 (Last Updated March 9th, 2011 18:30)

The UK is preparing ground for new rules that will include long-term power contracts from low-carbon generation to attract investors and lower cost for consumers. The new legislations will set a fixed price for each megawatt produced, providing revenue certainty, reports Bloomberg.

The UK is preparing ground for new rules that will include long-term power contracts from low-carbon generation to attract investors and lower cost for consumers.

The new legislations will set a fixed price for each megawatt produced, providing revenue certainty, reports Bloomberg.

Long-term contracts for projects with low carbon capacity or generation would provide investors with more certainty and drive down the cost to consumers, as per the Committee on Climate Change.

The government is also planning to introduce CO2 emissions standard at two levels on fossil-fuelled generation.