A strong and stable energy policy framework is needed to help the industry progress towards a secure, affordable and low carbon energy mix.

That was the main message at the Energy UK conference in London today.

One of the main concerns of the sector is that energy policies do not support new technologies, said Mary Teuton, Head of Policy and Regulatory Strategy at VPI Immingham during a panel debate.

She said: “I am not sure we have the right framework yet.”

Even though she believes the industry has made good progress so far, it needs policies that encourage innovation in energy efficiency, clean technologies such as wind and solar and demand side response which “is needed in the mix”.

Her comments come as the government and Ofgem launched a consultation today on the development of a smarter and more flexible energy system and also aims to find out what can be done to make it easier for businesses to provide voluntary demand side response.

Trevor Hutchings, Director of Advocacy at WWF agreed the energy sector has made good progress towards decarbonisation but added “there is a policy gap towards the Fifth Carbon Budget“.

He insisted the heat and transport sectors need to be decarbonised if the country wants to meet its targets and highlighted the importance of energy efficiency.

The panel, which included Dorothy Thompson, CEO of Drax Group and Paul Spence, Chair of EDF’s RD, agreed carbon pricing “is critical” to help decarbonise the system.

• Energy UK, policy stability, UK