Daily Archives: November 23, 2012

Jim Pickard

Aides to senior government ministers were at pains to insist that the energy deal finally signed off at about 6pm on Wednesday proved that both the Lib Dems and Tories were now in harmony on energy policy.

One Whitehall figure sought to present the previous disagreement as a fairly standard round of negotiations between a spending department and the Treasury.

In reality, the last two weeks have seen one of the most hard-fought coalition battles since the general election, with countless meetings and phone calls between senior figures and some particularly vicious in-fighting.

An attempt to secure an acceptable subsidy cap for renewables and nuclear power – the levy control framework – was already subject to complex negotiations. The complex system (we are not allowed to call it a ‘subsidy’, even though it clearly is one) should give investors enough certainty to build wind farms, nuclear power stations and other renewable plants.

The UK needs new capacity to replace many of its coal power stations that are closing down in the coming years while still