|
|
<p>We published the consultant's report, commissioned to analyse the costs and benefits of three potential interventions, on 4 September 2013. This looked at the investment climate for storage out to 2030, to test investment potential with and without intervention in the market. The analysis found scope for commercial investment in fast cycle storage with no intervention by Government.</p><p>It further showed that, while intervening to incentivise storage had the potential to make further investment economic, the costs of the interventions were greater than the value of the security of supply gained. In addition, any intervention runs a substantial risk of unintended consequences such as displacing investment from one part of the market to another.</p><p>We have seen and continue to see new storage come forward from the market. Two new storage facilities have recently been built and two more are under construction, although as gas storage developments are commercial activities the precise value of this investment is a matter for the companies concerned.</p> |