Big energy warns Osborne push still does not make gas economics stack up.

FT: “”I don’t think anyone’s going to be rushing out to build on the basis of today’s statement,” said an executive at one of the Big Six energy suppliers. Industry analysts say new gas-fired power stations are being held up mainly because the economics do not stack up, not because the policy framework is not right. “The recent history of UK gas-fired power stations is one of challenging market conditions, with many gas plants currently loss-making,” said Ronan O’Regan, director, energy and renewables, at PwC. “This is the biggest barrier to investment”.”
JL thought: This can’t be encouraging for HMT. I wonder how long they will doggedly push this line if industry isn’t fully behind them, with polls showing they gain no political advantage.