Davey seeks new gas powerplant loophole
Dozens of new gas power stations could be built as ministers look to sidestep climate change rules in an attempt to reduce energy bills.
The announcement comes as British Gas this morning announced a 6% increase in prices, which the firm says was driven by rising gas prices.
Speaking to the Times, Energy and Climate Change Secretary Ed Davey suggested a loophole excusing energy companies from cutting their own carbon emissions if technological progress makes it cheaper for other sectors to do so - allowing the building of new gas power plants.
Phil Bentley, the managing director of British Gas, said new investment justified price rises.
"This is important investment. Investment in the infrastructure, the grid, is what will keep the lights on, and investment in the green economy not only creates jobs but it also encourages our home to become more energy efficient.
"Ed Davey recognises the importance of this: making Britain more energy efficient than it is today."