Government welcomes publication of PIU's long-awaited Energy Review

The government has welcomed the findings of the Performance and Innovation Unit's (PIU) Energy Review.

The study highlights a number of key areas to be considered both now and in the future on carbon reduction and electricity generation in the UK.

Commenting on the report a delighted secretary of state for environment, food and rural affairs, Margaret Beckett, says: "I welcome the recognition given to the importance of environmental issues and the government will consider how our future energy policy framework can best address all three objectives of sustainable development – economic, environmental and social – as well as ensuring security of supply."

Energy minister, Brian Wilson, who chaired the advisory group for the review, also welcomed the report as an important contribution to the debate on Britain's energy requirements. He explains: "The report argues that the introduction of liberalised and competitive energy markets in the UK has been a success, and this should provide a cornerstone of future policy – in the UK and internationally. But the challenges ahead may require new approaches. The report also argues that alongside low prices and secure supplies, tackling climate change must become a central aspect of energy policy." Wilson stressed that the report should not be viewed as a renewables versus nuclear issue. "It is about balance and promoting innovation in new technologies," he argues. "It stresses the potential for renewables and energy efficiency but also argues that the options of new investment in nuclear power and cleaner coal should be kept open."

The controversial report claims that while concerns over carbon use in Britain are justified, the country should not get sucked into trying to achieve set carbon reduction targets if other countries are not following suit.

Following the study the government has announced it intends to begin a period of public consultation on key recommendations, leading to a White Paper in the autumn.

The Energy Review is on the PIU website at www.piu.gov.uk. A hard copy is also available from PIU, 4th floor, Admiralty Arch, The Mall, London SW1A 2WH.