Ministers fear that sudden cuts to British energy subsidies could be concerning to investors , which may put a risk premium on clean energy investments , and ultimately lead to higher spending bills for consumers . This fear seems justified when Schroders Investment Management stated : “ In the light of recent changes to renewable ( renewable energy ) mechanisms , we perceive that there is now increased policy flexibility and therefore require a higher budget to compensate for this deficit . " The Energy and Climate Change Campaign has urged the government to produce a long - term plan to replace the previous subsidy scheme , which was scrapped due to being too complex .
Ministers fear that sudden cuts to British energy subsidies could be concerning to investors, which may put a risk premium on clean energy investments, and ultimately lead to higher energy bills for consumers. This fear seems justified when Schroders Investment Management stated: “In the light of recent changes to support (renewable energy) mechanisms, we perceive that there is now increased policy risk and therefore require a higher premium to compensate for this risk." The Energy and Climate Change Committee has urged the government to produce a long-term plan to replace the previous subsidy regime, which was scrapped due to being too complex.