He noted that "five out of the six major energy companies supported the reforms".
Earlier, he told the select committee, which is undertaking pre-legislative scrutiny on the draft Energy Bill, that its publication marked "an important milestone on the path to delivering investment in the UK’s future energy requirements".
Giving oral evidence to the Committee this morning, Mr de Rivaz said: "The draft bill is needed. It sets out a package of reforms that sets the industry in the right direction to delivering affordable, secure and low carbon energy.
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"The Contract for Difference (CfD), which sits at the centre of the Bill, will be key to delivering investment that represents value for money, and protects consumers. It is a simple, transparent and proven instrument. Through it, both industry and Government will be accountable - to both shareholders and customers. This should not be about winners and losers. The CfD needs to be balanced to be stable."
Mr de Rivaz added that "the Bill's reforms are consistent with EU environmental, competition and market legislation, and provided a fair framework for the consumer". He noted that new arrangements were required to encourage investment in new nuclear, renewables and other low carbon technology as existing generation is retired.
He also said that these reforms will support all low carbon generation, including nuclear.
However he added that there were issues that remained to be addressed. "We take our own multi-billion-pound final investment decision for our new nuclear project at the end of this year. Ahead of then, we have three clear, concrete priorities for this Bill. Firstly, it must move to a 'tangible counterparty' contractual model, which is clearly understood and precedented; secondly, it must ensure that an early CfD, which will be delivered through transitional arrangements, is legally robust for the long-term; and thirdly, we must work to ensure the Government keeps to its original timetable of Spring next year for Royal Assent."
(CD)
