The Confederation of British Industry (CBI) has called for more urgency and more detail on the draft Energy Bill to give investors more confidence.
CBI deputy director-general Neil Bentley said that it is reassuring to see some progress on the Energy Bill, but now it needs to pass through Parliament with more energy.
He added: “With over a fifth of the UK’s generating capacity coming off stream before 2020, we face a real risk of electricity shortages in the second half of the decade.
“The clock is ticking to create the market certainty that will unlock billions of pounds of private sector investment, generating many new jobs across the UK, and securing an affordable supply of energy.
“We are still some way from having a detailed picture of how the electricity market will look in the future, on which the success of these reforms depends. With major investors waiting in the wings, these details are needed as soon as possible.”