Energy supplier E.ON has welcomed the publication of the draft energy bill this week.
The firm stated the measures will help deliver secure, cheap electricity and reduce carbon emissions in the UK.
Chief executive of the company Tony Cocker said: "I have confidence that we are heading towards a framework that will provide the certainty needed to bring forward further low carbon energy investment."
He added all aspects of the reform need to meet a simple but critical two-stage test to ensure they deliver security of supply and provide a good platform for investment.
However, E.ON warned more clarity is needed to ensure the proposals deliver the best value for consumers.
Announcing the bill earlier this week, energy and climate change secretary Ed Davey said the plans will help keep the country's lights on, bills down and air clean.
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