The decision to form the Department of Energy and Climate Change (DECC) has been welcomed by the Energy Institute (EI).

Prime minister Gordon Brown's cabinet reshuffle and the appointment of Ed Miliband as the secretary for energy and climate change were also welcomed by the EI.

Louise Kingham, the body's chief executive, said that climate change is a global concern and that coordination was required across the world to enhance the energy system.

She stated: "This change in government organisation hopefully recognises this by putting energy and climate change at the heart of the UK government going forward".

Ms Kingham claimed that the new structure will not solve the problems on its own and that other organisations should be used in the development of the energy system.

She offered the services of employees at the EI and claimed to be excited at the prospect of working with the DECC.

Mike O'Brien and Lord Hunt have been employed to work with Mr Miliband in the new organisation.