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Businesses lose confidence in UK energy strategy

Commercial electricity users are losing confidence in the government’s ability to deliver key energy, and other infrastructure improvements, according to business leaders.

The new survey by the business lobby group the CBI and accountants KPMG has found that businesses want to see greater urgency from the government in terms of getting projects built.

According to the survey report, nearly 75% of firms do not expect to see any improvement in transport infrastructure during the next 5 years.

Business do not believe it is going to get better…

And two-thirds of businesses also believe the UK’s energy and water infrastructure is unlikely to get any better because of uncertainty about the policy framework. John Cridland, director-general of the CBI, said the report was a “wake-up call” to the coalition government. Businesses are looking for action and have not seen it yet. We are critical of the execution and delivery, and the pace needs to pick up.

Mr Cridland said investment in energy and transport was a priority for the 568 business leaders surveyed. The coalition had announced two major infrastructure plans and a range of initiatives since 2010, but none of the announcements translated into projects on the ground.

We have no option but to keep the lights on…

Whether it is aviation capacity, electricity markets, or funding our roads, the government needs to make some big decisions. We need major new investment in the energy sector if the government is going to keep the lights on in the next 10 years. Energy Advice Line backs the CBI’s findings.

Commercial electricity users need to be confident in the future security, reliability, and cost of the energy they need to keep their organizations running. The situation at the moment is one of great uncertainty, as energy prices continue to rise, and power stations fall out of service. The government needs to act urgently to get a new generation of power stations built.

We need more competition to keep prices low…

This will not only help to secure future supplies but will inject much-needed competition into the UK energy market so that business electricity users get a better deal in terms of price and service.

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