A huge 87% of manufacturing businesses are worried about the impact of European energy policy in 2017.  The report follows (but does not respond to) the release of the European Commission’s 'Clean Energy For All Europeans' package, more commonly known as the 'Winter Package'. 

The legislative proposals are part of a package of more than 40 planned measures to standardise the European Union’s energy markets. They come as the UK’s energy policy makers also launch a range of consultations on the future shape of the UK’s energy market as pressure continues to ensure clean, affordable and reliable energy supplies.

Considerable uncertainty surrounds UK energy policy ahead of Brexit, while proposed amendments to the Capacity Market, the rise of storage technologies, pressure to ensure a more flexible and responsive energy market, the proposal to phase out coal generation by 2024 and amendments to the energy efficiency tax landscape are all impacting the market.

David Reed, head of npower Business Solutions said: “The shape of Brexit remains the great unknown. If there is one thing that is highly clear and unlikely to change however, it is that increased system flexibility is going to continue to be a key objective for the government. It is also going to be a considerable opportunity for businesses to bring down their energy costs.

“We were pleased to find that over three quarters (76%) of businesses were aware of the upcoming developments in the energy sector in 2017. The UK remains characterised by a shift towards a more flexible energy market; the need to replace generation capacity as older thermal plants are phased out; and strong pressure to meeting legally binding emissions targets in 2020 and 2050.

“Manufacturers are understandably concerned about the complex bundle of proposals hitting the market. We have been working with our customers to cut through the noise and help them capitalise on the opportunities afforded by those that can flex their load.”

Richard Warren, senior energy & environment policy adviser EEF, the manufacturers’ organisation commented: “The current energy policy framework will continue to leave much energy efficiency and Demand Side Response potential untapped. 2017 needs to see the Government really get to grips with how it can unlock this, reducing costs for all consumers and for those businesses that choose to take action.“