Urgent need for clarity

The urgent need for clarity and a coherent, co-ordinated energy policy for the UK is highlighted in a report published by the London School of Economics aimed at the UK's business sector.

The npower Future Report, 'Demanding times for energy in the UK', examines the key challenges the energy industry is facing and assesses the impact these could have on UK businesses and what could happen if Government does not deliver co-ordinated and coherent policy reform on schedule.

It is predicted that £200bn of new investment is required by 2020 to replace ageing energy infrastructure in the UK and move toward smarter, lower carbon technologies. However, Government reform designed to attract investment relies on finding a balance between cost, carbon and continuity of supply that's acceptable to customers and to the UK economy.

The report says that if the current energy policy receives the required investment and legislative support, there will be low to moderate costs for consumers and low future environmental costs. If Current Intent strays, it could lead to one of three scenarios: New dash for gas; investment shortfall; spiralling costs.

The report also addresses what businesses can do to negate the risks so they can remain competitive and concludes that forward-looking businesses can take control and protect themselves from risk.